Automotive Gear Oil Market Research Report By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Transmission Type (Manual, Automatic, Dual-Clutch), By Viscosity Grade (SAE 75W-90, SAE 80W-90, SAE 85W-90, SAE 90, SAE 140), By Application (Standard, Heavy Duty, Racing, Off-Highway), By Base Oil Type (Mineral Oil, Synthetic Oil, Semi-Synthetic Oil) and By Region (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2032

Global Automotive Gear Oil Market Overview:

As per MRFR analysis, the automotive gear oil market size was estimated at 3.55 (USD Billion) in 2022. The automotive gear oil market industry is expected to grow from 3.68 (USD Billion) in 2023 to 4.99 (USD Billion) by 2032. The automotive gear oil market CAGR (growth rate) is expected to be around 3.45% during the forecast period (2024-2032).

Key Automotive Gear Oil Market Trends Highlighted

The automotive gear oil market is experiencing significant growth due to rising demand for high-performance vehicles and increasing awareness of the importance of gear oil maintenance. The adoption of advanced technologies such as hybrid and electric vehicles is creating new opportunities in the market, as these vehicles require specialized gear oils that can withstand higher temperatures and extreme loads.

Key market drivers include the increasing popularity of automatic transmissions, which require higher-quality gear oils, and the growing use of synthetic gear oils, which offer longer service intervals and improved performance. The adoption of electric and hybrid vehicles is also driving demand for gear oils that can withstand the unique challenges of these powertrains, such as high torque and low-speed operation.

Trends in recent years include the growing use of premium gear oils, which offer superior protection and performance, and the increasing adoption of extended drain intervals, which can reduce maintenance costs and downtime. The market is also seeing a shift towards more environmentally friendly gear oils, which have a lower impact on the environment.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Gear Oil Market Drivers

Rising Demand for Fuel-Efficient Vehicles

Automotive industry is continuously aiming to enhance fuel efficiency and reduce the emission of vehicles. Gear oils for automotive are used to reduce friction and minimize the wear and tear among the various components of the transmission system. They help in contributing to the fuel economy of the automotive. With quickly increasing awareness and concern towards environmental pollution and high fuel prices, there will be a rapid increase in the demand for fuel-efficient vehicles.High demand for fuel-efficient vehicles increases the demand for the market during the forecasted period.

Growing Popularity of Electric Vehicles

The automotive industry is becoming more and more oriented towards the production and acquisition of electric vehicles. Consequently, no traditional gearboxes are required. Therefore, there are concerns with respect to the market in which automotive gear oils are traded. Fortunately, there is also a unique opportunity to make it grow. Electric vehicles will still require lubricants to maintain their engines and other parts free of friction and tear.However, such work will now be done by oils that are compatible with the unique technical characteristics and lubricating properties of electric motors. They must also be protected from severe corrosion and excessive oxidation. Therefore, with the growth of electric vehicles, it is very likely that the market for specialized automotive gear oils that is described above will begin to grow at high rates.

Advancements in Automotive Technology

The Automotive Gear Oil Market is constantly evolving, driven by advancements in automotive technology. The development of new transmission systems, such as continuously variable transmissions (CVTs) and dual-clutch transmissions (DCTs), has created a need for specialized gear oils that can withstand the unique demands of these systems. These advanced transmission systems require lubricants that can provide high levels of friction modification, prevent shudder and vibration, and protect against wear under severe operating conditions.As automotive manufacturers continue to innovate and introduce new transmission technologies, the demand for high-performance automotive gear oils is expected to remain strong.

Automotive Gear Oil Market Segment Insights:

Automotive Gear Oil Market Vehicle Type Insights

The Automotive Gear Oil Market is segmented by Vehicle Type  into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. The Passenger Cars segment held the largest market share in 2023, amounting to nearly 60% of the market revenue. The rise in the production and sales of passenger cars across different countries resulted in passenger cars’ dominance in the automotive gear oil market. Additionally, the demand for such goods as fuel-efficient and reliable vehicle is expected to upscale the growth of this segment.Light Commercial Vehicles  are likely to emerge as the fastest-growing market segment during the forecast period.. The rapid growth of the e-commerce industry, coupled with an increase in last-mile services, is likely to augment the demand for light commercial vehicles used for commercial or logistics purposes. Heavy Commercial Vehicles, such as trucks and buses, are anticipated to hold a stable market share in the following years. The demand for heavy commercial vehicles is likely to be determined by the expansion of the construction and mining industry markets in various developing countries.However, the increasing stringency of emission regulations and the demand for electric or hybrid vehicles are expected to elevate the market penetration rate of these technologies. The market size for Passenger Cars in the Automotive Gear Oil Market is forecast to generate net revenue of around USD 2.4 billion by 2024, which will correspond with a CAGR of 3.6% for the period from 2023 to 2032. The Light Commercial Vehicles market is estimated to gain revenue of nearly USD 0.8 billion by 2024, growing at a CAGR of 4.2% during the same period.The Heavy Commercial Vehicles segment is expected to amount to the net value of around USD 0.4 billion by 2024, growing at a CAGR of 2.9% for the period from 2023 to 2032.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Gear Oil Market Transmission Type Insights

The Automotive Gear Oil Market is segmented by Transmission Type into Manual, Automatic, and Dual-Clutch. Automatic transmission is expected to hold the largest market share in 2023, owing to its increasing adoption in passenger vehicles. Manual transmission is expected to witness moderate growth over the forecast period, due to its lower cost and higher fuel efficiency compared to automatic transmission. Dual-clutch transmission is expected to exhibit the highest CAGR over the forecast period, due to its advantages such as faster and smoother gear shifting, and improved fuel economy.The Automotive Gear Oil Market for Automatic transmission is projected to reach USD 1.97 billion by 2024, growing at a CAGR of 3.5% from 2023 to 2032. The increasing demand for automatic transmission vehicles, particularly in emerging markets, is driving the growth of this segment.

Automotive Gear Oil Market Viscosity Grade Insights

The Viscosity Grade segment of the Automotive Gear Oil Market is categorized into SAE 75W-90, SAE 80W-90, SAE 85W-90, SAE 90, and SAE 140. Among these, SAE 75W-90 and SAE 80W-90 are expected to hold significant market shares in the coming years due to their wide acceptance in various automotive applications. The rising demand for fuel-efficient vehicles is driving the growth of the low-viscosity grades, such as SAE 75W-90, which offer reduced friction and improved fuel economy. Additionally, the increasing adoption of automatic transmissions in passenger cars is contributing to the popularity of SAE 80W-90 grade gear oils, which are specifically designed for use in these transmissions.The Automotive Gear Oil Market revenue for the Viscosity Grade segment is projected to reach USD 1.23 billion by 2024, exhibiting a steady growth rate.

Automotive Gear Oil Market Application Insights

The Automotive Gear Oil Market is segmented by Application into Standard, Heavy Duty, Racing, and Off-Highway. The Standard segment accounted for a large share of the Automotive Gear Oil Market revenue in 2023 and is expected to maintain its dominance throughout the forecast period. This segment includes gear oil used in passenger cars and light commercial vehicles, which constitute a significant portion of the automotive industry. The Heavy Duty segment is projected to grow at a substantial CAGR during the forecast period, driven by increasing demand for gear oil in heavy-duty vehicles such as trucks and buses.The Racing segment is expected to witness significant growth due to rising popularity of motorsports and performance vehicles. The Off-Highway segment is anticipated to expand at a steady pace, fueled by growing demand for gear oil in construction, mining, and agricultural equipment.

Automotive Gear Oil Market Base Oil Type Insights

The Automotive Gear Oil Market is segmented by Base Oil Type into Mineral Oil, Synthetic Oil, and Semi-Synthetic Oil. The Synthetic Oil segment is expected to hold the largest market share in 2023, owing to its superior performance characteristics, such as high viscosity index, low volatility, and excellent thermal stability. The increasing demand for high-performance vehicles is driving the growth of the Synthetic Oil segment. The Mineral Oil segment is expected to witness a steady growth rate during the forecast period, primarily due to its low cost and widespread availability.The Semi-Synthetic Oil segment is expected to grow at a moderate pace, as it offers a balance between the cost-effectiveness of Mineral Oil and the performance benefits of Synthetic Oil.

