Automotive Engine Oil Market By Oil Type (Mineral Oil, Synthetic Oil, Semi-Synthetic Oil, High-Mileage Oil, Other), By Engine Type (Gasoline Engines, Diesel Engines, Alternative Fuel Engines), By Vehicle Type (Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Two-Wheelers, Off-Highway Vehicles), By Application (Passenger Cars, Commercial Vehicles, Motorcycles), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles, And Market Forecast, 2025 – 2035

Industry Outlook

The Automotive Engine Oil market accounted for USD 43.6 Billion in 2024 and is expected to reach USD 68.55 Billion by 2035, growing at a CAGR of around 4.2% between 2025 and 2035. The Automotive Engine oil market refers to the consumption and sales of special fluids for automobile engines to decrease wear, improve power, and prolong engine life. They are synthetic, semi-synthetic as well as mineral oils categorized according to the specific type of engine and its working environment.

The key driving forces for growth in this market are higher vehicle production, standards regulations to emissions, and the need for fuel efficiency. This has been driven further by enhancements in engine technologies that have created a demand for high-performance lubricants. It also suffers as a result of its characteristics, such as the conditions of the auto industry, environmental demands, and technological advancements.

Report Scope:

Market Dynamics

Rising global vehicle production increases the demand for quality engine oils

The automotive engine oil market increases with the increasing global vehicle production. Therefore, with an increase in the number of vehicles produced, the demand for appropriate engine oils for better performance, less friction, and better fuel consumption is equally realized. Engine oils are essential to the long life of internal combustion engines, and although the transition is gradually moving towards electric vehicles, they still make up the largest part of vehicular markets. The OICA survey of the global automotive industry revealed that vehicle production in 2023 touched 85 million units, which shows a gradual uplift after the COVID-19 outbreak.

This increase in production increases the consumption of engine oil owing to increased car usage in emerging markets resulting from growing population density and increased income levels. The significantly growing incorporation of premium technologies in engines is also a key driver of the market since it calls for high-performance engine oils.

Growing aftermarket demand driven by increasing vehicle ownership and longevity

Rising ownership of automobiles and the lifespan of vehicles are the main factors that drive the aftermarket demand for automotive engine oils. When innumerable car owners are demanding their vehicles to be used safely both for family and for their business, correct maintenance, including the change of engine oil, is verging on indispensable. The newest cars, most likely to need frequent oil changes, will help increase aftermarket sales.

Information from the Bureau of Transportation Statistics, USA, shows that the 2023 average age for cars has come close to 12.2 years, which is a record high. Their observation goes to support our contention that aftermarket services are becoming more useful as consumers try to preserve their old cars. Further, the increasing trend of awareness about the importance of periodic engine service guarantees high market reach for quality engine oils in the aftermarket segment.

Growing electric vehicle adoption reduces demand for internal combustion engine oils

The rise in interest in electric vehicles (EV) also has a great fixed impediment to the growth of the automotive engine oil market. Specifically, the ICE vehicles do not operate based on conventional internal combustion engines that demand engine oil for lubrication and other maintenance purposes because electric vehicles are not structured that way. Demand for fully electric or hybrid cars because of climate change and favorable government incentives is slowly changing the market demands.

Consumers and car manufacturers demand ecology and energy efficiency, which drives the process of getting rid of ICE vehicles even more persistently. For this reason, the overall requirement for engine oil especially for the common or traditional engines is likely to reduce in the future. This shift poses a sustained factor that threatens the industry in the long run; it forces lubricant manufacturers to seek new ways of surviving.

Rising demand for eco-friendly, synthetic, and bio-based engine oils

The increasing need for environmentally friendly synthetic bio-based engine oils is a major opportunity for the automotive engine oil market. With constantly rising environmental consciousness, both the consumers and the manufacturers are on the lookout for greener solutions that contribute to the small carbon footprint of vehicle servicing. They contain reduced sulfur and soluble copper and possess better power to revitalize and burn fuel as well as exhibit enhanced facility of biodegradation compared with the mineral oils.

