Grand View research has recently published a detailed report projecting that the global automotive lubricants market will reach USD 87.1 billion by 2025. According to the report titled, “Automotive Lubricants Market Analysis By Product (Engine Oil, Gear Oil, Transmission Fluids, Brake Fluids, Coolants and Greases), Competitive Insights, Strategic Framework, And Segment Forecasts, 2014 – 2025” the factors that will spur the growth of this market include growing global urbanization, increase in disposable income in developing countries and the rise in middle class which lead to higher demand for passenger cars and better economic growth. Economic growth in turn leads to more trade, leading to further development of the transport sector and thus higher demand for engine oil to be used in diesel trucks, and light-duty trucks. All these factors together result in higher consumption of lubricants worldwide.
When it comes to analysis by category, the engine oil segment accounts for the major share of the automotive lubricants market which was around USD 34 billion in 2016. Engine oil is used in all kinds of vehicles including passenger cars, diesel trucks, and light-duty trucks in order to minimize engine wear, increase dependability and to help maintain the viscosity.
Other key takeaways from the report are as follows:
- The global automotive lubricants market size was worth USD 57.2 billion in 2014 and is forecast to grow at a CAGR of 3.7 percent to reach USD 87.1 billion by 2025.
- The brake fluid segment is expected to grow at the fastest rate in the period from 2017 to 2025 and accounted for over 12% of the overall volume in 2016.
- Bio-based lubricants are becoming increasingly popular due to their origin, availability and the stable nature of their raw material prices. The favorable attitude of governments towards these lubricant across the globe is expected to have a significant positive impact on their growth.
- The region in the world with the highest consumption is Asia Pacific backed by high passenger car sales and a rapidly developing aftermarket. This region is projected to grow at a CAGR of 3.5% in the period from 2017 to 2025
- The U.S. is a highly matured region for the industry with its dynamics influenced by high level of product innovation, concentration of global majors, and a well-established regulatory framework
- Grease is experienced to show the highest price growth while coolants are expected to experience the slowest price growth during the forecast period. It is expected that the price of coolants will continue to be stable in the forecast period due to the availability of advanced coolants and standard production process.
- Major industry participants include ExxonMobil, Royal Dutch Shell, Total SA and British Petroleum among others