Automotive Gear Oil Market Regional Insights

The regional market for Automotive Gear Oil Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, accounting for 35% of the revenue. The region is expected to continue to dominate the market over the forecast period, owing to the presence of major automotive manufacturers and a well-established automotive aftermarket. Europe is the second-largest market for Automotive Gear Oil, with a market share of 28% in 2023. The region is expected to witness steady growth over the forecast period, driven by increasing demand for high-performance vehicles.APAC is the fastest-growing market for Automotive Gear Oil, with a market share of 22% in 2023. The region is expected to witness significant growth over the forecast period, driven by the increasing demand for vehicles in developing countries such as China and India. South America and MEA are expected to witness moderate growth over the forecast period, owing to the increasing demand for vehicles in these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Gear Oil Market Key Players And Competitive Insights:

There are many players in the automotive gear oil market, and most of them are interested in improving their performance and creating new innovative products. Therefore, strategic partnerships and collaboration play a significant role in the development of this industry. Speaking specifically, such prominent players in the automotive gear oil market as ExxonMobil, Shell, BP, Chevron, TotalEnergies pay much attention to the development of their own research and development.

At the same time, the competition between these companies is expected to remain high and given the tendency of mergers and acquisitions as one of the main directions in the development of the market, it is possible to speak about its further transformation. Moreover, new entrants in the Automotive Gear Oil Market also appear, being able to come up with some new innovative approaches that current major players would need to consider.

ExxonMobil is one of the leading players in the automotive gear oil market. The company is based in Irving, Texas, and has an excellent reputation for numerous high-quality lubricants and other automotive products. Its advance gear oils meet all the requirements of modern vehicles and provide superior protection of transmissions and differentials from wear and tear, thus extending their lifespan. Also, ExxonMobil has a long tradition of collaboration with major automakers and has a vast reach, which is a significant competitive advantage for the company.

As for Shell, its headquarters is in the Hague, Netherland, and the company is one of the world’s largest energy and petrochemical concerns that produces different automotive lubricants and, among others, gear oils. They are famous for their high thermal stability and extended drain intervals. Also, the company has significant experience in the field of lubricant technology, and in combination with its concern for sustainability, this allows one to consider it one of the most notable competitors in the gear oil market.

Key Companies in the Automotive Gear Oil Market Include:

• Castrol


• FUCHS


• Total


• Shell


• Lukoil


• Eneos


• Valvoline


• BP


• PetroChina


• Sinopec


• Saudi Aramco


• ExxonMobil


• Repsol


• Mobil


• Chevron

Automotive Gear Oil Market Developments

The automotive gear oil market is projected to reach USD 4.99 billion by 2032, exhibiting a CAGR of 3.45% during the forecast period (2024-2032). The increasing demand for fuel-efficient vehicles and the growing popularity of automatic transmissions are driving the market growth. In 2023, the market was valued at USD 3.68 billion.

Key industry participants include ExxonMobil, Royal Dutch Shell, and Chevron. Recent developments include the launch of new products, such as the Mobil Delvac 1 ATF, and the expansion of production capacities by major players.

Automotive Gear Oil Market Segmentation Insights

• Automotive Gear Oil Market Vehicle Type Outlook
  
  
  
  • Passenger Cars
  
  
  • Light Commercial Vehicles
  
  
  • Heavy Commercial Vehicles
  
  
  
  


• Automotive Gear Oil Market Transmission Type Outlook
  
  
  
  • Manual
  
  
  • Automatic
  
  
  • Dual-Clutch
  
  
  
  


• Automotive Gear Oil Market Viscosity Grade Outlook
  
  
  
  • SAE 75W-90
  
  
  • SAE 80W-90
  
  
  • SAE 85W-90
  
  
  • SAE 90
  
  
  • SAE 140
  
  
  
  


• Automotive Gear Oil Market Application Outlook
  
  
  
  • Standard
  
  
  • Heavy Duty
  
  
  • Racing
  
  
  • Off-Highway
  
  
  
  


• Automotive Gear Oil Market Base Oil Type Outlook
  
  
  
  • Mineral Oil
  
  
  • Synthetic Oil
  
  
  • Semi-Synthetic Oil
  
  
  
  


• Automotive Gear Oil Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa