Automotive engine oil is expected to generate revenues of $16.5 billion by 2023, growing at a 6% compound annual growth rate from 2019 through 2023. Passenger cars are expected to account for 57% of revenue in 2023, followed by light commercial vehicles, heavy commercial vehicles, and others.
The prime objective of this report is to offer insights on high growth areas in the automotive Engine Oil DI Packages market over the coming years and their prospects across different segments such as vehicle type and geography. The report also focuses on preparing a detailed analysis of factors driving and restraining the global automotive engine oil market during this period. Moreover, it will cover all important parameters such as drivers, opportunities & challenges on demand for automotive engine oil across different regions during the forecast period from 2016 to 2023.
The features such as wear protection and improved fuel efficiency and economy of a newly developed engine oil DI Package can help in expanding the sales of this product, due to which the new product development is one of the major growth strategies adopted by many companies like Exxon Mobil Corporation Company, Valvoline Incorporated, Shell Oil Company, Royal Dutch Shell Plc, and Castrol Limited.
The global automotive engine oil market is expected to reach USD 16.5 billion by 2023, according to a new report by Grand View Research, Inc. The increasing penetration of passenger cars in developing countries, the growing demand for commercial vehicles, and the rising adoption of diesel engines are the key factors driving the market growth.
Further key findings from the report suggest:
-The introduction of advanced automotive engine oil DI Packages is projected to be a major trend in the future, as these oils are efficient in maintaining the engine performance and offer prolonged engine life.
-The heavy commercial vehicle segment accounted for nearly 45% of the total market share in 2017 and is expected to be among the fastest-growing segments within the automotive engine oil market over the forecast period.
As a result of technological advancements and stringent government regulations, fuel consumption is estimated to decline considerably in the upcoming years. That is likely to hamper the growth of the passenger car segment over the forecast period.
The global automotive engine oil market is estimated to reach $1.65 billion in 2023, up from $1.2 billion in 2022. The increasing demand for automobiles and motorcycles in developing countries such as India and Japan, along with rapid urbanization and the rise in crude petroleum production, are some factors that are expected to drive this growth. The increased usage of automotive engine oils across geographies is expected to fuel market growth over the next few years. With the growing population and urbanization, vehicular ownership is rising across developing nations. In 2016, China was ranked third in the total volume of vehicles sold worldwide and accounted for around one-fifth of automobile sales globally.
Furthermore, according to an IHS Markit report, nearly 40 million new cars are expected to be sold in China by 2023. Increasing demand for medium oils would also boost revenue generation during the forecast period. The global medium oil market is estimated to expand at a compounded annual growth rate (CAGR) of 4% between 2017 and 2023.
Automotive engine oil DI Packages are a vital component in the functioning of any motor vehicle. It facilitates the smooth functioning of the engine, extending its life and increasing its mileage. It also keeps the clean engine while protecting it from wear and tear. The market has witnessed considerable growth over the past years, owing to the growing focus on the automobile industry by developing nations such as India, China, and Indonesia. High demand for automobiles and motorcycles in these countries has boosted the consumption of engine oils globally. Moreover, rapid urbanization has led to increased vehicles on roads across these countries, further boosting their consumption. Also, growing exports of medium oils and accelerating the automotive industry are some major factors anticipated to drive market growth during the forecast period.
In the end: New mobility and technology are making cars smarter. As more consumers hold onto their vehicles for longer, this lengthens the time between oil change intervals, resulting in shorter oil life cycles. According to a study by the Environmental Protection Agency (EPA), this has contributed to an increase in used motor oil being disposed of improperly or illegally through sewer systems, landfills and surface waters. The rising awareness of the benefits of motor oil in vehicles, such as the reduction of friction and the protection and lubrication of engine parts, will propel the demand for motor oil. Therefore, globally increasing development in the automotive industry worldwide and growing demand for automobiles are projected to fuel global automotive engine oil market growth during the forecast period.
However, the increasing number of stringent regulations by the government to curb fuel emissions is expected to be a key restraint on the growth of the global automotive engine oil market.
On average, every second a car is driven, it consumes about 1 liter of motor oil. That means that in 2022 alone, a total of 3.5 billion liters of engine oil DI Packages will be used by automobiles across the globe. The growing demand for automobiles has increased the need for engine oil in vehicles, leading to a lucrative growth opportunity for players in the global automotive engine oil market.
The global automotive engine oil market is projected to reach USD 18.8 Billion by 2023 from USD 13.6 Billion in 2017, at a CAGR of 6.2% between 2017 and 2023.
If you have any questions about Engine Oil Market Growth Opportunities in 2023, contact us at Top Polymers FZC. We have many years of experience studying various trends to know the best product for your company. We can provide the most accurate market information and help you get more clients.