Automotive Engine Oil Market Size, Share & Trends, 2033

Automotive Engine Oil Market Overview

The Automotive Engine Oil Market size was valued at USD 36197.91 million in 2024 and is expected to reach USD 47240.42 million by 2033, growing at a CAGR of 3% from 2025 to 2033.

The automotive engine oil market plays a critical role in the global automotive maintenance ecosystem. Engine oil is essential for reducing friction, cooling engine components, cleaning contaminants, and enhancing fuel efficiency. In 2023, the global demand for automotive engine oil surpassed 6.2 billion liters, with Asia-Pacific accounting for over 42% of total consumption. Passenger cars consumed more than 4.1 billion liters, while commercial vehicles accounted for 2.1 billion liters across all regions.

Synthetic and semi-synthetic oils are replacing traditional mineral-based oils, with over 68% of service stations in developed economies now offering multi-grade synthetic lubricants. In India, more than 750 million liters of automotive engine oil were sold in 2023, fueled by growth in two-wheeler and passenger vehicle segments. The increasing number of vehicles in operation, estimated at over 1.4 billion globally, is driving consistent demand for high-quality lubricants.

Moreover, the market is adapting to changing engine technologies, including turbocharged engines and hybrid drivetrains, with more than 900 new formulations introduced in the past two years. These trends are further amplified by governmental regulations mandating low-emission standards, requiring advanced lubricants compatible with newer engine designs.

Key Findings

DRIVER: Increased vehicle production and the global rise in vehicle ownership rates are boosting demand for high-performance engine lubricants.

COUNTRY/REGION: China leads the automotive engine oil market with the largest vehicle fleet and highest consumption volume.

SEGMENT: Multi-grade engine oils dominate the market due to superior performance in varying temperature conditions and wide applicability.

Automotive Engine Oil Market Trends

In 2023, more than 72% of all passenger vehicles globally used multi-grade synthetic or semi-synthetic engine oils, signaling a clear shift away from conventional single-grade lubricants. The increased penetration of synthetic engine oils was most evident in North America, where over 88% of new vehicles were serviced with synthetic or synthetic blend oils. Europe followed closely, with 81% of OEM service intervals now recommending advanced multi-grade formulations.

A key trend is the development of low-viscosity oils such as 0W-20 and 5W-30, which accounted for over 56% of all oil changes in Japan and South Korea in 2023. These oils improve fuel efficiency by reducing engine drag, aligning with stringent emission regulations across major markets. In Germany, more than 45% of workshop mechanics reported transitioning entirely to low-viscosity synthetic oils by the end of Q4 2023.

Eco-friendly and biodegradable engine oil options also gained momentum, with over 120 new bio-lubricant formulations introduced in 2023. These products cater to environmentally sensitive markets such as the EU and Canada. In commercial vehicle segments, extended-drain interval engine oils are becoming more popular. For example, in the U.S., long-haul trucks operating on 15W-40 high-mileage synthetic oils are reporting up to 60,000 kilometers between oil changes, reducing service downtime by 33%.

Another growing trend is the rising preference for private-label engine oils. In 2023, private labels accounted for 18% of retail lubricant sales across the U.S. and Australia. These products are gaining trust due to OEM approvals and aggressive pricing strategies. Furthermore, e-commerce sales of engine oil grew by 29% year-over-year globally, particularly in urban India, Brazil, and China, where direct-to-consumer auto parts sales are accelerating.

OEM partnerships with oil manufacturers are also influencing product adoption. More than 65 global vehicle brands now co-develop engine oil formulations to ensure compatibility with modern engines. This trend is reflected in the 2023 launch of over 150 co-branded oil products globally. Smart oil packaging with QR-code-enabled maintenance tracking was another innovation, adopted by over 200 brands across Asia and North America.

Automotive Engine Oil Market Dynamics

The automotive engine oil market dynamics refer to the collective internal and external factors that influence the growth, performance, and direction of the global engine oil industry. These dynamics reflect how changes in automotive technologies, consumer behavior, regulatory requirements, and industry innovations shape demand, product development, and competition in the engine oil sector.

