Motor Oil Manufacturing in the US - Industry Market Research Report

Well-oiled machine: As the average age of the vehicle fleet increases, motor oil will be in higher demand

Revenue for motor oil manufacturers has declined through the end of 2023, primarily due to volatility in the price of crude oil and COVID-19-induced complications. Motor oil manufacturers produce petroleum-based motor oils and grease products. These goods are used to reduce friction and wear on moving motor parts, along with cooling and cleaning engines. The price of motor oil is largely dependent on fluctuations in crude oil prices. When fuel prices rise, motor oil manufacturers endure higher costs to produce their respective products. Motor oil manufacturers are often able to pass along these costs to distributors and other downstream markets since there are very few substitutes of motor oil and lubricant greases. This proved extremely difficult amid the COVID-19 pandemic, as restrictions severely hampered travel patterns and motor oil usage. Motor oil manufacturing revenue has inched downward at a CAGR of 0.8% over the past five years and is expected to total $21.2 billion in 2023, when revenue will fall by an estimated 1.2%. Profit has also decline due to rising wage costs and volatile input prices. Operators in this industry primarily engage in blending or compounding refined petroleum to make lubricating blended motor oils and greases and/or re-refining used petroleum lubricating oils. Motor oil functions to separate and lubricate moving parts, reduce engine wear, cool engine parts and enhance engine fuel economy. Synthetic lubricants made from chemical products are mainly produced in the Chemical Product Manufacturing industry . This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.