Automotive Engine Oil Market: Fuel Efficiency and Emission Norms

The global automotive engine oil market was valued at USD 41.2 billion in 2023 and is projected to reach USD 52.9 billion by 2030, growing at a CAGR of 3.7% from 2024 to 2030. This growth is driven by the rise in global automobile production and the increasing demand for both synthetic and conventional engine oils.

Additional growth factors include rising disposable incomes, rapid urbanization, and technological advancements in engine design. The adoption of turbocharged engines and enforcement of stricter emission regulations have increased the need for high-performance engine oils. Moreover, the automotive aftermarket expansion and the rising vehicle population, especially in developing economies like those in Asia Pacific, are further supporting market growth.

Technological innovation in automotive engine oils is advancing in response to modern vehicle requirements. The increasing popularity of hybrid vehicles and innovations in engine components have led to design improvements aimed at enhancing fuel efficiency and reducing emissions. Engine oils today are tailored for specific applications using a blend of base oils and performance-enhancing additives.

Engine oil plays a critical role in reducing friction and wear, regulating engine temperature, sealing components to prevent leakage, and protecting against rust, corrosion, and extreme pressure shocks. These essential functions, along with growing demand for synthetic formulations, are creating new opportunities for manufacturers to expand their product offerings.

Key Market Trends & Insights

• Asia Pacific held the largest revenue share of 45.6% in 2023, driven by the strong presence of automotive manufacturers in countries like China, India, and Japan. The region has seen considerable development in high-performance engine oil formulations, which are widely used in motorcycles, passenger vehicles, and commercial vehicles.

• By product, 10W-60 oil led the market in 2023, accounting for 15.1% of revenue share. Known for its performance in extreme temperatures and harsh conditions, 10W-60 oil is fully synthetic and offers superior durability and viscosity stability, meeting the demands of advanced modern engines.

• In terms of application, passenger cars dominated the market with a 51.3% revenue share in 2023. Rising global demand for personal transportation—driven by changing consumer preferences, rapid urbanization, and increasing income levels—is significantly contributing to the demand for engine oils in this segment.

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Market Size & Forecast

• 2023 Market Size: USD 41.2 billion

• 2030 Projected Market Size: USD 52.9 billion

• CAGR (2024-2030): 3.7%

• Asia Pacific: Largest market in 2023

Key Companies & Market Share Insights

The automotive engine oil market is competitive, with several key companies focusing on innovation and product development to strengthen their market position. Major players include:

• Shell

• CASTROL LIMITED

• Petroliam Nasional Berhad

• Repsol

• Exxon Mobil Corporation

• BP p.l.c.

These companies are actively investing in advanced formulations and strategic partnerships to expand their presence and remain competitive in the evolving landscape.

• Valvoline is a key player in the sector, offering lubricants, greases, and automotive chemicals for passenger vehicles through a network of company-owned and franchised service centers. It is also a major exporter of engineering goods and diesel engines.

• Motul, a well-known French brand, specializes in high-performance automotive lubricants. Its extensive product portfolio includes fully synthetic and mineral oils designed for enhanced engine longevity and performance. Motul is recognized for its innovation and quality in both everyday and motorsport applications.

Key Players

• Shell

• CASTROL LIMITED

• Petroliam Nasional Berhad

• Repsol

• Exxon Mobil Corporation.

• BP p.l.c.

• Chevron Corporation.

• Valvoline Global Operations

• Suncor Energy Inc.

• FUCHS

• China Petroleum & Chemical Corporation.

• TotalEnergies

• LUKOIL

• Motul

• AMSOIL INC-IN.

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Conclusion

The global automotive engine oil market is on a steady growth path, supported by rising automobile production, increased adoption of high-performance and synthetic oils, and expanding demand from emerging markets. As engine technologies evolve and stricter environmental regulations take hold, the demand for advanced oil formulations will continue to grow. With Asia Pacific leading in consumption and synthetic oil segments gaining momentum, manufacturers focusing on innovation and customization are well-positioned to capitalize on this expanding market through 2030.