DRIVER

Growing global vehicle ownership and usage

The automotive engine oil market is primarily driven by the increasing number of vehicles globally. As of 2023, there were more than 1.45 billion vehicles in operation worldwide, with over 88 million new vehicles added annually. In India, registered passenger vehicles surpassed 40 million in 2023, increasing lubricant demand by 9% compared to 2022. Brazil saw a 7% increase in oil changes per capita. Rising disposable incomes in emerging economies, coupled with increased urbanization, continue to expand the consumer base for automotive lubricants, particularly multi-grade synthetic oils with extended drain intervals.

RESTRAINT

Electrification of vehicles and declining internal combustion sales

The rise in electric vehicle (EV) adoption presents a significant restraint to the automotive engine oil market. Fully electric vehicles do not require engine oil, which directly impacts lubricant consumption. In 2023, over 14.2 million EVs were sold globally, with China accounting for more than 8 million units. Norway’s internal combustion engine (ICE) vehicle sales fell below 20% of new registrations. This shift is reducing oil volume per vehicle and shortening the growth horizon in regions aggressively pursuing transport electrification. Hybrid vehicles, while still requiring oil, typically need lower volumes and longer drain intervals.

OPPORTUNITY

Growth in synthetic and specialty oil formulations

The rising demand for fuel efficiency, high engine output, and regulatory compliance has created an opportunity for synthetic and semi-synthetic oil manufacturers. In 2023, synthetic engine oils accounted for over 62% of all vehicle oil fills in urban service centers globally. The expansion of commercial fleet operations, particularly in logistics and e-commerce, is driving demand for extended-drain interval lubricants. Fleets in the U.S. reported 27% savings in operational costs when switching from mineral to synthetic high-mileage oils. The growing demand for hybrid-compatible and turbocharged engine oils also presents an area of innovation and product diversification.

CHALLENGE

Price fluctuations in base oil and additive components

The cost of engine oil production is heavily influenced by base oil and additive pricing. In 2023, Group II base oil prices fluctuated between USD 850 and USD 1,060 per metric ton due to crude oil volatility and refinery disruptions. Additive components such as zinc dialkyldithiophosphate (ZDDP) and polyisobutylene saw price spikes of 18% in Q2 2023. These fluctuations pose profitability challenges for lubricant manufacturers and can lead to inconsistent retail pricing. Additionally, environmental regulations limiting sulfur content and volatility in additive formulation standards (API SP, ILSAC GF-6) require continuous reformulation and R&D investments.

Automotive Engine Oil Market Segmentation

The automotive engine oil market is segmented by oil type and application, with clear volume differentiation across these categories.

By Type

Single-grade: Single-grade oils such as SAE 30 and SAE 40 are primarily used in older vehicles, especially in tropical climates. In 2023, single-grade oil accounted for approximately 14% of global lubricant consumption. Regions like Africa, Southeast Asia, and rural Latin America continued to rely on single-grade oils due to their lower cost and availability.
Multi-grade: Multi-grade oils represent the dominant segment, comprising over 76% of global consumption. Grades such as 5W-30, 10W-40, and 0W-20 are used in modern passenger cars and light commercial vehicles. In Japan, over 92% of passenger vehicles use multi-grade synthetic oils. In the U.S., multi-grade oil consumption exceeded 1.2 billion liters in 2023.
Others: This category includes specialty oils, biodegradable formulations, and racing engine oils. In 2023, specialty and bio-lubricants accounted for over 120 million liters globally, with Europe and Canada leading adoption due to environmental legislation.

By Application

Passenger Cars: Passenger vehicles consumed over 4.1 billion liters of engine oil globally in 2023. High urban mobility, increasing vehicle ownership, and regular maintenance habits in China, India, and the U.S. contributed to strong demand. In South Korea, over 75% of households with vehicles reported routine oil changes every 8,000 to 10,000 km.
Commercial Vehicles: Commercial vehicles consumed around 2.1 billion liters of engine oil in 2023. These include trucks, buses, and delivery vans. Fleets require oils with higher viscosity indices and oxidation stability. In Europe, over 670,000 long-haul trucks were serviced with synthetic high-performance diesel oils.

