Vehicle Lubricating Oil Market

Vehicle Lubricating Oil Market Size and Forecast

The global Vehicle Lubricating Oil Market is valued at USD 91.79 Billion in 2024 and is projected to reach a value of USD 155.30 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 4.9% between 2025 and 2035.

Vehicle Lubricating Oil Market Key Highlights

• Based on the Product Type, the Engine Oil category accounted for significant market share in Vehicle Lubricating Oil market industry in 2024
• In 2024, by Oil Type, the Conventional dominated the Vehicle Lubricating Oil market with significant market share of 53.20%
• Based on the Application, the Passenger Car category accounted for significant market share of 40.30% in Vehicle Lubricating Oil market industry in 2024
• Based on the Viscosity Grade, the Medium Viscosity Grades (e.g., 10W-30, 15W-40) category accounted for significant market share in Vehicle Lubricating Oil market industry in 2024
• Based on the End User, the Automotive OEMs category accounted for significant market share in Vehicle Lubricating Oil market industry in 2024
• Asia Pacific dominated the Vehicle Lubricating Oil market industry with 44.70% Vehicle Lubricating Oil market share in 2024
• North America region is anticipated to grow at the highest CAGR during the forecast period in Vehicle Lubricating Oil market industry

Vehicle Lubricating Oil Market Growth Factors

Strict Emission and Fuel Economy Regulations

Governments across the globe are implementing increasingly stringent emission standards and fuel economy regulations to combat climate change and reduce environmental pollution. These regulations, such as the Corporate Average Fuel Economy (CAFE) standards in the United States and the Euro VI emission norms in Europe, are pushing automakers to design more fuel-efficient and environmentally friendly vehicles. In response, vehicle manufacturers are recommending and using advanced lubricating oils—particularly low-viscosity synthetic oils—that reduce internal engine friction, enhance fuel efficiency, and minimize harmful emissions. This regulatory pressure is accelerating the adoption of high-performance lubricants that meet these stringent specifications, thereby driving demand in the Vehicle Lubricating Oil market.

Expansion of Automotive Aftermarket

The global expansion of the automotive aftermarket is playing a significant role in driving demand for Vehicle Lubricating Oil market. As vehicles age, they require regular maintenance, such as oil changes, to guarantee peak engine performance and lifespan. The increased number of automobiles on the road, particularly in developing nations, has resulted in a thriving aftermarket ecosystem comprised of service stations, quick lube facilities, garages, and auto parts merchants. Additionally, consumer preference for do-it-yourself (DIY) vehicle maintenance—particularly in North America and parts of Europe—further fuels the demand for lubricating oils. With rising awareness about preventive maintenance and increasing vehicle longevity, the aftermarket segment is emerging as a critical revenue stream for lubricant manufacturers worldwide.

Vehicle Lubricating Oil Market Opportunity

Rising Demand for Synthetic and Bio-Based Lubricants

The Vehicle Lubricating Oil market is shifting to synthetic and bio-based lubricants due to increased consumer awareness and regulatory push for cleaner, more efficient automotive solutions. Synthetic lubricants offer superior performance benefits such as better thermal stability, longer drain intervals, improved fuel efficiency, and improved engine protection in tough conditions.

Smart Lubricants and Condition Monitoring

Digital technologies like IoT, AI, and data analytics are opening up new prospects in the Vehicle Lubricating Oil sector, including smart lubricants and condition monitoring systems. These advances enable real-time monitoring of lubricant performance, engine health, and maintenance requirements, providing substantial value to fleet operators, OEMs, and even individual vehicle owners.

Product Type Insights

The Product Type segment is divided into Engine Oil, Transmission Fluids, Gear Oil, Hydraulic Fluids, Greases, Coolants and Antifreeze. The Engine oil is categorized by Gasoline Engine Oil, Diesel Engine Oil, Natural Gas Engine Oil. The Engine Oil segment held the dominant share in 2024, accounting for significant Vehicle Lubricating Oil industry share.

Engine Oil: Engine oil reduces friction, cools engine parts, and prevents wear and corrosion. It’s essential for maintaining performance, especially under high temperatures and load. This segment dominates due to high consumption across passenger and commercial vehicles, with variations in oil type based on engine configuration.

• Gasoline Engine Oil: Formulated specifically for spark-ignition engines, gasoline engine oils are widely used in passenger cars. They provide excellent wear protection, sludge control, and high-temperature stability, aligning with modern fuel economy and emission standards
• Diesel Engine Oil: Diesel engine oils are designed for high-compression engines in trucks, buses, and off-road vehicles. They offer strong oxidation resistance, soot dispersal, and protection under heavy loads, making them vital for commercial and industrial vehicle maintenance
• Natural Gas Engine Oil: Used in engines powered by compressed or liquefied natural gas (CNG/LNG), these oils are optimized for cleaner combustion. They provide excellent valve wear protection, low-ash content, and oxidative stability, making them ideal for buses, municipal fleets, and alternative fuel vehicles

Transmission Fluids: Transmission fluids lubricate and cool gear systems, enabling smooth gear shifts and prolonging transmission life. These oils are critical for both manual and automatic systems, ensuring reliable performance and protection from wear, oxidation, and corrosion.

• Automatic Transmission Fluids (ATF): ATFs are formulated for hydraulic systems in automatic transmissions. They enable smooth shifting, clutch friction control, and thermal stability, with growing demand driven by rising automatic vehicle sales and complex transmission technologies
• Manual Transmission Fluids (MTF): MTFs are thicker and designed for direct mechanical gear systems. They ensure gear protection and synchronized engagement, mostly used in commercial vehicles and some passenger cars in regions where manual transmissions are common

Gear Oil: Gear oil is used in differentials, transfer cases, and transmissions. It can handle severe pressures and loads while providing anti-wear protection and smooth gear operation. It is critical in both passenger and heavy-duty vehicles, particularly those running at high torque or in severe environments.

Hydraulic Fluids: Hydraulic fluids transmit power in hydraulic systems found in construction vehicles, power steering, and braking systems. They must resist oxidation, corrosion, and foaming. Their use is vital in both automotive and off-highway equipment for efficient and responsive operation.

Greases: Greases are semi-solid lubricants used in applications where oil cannot be easily retained, such as wheel bearings or joints. They offer long-lasting protection against moisture, heat, and pollutants, decreasing the need for lubrication in tough or high-load conditions.

Coolants and Antifreeze: Coolants regulate engine temperature and avoid overheating and freezing. They circulate throughout the engine and radiator, preventing corrosion and scale development. With rising demand for engine economy and lifespan, sophisticated formulas are becoming more common in both gasoline and diesel cars.

Oil Type Insights

The Oil Type segment is divided into Synthetic, Semi-Synthetic, Conventional. The Conventional segment held the dominant share in 2024, accounting for significant Vehicle Lubricating Oil industry share of 53.20%.

Synthetic Oil: Synthetic oils are chemically engineered to offer superior performance under extreme temperatures and pressures. They provide better engine protection, fuel efficiency, and longer drain intervals compared to other oils. Commonly recommended for modern engines, synthetic oils are increasingly favored in high-performance and luxury vehicles.

Semi-Synthetic Oil: Semi-synthetic oils blend conventional base oils with synthetic components, offering a balance between cost and performance. They provide better oxidation stability and engine cleanliness than conventional oils but are more affordable than full synthetics. Suitable for vehicles that require moderate performance without the higher cost of full synthetics.

Conventional Oil: Conventional oils are derived directly from crude oil and are widely used in older vehicles or engines with lower performance demands. They are cost-effective but require more frequent changes. Though still used globally, their market share is gradually declining as consumers shift toward synthetic and semi-synthetic alternatives.

Application Insights

The Application segment is divided into Passenger Car, Commercial Vehicles, Two Wheelers, Off-Highway Vehicles. The Passenger car segment held the dominant share in 2024, accounting for significant Vehicle Lubricating Oil industry share of 40.30%.

Passenger Car: This segment includes sedans, hatchbacks, and SUVs used for personal transport. Passenger cars demand high-performance lubricants to ensure fuel efficiency, engine longevity, and emission control. With growing vehicle ownership and rising preference for synthetic oils, this segment is a major contributor to lubricating oil consumption globally.

Commercial Vehicles: Covering light, medium, and heavy-duty trucks and buses, commercial vehicles require robust lubricants capable of handling heavy loads, long distances, and demanding operating conditions. These vehicles often use diesel engines and rely on high-performance oils with extended drain intervals to reduce downtime and improve fleet efficiency.

Two Wheelers: Two-wheelers such as motorcycles and scooters require lubricants designed for high engine speeds and compact engine architecture. Oils used must provide excellent thermal stability, wear protection, and clutch compatibility. Rapid urbanization and increasing two-wheeler usage in Asia-Pacific drive consistent demand in this segment.

Off-Highway Vehicles: This includes construction equipment, agricultural machinery, and mining vehicles that operate in extreme conditions. These vehicles need heavy-duty lubricants with strong resistance to contamination, high loads, and temperature variations. Growth in infrastructure, agriculture, and mining activities globally fuels the demand for specialized lubricants in this segment.

Viscosity Grade Insights

The Viscosity Grade segment is divided into Low Viscosity (e.g., 0W-20, 5W-20), Medium Viscosity (e.g., 10W-30, 15W-40), High Viscosity (e.g., SAE 50 and above). The Medium Viscosity Grades (e.g., 10W-30, 15W-40) segment held the dominant share in 2024, accounting for significant Vehicle Lubricating Oil industry share.

Low Viscosity (e.g., 0W-20, 5W-20): Low viscosity oils offer excellent flow at cold temperatures, reducing engine drag and improving fuel efficiency. Widely recommended for modern passenger cars and hybrids, these oils support emission control systems and enhance cold start performance. Their use is rapidly growing due to stricter fuel economy and environmental regulations.

Medium Viscosity (e.g., 10W-30, 15W-40): Medium viscosity oils provide a balanced performance for both hot and cold climates. Common in older cars, light trucks, and diesel engines, these oils ensure engine protection while accommodating a wide range of operating conditions. This segment remains dominant in many global markets, especially in commercial vehicle applications.

High Viscosity (e.g., SAE 50 and above): High viscosity oils are designed for engines operating under severe loads and high temperatures, such as in heavy-duty trucks, off-road equipment, and racing vehicles. They provide a thick lubricating film that withstands stress and minimizes wear. Usage is niche but critical for industrial-grade and performance-intensive engine applications.

Vehicle Lubricating Oil Market Regional Trends

In 2024, the Asia Pacific captured 44.70% of the revenue share.

Asia Pacific Vehicle Lubricating Oil Market Trends

Asia Pacific Vehicle Lubricating Oil Market is driven by rapidly expanding automotive industries, particularly in countries like China, India, and Japan, the demand for lubricants is driven by both the increasing vehicle fleet and the growing need for maintenance in commercial, passenger, and two-wheeler segments. Additionally, the booming automotive aftermarket, particularly in emerging economies, further boosts demand for lubricating oils. As urbanization accelerates and disposable incomes rise, the market in APAC continues to expand, making it a key area for investment and innovation in the lubricants industry.

North America Vehicle Lubricating Oil Market Trends

North America Vehicle Lubricating Oil Market is driven by the presence of a well-established automotive industry, high vehicle ownership, and a strong aftermarket sector. The United States and Canada are major contributors, with a focus on both passenger and commercial vehicles. The region also benefits from a mature automotive service infrastructure, where regular oil changes and maintenance contribute to a steady demand for lubricants. As the trend toward electric vehicles (EVs) and hybrid vehicles increases, the lubricating oil market in North America may experience shifts, but traditional segments, such as those for trucks and heavy-duty vehicles, continue to dominate.

Europe Vehicle Lubricating Oil Market Trends

Europe Vehicle Lubricating Oil Market is driven by strong automotive manufacturing base and rigorous environmental regulations. Countries like Germany, France, and the UK lead the market, driven by high demand for fuel-efficient, low-emission vehicles, particularly in passenger cars and commercial fleets. Additionally, the automotive aftermarket is growing with an increasing focus on vehicle maintenance, including oil changes.

Based on the provided market data, Vantage Market Research offers customizations in the reports to meet the specific needs of clients.

Vehicle Lubricating Oil Market Trends

• Shift Toward Bio-Based and Eco-Friendly Lubricants: There is a growing emphasis on sustainability within the lubricants industry. Bio-based lubricants, derived from renewable resources, are gaining popularity due to their biodegradability and lower toxicity. This shift is driven by environmental regulations and consumer demand for greener products
• Adoption of Advanced Lubrication Technologies: Technological advancements are leading to the development of high-performance lubricants. Innovations such as nanotechnology and the integration of lubricant management software are enhancing the efficiency and effectiveness of lubricants, particularly in high-performance and industrial applications
• Expansion of Online Sales Channels: The lubricants market is witnessing a shift towards online retail platforms. Consumers are increasingly purchasing lubricants through e-commerce channels, driven by convenience and the availability of a wide range of products. This trend is prompting manufacturers to enhance their digital presence​
• Focus on Predictive Maintenance and Condition Monitoring: There is a growing emphasis on predictive maintenance in the automotive and industrial sectors. Condition monitoring technologies are being integrated with lubricants to assess their performance and predict maintenance needs, thereby reducing downtime and extending equipment life
• Impact of Electric Vehicles (EVs) on Lubricant Demand: The rise of electric vehicles is influencing the lubricants market. EVs require fewer lubricants due to the absence of internal combustion engines. However, the demand for specialized lubricants for electric drivetrains and cooling systems is emerging, creating new opportunities within the Vehicle Lubricating Oil market

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Competitive Landscape

The Vehicle Lubricating Oil market is dynamic, with companies continuously adapting to technological advancements and shifting consumer preferences. Strategic initiatives focusing on innovation, sustainability, and regional expansion are key drivers of success in this industry. Additionally, the market is witnessing increased regional competition, especially in Asia Pacific, where vehicle ownership and industrial activities are on the rise. In North America and Europe, demand for synthetic oils and environmentally friendly lubricants is driving innovation, while emerging markets in Latin America, the Middle East, and Africa present growth opportunities.

The key players in the global Vehicle Lubricating Oil market include - Total among others.

Latest Announcements

PETRONAS Collaborates with Sinopec to Explore Future Opportunities

• In May 2024, Petroliam Nasional Berhad (PETRONAS) has entered into a strategic collaboration with China Petrochemical Corporation (Sinopec) to explore opportunities to drive growth and innovation across the energy value chain

Vehicle Lubricating Oil Market Segments Covered in the report:

Product Type

• Engine Oil
  • Gasoline Engine Oil
  • Diesel Engine Oil
  • Natural Gas Engine Oil
• Transmission Fluids
  • Automatic Transmission Fluids (ATF)
  • Manual Transmission Fluids (MTF)
• Gear Oil
• Hydraulic Fluids
• Greases
• Coolants and Antifreeze

Oil Type

• Synthetic
• Semi-Synthetic
• Conventional

Application

• Passenger Car
• Commercial Vehicles
• Two Wheelers
• Off-Highway Vehicles

Viscosity Grade

• Low Viscosity (e.g., 0W-20, 5W-20)
• Medium Viscosity (e.g., 10W-30, 15W-40)
• High Viscosity (e.g., SAE 50 and above)

End User

• Automotive OEMs
• Aftermarket/Independent Workshops
• Fleet Operators
• DIY Consumers

Vehicle Lubricating Oil Market Regions and Countries:

North America

• U.S.
• Canada
• Mexico

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Nordic Countries
• Benelux Union
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• South-East Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Rest of Latin America

The Middle-East and Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of Middle-East Africa