Global Statistics Representing Engine Oil Market Scenario
A good engine oil must protect the engine against corrosion and wear and has to work despite temperature fluctuations. It is essential for manufacturers to strike a balance between engine oil thickening at high and low temperatures to provide a product that maintains its viscosity at varying temperatures, thereby facilitating adequate lubrication between moving parts.
Increasing demand and use of automobiles and rise in the sales and production in the automotive sector are primarily responsible for the growth of this market. Growth is expected to be especially concentrated in emerging and developed economies of Asia-Pacific and Europe, backed by increasing population and growth in disposable income. According to figures released by the International Organization of Engine Vehicle Manufacturers (OICA), the total number of vehicles sold in 2017 was around 97 million units. Additionally, there are stringent emission norms that aim at regulating the air pollution caused due to carbon emission from automobiles.
The global engine oil market is expected to register a CAGR of 4% during the forecast period and attain a value of USD 49.27 million by 2026.
The global engine oil market is segmented on the basis of grade, engine type, and vehicle type.
On the basis of grade, the market is segmented as mineral, semi-synthetic, and synthetic. The synthetic grade segment is expected to have the largest share in this market, owing to the ability of this grade of engine oil to protect engine parts from friction, corrosion, and wear and tear. Additionally, increasing consumer awareness about the use of good quality lubricants is also expected to drive this segment of the market.
Based on engine type, the market can be segmented into gasoline, diesel, and alternative fuel. Diesel engine type is expected to grow at the highest CAGR owing to its application in passenger, light commercial and heavy commercial vehicles as well as heavy equipment. However, significant rise in the research and development of vehicles running on alternative fuels is expected to invigorate this segment.
On the basis of vehicle type, the market is segmented as passenger cars, LCVs, heavy-duty vehicles, and engine cycles. Passenger cars are expected to be one of the most significant gainers in this market, owing to the number of passenger cars being sold, which is more than sales in any other segment. For instance, in 2017, the number of passenger cars sold were around 71 million units. Light commercial vehicles too are likely to register significant growth in this market.
Geographically, the global engine oil market is segmented into four regions, namely North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia-Pacific is expected to witness exceptional growth in this market. In 2017, China recorded considerable vehicle sales, i.e. around 29 million units. Japan and India too registered impressive numbers of about 5 million and 4 million in vehicle sales respectively in the same year. Stringent emission norms are expected to drive the engine oil market. For instance, the China 5 standards related to regulations for evaporative and tailpipe emissions apply to gasoline and diesel-powered vehicles.
North America is expected to witness significant growth in this market. This is attributed to factors such as the presence of economically developed nations such as the U.S. and Canada. Stringent environment regulations and emission norms are expected to witness a surge in the engine oil market. Moreover, the U.S. is home to some of the major oil and lubricant companies such as Pennzoil and Castrol, amongst others. Also, diesel-powered vehicles and light commercial vehicles are widely used in the U.S., owing to lower fuel prices and superior automobile quality to obey emission norms.
Europe is expected to witness considerable growth in the engine oil market. This region is home to a large number of automobile manufacturing companies such as Daimler and Volkswagen, amongst others. These companies have undertaken certain research initiatives to reduce carbon emissions from their vehicles, which also entail testing the engine oil that works best with their engine.
LAMEA is expected to witness healthy growth in this market as Latin America is exhibiting significant demand for cares; the region imported a significant number of cars in 2016. Additionally, there have been significant developments in construction activities in Saudi Arabia with various government initiatives to attract foreign investments.
Some of the key players in the engine oil market are Valvoline, Wurth Group, Castrol, Exxonmobil, Total, Eni Gmbh, Amsoil Inc., Petronas, Fuchs Petrolub, Sinopec Lubricant Company, Lotos, and Motul.
Engine Oil Market Segmentation
By Engine Type
By Vehicle Type