Engine Oils Market Size, Share, Growth, and Industry Analysis, By Types (Single-grade, Multi-grade) , Applications (Automotive, Industrial) and Regional Insights and Forecast to 2033

Engine Oils Market Size

The engine oils market size was USD 32,717.19 million in 2024 and is projected to reach USD 33,175.23 million in 2025, ultimately growing to USD 37,160.12 million by 2033, exhibiting a CAGR of 1.4% during the forecast period from 2025 to 2033.

The US engine oils market region is experiencing steady growth due to the rising demand for high-performance lubricants in the automotive and industrial sectors. Increasing vehicle ownership, stringent emission regulations, and advancements in synthetic oil technology are key factors driving market expansion. Additionally, growing investments in eco-friendly and fuel-efficient engine oils are expected to shape future industry trends.

The engine oils market plays a crucial role in ensuring the efficiency and longevity of internal combustion engines across various industries, including automotive, industrial, and marine sectors. The rising global vehicle fleet and increasing industrialization are key drivers fueling demand. In 2024, engine oil consumption in emerging economies saw substantial growth due to expanding transportation networks and logistics industries. Additionally, advancements in lubricant formulations, such as synthetic and semi-synthetic oils with enhanced performance, are reshaping the market landscape. Leading manufacturers are focusing on sustainability, introducing bio-based and low-viscosity engine oils to meet evolving environmental regulations and efficiency standards.

Engine Oils Market Trends

The engine oils market is witnessing a shift towards high-performance and environmentally friendly lubricants. Synthetic engine oils are gaining popularity due to their superior viscosity stability, extended drain intervals, and better performance under extreme temperatures. The growing awareness of fuel efficiency and emission reduction has led to increased adoption of low-viscosity engine oils, particularly in modern engines equipped with turbochargers and direct fuel injection systems.

The market is also experiencing significant growth in the heavy-duty and commercial vehicle segment. The expansion of e-commerce and logistics has increased demand for trucks and fleets, driving higher consumption of engine oils. In parallel, the two-wheeler segment remains a strong contributor to market growth, especially in densely populated regions with high motorcycle usage for daily commuting.

Electric vehicles (EVs) are impacting the market, reducing the demand for traditional engine oils. However, hybrid vehicles, which still require lubrication for internal combustion components, are creating a new segment for specialized lubricants. Additionally, automakers and oil companies are collaborating to develop next-generation engine oils that align with evolving emission norms and fuel economy standards. The market is also witnessing increased investment in research and development, focusing on additives that enhance engine cleanliness, reduce wear and tear, and improve overall efficiency.

Engine Oils Market Dynamics

The engine oils market is influenced by several dynamic factors, including technological advancements, regulatory policies, and shifting consumer preferences. The demand for high-performance lubricants has surged due to the growing automotive sector, industrial machinery requirements, and the push for fuel-efficient and eco-friendly lubricants. Emerging trends, such as the development of synthetic and bio-based engine oils, are shaping the market. Additionally, fluctuating crude oil prices and supply chain disruptions impact production costs and pricing strategies for manufacturers.

DRIVER

"Growing Vehicle Ownership and Industrial Expansion"

The rising number of automobiles and increasing industrialization are driving the demand for engine oils. In 2024, global vehicle production reached over 95 million units, with a significant contribution from China, the U.S., and India. The expanding logistics and transportation sectors also play a vital role in increasing engine oil consumption, as commercial fleets require regular maintenance to ensure optimal performance. Additionally, the rapid growth of construction and mining activities has fueled demand for heavy-duty engine oils used in off-road machinery and equipment. The continuous development of high-performance lubricants tailored for modern engines further strengthens the market.

RESTRAINT

"Shift Towards Electric Vehicles (EVs) Reducing Demand"

The increasing adoption of electric vehicles (EVs) poses a major challenge to the engine oils market. EVs do not require traditional engine lubricants, leading to a decline in demand for conventional automotive engine oils. In 2023, global EV sales exceeded 14 million units, accounting for nearly 18% of total vehicle sales. Countries such as Norway, China, and Germany have implemented stringent emission regulations and incentives for EV adoption, further accelerating the transition. Additionally, fluctuating crude oil prices impact production costs, affecting the pricing and profitability of engine oil manufacturers.

