The global automotive lubricant market is expected to grow at a compound annual growth rate (CAGR) of 3.72% during the forecast period.
Automotive lubricants are responsible for providing efficient lubrication for automotive parts, which reduces friction in vehicles. This lubrication also serves many secondary functions, such as cleaning and cooling down engine parts by preventing the build-up of rust and corrosion. These automotive lubricants are known to be solid, oil-based, plastic, or a combination of all three. Oil and grease are the most common lubricants.
The major factor driving the market of automotive lubricants is technological advancements, which are leading towards the development of new lubricants that are efficient and capable of withstanding high temperatures and higher pressures, propelling market growth. One of the imperative advancements in lubricant technology is its ability to withstand higher temperatures and pressure. This enables the effective use of lubricants in high-performance applications where the conventional lubricants are failing or require frequent replacement.
GLOBAL AUTOMOTIVE LUBRICANT MARKET DRIVERS:
Engine oils efficiently lubricate internal combustion engines in different types of automobiles. They are also used in various other applications, such as corrosion protection and wear reduction, and effectively ensure the smooth operation of the engine internals.
Germany is expected to hold a prominent share in the automobile manufacturing industry in the European region as it hosts major car-making brands such as Audi, BMW, Volkswagen, Mercedes-Benz, Porsche, etc. With such major hosts in car making, the country and region have been investing exceedingly in research and development activities, further resulting in the increasing automotive production in the country. According to the Germany Trade and Invest (GTAI), German automobile manufacturers began producing over 15.6 million vehicles in 2021. This made Germany the European car production leader, with the production of 3.1 million passenger cars and 351,000 commercial vehicles, which were further manufactured in the German plant.
Furthermore, general car sales in the country have decreased while electric vehicle registrations have increased, which is further supported by the government’s push towards all-electric cars by 2024.
Global Automotive Lubricant Market Geographical Outlook
The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.
Various factors are driving the automotive lubricant market growth in the APAC region, such as the increasing population resulting in the rising production and sales of vehicles, particularly passenger vehicles. China, in this regard, is known to be the largest automotive lubricant consumer in APAC, playing a pivotal role in its increasing production and sale of vehicles.
According to the data provided by the OICA, in 2023, China produced 26,123,767 cars, of which 4,037,209 were commercial vehicles. India produced 4,783,628 cars, of which 1,067,878 were commercial vehicles.
Global automotive lubricant market restraints:
The global automotive lubricant market is segmented by product type into engine oil, transmission and gear oils, hydraulic fluids, and greases.
Automotive lubricants are broadly applied in engine oil and transmission and gear oils. With the growing economies of Asia and Africa, the demand for hydraulic fluids and greases is also increasing, thus driving the market's growth.
Global automotive lubricant market key developments:
The global automotive lubricant market is segmented and analyzed as follows: