Automotive Lubricants Market Share

Growing demand for synthetic lubricants is driving the market growth

Market CAGR for automotive lubricants is driven by the rising demand for synthetic lubricants. Mineral oils have undergone substantial processing to enhance their performance characteristics and satisfy the needs of contemporary automotive technologies, resulting in synthetic lubricants. Environmentally friendly and biodegradable lubricants are also covered in this section. In the past, synthetic lubricants were viewed as high-end goods with limited market penetration. Synthetic lubricants, however, are catching up as environmental issues and engine technology advance. These formulations provide longer oil drain intervals than comparable mineral lubricants to meet consumer demand.

Synthetic lubricating oils also provide advantages such as increased hardware compatibility, lower vehicle emissions, and better fuel efficiency. These characteristics accelerate the use of synthetic lubricants, opening up new market expansion prospects.

The market acceptance of automotive lubricants is boosted by factors including their durability and vehicle protection. They defend against damage to a vehicle's systems and parts by drastically reducing friction between the pieces. Additionally, the need for low-viscosity and better-performing lubricating oils is continuously growing due to the industry's use of smaller and more complicated automotive systems. This is anticipated to support the invention and development of premium lubricating oils in the upcoming years.

Additionally, rising standards for high performance in automobiles encourage using new products. Automotive lubricants are essential for ensuring that consumer and industrial vehicles operate effectively in harsh weather situations. For instance, tractor engine oils help improve hardware compatibility of unwavering toughness and quality while safeguarding and ensuring the high performance of the tractor in harsh weather and field situations. They are designed to support a vehicle engine's correct operation and system overheating between -40°C and 250°C. The growth of the automotive lubricants industry will be boosted by its superior features and advantages over the foreseeable future.

Thus, driving the automotive lubricants market revenue.

March 2024

Savsol Lubricants, a market leader in automotive and industrial lubricants, has introduced Savsol Ester 5, a biodegradable lubricant aimed at high-end applications, automobiles, and railways.

Unlike other vehicle lubricants that use petroleum derivatives, Savsol Ester 5 is created from edible oil fatty acid and compounds developed in-house by the firm.

Savita Oil Technologies is currently the sole manufacturer of Ester 5 lubricants in India, supplying Harley Davidson, Hero MotoCorp, Mahindra & Mahindra, and Tata Motors.

The business also anticipates the application of Ester 5 lubricants in EV batteries and super fast train coaches since they leave less deposit in engines and minimize friction, resulting in improved overall mileage.

The Global Automotive Lubricants Market Industry is experiencing growth driven by the rising production of vehicles worldwide. In 2024, the market is projected to reach 99.8 USD Billion, reflecting the increasing demand for automotive lubricants as manufacturers strive to enhance vehicle performance and longevity. The automotive sector is expected to witness a surge in production rates, particularly in emerging economies, which may contribute to the overall demand for lubricants. This trend indicates that as more vehicles are produced, the need for high-quality lubricants to ensure optimal engine performance becomes paramount, thereby propelling the market forward.

The rise of electric vehicles (EVs) is emerging as a transformative factor in the Global Automotive Lubricants Market Industry. Although EVs require fewer lubricants compared to traditional internal combustion engine vehicles, the shift towards electrification is prompting manufacturers to innovate and develop specialized lubricants for EV components. This includes lubricants for electric drivetrains and cooling systems, which are essential for optimal performance. As the market for EVs expands, it is likely that the demand for these specialized lubricants will also grow, indicating a shift in market dynamics and potentially leading to new opportunities for lubricant manufacturers.

An increasing awareness of the importance of regular vehicle maintenance is propelling the Global Automotive Lubricants Market Industry. Consumers are becoming more informed about the role of quality lubricants in prolonging engine life and enhancing vehicle performance. This trend is evident in the rising sales of automotive lubricants, as vehicle owners seek to optimize their investments. Educational campaigns and marketing efforts by lubricant manufacturers are further driving this awareness. As a result, the demand for high-quality lubricants is expected to rise, contributing to the overall market growth and potentially increasing the market value significantly in the coming years.

Technological innovations in lubricant formulations are significantly influencing the Global Automotive Lubricants Market Industry. The introduction of synthetic and semi-synthetic oils, which offer superior performance and protection, is likely to drive market growth. These advanced lubricants can enhance fuel efficiency and reduce emissions, aligning with global environmental standards. As consumers become more aware of the benefits of using high-performance lubricants, the demand for these products is expected to rise. This shift towards technologically advanced lubricants suggests a potential increase in market value, contributing to the projected growth from 99.8 USD Billion in 2024 to 153.8 USD Billion by 2035.

The Global Automotive Lubricants Market Industry is increasingly shaped by stringent regulatory frameworks aimed at reducing environmental impact. Governments worldwide are implementing regulations that mandate lower emissions and improved fuel efficiency, which in turn influences lubricant formulations. Manufacturers are compelled to develop eco-friendly lubricants that comply with these regulations, thereby driving innovation in the sector. This regulatory landscape not only fosters the development of sustainable products but also enhances market competitiveness. As the industry adapts to these changes, it is likely to see a steady growth trajectory, with a projected CAGR of 4.01% from 2025 to 2035.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive lubricants market, grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the automotive lubricants industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  automotive lubricants industry to benefit clients and increase the market sector. In recent years, the automotive lubricants industry has offered some of the most significant medical advantages. Major players in the automotive lubricants market, including Chevron Corporation (US), Royal Dutch Shell PLC (Netherlands), BP PLC (UK), American Synthol, Inc. (US), and others, are attempting to increase market demand by investing in research and development operations.

Valvoline Inc manufactures, markets, and sells vehicle maintenance products, primarily lubricants, to retailers, installers, and customers. Engine oil, heavy-duty engine oil, motorcycle oil, grease and brake fluid, and other goods are available from the company. Geographically, the United States of America generates the majority of its revenue. In April 2021, Valvoline Inc. introduced ValvolineTM High Mileage 150k with MaxLifeTM Plus Technology Synthetic Blend, the first engine oil specifically engineered to satisfy the needs of engines with more than 150,000 miles.

The product's revolutionary composition minimizes oil consumption in older, high-mileage engines, while its Moly Additive ProtectionTM delivers superior wear protection, boosting engine efficiency and power.

ExxonMobil is a  integrated oil and gas business that discovers, produces, and refines oil.  With a total  refining capacity of 4.6 million barrels of oil per day, the firm is the world's largest refiner and one of the top producers of common and specialized chemicals worldwide. In March 2022, ExxonMobil Lubricants Pvt. Ltd. formed a cooperation with Nissan Motor India to supply lubricants to the passenger vehicle (PV) aftermarket. The agreement will begin in April 2021, with ExxonMobil supplying significant engine oils to Nissan India that meet India's BS-VI specifications.

It will also be compatible with Nissan, BS-III or BS-IV passenger vehicles.

The American Petroleum Institute divides base oil into five groups: 1–3 are sourced from crude oil, 4 are synthetic oils, and 5 are the most trustworthy esters.

According to Gautam N Mehra, Chairman of Savita Technologies, the use of Ester 5 lubricants in India is restricted to high-end automobiles because to their expensive cost, and the industry relies on imports for supplies. Savsol Ester 5 will be a big import substitution, and the business is looking into blending Ester 5 lubricants with synthetic oils to make them more cheap for the public, he added.

In an effort to reach a larger audience, the business has appointed Bollywood young sensation Sidharth Malhotra as Brand Ambassador for Savsol Lubricants.

Mehra said that Group 5 Esters are the most dependable and high-performing lubricating fluids, and they should only be utilized in situations where failure is not an option.

Savita Technologies sees significant prospects for Ester-5 lubricants in the aviation (jet engines), trains, data centers, construction equipment, and renewables (floating solar and wind gear boxes) sectors