OPPORTUNITY

"Advancements in Synthetic and Bio-Based Engine Oils"

The rising demand for fuel-efficient and long-lasting lubricants has created opportunities for synthetic and bio-based engine oils. Synthetic oils, with their superior thermal stability and longer drain intervals, are gaining traction among consumers and fleet operators. Additionally, bio-based lubricants derived from renewable sources are becoming popular due to their lower environmental impact. In 2024, several companies introduced bio-lubricants formulated with plant-based additives to reduce carbon emissions and improve engine efficiency. The growing preference for eco-friendly and high-performance engine oils presents a lucrative opportunity for manufacturers to develop innovative formulations catering to evolving market needs.

CHALLENGE

"Volatility in Raw Material Prices and Supply Chain Disruptions"

The engine oils market faces challenges due to fluctuating raw material costs and supply chain disruptions. Base oils, which account for nearly 80% of engine oil formulations, are derived from crude oil, making them susceptible to price volatility. In 2023, global crude oil prices fluctuated between $70 and $90 per barrel, directly impacting lubricant production costs. Additionally, geopolitical tensions and logistical bottlenecks have led to supply chain disruptions, delaying raw material procurement and increasing manufacturing expenses. These challenges force manufacturers to adjust pricing strategies while maintaining product quality and availability, making market stability a significant concern.

Segmentation Analysis

The engine oils market is categorized based on type and application, influencing demand and performance characteristics. By type, engine oils are classified into single-grade and multi-grade oils, each catering to specific temperature and viscosity requirements. The application segmentation highlights the role of engine oils in the automotive and industrial sectors, where lubrication needs vary significantly based on machinery, operating conditions, and regulatory requirements. The demand for high-performance lubricants is rising due to advancements in engine technology, stricter emission norms, and increasing vehicle ownership rates worldwide.

By Type

• Single-Grade Engine Oils: Single-grade engine oils are formulated for engines operating within a fixed temperature range. These oils are primarily used in older vehicles and industrial applications that do not require frequent temperature adaptability. SAE 30 and SAE 40 are commonly used single-grade oils, preferred in regions with stable climates. The demand for single-grade engine oils remains steady in sectors like marine, agriculture, and heavy-duty industries, where engines run under consistent conditions. However, the market share of single-grade oils is declining as multi-grade variants offer better performance across varying temperatures.

• Multi-Grade Engine Oils: Multi-grade engine oils dominate the market due to their versatility and enhanced engine protection across temperature extremes. Designed to maintain optimal viscosity, these oils ensure smooth engine operation in both hot and cold environments. Common variants like SAE 5W-30 and 10W-40 are widely used in passenger cars and commercial vehicles. The increasing preference for fuel-efficient and low-emission vehicles has driven demand for synthetic multi-grade oils, which provide better lubrication and engine cleanliness. Multi-grade oils account for a significant share of the global engine oils market, particularly in regions experiencing fluctuating temperatures.

By Application

• Automotive: The automotive sector is the largest consumer of engine oils, with passenger and commercial vehicles requiring regular lubrication to enhance engine performance and durability. The rise in vehicle ownership, coupled with expanding logistics and transportation industries, has fueled demand for high-quality lubricants. In 2023, over 80 million vehicles were produced globally, increasing the need for efficient engine oils. Stricter emission regulations have also contributed to the shift toward synthetic and low-viscosity engine oils, which improve fuel efficiency and reduce environmental impact.

• Industrial: Industrial applications of engine oils include their use in heavy machinery, generators, and equipment used in manufacturing, mining, and construction. These industries demand high-performance lubricants that can withstand extreme operating conditions and prolonged usage. The industrial sector has witnessed a rise in automation and mechanization, driving demand for advanced lubrication solutions. Additionally, preventive maintenance practices and stringent operational efficiency standards have boosted the adoption of premium-grade engine oils, ensuring longevity and optimal machinery performance.