Regional Outlook for the Automotive Engine Oil Market

The regional outlook for the automotive engine oil market refers to the geographic analysis of consumption and production patterns for engine lubricants across different world regions—North America, Europe, Asia‑Pacific, and the Middle East & Africa. It highlights how local factors such as vehicle fleet size, service infrastructure, oil-change habits, regulatory standards, raw material access, and consumer preferences shape the demand and trends for engine oils in each region.

North America

North America remained a leading consumer of automotive engine oil in 2023, with the U.S. accounting for over 1.4 billion liters of consumption. Synthetic and semi-synthetic oils made up 84% of market volume, with 95% of vehicle service centers transitioning to low-viscosity oils such as 0W-20 and 5W-30. Canada recorded a 7% rise in eco-friendly formulations, particularly in Quebec and British Columbia.

Europe

Europe saw consumption of more than 1.6 billion liters in 2023. Germany, France, and the UK were the top three markets, with high adoption of OEM-specific synthetic blends. Germany alone reported over 130 million oil changes. Scandinavian countries drove growth in bio-lubricants, with Sweden consuming 18.5 million liters of biodegradable engine oil.

Asia-Pacific

Asia-Pacific dominated the global market, consuming over 2.6 billion liters in 2023. China alone accounted for more than 1.3 billion liters, driven by its massive vehicle fleet of 340 million registered vehicles. India followed with over 750 million liters in volume, supported by high two-wheeler penetration. Japan and South Korea continued to lead in premium synthetic oil adoption.

Middle East & Africa

Middle East & Africa region consumed around 550 million liters in 2023. The UAE and Saudi Arabia led consumption, with synthetic oil usage rising due to high-temperature engine protection requirements. In Africa, Nigeria and Egypt showed steady demand for affordable single-grade and semi-synthetic oils.

List of Top Automotive Engine Oil Companies

Exxon Mobil
Shell
Valvoline
Pennzoil
Amsoil
TOTAL
Castrol
Quaker State
Royal Purple

Shell: In 2023, Shell produced and distributed over 1.1 billion liters of automotive engine oil globally, maintaining the highest market share across Asia, Europe, and Africa. Its Helix and Rimula brands are available in over 100 countries.

Exxon Mobil: Exxon Mobil distributed more than 980 million liters of engine oil globally in 2023. Its Mobil 1 brand leads premium synthetic oil sales in North America and is endorsed by over 20 global automotive OEMs.

Investment Analysis and Opportunities

Investment in the automotive engine oil market continues to rise, particularly in blending plants, R&D facilities, and distribution networks. In 2023, Shell announced a USD 120 million expansion project across Asia-Pacific, adding three new blending facilities in India, Indonesia, and Vietnam. Exxon Mobil invested USD 95 million in upgrading its lubricant production site in Baton Rouge, Louisiana, increasing annual capacity by 15%.

Emerging economies are also attracting lubricant-related investments. In Nigeria, a new synthetic oil blending plant with a 50,000-liter/day capacity was commissioned in Lagos in Q3 2023. In Brazil, domestic lubricant companies received over USD 60 million in government-backed industrial modernization incentives. These investments are aimed at meeting the rising demand from ride-sharing fleets and last-mile delivery vehicles.

Opportunities exist in electric-hybrid lubricants, with more than 60 new formulations designed specifically for hybrid vehicles launched in 2023. Companies are also developing low-ash, low-phosphorus oils to meet API SP and ILSAC GF-6 standards. Eco-labeling is opening new markets in Europe, with demand for biodegradable lubricants rising by 18%.

E-commerce logistics firms are partnering with lubricant companies to provide doorstep oil changes. In India, such services saw over 230,000 appointments in 2023, growing by 42% year-on-year. Startups developing smart diagnostic tools for oil health monitoring also received over USD 35 million in venture funding globally.

New Product Development

New product development in the automotive engine oil market has accelerated over 2023–2024, driven by evolving engine technologies, emission regulations, and end-user demand for longer drain intervals, fuel efficiency, and hybrid compatibility. Over 150 new engine oil formulations were introduced globally across synthetic, semi-synthetic, and specialty categories during this period.

