Constantly fluctuating crude oil prices create challenges for the market
Dublin, 29 July 2022 (GLOBE NEWSWIRE) — The report “Engine Oil Market – Global Outlook and Forecast 2022-2027” has been added to from ResearchAndMarkets.com offer.
The Motor Oil market is provided for the forecast years 2022 to 2027 and the base year 2021. The market is segmented on the basis of end use, type of oil and geography for the years considered. The report provides a holistic approach to the Motor Oil market to enable clients to effectively analyze the market.
The primary role of engine oil is to lubricate engine parts to minimize friction and overheating. It also performs a variety of secondary functions. It helps in the cleaning and cooling of engine parts and in the prevention of rust and corrosion buildup on the piston.
The engine oil market is changing as customers demand good quality and higher performance oil which would improve the fuel economy of the vehicle with better engine performance. Increasing engine shelf life, reducing carbon footprint, providing low viscosity engine oils to improve fuel economy and meeting changing vehicle emission standards set by various entities are all examples of continuous innovation and progress to meet diverse automotive needs. The increasing use of passenger cars, commercial vehicles and the rapidly growing transportation industry in emerging economies has boosted the market.
Drivers: rapid infrastructure development increasing demand for heavy equipment
The infrastructure and construction industry is essential to the overall economic growth of the world. Adequate infrastructure such as road and rail transport systems, ports, electricity and airports are necessary to integrate the country’s economy with other global economies.
Over the past few years, the development of infrastructure has increased dramatically all over the world and as a result, the demand for heavy equipment has increased. Generally, heavy equipment refers to heavy vehicles used for construction and mining work; therefore, the increase in heavy equipment will ultimately increase the demand for engine oil.
In addition, emerging countries have benefited from foreign direct investment and have helped multinationals build various infrastructure and construction projects in several countries. In addition, the new industrial policies put in place by the governments of emerging economies have made it possible to increase the production capacity of heavy equipment vehicles.
The infrastructure and construction industry has been growing rapidly worldwide due to low cost of raw materials, low cost of skilled labor and increasing foreign direct investment (FDI) .
Opportunities: increased demand for a good quality motor Petrol due to strict emissions regulations
Governments around the world have raised awareness of the negative impacts of greenhouse gas emissions; for this reason, various environmental agencies work closely with the governments of several countries. As a result, various governments around the world have established strict emissions regulations for vehicles to reduce their impact on the environment.
Therefore, many manufacturers have taken these regulations as an opportunity to invest in R&D so that they can develop products that will meet these emissions regulations and deliver the best engine performance. Moreover, countries like India, China, USA, Germany, UK and France have set emission standards which will reduce fuel consumption and provide better performance.
All of the above points will increase the demand for good quality engine oil. Various car manufacturers such as Ford (USA), Mazda (Japan), McLaren (UK), Toyota (Japan) and Porsche (Germany) have formed strategic partnerships with various manufacturers such as Shell PLC (UK) , ExxonMobil (USA), and Gulf Oil (USA) to develop engine oils compatible with modern engines that meet emissions regulations.
Additionally, developments in engine design, engine assembly, piston design and crankshaft systems have created an opportunity for motor oil manufacturers to develop high performance and efficient motor oils.
Challenges: constantly fluctuating crude oil prices
Crude oil is one of the most critical factors influencing international economic development because crude oil products are used in virtually all machinery. The transportation sector across the world is entirely dependent on petroleum products such as gasoline and diesel fuel.
Also, different types of lubricants are used for the proper functioning of transport vehicles. In addition, many countries also rely heavily on petroleum fuels for heating their homes, cooking and generating electricity. Petroleum products derived from crude oil and other liquid hydrocarbons account for approximately one-third of global energy consumption. Oil price volatility has the potential to send shock waves throughout the global economy.
The changes also influence oil prices in supply and demand. Oil is a necessity and is in high demand; market forces mainly determine its price. Since crude oil is the primary raw material needed to manufacture base oil, engine oil is 80-90% base oil, and constant fluctuations in crude oil prices affect the prices of engine oil.
