Automotive Lubricants Market to Record Sturdy Growth by 2024
The global automotive lubricants market is choc-o-bloc with numerous companies of varying sizes featuring a highly fragmented and competitive vendor landscape, states Transparency Market Research (TMR) in a new report. Top shots namely Royal Dutch Shell plc, BP plc., and ExxonMobil Corp. held only 31.6% share in the overall market in 2015. While leading players operate globally, small players largely serve regional and local markets. Large product offerings to serve a varied customer base gives an edge to big players over their smaller counterparts.
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With the increasing entry of regional players to serve local markets, the competition in the automotive lubricants market is likely to escalate in the forthcoming years, says the analyst of the study.
As per estimates of the TMR report, the global automotive lubricants market is likely to be worth US$78.92 bn by the end of 2024 expanding at a CAGR of 4.1% between 2017 and 2024. The demand in the market translated into a revenue of US$59.40 bn in 2017. Vis-à-vis volume, engine oil is estimated to be attractive segment through the forecast period. In terms of base oil, mineral oil segment is anticipated to display spiked market share because of its affordable price range. Mineral oil is also used for the manufacture of semi-synthetic blends further contributing to the lead of this segment. On the basis of distribution channel, aftermarket distribution channel contributes more than 50% sales of automotive lubricants.
Exponential Growth of Automotive Sector in Asia Pacific a Boon for Market
Majorly fuelling the automotive lubricants market is exponential growth in the number of vehicles worldwide. Automotive lubricants improve efficiency of vehicles and increase operational life of engines by reducing friction. This is because traffic congestions leading to frequent stop-and-go, idling, and frequent short trips reduce vehicle efficiency that needs to be restored using automotive lubricants. While new vehicles require relatively low maintenance, frequent oil change and garage trips increase to keep vehicles going.
The growth of the automotive sector in Asia Pacific coupled with rising vehicle ownership has fueled the automotive lubricants market in the region. Vehicles require oil change and other maintenance as long as they are in use.
In the last decade, BRIC countries have emerged as key regional automotive markets. These nations have emerged as large centers for automotive manufacturing for both export as well as domestic use. This offers immense growth opportunities to the automotive lubricants market in these countries.
Preference for Low-cost Affordable Lubricants in Developing Economies Hampers Growth
Despite lucrative growth prospects, the worldwide automotive lubricants market faces growth challenges. Firstly, high price of fully-synthetic or semi-synthetic lubricants is limiting their sales. For instance, high demand for synthetic lubricants in North America and Europe environmental regulations and customer preference for quality automotive lubricants account for their high prices. On the contrary, in developing regions, customer preference for affordable automotive lubricants over quality account for low sales of synthetic and semi-synthetic lubricants.
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In addition, increasing trend of using biofuels for vehicles is also likely to limit the demand for automotive lubricants in the coming years. For example, in the U.K., newly introduced bus fueled by human waste is expected to be sustainable for the environment by curbing emissions in polluted towns and cities. However, the larger the bio-components in a fuel higher is the oil filling that combustion engine suffers.
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