Market Overview
The growth of the Automotive Lubricants market is driven by the rapid development of transportation infrastructure and the increasing adoption of high-performance and sustainable lubricants. However, the consistent innovation in vehicle technologies and the volatile nature of raw material prices may restrain the market's growth.
Furthermore, the significant opportunities from emerging economies and the rising demand for environment-friendly lubricants are expected to offer significant growth opportunities for the automotive lubricants market. However, the production of compatible lubricants for EVs & hydrogen fuel cell engines and the volatile pricing of automotive lubricants may hinder the growth of this market.
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Increasing Demand for Environment-Friendly Lubricants to Offer Growth Opportunities for the Automotive Lubricants Market
Governments are encouraging companies to use greener lubricants, as these lubricants have high-performance substances to be efficient and less environmentally damaging when emitted into the surrounding environment, growing the need for environment-friendly lubricants. Many government regulatory bodies are more concerned about lubricants being environment-friendly than optimal performance as companies pursue greener goals. The growing interest in the impact of lubricating oils on the environment and health motivates research centers and industries to innovate for fully biodegradable, lubricating oils made up of natural ingredients.
The automotive industry provides high-grade lubricants and custom product solutions to boost their unique selling proposition and competitive position in the market. This industry is moving towards higher-quality environment-friendly lubricants production to contribute to the lubricants industry's sustainability. Environment-friendly lubricants can differentiate a business from its competition, command higher selling prices, increase customer loyalty and market share, and produce a higher return on investment. Innovative projects focusing on developing environment-friendly lubricant products to deliver high performance, treat wastewater, and lower greenhouse gas emissions. Such developments are expected to offer growth opportunities for companies operating in this market.
Key Findings in the Automotive Lubricants Market Study:
In 2025, the Engine Oil Segment is Expected to Dominate the Automotive Lubricants Market
Based on product type, the automotive lubricants market is segmented into engine oil, transmission & hydraulic fluids, gear oil, grease, chain oil, brake fluids, and other products. In 2025, the engine oil segment is expected to account for the largest share of this market. This segment’s largest market share is attributed to the rapid development of transportation infrastructure and the increasing production of passenger vehicles in the automotive industry. However, the grease segment is projected to register the highest CAGR during the forecast period due to its rising demand in the automotive sector.
In 2025, the Internal Combustion Engine Segment is Expected to Dominate the Automotive Lubricants Market
Based on vehicle type, the automotive lubricants market is segmented into internal combustion engine vehicles, electric vehicles, natural gas engines, and hydrogen-powered vehicles. In 2025, the internal combustion engine vehicles segment is expected to account for the largest share of the market. The large market share of this segment is attributed to the need to accelerate the growth of high-performance IC engines, advancements in technological developments in terms of efficiency and performance to boost the product demand for higher-performing IC engines, and stringent government regulations related to emissions. However, the electric vehicles segment is projected to register the highest CAGR during the forecast period. The increasing government initiatives, advancement in electric vehicle technology, and increasing customer awareness are the major factors driving the growth of this segment.
In 2025, the Fully Synthetic Oil Lubricants Segment is Expected to Dominate the Automotive Lubricants Market
Based on composition, the automotive lubricants market is segmented into mineral oil lubricants, fully synthetic oil lubricants, and semi-synthetic lubricants. In 2025, the fully synthetic oil lubricants segment is expected to account for the largest share of the automotive lubricants market. This segment’s large market share is attributed to the advantages of high-performance and advanced engines, low overall viscosity and reduced fluid friction, their ability to provide high-quality lubrication, and the growing need for better fuel economy and reduced vehicle emissions. In addition, this segment is also projected to register the highest CAGR during the forecast period.
In 2025, the Aftermarket Segment is Expected to Dominate the Automotive Lubricants Market
Based on sales channel, the automotive lubricants market is segmented into original equipment manufacturers and aftermarket. In 2025, the aftermarket segment is expected to account for the largest share of the automotive lubricants market. This segment’s large market share is attributed to the surge in vehicle manufacturing, stringent government regulations related to CO2 emissions, consumers' different mobility needs, and the development of transportation infrastructure. In addition, this segment is projected to register the highest CAGR during the forecast period.
In 2025, Asia–Pacific is Expected to Dominate the Automotive Lubricants Market
Based on geography, the automotive lubricants market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2025, Asia-Pacific is expected to account for the largest share of the automotive lubricants market. This market is also projected to register the highest CAGR during the forecast period. The large market share of this region is attributed to the rising manufacturing industry and vehicle ownership, the increasing export of refined petroleum, government initiatives to promote the automotive industry, and consistently increasing passenger vehicle sales and production.
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Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the automotive lubricants market in the last 3–4 years. The key players profiled in the automotive lubricants market report are Shell International B.V. (Subsidiary of Shell Plc) (Netherlands), Exxon Mobil Corporation (U.S.), FUCHS PETROLUB SE (Germany), Motul (France), Phillips 66 Company (U.S.), Repsol, S.A. (Spain), SK Enmove Co., Ltd. (South Korea), China National Petroleum Corporation (China), Klüber Lubrication München Se & Co. KG (Subsidiary of Freudenberg Group) (Germany), Amsoil Inc. (U.S.), Petróleo Brasileiro S.A. — Petrobras (Brazil), Valvoline Inc. (U.S.), Sinopec India (China), Chevron Corporation (U.S.), BP P.L.C. (U.K.), and Castrol Limited (U.K.).
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Scope
Automotive Lubricants Market, by Product Type
· Engine Oil
· Transmission & Hydraulic Fluids
· Gear Oil
· Grease
Multipurpose Grease
Automotive Grease
Synthetic Grease
· Chain Oil
· Brake Fluids
· Others (Compressor & Multifunctional Oils)
Automotive Lubricants Market, by Vehicle Type
· ICE Vehicles (Internal Combustion Engine)
Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles
Two/Three Wheelers
Agricultural Vehicles
Special Purpose Vehicles
· EV (Electric Vehicles)
Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles
Two/Three Wheelers
Agricultural Vehicles
Special Purpose Vehicles
· Natural Gas Engines
· Hydrogen-powered Vehicles
Automotive Lubricants Market, by Composition
· Mineral Oil Lubricants
Paraffinic Oil
Naphthenic Oil
· Fully Synthetic Oil Lubricants
Polyalphaolefins
Ester Oil
· Semi-synthetic Lubricants
Automotive Lubricants Market, by Sales Channel
· Original Equipment Manufacturers (OEMs)
· Aftermarket
Automotive Lubricants Market, by Geography
· North America
U.S.
Canada
· Europe
U.K.
Germany
France
Spain
Italy
Rest of Europe
· Asia-Pacific
China
Japan
India
South Korea
Thailand
Indonesia
Rest of Asia-Pacific
· Latin America
Mexico
Brazil
· Middle East & Africa
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