This is complemented by improvements in synthetic and biomass-derived formulations which are being used by manufacturers to develop advanced lubricants to meet the performance and environmental management necessities. The change of trends to more environmentally friendly engine oils comply with international tenders calling for environmental conservancy and therefore directing the market to explore new investment opportunities.

Development of advanced lubricants for next-generation automotive technologies

The availability of superior engines and the advent of novel automotive technologies also provide a growth opportunity for the automotive engine oil market. With the advancement in automotive technology such as electric cars, hybrid engines, and more efficient internal combustion engines, there has never been a one-size-fits-all lubricant; one which would be effective in all conditions. These premium lubricants are supposed to increase engine performance, sustain its durability, and improve fuel efficiency, thereby suitable for future-generation engines.

Further, the advances in the chemistries of lubricating oils and the inclusion of smart additives, friction modifiers, and thermal stability properties, create newer opportunities for enhancing the performance of vehicles and making them greener. This should however be seen as a chance where manufacturers of lubricants can tap into the market exploring the needs of modern automotive technologies.

Industry Experts Opinion

“We formulated Monolec Tetra-Syn Engine Oil to provide the perfect balance of extended drain service, improved fuel economy, emission system protection, and increased engine life.”

• John Sander, VP and Chief Information Security Officer at WESCO

Segment Analysis

Based on the Oil Type, the Automotive Engine Oil Market is classified into Mineral Oil, Synthetic Oil, Semi-Synthetic Oil, High-Mileage Oil, and Others. Out of all the continuously growing Automotive Engine Oil segments, Synthetic oil dominates the overall Automotive Engine Oil Market. Synthetic oil is known to deliver better performance than mineral and semi-synthetic kind of oils in terms of lubrication of the engine, reducing friction and even better fuel economy. Due to its high-temperature stability, low oxidation, and extended service span, it is the ideal material of choice for today’s engine, especially in class and sports cars. Consequently, synthetic oil is preferred most in superior car segments that require dependability and sophisticated engine safeguards. It is on the rise due to the development of in-car technology and the growing need to get higher-quality enhanced engine oil.

Based on the Engine Type, the Automotive Engine Oil Market is classified into Gasoline Engines, Diesel Engines, and Alternative Fuel Engines. Currently, the Diesel engines segment is the largest and dominates the Automotive Engine Oil Market more than any other segment. Diesel engines offer greater torque and fuel economy hence demanding engine oils that are specially formulated to handle the additional pressure, higher heat, and increased workloads The Diesel is designed to have increased stress, and high-temperature –output workloads. They have additives that ensure that the soot does not accumulate at the fuel injectors and other parts that can be endangered by this combustion by-product as well as provide a protecting barrier that hedges against wear and tear for longer intervals of time. As the market for diesel vehicles in commercial operation and heavy-duty trucks, as well as in agriculture is still growing, there is still great potential for strong and high-performance engine oils specially developed for diesel engines. This segment has profound impacts on the formulation of engine oil and thus forms the focus of the market.

Regional Analysis

Currently, In Asia Pacific, there is a surge in the Automotive Engine Oil Market due to increasing vehicle sales in the region. Most of these growths are attributed to countries such as China, India, and Japan, with enhanced vehicle manufacturing and improved demands for better-performance engines. There is high pressure influenced by emission norms and regulations forcing the use of synthetic and innovative lubricants that enable improved fuel economy and low emission. Further, the stakeholders using electric vehicles (EVs) have called for synthesizing unique lubricants for electric and hybrid vehicles while internal combustion engine vehicles remain prevalent. The after-market segment is important in the region particularly concentrating on low cost and high durability engine oil. Moreover, increasing car ownership together with economic development and improved living standards in developing regions such as Southeast Asia are also increasing the consumption of engine oil. Its major stakeholders are using available resources to develop new products to meet consumer’s needs in the Asia Pacific region.