Regional Outlook

The engine oils market varies across different regions, influenced by factors such as industrial growth, vehicle production, regulatory frameworks, and consumer preferences. North America and Europe are mature markets with a high demand for synthetic and high-performance lubricants. Asia-Pacific, on the other hand, is the fastest-growing region, driven by the increasing number of vehicles and expanding industrial activities. The Middle East & Africa market is growing due to infrastructure development and a rising automotive sector. Each region has unique trends that impact the overall engine oils market dynamics.

North America

The North American engine oils market is driven by a strong automotive sector and high vehicle ownership rates. The U.S. has over 290 million registered vehicles, leading to substantial demand for automotive lubricants. Stringent environmental regulations have accelerated the adoption of low-viscosity synthetic oils to enhance fuel efficiency. Industrial sectors, including manufacturing and mining, also contribute to market growth, requiring heavy-duty lubricants for machinery maintenance. The rising trend of electric vehicles (EVs) is expected to impact conventional engine oil demand, prompting manufacturers to develop specialized lubricants for hybrid and electric powertrains.

Europe

Europe's engine oils market is influenced by strict emission regulations and a strong focus on sustainability. The European Union's Euro 6 standards have led to increased demand for low-sulfur and fuel-efficient lubricants. Germany, France, and the UK have significant automotive industries, with Germany being the largest vehicle producer in the region. The adoption of synthetic and bio-based engine oils is growing, supported by government initiatives promoting green alternatives. Additionally, the industrial sector, including aerospace and heavy machinery, drives demand for high-performance lubricants that meet stringent operational requirements.

Asia-Pacific 

Asia-Pacific dominates the global engine oils market due to rapid industrialization and a booming automotive sector. China, India, and Japan are key contributors, with China alone producing over 26 million vehicles annually. The region’s growing middle class and increasing disposable incomes have fueled vehicle ownership, driving demand for engine oils. Expanding infrastructure projects and manufacturing activities also contribute to lubricant consumption in heavy machinery and industrial equipment. The rising awareness of energy efficiency and engine longevity has boosted the market for premium synthetic lubricants.

Middle East & Africa

The Middle East & Africa engine oils market is supported by a growing automotive sector and large-scale infrastructure projects. The UAE and Saudi Arabia lead the region’s automotive market, with increasing demand for passenger and commercial vehicles. The presence of oil-rich economies has also resulted in high lubricant production capacities. Industrial activities, including construction, mining, and energy sectors, drive demand for high-performance engine oils. The market is gradually shifting toward synthetic lubricants as companies focus on improving efficiency and reducing maintenance costs.

List of Key Engine Oils Market Companies Profiled

• Shell
• Exxon Mobil
• BP
• Total Lubricants
• Axel Christiernsson
• Chevron
• FUCHS
• LUKOIL
• SKF
• JX Nippon Oil & Energy Corporation
• Petro-Canada
• Indian Oil Corporation
• Quaker Chemical
• Southwestern Petroleum Corporation
• Klüber
• Dow Corning
• Sinopec
• CNPC
• CNOOC

Top 2 Companies with Highest Market Share

1. Shell – Holds over 12% market share, supported by its extensive distribution network and strong presence in the automotive and industrial lubricant sectors.
2. Exxon Mobil – Accounts for 10% market share, driven by its premium lubricant brands and strong partnerships with automotive manufacturers worldwide.

Recent Developments by Manufacturers in the Engine Oils Market 

Shell’s Carbon-Neutral Engine Oil Expansion (2023) – Shell expanded its portfolio of carbon-neutral lubricants, including engine oils, by offsetting over 700,000 metric tons of CO2 emissions through renewable energy projects. This move aims to align with global sustainability goals.

Exxon Mobil’s Advanced Synthetic Oil Launch (2024) – Exxon Mobil introduced a new generation of Mobil 1 synthetic oils, designed to improve engine efficiency and reduce wear by 20% more than previous formulations, particularly in high-performance vehicles.

TotalEnergies’ Partnership with Auto Manufacturers (2023) – TotalEnergies partnered with leading European automakers to develop engine oils optimized for hybrid and electric vehicles (EVs), increasing efficiency in regenerative braking and thermal management.

