Asia Statistics Representing Two-Wheeler 4T Oil Market Scenario
Four-stroke oil, abbreviated as 4T, is used in four-stroke engines where oil and gasoline are placed separately. Two-wheelers with a four-stroke engine require different lubrication than two-stroke two-wheelers as they do not make use of petrol mixed with lubrication oil. Four-stroke engines fitted in two-wheelers are similar to those used in cars to some extent. A separate reservoir for oil sump in the engine lubricates and greases various moving parts in the engine.
The Asia two-wheeler 4T oil market was valued at USD 1,619 million in 2017 and is forecast to reach USD 2,367 million by 2025, with a CAGR of 4.9%.
Increasing Demand for Motorcycles & Scooters
The demand for vehicles such as motorcycles and scooters is increasing with rising disposable income, and subsequently, the demand for engine oil is on an upward trend. The steady rise in automobile sales, particularly in emerging countries, is fueling the growth of the Asia two-wheeler 4T oil market.
The growing use of two-wheelers as the primary mode of transportation, increasing mobility due to urbanization, aspiration to possess a vehicle, and growing demand for goods carriers from small and medium scale business are driving the demand for scooters and motorcycles, which is positively influencing the growth of the Asia two-wheeler 4T oil market.
Use of 4T Engine Oil for Enhancing Vehicle Performance & Compliance Purposes
Contemporary engine designs are the result of continuous improvisation toward excellent performance, higher efficiency, and compliance with standard environmental emission regulations from engine oils, which are satisfied by the 4T engine oil. The oil ensures the easy ignition of the vehicle with less fuel consumption as well as less wear. Additionally, the oil not only enhances vehicle performance but also protects gears from corrosion, facilitating easy gear shifts.
Introduction of EVs
Advanced technology and research and developmental activities have created a platform for electric vehicles, which will reduce greenhouse gas emissions and harsh environmental impacts on road transport and preserve natural and sustainable energy resources. As per the International Energy Agency, over 750,000 electric cars were sold in 2016, and the global electric car stock grew to more than 2 million. Globally, key motor manufacturers are focusing on exploring numerous opportunities. For instance, Ford has recently announced a plan to invest USD 11 billion in electrification by 2022, while every Volvo from 2019 will have an electric motor. This factor directly can have a negative impact on the growth of the 4T oil market and may restrict further market expansion.
Mineral-Based Oil Segment to Account for the Largest Value Share by Type
There are three key types of 4T engine oil, namely synthetic oil, semi-synthetic oil, and mineral-based oil. Based on type, the mineral-based oil segment accounts for the largest value share, followed by the semi-synthetic 4T engine oil and synthetic 4T engine oil segments. Mineral-based oil, a basic form of oil, is most commonly used in a majority of the vehicles. It is a refined petroleum oil treated to perform across a wide temperature range and reinforced with other additives to comply with the specific requirements of a two-wheeler. Mineral oil-based lubricants offer better solubility with additives and enhanced compatibility with seals. Additionally, they are cost-effective than the other two varieties of oil.
Motorcycle Segment to Account for the Largest Value Share by Application
The burgeoning automotive industry has seen a tremendous rise in the demand for motorcycles and scooters. On the basis of application, the motorcycle segment holds the largest value share, while the scooter segment is expected to record the highest growth rate. A majority of motorcycles use four-stroke engine oil, and a single unit of the engine encompasses clutch and the entire gearbox. Therefore, a high-grade 4T oil is always recommended for motorcycles. 4T oil is formulated comprehensively to enhance and optimize performance for specific motorcycles’ engine. TOTAL HI-PERF 4T RACING 10W-40, TOTAL HI-PERF 4T SPORT+ 10W-40, TOTAL HI-PERF 4T SPECIAL 10W-40 and TOTAL HI-PERF 4T SPORT 10W-40 are some examples of motorcycles four-stroke transmission.
China to Lead Growth of the Asia Two-Wheeler 4T Oil Market
The Asia two-wheeler 4T oil market is witnessing steady growth on account of a prospering automotive industry and rising demand for automobiles from the urban population. As per the U.S.-based consultancy firm Kline & Co., the emphasis on fuel economy and modernized vehicle practices drive the demand for synthetic, high grade, and lighter viscosity lubricants in Asia. With a growing population, the demand for automotive lubricants is expected to uplift and reach almost half the global demand.
China led the Asia two-wheeler 4T oil market in terms of consumption with a total share of 55% in the year 2017. The market in China was valued at USD 1,679 million in 2017 and is projected to reach USD 2,541 million by 2025, with a CAGR of 5.4%. The automotive industry in China has experienced significant growth in the last decade, owing to rapidly growing vehicle sales. Expanding vehicle production and increasing disposable income are projected to drive the China four-stroke engine oil market during the assessment period.
Some of the key players operating in the Asia two-wheeler 4T oil market include Royal Dutch Shell plc. (The Netherlands), Castrol Limited (The U.K.), Exxon Mobil Corporation (The U.S.), Indian Oil Corporation Limited (India), Bharat Petroleum Corporation Ltd. (India), Chevron Corporation (The U.S.), FUCHS Group (Germany), Total S.A (France), PETRONAS (Malaysia), and Motul (France).
While the global market has a number of key players holding substantial value shares, five key players — Royal Dutch Shell plc, Castrol Limited, Exxon Mobil Corporation, Indian Oil Corporation Limited, and Bharat Petroleum Corporation Ltd. — dominate the market.
Royal Dutch Shell plc. is one of the leading players in the Asia two-wheeler 4T oil market owing to its strong revenue, product portfolio, and geographical presence? The company pursues a number of strategies, expansion being one of the notable ones. In November 2017, Shell opened a lubricant and grease production plant in Singapore, which can produce 430 million liters of lubricant each year. The production facility — the second largest in Asia-Pacific and the third-largest in the world — helped Shell strengthen its marine lubricant business as Singapore is the World’s second-busiest port. In May 2018, Shell Brasil Petroleo, a subsidiary of Shell, won a new four deep-water exploration block, making 18 blocks operational offshore Brazil.
Exxon Mobil Corporation undertook three consecutive expansion plans, two in 2017 and one in 2018.
Indian Oil Corporation Limited completed three expansions all together in April 2018.
Asia Two-Wheeler 4T Oil Market Segmentation
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