Automotive Engine Oil Market Trends

Growth Drivers

• Growth in Automobile Industry with Increasing Long-Distance Jobs, Institutes, and Schools - For instance, the Indian automobile industry manufactured approximately 22,930,200 vehicles in April 2021, which include passenger cars, CVs, and two-wheelers. It showed a significant rise from 22,600,600 units produced in April 2020.The growing awareness of the benefits of automotive engine oil in vehicles such as reducing friction, and protecting and lubricating engine parts is expected to propel the engine oil demand. Thus, the rapid growth in the automotive industry worldwide coupled with rising demand for vehicles is anticipated to drive global automotive 1engine oil market growth over the forecast period.
• Surge in Exports of Medium Oils Worldwide Owing to Increasing Spending Capacity - According to the statistics by the International Trade Center (Trademap), the global value of exports of medium oils in the year 2021 was recorded to be USD 437,452,177 thousand, which was an increase from USD 277,333,611 thousand in the previous year.
• Rising Demand for Motorcycles with Rising Standards of People in Developing Countries - For instance, motorcycle production accounted for an estimated 52 million units in 2021 and the demand for motorcycles grew by 7.3% year over year. 
• Increasing Crude Oil Production Owing to Rising Demand from Different Sectors - For instance, crude oil production in the United States grew by 1.4 % in the year 2021, and Russia surpassed Saudi Arabia in crude oil production by 1.6%.
• Rapid Growth in Industrialization and Urbanization Across the World - According to World Bank data, a total of 57% of the population has been identified as an urban population, equal to nearly 4.5 million people. 

Challenges

• Rising Supply of Counterfeit Engine Oil Products
• Changing Prices of Raw Materials- The volatility of prices in the raw materials supply of automotive engine oil is the major disadvantage that hampers the market growth in the forecast period. The fluctuations, shortage, and rising environmental regulations from the government. The production cost is rising as the process is complex and an increasing number of companies as competitors in the market are restraining the market growth.
• Lack of Environment-Friendly Engine Oils