Chevron’s Bio-Based Engine Oils (2024) – Chevron announced a breakthrough in bio-based engine oil formulations, with products containing up to 40% plant-based components, targeting commercial fleets aiming for reduced carbon footprints.

Indian Oil Corporation’s Expansion in Asia (2023) – Indian Oil Corporation expanded its SERVO lubricant production facilities in Southeast Asia, increasing output by 25% to meet the growing demand in the region’s automotive and industrial sectors.

New Product Developments in the Engine Oils Market

The engine oils market has seen significant advancements in product formulations and innovations to meet evolving automotive and industrial demands.

Shell’s Low-Viscosity Engine Oil for Fuel Efficiency (2023) – Shell introduced a 0W-16 ultra-low viscosity engine oil, which has been shown to improve fuel efficiency by up to 3.2% compared to conventional 5W-30 oils, making it ideal for hybrid and fuel-efficient vehicles.

Exxon Mobil’s Extended Drain Interval Oils (2024) – Exxon Mobil launched a new Mobil Delvac synthetic engine oil for commercial trucks, allowing drain intervals of up to 80,000 km, reducing maintenance costs for fleet operators.

FUCHS’ High-Performance Racing Oil (2023) – FUCHS introduced a new racing engine oil with anti-friction additives, increasing horsepower by up to 5% and optimizing engine performance for motorsports applications.

LUKOIL’s Cold-Climate Engine Oil (2024) – LUKOIL developed a synthetic oil formulated for extreme cold conditions, ensuring reliable engine startup at temperatures as low as -45°C, catering to markets in Russia and Canada.

TotalEnergies’ EV-Specific Lubricants (2023) – TotalEnergies launched a specialized range of lubricants for electric and hybrid vehicles, enhancing thermal management and reducing energy losses in electric drivetrains.

Investment Analysis and Opportunities in the Engine Oils Market

The global engine oils market is experiencing growing investment opportunities driven by the automotive, industrial, and renewable energy sectors.

Rising Demand for Synthetic and Bio-Based Oils – The market is shifting toward synthetic and bio-based engine oils, with companies investing over $3 billion in R&D to develop high-performance, eco-friendly lubricants.

Infrastructure Development in Emerging Markets – Countries such as India, Brazil, and Indonesia are witnessing a 30% increase in demand for engine oils, as vehicle ownership rises due to expanding infrastructure and economic growth.

Investment in EV-Compatible Lubricants – Major lubricant manufacturers are allocating up to 15% of their R&D budgets for EV-specific lubricants, anticipating a shift towards electric mobility and hybrid vehicle adoption.

Strategic Mergers & Acquisitions – Exxon Mobil and Chevron have acquired smaller lubricant manufacturers to expand their portfolios, while Indian Oil Corporation invested $150 million in new blending plants to boost production capacity.

Government Regulations Driving Innovation – New regulations in the U.S. and Europe requiring lower sulfur content and higher fuel efficiency have led companies to invest in next-generation engine oils that comply with stringent emission norms.

Report Coverage of the Engine Oils Market

The engine oils market report provides an in-depth analysis of key trends, technological advancements, competitive landscape, and market opportunities across various segments.

Market Segmentation – The report categorizes the market by type (single-grade, multi-grade), application (automotive, industrial), and region (North America, Europe, Asia-Pacific, Middle East & Africa), providing a detailed breakdown of demand patterns.

Competitive Landscape – The report profiles top industry players such as Shell, Exxon Mobil, Chevron, TotalEnergies, and Indian Oil Corporation, along with their market shares, product portfolios, and expansion strategies.

Key Market Trends – Includes the rise of synthetic and bio-based lubricants, increasing demand for fuel-efficient and long-drain interval oils, and the development of EV-compatible lubricants.

Regional Insights – Covers demand drivers in North America’s advanced automotive sector, Europe’s focus on sustainable lubricants, Asia-Pacific’s growing vehicle market, and the Middle East’s industrial expansion.

Investment and Growth Opportunities – Highlights R&D investments, mergers & acquisitions, and infrastructure developments that are shaping the future of the engine oils market.