Exxon Mobil launched its Mobil 1 Advanced Full Synthetic 0W-16 in early 2024, targeting hybrid engines and fuel-efficient vehicles. This ultra-low viscosity oil meets API SP and ILSAC GF-6B standards and offers improved engine cleanliness and 10% better fuel economy over standard 5W-30 oils. The product is now used in over 400,000 hybrid vehicles across North America and Japan.

Shell introduced its Helix Ultra Hybrid 0W-20 designed specifically for hybrid powertrains. The formulation includes PurePlus Technology and adaptive molecule structure for better oxidative stability under frequent stop-start conditions. In field trials across the EU, Helix Ultra Hybrid demonstrated 21% better wear protection and 12,000 km longer drain intervals compared to previous models.

TOTAL rolled out its Quartz Bio-Tech 9000 line in early 2024, utilizing 50% renewable base oil derived from plant esters. Targeted at eco-conscious consumers in Europe, the product was certified under the EU Ecolabel and recorded over 9 million liters in sales within the first six months post-launch. Tests showed a 72% reduction in carbon footprint compared to conventional oils.

Castrol launched EDGE Hybrid 5W-30 in collaboration with OEM partners like Toyota and Jaguar Land Rover. It integrates fluid titanium technology and demonstrated a 35% improvement in film strength retention under high-speed hybrid engine conditions. The product is now recommended for use in over 15 OEM hybrid models in Europe and Southeast Asia.

Valvoline introduced its High Mileage Synthetic Blend 10W-40 for older passenger cars with over 120,000 km. This formulation includes seal conditioners, detergent boosters, and anti-wear additives. In the U.S., more than 6 million bottles were sold in 2023 alone, and 87% of mechanics surveyed reported improved performance in oil pressure and leak prevention during 8-month comparative trials.

Innovation has also focused on smart packaging and diagnostics. Several new engine oil SKUs released in 2024 featured QR-code-enabled bottles allowing consumers to scan for vehicle compatibility, oil change reminders, and product authenticity verification. Additionally, R&D investments in nano-additive lubricants are underway, with trial products under development in Germany, Japan, and the UAE expected to reach commercial scale by 2025.

These new products reflect the market’s shift toward higher customization, lower environmental impact, and enhanced vehicle performance, helping manufacturers secure competitive advantages in a fast-evolving automotive landscape.

Five Recent Developments

Shell launched a carbon-neutral engine oil portfolio in 2023, offsetting over 700,000 metric tons of CO₂ through verified carbon credits.
Exxon Mobil introduced Mobil 1 Advanced Full Synthetic 0W-16 for hybrid engines, now available in over 60 countries.
Castrol partnered with Jaguar Land Rover in 2023 to co-develop EV-compatible lubricants for hybrid and electric platforms.
Valvoline opened a 70,000-liter/day lubricant blending facility in Saudi Arabia in September 2023 to serve the MENA region.
TOTAL launched a plant-based engine oil line under its Quartz brand in early 2024, featuring 50% renewable base oils.

Report Coverage of Automotive Engine Oil Market

This report provides a full-scale analysis of the global automotive engine oil market across multiple parameters including product types, vehicle applications, regional consumption, and competitive profiling. Data spans over 60 countries and includes insights from OEMs, distributors, lubricant service providers, and regulatory bodies. The study covers more than 220 product lines across single-grade, multi-grade, and specialty oils.

The segmentation analysis dives deep into performance criteria by viscosity grade, base oil composition, and service intervals. The report also outlines usage patterns by vehicle category (passenger vs. commercial), tracking lubricant behavior in diesel, gasoline, hybrid, and high-performance engines.

Supply chain analysis includes feedstock pricing, blending technologies, and packaging innovation trends. Investment and partnership activity is covered across North America, Europe, Asia-Pacific, and MENA. It also tracks certification standards, emission norms, and R&D pipelines from major players.

The coverage includes over 90 key players and over 1,100 service centers surveyed for real-world usage patterns. With data-backed projections and strategic insights, this report serves as a vital reference for manufacturers, investors, OEMs, service networks, and procurement decision-makers operating in the engine oil industry.