Top 3 Trends Impacting the Global Automotive Lubricants Market Through 2021: Technavio

Technavio’s latest market research report on the global automotive lubricants market provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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Technavio has published a new report on the global automotive lubricants market from 2017-2021. (Gra ...

Technavio has published a new report on the global automotive lubricants market from 2017-2021. (Graphic: Business Wire)

The global automotive lubricants market is expected to grow steadily during the forecast period. The global automotive industry is continuously evolving and witnessing several developments in the automotive lubricants market. The demand for automotive lubricants in the passenger car segment is positively correlated with the sales of this vehicle type. All passenger cars require lubricants such as engine oil, suspension oil, brake oil, and gearbox oil.

“As the automotive market is becoming more dynamic and vibrant with changing customer preferences toward energy-efficient and performance automobiles, OEMs are offering efficient lubricants that can protect components from wear and tear and increase the replacement interval,” says Amey Vikram, a lead analyst at Technavio for automotive components research.

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The top three emerging market trends driving the global automotive lubricants market according to Technavio research analysts are:

  • Growing usage of synthetic oils in APAC
  • Growing usage of multigrade lubricants
  • Constant need for technological upgrade

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Growing usage of synthetic oils in APAC

The synthetic oil market is currently dominated by Europe, followed by the Americas and APAC. However, APAC is expected to post a higher growth rate in the consumption of synthetic engine oil during the forecast period. Synthetic engine oil is of several types such as polyolefin (PAO), esters, polyalkylene glycol, and group III oils (hydrocracking). Currently, PAO has the largest market share, accounting for more than 50% of the total market share due to several benefits with respect to other synthetic engine oils. Not only is the PAO engine oil less volatile and more oxidative, but it is also less expensive as compared to other engine oils.

There is growing trend where synthetic engine oils are replacing semi-synthetic and mineral engine oils. But the prices of mineral and semi-synthetic engine oils are one-third of the prices of synthetic engine oils. This hampers the sales of synthetic engine oils. However, as soon as suppliers start adopting low-cost production techniques of synthetic engine oils, these fluids will replace semi-synthetic and mineral engine oils.

Growing usage of multigrade lubricants

There has been growing usage of multigrade lubricants. This trend is predominant in Europe and North America. Multigrade oils are preferred in these regions due to their better performance in cold climates. Many countries in North America and Europe often face harsh winters. As a result, the engine start-up procedure is often delayed.

“Multigrade oils perform better in cold temperatures as they reduce the lead start-up time. Society of Automotive Engineers conformant lubricants uses special polymer additives that keep the viscosity of the formulation constant despite a change in temperature. Therefore, cold weather protection and better mileage performance propel most consumers to opt for multigrade oils,” says Amey.

Constant need for technological upgrade

The rapid technological advances in the manufacture of machinery and automobiles are intensifying the need for environment-friendly and high-performance lubricants and lubricant additives. Therefore, lubricant manufacturers must constantly upgrade their production capabilities and product portfolio to match the revised requirements.

Although this results in the emergence of value-added products, it severely affects the profit margins of lubricant manufacturers. Apart from the additional costs of revised formulations, vendors also incur the capital costs associated with the technology and infrastructural upgrades. Noncompliance with the revised requirements invites regulatory attention and leads to a decline in market shares.

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