DUBLIN, July 27, 2022 /PRNewswire/ — The “Engine Oil Market – Global Outlook and Forecast 2022-2027” report has been added to ResearchAndMarkets.com's offering.
The engine oil market is provided for the forecast years 2022 to 2027 and the base year of 2021. The market is segmented as per End Use, Oil Type, and Geography for the years considered. The report provides a holistic approach to the engine oil market to enable customers to analyze the market efficiently.
The primary role of engine oil is to lubricate the engine parts to minimize friction and overheating. It also performs a variety of secondary functions. It aids in the cleaning and cooling of engine parts and the prevention of rust and corrosion accumulation on the piston.
The engine oil market is changing as the customers demand good quality and higher performing oil, which would enhance the vehicle's fuel economy with better engine performance. Increasing the shelf life of the engine, reducing carbon footprint, supplying low-viscosity engine oils to improve fuel economy, and meeting changing vehicle emission standards set by various government entities are all examples of continuous innovation and advancements in catering to diverse automotive needs. The increasing use of passenger cars, commercial vehicles, and the rapidly growing transportation industry in the emerging economies have boosted the market.
Drivers: Rapid Infrastructure Development Increasing the Demand for Heavy Equipment
The infrastructure and construction industry is essential for the overall economic growth of the world. Adequate infrastructures such as road and railway transport systems, ports, power, and airports are needed to integrate the country's economy with other world economies.
In recent years infrastructure development has grown substantially across the globe, and due to this, the demand for heavy equipment has increased. Generally, heavy equipment refers to heavy-duty vehicles used for construction and mining work; therefore increase in heavy equipment will ultimately increase the demand for engine oil.
In addition, emerging countries have taken advantage of foreign direct investment and helped MNCs build various infrastructure and construction projects in multiple countries. Also, new industrial policies implemented by governments of emerging economies helped increase the production capacity of heavy equipment vehicles.
The infrastructure and construction industry has shown rapid growth worldwide because of low-cost raw materials, low cost of skilled labor, and increased foreign direct investment (FDI).
Opportunities: Increasing Demand for Good Quality Engine Oil due to Stringent Emission Regulation
Governments across the globe have been creating awareness about the negative impacts of greenhouse gas emissions; because of that, various environmental agencies are working closely with governments of multiple countries. As a result, various governments worldwide have laid down stringent emission regulations for vehicles to reduce their environmental impact.
Therefore, many manufacturers have taken these regulations as an opportunity to invest in R&D so that they can develop products that will follow these emission regulations and deliver the better performance of the engine. In addition, countries like India, China, US, Germany, UK, and France have laid down emission norms that will decrease fuel consumption and offer better performance.
All the above points will increase the demand for good quality engine oil. Various automobile manufacturers such as Ford (US), Mazda (Japan), McLaren (UK), Toyota (Japan), and Porsche (Germany) have formed a strategic partnerships with various manufacturers such as Shell PLC (UK), ExxonMobil (US), and Gulf Oil (US) to develop engine oils compatible for modern engines which follows the emission regulations.
Also, the developments in engine design, engine assembly, piston design, and crankshaft systems have created an opportunity for engine oil manufacturers to develop high-performing and efficiency-driven engine oils.
Challenges: Constant Fluctuation in Crude Oil Prices
Crude oil is one of the most critical factors influencing international economic development because crude oil products are used in practically every machine. The transportation sector throughout the world is entirely reliant on petroleum products such as gasoline and diesel fuel.
Also, different types of lubricants are used for the well functioning of transport vehicles. In addition, many countries also rely extensively on petroleum fuels to heat their homes, cook their food, and generate power. Petroleum products derived from crude oil and other hydrocarbon liquids account for approximately one-third of global energy use. Volatile oil prices have the potential to send shockwaves throughout the global economy.
Changes also influence oil prices in supply and demand. Oil is a necessity and is in high demand; market forces primarily determine its price. As crude oil is the primary raw material required to manufacture base oil, engine oil consists of 80% to 90% of base oil, and constant fluctuations in crude oil prices affect engine oil prices.
Automotive engine oil is the most commonly used lubricant in vehicles. The automotive engine oil market occupied almost 75% of the global engine oil market share in 2021.
The automotive engine oil market is projected to grow at a CAGR of more than 5% from 2022 to 2027. Engine oil plays a vital role in engine performance, protecting against wear and tear of moving parts. Engine oil consists of base oils and various additives, giving a broad spectrum of properties. Global engine oil products are broadly used in various industries such as automotive & transportation, heavy equipment, power generation, agriculture, woodworking, textile, and others.
Engine oil is generally available in three oil types: fully synthetic, semi-synthetic, and mineral oil. All three oil types have some advantages, but semi-synthetic engine oil is the largest oil type segment in the market. Semi-synthetic oils are a mixture of mineral oils and fully synthetic lubricants. Semi-synthetic oil is more expensive than mineral oil but less expensive than fully synthetic oil, which helps consumers to get premium quality engine oil at an economical price. Semi-synthetic oils offer similar properties to fully synthetic, such as increased engine performance, excellent parts protection, and optimized performance.
The global engine oil market is diverse. APAC is the leading market for engine oil because of the low cost of labor and abundant availability of raw materials. APAC will dominate the market through the forecast period. However, there are many countries with a high scope for expansion that will challenge the dominance of APAC.
COMPANY AND STRATEGIES
The key players have undertaken various strategies to grow in the engine oil market. Companies in the industry compete strategically. The growth in sustainable processes and initiative has been a challenge for all companies globally. Investments in R&D, technological advancement, and environmental and economic difficulties drive the demand for innovative and sustainable engine oil products.
Some major players in the market include Exxon Mobil Corporation (US), British Petroleum (UK), Shell (UK), Gulf Oil (US), Idemitsu (Japan), Castrol (US), Fuchs (Germany), and Chevron Corporation (US). These players have adopted strategies such as expansion, acquisitions, new product development, joint ventures, and others to increase their revenues in the engine oil market.
Other Prominent Vendors
Bharat Petroleum Corporation Limited
Gazpromneft – Lubricants Ltd
GS Caltex Corporation
Gulf Oil International limited
Hindustan Petroleum Corporation Limited
Idemitsu Kosan Co., Ltd.
Indian Oil Corporation Limited
Kuwait Dana Lubes Company
Petro Canada Lubricants Inc.
Petroliam Nasional Berhad (PETRONAS)
Ravensberger Schmierstoffvertrieb GmbH (Ravenol)
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
8 Executive Insights
8.1 Engine Oil Market – Global Forecast (2021-2027)
8.2 Market Synopsis
8.2.1 Market Trends
8.2.2 Segment Review
8.2.3 Companies & Strategies
9 Market Opportunities & Trends
9.1 Demand for Passenger Cars in Emerging Economies
9.2 Demand for Heavy Equipment
10 Market Growth Enablers
10.1 Demand for High-Quality Engine Oil
10.2 Industrialization of Emerging Economies
11 Market Restraints
11.1 High Demand & Production of Electric Vehicles
11.2 Fluctuations in Crude Oil Prices
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Five Forces Analysis
13.1 Market Snapshot & Growth Engine (Value)
13.2 Market Snapshot & Growth Engine (Volume)
13.3 Market Overview
13.4 Automotive & Transportation
13.5 Heavy Equipment
13.6 Power Generation
14 Oil Type
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Snapshot & Growth Engine (Volume)
14.3 Market Overview
14.4 Semi Synthetic
14.5 Fully Synthetic
15.1 Market Snapshot & Growth Engine (Value)
15.2 Market Snapshot & Growth Engine (Volume)
15.3 Geographic Overview
For more information about this report visit https://www.researchandmarkets.com/r/qfw5wa
Research and Markets
Laura Wood, Senior Manager
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