Automotive Engine Oil Market size is set to grow by USD 14.29 billion from 2023 to 2028, Technavio
NEW YORK, March 27, 2024 /PRNewswire/ -- The automotive engine oil market size is set for steady growth in the forecast period from 2024 to 2028, according to a recent market analysis report. With an estimated increase of USD 14.29 billion during this period, the market size is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 4.71%. This growth is attributed to various factors including the rising number of vehicles in use, increasing demand particularly in the Asia-Pacific (APAC) region, and the surging popularity of full synthetic engine oil.
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Key Drivers Fueling Market Growth:
A significant driver propelling the market forward is the growing demand for full synthetic engine oil. Full synthetic engine oil offers numerous advantages over conventional options, leading to heightened consumer demand. Advanced lubricants and chemicals in fully synthetic engine oil enhance its performance, although at a higher cost. Major players such as Exxon Mobil Corp, Shell plc, and Valvoline Inc. are meeting this demand with their offerings, further driving market growth.
Trends Shaping Market Dynamics:
The market is witnessing a rise in strategic alliances among vendors, including collaborations, agreements, and mergers and acquisitions (M&A). These alliances are fostering market growth and innovation. Additionally, advancements in engine design and construction technology are driving improvements in engine fuel technology, further fueling market expansion.
Challenges and Potential Hindrances:
Fluctuating crude oil prices present a significant challenge to market growth. Engine oil production relies on petroleum hydrocarbons, and price fluctuations in crude oil impact production costs and market demand. The unpredictability of crude oil prices poses a potential impediment to market growth in the forecast period.
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Dominant Market Players:
Leading companies in the automotive engine oil market include AMSOIL Inc., BP Plc, Chevron Corp., Exxon Mobil Corp., Shell plc, and Valvoline Inc. These companies are employing various strategies such as strategic alliances, partnerships, and product launches to enhance their market presence.
Segments Driving Growth:
The passenger vehicles segment is expected to witness significant growth during the forecast period. This segment primarily utilizes passenger car motor oil (PCMO), with consumption dependent on factors such as engine type and cylinder displacement. Major players offering engine oil for passenger vehicles include BP Plc, Exxon Mobil Corp, Chevron Corp., Shell Plc, and Valvoline Inc.
Regional Insights:
The Asia-Pacific (APAC) region is forecasted to contribute significantly to global market growth, accounting for 47% of the growth during the forecast period. Factors such as a high population of vehicles and growing consumer awareness about synthetic oil benefits are driving revenue generation in this region.
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Conclusion:
With steady growth expected in the automotive engine oil market, fueled by increasing vehicle numbers, rising demand in APAC, and the popularity of synthetic oils, stakeholders are urged to adapt to evolving market trends and challenges to seize growth opportunities.
Analyst Review
The automotive engine oil market in India is a dynamic landscape shaped by various factors such as vehicle types, servicing frequencies, consumption rates, and the presence of key players. With a diverse range of vehicles traversing Indian roads, from motorcycles to commercial vehicles and passenger cars, the demand for engine oils remains robust.
In the motorcycle segment, where servicing frequencies and engine oil consumption play significant roles, the market is driven by the sheer size of the motorcycle population and their usage rates. This segment witnesses a substantial consumption of engine oils due to frequent servicing requirements, particularly in urban areas with dense traffic conditions. Moreover, motorcycle production and sales contribute to the overall demand for engine oils, indicating a steady market flow.
The passenger vehicle segment, characterized by SUVs and other categories, also contributes significantly to the engine oil market. With existing vehicle fleets requiring regular maintenance and engine oil changes, this segment offers a steady stream of demand. However, there might be fluctuations, such as a dip in engine oil consumption during economic downturns or when vehicle sales experience a slump.
In the commercial vehicle segment, which includes heavy-duty diesel engines and generators, engine oil consumption remains high due to the demanding nature of operations. Companies like Cummins play a pivotal role in this domain, providing engine oils tailored for heavy-duty applications.
The India Automotive Engine Oils Industry is dominated by key players such as Bharat Petroleum Corporation Limited, BP PLC (Castrol), Gulf Oil International, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation Limited. These companies leverage their expertise in marketing and technology collaborations to offer premium engine oil products like Mobil Super Pro and Valvoline.
ExxonMobil Corporation, with its subsidiaries focusing on upstream activities, product solutions, and low carbon initiatives, also contributes significantly to the market. Through global distribution networks and marketing efforts, ExxonMobil ensures a substantial market presence.
Looking ahead, the market size is expected to grow during the forecast period, driven by emerging trends such as the shift towards premium engine oils and the increasing adoption of mineral-based formulations. Moreover, collaborations between industry players and advancements in technology are likely to shape the future trajectory of the automotive engine oil market in India.
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Related Reports:
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ToC
1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
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