Automotive Engine Oil Market – Global Industry Size, Share, Trends Opportunity, and Forecast Segmented Vehicle Type (Commercial Vehicles, Two-Wheelers, Passenger Cars), By Demand Category (OEM and Replacement), By Region and By Competition. 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 21.46 Billion
CAGR (2026-2031)	4.98%
Fastest Growing Segment	Passenger Cars
Largest Market	North America
Market Size (2031)	USD 28.73 Billion

Market Overview

The Global Automotive Engine Oil Market will grow from USD 21.46 Billion in 2025 to USD 28.73 Billion by 2031 at a 4.98% CAGR. Automotive engine oil is a specialized lubricant composed of base oils and additives designed to reduce friction between moving engine parts, dissipate heat, and suspend contaminants. The market growth is fundamentally supported by increasing global vehicle manufacturing and the continued necessity for regular maintenance of the existing fleet. According to the International Organization of Motor Vehicle Manufacturers, in 2024, the world built 92.5 million motor vehicles. This consistent production output underscores the steady demand for lubricants required for both initial factory application and subsequent service intervals across passenger and commercial segments.

However, a significant challenge impeding market expansion is the accelerating global transition toward electric vehicles. These vehicles utilize battery-powered motors rather than internal combustion engines, effectively eliminating the requirement for traditional engine oil. As governments enforce stricter emission norms and consumer adoption of electric mobility rises, this structural transition threatens to significantly reduce long-term lubricant consumption volumes and alter the core revenue streams for established market participants.

Key Market Drivers

Rising Global Vehicle Production and Sales serves as the primary catalyst for the automotive engine oil market, ensuring sustained demand for both initial factory-fill lubricants and subsequent service intervals. As emerging economies industrialize and urbanization accelerates, the surge in automobile manufacturing directly correlates with increased lubricant consumption volumes. This trend is particularly evident in major Asian markets where manufacturing output continues to scale to meet domestic and export needs. According to the China Association of Automobile Manufacturers, January 2025, in the 'China's auto industry exceeds expectations in 2024' release, the country's total auto sales reached 31.44 million units in 2024, representing a 4.5% year-on-year increase. Reinforcing this regional momentum, according to the Society of Indian Automobile Manufacturers, in 2025, domestic passenger vehicle sales reached a record 4.3 million units for the fiscal year ending March 2025. These figures highlight the continuous influx of new internal combustion engines requiring lubrication.

Technological Advancements in Automotive Engine Design, specifically the proliferation of hybrid powertrains, further propel the market by sustaining demand despite the electrification trend. Unlike battery-electric vehicles, hybrid systems retain an internal combustion engine that requires specialized, often higher-value, synthetic oils to manage the stress of frequent stop-start cycles and cooler operating temperatures. This technological shift ensures that a significant portion of the modern fleet remains dependent on engine oil. According to the European Automobile Manufacturers’ Association, February 2025, in the 'New car registrations: -2.6% in January 2025' press release, hybrid-electric vehicles surged to command 34.9% of the EU market share, positioning them as the top choice for buyers. This data indicates that the transition to advanced mobility solutions continues to rely heavily on lubrication technology, driving value growth in the sector.

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Key Market Challenges

The accelerating global transition toward electric vehicles constitutes a structural impediment to the growth of the automotive engine oil market. Unlike internal combustion engine vehicles, which rely on complex lubrication systems to mitigate friction and heat, battery-powered electric motors operate without the need for engine oil. This technological shift directly contracts the addressable market for lubricants by eliminating the requirement for both initial factory fill and recurring aftermarket oil changes. As fleet electrification expands, the volume of lubricant required for routine maintenance naturally declines, eroding the core revenue base for established industry participants.

The scale of this disruption is evident in major automotive markets where adoption rates are surging. According to the China Association of Automobile Manufacturers, in 2024, new-energy vehicle sales reached 12.87 million units, representing 40.9% of total vehicle sales in the country. This substantial market share for non-combustion vehicles signals a permanent reduction in future demand for traditional engine oils. Consequently, lubricant manufacturers face a shrinking customer base as a significant portion of new vehicle registrations no longer requires their primary product.

Key Market Trends

The Widespread Adoption of Ultra-Low Viscosity Grades is reshaping the market as manufacturers pursue fuel efficiency to comply with emission regulations. This technical shift to thinner formulations like 0W-16 and 0W-8 reduces internal friction and improves thermal efficiency in modern powertrains. The industry has formalized this transition through updated standards that validate these limits for commercial use. According to the American Petroleum Institute, June 2025, in the 'API Motor Oil Guide', the organization introduced the new ILSAC GF-7 standards, which officially established licensing for SAE 0W-16 and SAE 0W-8 viscosity grades to meet the performance demands of next-generation engines. This standardization ensures that lubricant technology evolves in lockstep with hardware design.