Automotive engine oil is the most commonly used lubricant in vehicles. The automotive engine oil market occupied nearly 75% of the global engine oil market share in 2021.
The automotive engine oil market is expected to grow at a CAGR of over 5% from 2022 to 2027. Engine oil plays a vital role in engine performance, protecting against wear on moving parts. Motor oil consists of base oils and various additives, providing a wide range of properties. Global motor oil products are widely used in various industries such as automotive and transportation, heavy equipment, power generation, agriculture, woodworking, textile and others.
Motor oil is generally available in three types of oil: fully synthetic, semi-synthetic and mineral oil. All three types of oil have certain advantages, but semi-synthetic motor oil is the largest oil type segment on the market. Semi-synthetic oils are a mixture of mineral oils and fully synthetic lubricants. Semi-synthetic oil is more expensive than mineral oil but cheaper than full synthetic oil, which helps consumers get premium quality engine oil at an economical price. Semi-synthetic oils offer properties similar to full synthetic oils, such as increased engine performance, excellent parts protection and optimized performance.
The global engine oil market is diverse. APAC is the top motor oil market due to low labor cost and abundant availability of raw materials. APAC will dominate the market throughout the forecast period. However, there are many countries with strong potential for expansion that will challenge APAC’s dominance.
COMPANY AND STRATEGIES
The major players have undertaken various strategies to grow in the motor oil market. Companies in the sector compete strategically. The growth of sustainable processes and initiatives has been a challenge for all businesses around the world. R&D investments, technological advancements, and environmental and economic challenges are driving demand for innovative and sustainable motor oil products.
Some of the major market players include Exxon Mobil Corporation (US), British Petroleum (UK), Shell (UK), Gulf Oil (US), Idemitsu (Japan), Castrol (US) , Fuchs (Germany) and Chevron Corporation (US). These players have adopted strategies such as expansion, acquisitions, new product development, joint ventures, and others to increase their revenue in the motor oil market.
Other Important Suppliers
Bharat Petroleum Corporation Limited
Gazpromneft – Lubricants SA
GS Caltex Corporation
Gulf Oil International Limited
Hindustan Petroleum Corporation Limited
Idemitsu Kosan Co., Ltd.
Indian Petroleum Company Limited
Kuwait Dana Lubes Company
Petro Canada Lubricants Inc.
Petroliam Nasional Berhad (PETRONAS)
Ravensberger Schmierstoffvertrieb GmbH (Ravenol)
Main topics covered:
1 Research methodology
2 research objectives
3 Research process
4 Scope and coverage
4.1 Market Definition
4.2 Base year
4.3 Scope of the study
5 Report assumptions and caveats
5.1 Main caveats
5.2 Currency conversion
5.3 Market Derivation
6 The market at a glance
8 Leadership Perspectives
8.1 Motor Oil Market – Global Forecast (2021-2027)
8.2 Market Summary
8.2.1 Market trends
8.2.2 Sector review
8.2.3 Companies and strategies
9 Opportunities and Market Trends
9.1 Passenger Car Demand in Emerging Economies
9.2 Heavy Equipment Demand
10 Market Growth Catalysts
10.1 Demand for High Quality Engine Oil
10.2 Industrialization of emerging economies
11 Market Constraints
11.1 High Demand and Production of Electric Vehicles
11.2 Crude Oil Price Fluctuations
12 Market landscape
12.1 Market Overview
12.2 Market Size and Forecast
12.3 Five forces analysis
13 End use
13.1 Market Overview and Growth Driver (Value)
13.2 Market Overview and Growth Driver (Volume)
13.3 Market Overview
13.4 Automotive and transportation
13.5 Heavy Equipment
13.6 Power Generation
14 types of oil
14.1 Market Overview and Growth Driver (Value)
14.2 Market Overview and Growth Driver (Volume)
14.3 Market Overview
14.5 Fully Synthetic
15.1 Market Overview and Growth Driver (Value)
15.2 Market Overview and Growth Driver (Volume)
15.3 Geographic overview
For more information about this report visit https://www.researchandmarkets.com/r/9haccm
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