The global automotive engine oil industry is set to gain momentum from the increasing demand for lower viscosity motor oil as they are capable of enhancing the fuel economy. Many OEMs have also begun recommending these types of oils to enhance performance. Fortune Business Insights™The research further states that the automotive engine oil industry size was USD 36.49 billion in 2018 and is projected to reach USD 45.66 billion by 2026, exhibiting a CAGR of 2.88% during the forecast period.
The automotive engine oil industry is a vital part of the automotive industry. Engine oil is a critical component in the performance and longevity of an engine, and the automotive engine oil industry provides a range of products to meet the needs of different engines and vehicle types.
Here are some key aspects of the automotive engine oil industry:
Market size and growth: The global automotive engine oil market is expected to grow in the coming years, driven by the increasing demand for passenger and commercial vehicles.
Product types: The automotive engine oil industry provides a range of products to meet the needs of different engines and vehicle types. This includes mineral oil, synthetic oil, and semi-synthetic oil. Synthetic oil is the fastest-growing segment, as it offers better performance and protection compared to mineral oil.
End-use industries: The automotive engine oil industry serves the passenger vehicle, commercial vehicle, and two-wheeler segments. The passenger vehicle segment is the largest end-use industry, accounting for more than 50% of the market share. The commercial vehicle segment is also expected to grow in the coming years, driven by increasing demand for heavy-duty vehicles.
Distribution channels: The automotive engine oil industry uses a range of distribution channels, including retail stores, automotive service centers, and online sales. Retail stores are the most popular distribution channel, as they offer convenience and accessibility to customers
Regulations: The automotive engine oil industry is subject to various regulations related to environmental protection and safety. For example, the European Union has implemented the ACEA (Association des Constructeurs Europeens d’Automobiles) engine oil specifications, which are designed to ensure the quality and performance of engine oils.
Overall, the automotive engine oil industry is expected to continue to grow in the coming years, driven by increasing demand for passenger and commercial vehicles, the shift towards synthetic oil, and the adoption of online sales channels.
Diesel Segment to Grow Significantly Backed by Cost-effective Nature
In terms of engine type, the industry is segregated into alternative fuels, petrol, and diesel. Out of these, the diesel segment procured 43.38% automotive engine oil industry share in 2018. This growth is attributable to the cost-effective nature of diesel engines, as compared to the petrol ones. Also, these are approximately 40% more efficient than the petrol engines because they possess more energy. The combustion process reduced the emission of carbon dioxide and is efficient.
Rising Number of Vehicles to Favor Growth in Asia Pacific
The industry is geographically classified into Europe, the Middle East and Africa, North America, Asia Pacific, and South America. Amongst these, Asia Pacific generated USD 12.41 billion in 2018 in terms of the industry revenue. It is considered to be one of the fastest-growing and largest regions in the industry because of the rising number of vehicles present in countries, such as Thailand, India, and China.