The Emergence of Re-Refined Base Oils and Circular Economy Practices is transforming the supply chain as participants prioritize sustainability. Companies are increasingly moving toward closed-loop systems where used oil is re-refined into high-quality base stock, reducing reliance on virgin crude extraction. This operational pivot lowers the carbon intensity of the final product and addresses critical waste management challenges. According to Valvoline Inc., July 2025, in the 'Fiscal Year 2024 Impact Report', the company recycled 18,819,551 gallons of waste oil across its service network, ensuring that 100% of the collected volume could be processed for re-refining. This significant recovery highlights the growing commercial viability of circular practices in the global lubricant supply.

Segmental Insights

The passenger cars segment represents the fastest growing category within the global automotive engine oil market, primarily driven by rising vehicle production and increasing ownership rates in emerging economies. This expansion is further accelerated by stringent emission standards established by regulatory entities such as the European Commission and the United States Environmental Protection Agency. These mandates compel manufacturers to utilize high-performance synthetic lubricants that enhance fuel efficiency and minimize carbon output. Consequently, the industry shift toward lower viscosity oils to ensure environmental compliance significantly bolsters demand within the passenger vehicle sector.

Regional Insights

North America holds the leading position in the Global Automotive Engine Oil Market, supported by a vast vehicle fleet and established aftermarket infrastructure. This prominence is primarily driven by rigorous environmental protocols set by the Environmental Protection Agency (EPA), which mandate strict fuel economy and emission reductions. These regulations necessitate the widespread use of advanced, low-viscosity synthetic oils to maintain engine efficiency and regulatory compliance. As a result, the region maintains a strong demand for premium lubricant products, solidifying its command over the global market sector.

Recent Developments

• In December 2024, TotalEnergies Lubrifiants signed a strategic international agreement with Ford Trucks to enhance their partnership across Europe for the next five years. As part of this collaboration, the companies developed a co-branded high-performance engine oil, the Rubia Optima 4300 XFE 5W-20, specifically for Ford Trucks’ Ecotorq engines. The Vice President Automotive at TotalEnergies Lubrifiants highlighted that the partnership would provide fleet managers with products tailored to vehicle needs and local markets. This advanced lubricant was engineered to ensure optimal engine protection and improve energy efficiency for heavy-duty commercial vehicles compliant with recent emissions standards.
• In November 2024, Motul Malaysia launched the Motul 300V 4T Factory Line, a new high-performance motorcycle lubricant, during the Malaysia MotoGP event at the Sepang International Circuit. Developed using the company's proprietary ESTER Core technology, this product was engineered to deliver increased power, reliability, and protection for both road and off-road racing environments. The launch aimed to push the boundaries of lubrication performance, with the company emphasizing its commitment to motorsport innovation. The new formulation offered enhanced durability and was immediately made available to authorized retailers across the region, reinforcing the brand's deep connection to competitive racing.
• In June 2024, Castrol India Limited unveiled a new range of Castrol EDGE engine oils specifically formulated to meet the demands of SUVs, hybrid vehicles, and European cars. This launch introduced three distinct variants, each featuring PowerBoost Technology to exceed industry performance benchmarks by a significant margin. The Vice President and Head of Marketing at Castrol India noted that the product line addressed the growing demand for superior engine protection and performance in modern vehicles. The company claimed the new oils ensured drivers experienced greater power and acceleration on demand, catering to the evolving needs of automotive consumers.
• In April 2024, Shell Lubricants launched three new products within its Shell Helix Ultra passenger car motor oil range to meet upgraded industry specifications and original equipment manufacturer requirements. The new formulations, including Shell Helix Ultra ECT C6 0W-20 and Shell Helix Ultra ECT C3/SP 0W-40, were designed to deliver increased engine power, improved responsiveness, and better fuel efficiency. The Global Executive Vice President of Shell Lubricants stated that these additions reflected the company's commitment to innovation and technology leadership. Field trials indicated that the oils helped maintain engine performance comparable to new conditions for up to 200,000 kilometers, regardless of driving conditions.

Key Market Players

• BP PLC
• Chevron Corporation
• China National Petroleum Corporation
• China Petroleum & Chemical Corporation
• ENEOS Corporation
• ExxonMobil Corporation
• Idemitsu Kosan Co. Ltd
• Royal Dutch Shell PLC
• Total Energies
• Valvoline Inc.

By Demand Category	By Region
OEM and Replacement	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Engine Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Engine Oil Market, By Demand Category:

• OEM and Replacement

• Automotive Engine Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE