The automotive oil market size was valued at USD 13.90 Billion in 2022 and is likely to reach USD 20.13 Billion by 2031 expanding at a CAGR of 4.2% during 2023 – 2031.The growth of the market is attributed to the increasing number of vehicles due to rising disposable income across the globe.
Gear oil reduces the friction between two surfaces and prevents parts from getting corroded and exposed to high amount of heat. Ideal gear oil provides effective, solid, and low-maintenance activity for gears at various conditions such as variable speed, oil defilements, and high working temperatures manufacturers are likely to increase the production capacities of synthetic gear oils to meet the rising consumer demand. The product can reduce noise in the transmission process, offer protection against extreme temperature and pressure and help to remove the damaged particles away from contact areas, which is expected to boost its demand over the next eight years.
Market Drivers, Restraints, and Opportunities
High demand for commercial and passenger cars is expected to be a key driver for the growth of the market.
Over the short term, the growing adoption of high-performance lubricants is expected to drive the market’s growth
An increase in innovations and technology advancements are anticipated to going play a major positive role in the growth of the market.
The COVID-19 pandemic had halted the production and distribution of the automotive gear oil market for a certain period of time. Moreover, the slowdown in the automotive sector owing to closedown of the manufacturing facilities impeded the market growth. However, the market is slowly is expected to recover soon.
High price value of multi-grade gear oil can restrain the market growth during the forecast period.
Rapid growth of the electric vehicles (EVs) market can act as a major restraint in the automotive gear oil market.
Scope of the Report
The report on the global automotive gear oil market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Automotive Gear Oil Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
The Base Year
Petroleum-based and Synthetic Gear Oil
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends
Key Players Covered
Lubrication Engineers Inc., Royal Dutch Shell Plc., Fuchs Lubricants Co., Chevron Corporation, Exxon Mobil Corporation (XOM), Saudi Arabian Oil Co., Hindustan Petroleum Corporation Limited, and China Petroleum & Chemical Corporation (Sinopec)
Global Automotive Gear Oil Market Segment Insights
In terms of products, the market is segmented into petroleum-based and synthetic gear oil. Petroleum gear lubricants have served the industry for decades long and well; however, the demand for high-quality gear oil has persuaded the demand for synthetic gear oil. These oils confer versatility, material compatibility, and durability characteristics, which makes them a preferable product type in the market. Moreover, this product type is cost-effective than the petroleum counterparts.
Most of the synthetic oil products can tolerate a much wider range of temperatures than petroleum-based gear oil. At higher temperatures, synthetic lubricants are less volatile than petroleum-based products, and they have lower pour points, meaning that these products can continue to flow at temperatures below where petroleum-based oils become intractable. Additionally, the higher protection provided by the synthetic lube can prolong the life beyond the product intended life, reduce warranty claims, and improve the cost performance of the total system.
On the basis of regions, the market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market in 2020 and is anticipated to account for major share of the market during the forecast period, followed by North America. The large share of the market in this region is mainly attributed to growing economy, increasing urbanization and disposable income, and rapid growth of the automotive industry. Moreover, the presence of key lubricant manufacturers and the growing transportation industry in the Asia Pacific countries such as China, India, and Japan are contributing to the market development. The expansion of the automotive gear oil market in Latin America is owing to increasing disposable income and rising foreign investments.
The global automotive gear oil market has been segmented on the basis of
- Synthetic gear oil
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Lubrication Engineers Inc.
- Royal Dutch Shell Plc.
- Fuchs Lubricants Co.
- Chevron Corporation
- Exxon Mobil Corporation (XOM)
- Saudi Arabian Oil Co.
- Hindustan Petroleum Corporation Limited
- China Petroleum & Chemical Corporation (Sinopec)
Prominent players in the market are Lubrication Engineers Inc., Royal Dutch Shell Plc., Fuchs Lubricants Co., Chevron Corporation, Exxon Mobil Corporation (XOM), Saudi Arabian Oil Co., Hindustan Petroleum Corporation Limited, and China Petroleum & Chemical Corporation (Sinopec).
In November 2019, Fuchs Group, a manufacturer and supplier in Germany, signed an agreement to acquire Nye lubricant Inc. The later company is engaged in formulation, and manufacturing of synthetic products. This acquisition is expected to help the former company to expand the product portfolio and serve in multiple industries.