Engine Oil Market

Market Overview

With projection showing the market value will reach USD 55.21 billion in 2024, rising to USD 70.12 billion by 2033, the global Engine Oil market is expected to see constant increase. This comes to a 2.7% compound annual growth rate (CAGR).

By decreasing friction, spreading heat, and prevent wear and rust, motor oil is undispensable for maintaining the performance of internal ignition engines. High-performance lubricants—especially synthetic kinds—are becoming more important as the number of vehicles rises and automotive technologies advance.

Furthermore, regulatory emphasis on fuel economy and excreations control is improves the acceptance of advanced engine oils offering a long services.

Market Dynamics

Market Drivers

Factors Influencing the Market

The worldwide engine oil market is expected to increase consistently, hitting USD 55.21 billion in 2024 and growing to USD 70.12 billion by 2033, with a CAGR of 2.7%. Engine oil is crucial for reducing engine wear, improving fuel efficiency, and ensuring peak performance.

The growing number of vehicles, heightened consumer understanding of maintenance, and emission regulations are driving the demand for high-performance lubricants.

Market Influencers

What’s driving the need for high-quality engine oils?

Growth is being driven by stricter environmental regulations, growing car fleets, and consumer demand for upcoming oil change times. Because of their improved fuel efficiency, for longer time service life, and good thermal stability, synthetic oils are becoming improves well-quality.

For modern engines, OEMs recommend synthetic oils, increasing their use. A combination of consumer-related, technological, and environmental factors are the primary drivers of the growing demand for premium engine oils.

Customers and manufacurers are being motivate customers to use lubricants that helps to cleaner and good effective engine performance by strict international excretions regulations.

High-quality engine oils, particularly synthetic ones, offer improved breakdown resistance and thermal stability, enabling engines to run more effectively and produce fewer emissions.

In what way does electrification impact the market?

Even though EVs reduce the need for lubricants, hybrid cars still require engine oils, usually low-viscosity, specialized kinds. Since HEVs and PHEVs combine electric drive and combustion engines, their growth continues to be significant in the market.

With the growing popularity of electric and hybrid cars, the engine oil industry is changing due to electrification. Since fully electric vehicles (EVs) don’t require engine oil, the demand for lubricants as a whole is lowered.

However, the increase in plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs), which still rely on internal combustion engines in combination with electric powertrains, somewhat offsets the effect.

Special, low-viscosity synthetic motor oils that can function well under typical start-stop conditions and varying engine loads are usually required for these hybrids.

Market Restraints

What is hindering the growth of the engine oil market?

Consumption levels are reduced by longer drain intervals and declining sales of ICE vehicles in developed regions. Additionally, fluctuating crude oil prices have an impact on production costs, which reduces producers’ profit margins.

The global decline in internal combustion engine (ICE) vehicle sales, especially in developed regions where EV adoption is growing, is one of several factors impeding the engine oil market’s growth. This shift poses a long-term risk to lubricant consumption because EVs don’t require engine oil.

Additionally, longer oil change intervals are a result of advancements in engine technology and oil composition, meaning that cars require fewer oil changes over the course of their lifetimes, which lowers overall consumption. 

The price volatility of crude oil, which has a direct impact on the cost of base oils and additives used in the production of engine oil, is another important constraint. Price fluctuations have the potential to reduce manufacturers’ earnings and add unpredictability to the supply chain.

Additionally, some consumers are shifting away from conventional lubricants as a result of growing environmental concerns and regulations pushing industries to adopt cleaner alternatives.

For manufacturers of engine oil, the combination of these factors is creating a more challenging and competitive environment.

Segmental Analysis

By Type:

Synthetic oil is acquired the 58% market shares in the global market in 2024. The worldwide engine oil market is expected to increase consistently, hitting USD 55.21 billion in 2024 and growing to USD 70.12 billion by 2033, with a CAGR of 2.7%.

Engine oil is crucial for reducing engine wear, improving fuel efficiency, and ensuring peak performance. The growing number of vehicles, heightened consumer understanding of maintenance, and emission regulations are driving the demand for high-performance lubricants.

Conventional oil acquired 42% market shares of the global engine oil market. Conventional oil comes from geological formations that are very simple to extract and do not necessary specialized technology to equipment their potential.

Conventional oil is frequently the most cost-effective option since they require significantly less refining and re-engineering. Several automakers still choose traditional engine oils as long as they meet the most recent industry standards.

Furthermore, while conventional motor oils are closer to natural oil than synthetics or half synthetics, they still include essential additives to help reduce engine wear and increase performance.

Advanced conventional oils have additives that can remove existing sludge from oilways and prevent fresh sludge from accumulating. All of these factors are expected to increase the conventional oil market share during the forecast period.

