Automotive Engine Oil Market Demand and Incremental Opportunity Assessment till 2030

Posted on 2022-05-19 by researchinsights in Chemicals // 0 Comments

San Francisco, California , USA, May 19, 2022 — /EPR Network/ —

Automotive Engine Oil Industry Overview

The global automotive engine oil market size was valued at USD 35.7 billion in 2021 and is projected to rise at a compound annual growth rate (CAGR) of 3.2% in terms of revenue from 2022 to 2030.

This is attributed to growing automobile production and demand for synthetic and conventional products. Sales of the automotive vehicles are witnessing a constant growth over the past few years, majorly in Europe and Asia Pacific regions owing to the rising population and consumer spending capacity. The market is expected to witness substantial growth during the forecast period due to the high level of technological innovations implemented in the overall automotive industry. The emerging need for high-performance engine oils is ever-growing due to tactical vehicle mechanisms and operational blueprints being implemented by multinational automobile manufacturers.

Raw materials such as base oil and additives are used in formulating the product. Crude oil exploration is mainly concentrated in countries such as Venezuela, Saudi Arabia, and Canada. Crude oil processing companies that are engaged in producing heavy carbon fraction and base oil are concentrated in the U.S., China, Russia, and Japan. Saudi Aramco, Marathon Petroleum, and Exxon Mobil are some of the key producers of the raw materials used in manufacturing automotive engine oil.

Gather more insights about the market drivers, restrains and growth of the Global Automotive Engine Oil Market

The global automotive engine oil market is characterized by the integration of raw material suppliers. Base oil availability is the major factor that influences the value chain consisting of the manufacturers. The starting material base oil is obtained from the fractional distillation of crude oil. Several multinationals have a well-established, integrated value chain and are engaged in manufacturing raw materials as well as supplying engine oils as the finished products. These companies are integrated across multiple stages of the value chain in order to maintain a continuous supply of raw materials and ensure low manufacturing costs.

The fully-synthetic grade type is projected to play a crucial role in the further development of vehicle engines. Across the automotive industry, consumers demand smaller engine vehicles with great fuel efficiency and high performance. Vehicle manufacturers have started using turbochargers for engines, which leads to an increase in engine temperature. In such engines, synthetic oil performs smoothly even at high temperatures.

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