The North America Automotive Engine Oil market has great potential for growth due to the rising automotive sector and the rising automobile manufacturing in the area. The demand for engine oils in the region has been raised by the stringent government policies on emissions and efficiency, which naturally puts pressure on manufacturers to design market-capable automobiles that will need superior-quality lubricants. Furthermore, the increasing implementation of improved engine technologies like turbochargers and hybrid systems is creating a market for better and better engine oils. In the present market, the leader is the United States which not only manufactures the products but also uses them and has a healthy demand for aftermarket products. Canada is also a substantial consumer, mainly because of automotive production and auto repair requirements. Major players in the market are employing new strategies aimed at developing a better environment and synthetic products in the market. However, it was disrupted by the COVID-19 pandemic in the early production and sales of vehicles, but it has been on the path to recovery. A gradual transition into electric vehicles as the market demand increases, creates a transition in the engine oil market in North America, concerning the emergence of EV-specific lubricants.

Competitive Landscape

The Automotive Engine Oil Market is highly concentrated; key players are Exxon Mobil Corporation, Royal Dutch Shell, BP, Chevron, and Total SE. These strategic players have already achieved high brand awareness and great distribution coverage, which allows them to supply markets of various segments of vehicles, from cars to commercial vehicles. As there is awareness of the fuel economy, lower emissions, and longer intervals between oil changes, these companies have worked hard in innovating new grades, synthetic oils, and environment-friendly products to compete as per strict global standards.

Developments that have occurred in the market include the advancement of synthetic and enhanced performance engine oil due to technological progress in the design of engines and the efficiency of fuel. For example, ExxonMobil Company has launched its improved Mobil 1 line conventionally aimed at improving the performance of engines, under the context of reducing emissions. Likewise, Shell recently introduced Shell Helix Ultra, which is a new generation of products possessing PurePlus Technology, which offers better fuel efficiency and cleaner engine performance. Furthermore, conversion to increasing levels of bio-based and sustainable oils has seen TotalEnergies and Castrol develop renewable and biodegradable engine oils in response to worldwide sustainable development solicitations. This level of innovation is a key driver for the automotive engine oil market of the future, and it will continue to exert pressure on manufacturers concerning new consumer expectations and environmental standards.

Automotive Engine Oil Market, Company Shares Analysis, 2024

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Recent Developments:

• In May 2024, to investigate potential future opportunities to boost growth and innovation in the energy sector, PETRONAS and Sinopec formed a strategic partnership. The memorandum of agreement concentrated on LNG trading, lubricants, and sustainable development in commodities and specialty chemicals. Beginning in 1997, this collaboration sought to provide a robust energy supply in the Asia Pacific area while assisting decarbonization initiatives in a range of businesses.
• In April 2024, Shell Lubricants India, along with brand ambassador Shahid Kapoor, unveiled an updated line of Shell Advance motorbike oils with limited-edition packaging. The Shell Advance AX7 Synthetic Technology oil, which used Flexi Molecule Technology to boost performance, and the AX5 premium mineral oil, which had enhanced Active Cleansing Technology, were part of the new line. The brand's "Rukna Mushkil Hai" campaign, which celebrated the spirit of ardent riders throughout India, was in line with this approach.

Report Coverage:

By Oil Type

• Mineral Oil
• Synthetic Oil
• Semi-Synthetic Oil
• High-Mileage Oil
• Other

By Engine Type

• Gasoline Engines
• Diesel Engines
• Alternative Fuel Engines

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)
• Two-Wheelers
• Off-Highway Vehicles

By Application

• Passenger Cars
• Commercial Vehicles

• Motorcycles

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• ExxonMobil Corporation
• Royal Dutch Shell plc
• BP plc (British Petroleum)
• Chevron Corporation
• TotalEnergies SE
• Castrol Limited
• Valvoline Inc.
• Phillips 66 Company
• Indian Oil Corporation Limited
• PetroChina Company Limited
• CNPC (China National Petroleum Corporation)
• Lukoil
• Sinopec Corp
• Fuchs Group
• SKF Group

Frequently Asked Questions (FAQs)