By Grade Type:

Multi-grade oil holds the the most 80% shares of the global market. The obvious reason to use multigrade oil is its superior pumpability in cold weather. In the southern part of the United States where I live, cold weather is described as anything that changes the physical properties of a swimming pool.

Cold weather is something I wasn’t exposed to until I went to college in the North. There I learned that antifreeze is not just coolant for your car. Where I’m from, we would use water in the engine instead, and save money on the antifreeze.

After all, the temperature dropped below 26ºF (-3ºC) only once before I moved away from home, and then it was only for a few hours. However, multigrade was needed in states farther north, and years earlier along the Russian front during the winter of 1943.

Mono garde oil acquired only 20% of the global market shares for the engine oil. The global monograde engine oil market, while exhibiting a slower growth trajectory compared to its multigrade counterpart, remains a significant segment within the broader engine lubricant industry.

Driven primarily by its cost-effectiveness and suitability for older vehicles or specific applications in niche sectors like agricultural machinery and some marine engines, the market size in 2033 is estimated at $2.5 billion.

By End Use:

Passenger cars selling is increasing at 65% of the global market. The global monograde engine oil market, while exhibiting a slower growth trajectory compared to its multigrade counterpart, remains a significant segment within the broader engine lubricant industry.

Driven primarily by its cost-effectiveness and suitability for older vehicles or specific applications in niche sectors like agricultural machinery and some marine engines, the market size in 2024 is estimated at $2.5 billion. 

Commercial vehicles are acquired the 35% market shares of the global engine oil markets. Commercial Vehicle (LCV) Engine Oil market is a dynamic and evolving sector within the automotive industry.

Engine oil plays a pivotal role in ensuring the efficient operation and longevity of light commercial vehicles, which serve various purposes, from urban delivery and passenger transport to off-road and construction applications.

The market is influenced by several key factors, including stringent emission regulations driving the demand for low-viscosity and environmentally friendly engine oils.

Regional Analysis

North America accounted for a 25% of the worldwide engine oil market in 2024. The North America Automotive Engine Oils Market is highly concentrated, with a few major players accounting for a large share of the market.

These players include ExxonMobil Corporation, BP PLC (Castrol), Phillips 66 Lubricants, Motul, Royal Dutch Shell Plc, Chevron Corporation, TotalEnergies, HollyFrontier (PetroCanada lubricants), Valvoline Inc, and AMSOIL Inc. Increasing demand for fuel efficiency engine oils are the most profitable for the North America.

This is due to concerns over rising fuel costs and environmental regulations. Customers are buying for vehicles that use less quantity of fuel, which is increase to a higher selling for engine oils that are produced to improve fuel efficiency. Other key trend is the increase popularity of electric and hybrid vehicles.

Europe is stay with the 20% market shares in thr global markets of engine oils. The Europe Automotive Engine Oil market report shows different opportunities for stakeholders across the gaming ecosystem, driven by evaluate customers preferences, technological inventions, and strategic partnerships.

Additionally, addressing regulatory hurdles, enhancing monetization strategies, and increasing into new markets has been imperative for ensuring sustained growth and competitiveness in the dynamic Automotive Engine Oil landscape in Europe.

The increasing production of car and vehicle fuels in the region has boosted the demand for Automotive Engine oil in Europe as it is accounted as the largest hub for automobile manufacturing with various car manufacturers operating in the region.

The rise of Synthetic oils in Europe because it is free from impurities and do not create sludge or deposits in engines has accelerated the market growth in Europe.

APAC leads with the 40% of the global engine oil market. The Asia Pacific automotive engine oil market is characterized by a confluence of factors driving innovation and transformation.

As the region continues to witness rapid urbanization, industrialization, and automotive proliferation, stakeholders across the value chain are poised to capitalize on emerging opportunities, while navigating evolving regulatory landscapes and consumer preferences.

Adaptability, innovation, and sustainability will remain central tenets guiding the future trajectory of this dynamic market. The market witnessed a prominent preference shift from traditional mineral oils towards synthetic and semi-synthetic variants.

This transition is fueled by the superior performance, improved longevity, and improved protection that synthetic oils offer, aligning with the evolving demands of modern engine technologies.

MEA is having only 15% share of the global engine oil market. In terms of segment, fully-synthetic was the largest revenue generating grade in 2024. The market is expected to grow at a CAGR of 2.9% from 2024 to 2033.

The Middle East region has experienced a significant surge in vehicle ownership, driven by rising disposable incomes, urbanization, and a cultural preference for personal vehicles over public transportation.

The increasing awareness about vehicle maintenance and performance requirements has led to a shift towards premium engine oil products in the Middle East.

Recent Development

1. February 2024, Shell launched a bio-based synthetic engine oil line for hybrid vehicles.
2. November 2023, Exxon Mobil announced upgraded Mobil 1 series featuring extended drain capability and EV- compatible thermal properties