Diesel Engine Lubricants Market - Global Outlook & Forecast 2022-2027

Diesel engine lubricants are used in heavy machines, construction equipment, commercial vehicles, agricultural machines & equipment, and others. The continued requirement of lubricants in these end-use applications for effective and efficient performance drives the demand for diesel engine lubricants. Increasing demand for heavy vehicles and construction equipment will drive the growth of diesel engine lubricants globally. The demand for commercial vehicles in India, China, Brazil, South Korea, Argentina, Mexico, and South Africa is growing because of rapid development in the automotive and infrastructure industry. This has created a healthy environment for the diesel engine lubricants market growth.

MARKET TRENDS

a) Infrastructure development in emerging economies due to subsidies offered by local governments for industrial development and FDIs. This increases the demand for heavy equipment, ultimately increasing lubricants' demand.
b) Diesel engines are used in heavy and light commercial vehicles, passenger cars, heavy construction equipment, warehousing machines & equipment, railway and marine transportation, and others. However, the use of diesel engines is decreasing in passenger cars due to environmental regulations and emission control rules. However, commercial and heavy equipment still require diesel engines to operate efficiently.
c) Diesel engines offer higher fuel efficiency and torque compared to petrol engines. The various characteristics of diesel engines help them deliver higher performance and fuel efficiency. Diesel engines have more torque than petrol engines due to the higher compression ratio in diesel engines; combustion speed is high, length of stroke is more, use of turbocharger and calorific value of diesel is more.
d) The US, China, India, South Korea, Brazil, the UK, Germany, Canada, and Saudi Arabia developed rapidly regarding infrastructure. These projects increased the demand for construction equipment, such as loaders, excavators, and dumpers. There is infrastructure development in emerging economies due to subsidies offered by local governments for industrial development and FDIs. This increases the demand for heavy equipment, ultimately increasing lubricants demand.

Trade Scenario in Overall Lubricants Market

The global diesel engine lubricants market is highly influenced by the supply and demand scenario of the overall lubricants. Lubricants garner a significant demand share of around 20% to 25% in the general industry. Factors such as increased commercial vehicle requirements, considerable demand for lower viscosity oils, and growth in construction activities are projected to drive the diesel engine lubricants market during the forecast period.

MARKET SEGMENTS

Oil Type

Lubricants are available in two different types: synthetic oil and mineral oil. These two oil types offer some benefits, but synthetic oil is the largest segment for diesel engine lubricants as it provides lubrication for new designs of diesel engines.

Segmentation by Oil Type

• Mineral Oil
• Synthetic Oil

End User

The global diesel engine lubricants market can be divided into 3 major end-use industries automotive and transport, power generation, heavy industrial, and others. The demand and production of lubricants used in automotive and transportation are expected to be the highest due to the growth in population, urbanization, increasing demand for commercial products and consumables, transportation requirements, and others.

Segmentation by End Use

• Automotive & Transportation
• Heavy Industrial
• Power Generation
• Others

GEOGRAPHICAL ANALYSIS

The diesel engine lubricants market has many established companies operating in significant parts of the world. APAC is one of the largest industries as this region's automotive, transportation, power generation, and heavy industrial sectors are increasing significantly because of continuous industrialization and infrastructure development.

North America and Europe have established stringent emission regulations affecting the automotive industry. Still, the slowly increasing biodiesel vehicle industry is projected to drive the automotive and transportation industry in North America and Europe in the coming years.

Segmentation by Geography

• APAC
• China
• India
• Japan
• Indonesia
• South Korea
• North America
• US
• Canada
• Europe
• Germany
• Russia
• Italy
• Spain
• France
• Latin America
• Mexico
• Brazil
• Argentina
• Middle East & Africa
• Iran
• UAE
• Saudi Arabia
• South Africa

FUTURE OUTLOOK

The demand and production of the diesel engine lubricant market is primarily concentrated in Europe and North America. However, emerging economies in Asia-Pacific, such as China and India, are witnessing an increased adoption of these lubricants due to their beneficial properties and changing demographics.

The Asia Pacific region is expected to witness substantial growth in demand for diesel engine lubricants in revenue terms by 2027. The growing demand for environmentally sustainable and efficient lubricants from commercial automotive, manufacturing, heavy machinery, construction equipment, agricultural equipment, and other industrial sectors drives the diesel engine lubricants market.

COMPETITIVE LANDSCAPE

• The industry concentration in developed economies such as the US and Western European countries is high. In contrast, the industry in developing economies such as China and India is thriving because of the entry of many international brands such as Shell PLC (UK), ExxonMobil (US), Gulf Oil, and Castrol (UK) in these countries.
• Chevron offers lubricants under the brand Delo. For commercial vehicles and heavy industrial vehicles, Delo provides fats. Understanding the present industry scenario, Chevron has developed a dedicated portfolio for synthetic oil-based lubricants.
• The parameters on which vendors compete in the lubricants market are product portfolio, product quality, geographical presence, brand image, cost differentiation, and others.
• Major companies present in this industry are Shell (UK), Valvoline (US), ExxonMobil (US), Total (France), BP (UK), and others.
• ExxonMobil is one of the leading suppliers of automotive and industrial lubricants. The company is among the world's largest base oil manufacturers. The company's product portfolio offers a wide range of automotive and industrial lubricants specially designed for diesel engines.

Key Vendors

• Castrol Limited
• Chevron Corporation
• ExxonMobil Corporation
• Shell PLC
• TotalEnergies

Other Prominent Vendors

• Bharat Petroleum Corporation Limited (BPCL)
• BP PLC
• FUCHS
• Gazpromneft - Lubricants Ltd
• GS Caltex Corporation
• Gulf Oil International limited
• Hindustan Petroleum Corporation Limited (HPCL)
• Idemitsu Kosan Co., Ltd.
• Indian Oil Corporation Limited (IOCL)
• Kuwait Dana Lubes Company
• Liqui Moly
• Motul
• Pennzoil
• Petro Canada Lubricants
• Petroliam Nasional Berhad (PETRONAS)
• Philips 66
• Ravensberger Schmierstoffvertrieb GmbH (Ravenol)
• Repsol
• Sinopec
• Valvoline Inc.

KEY QUESTIONS ANSWERED:

1. How big is the global diesel engine lubricants market in revenue?
2. What is the growth rate of the diesel engine lubricants market?
3. What are the key driving factors for the growth of the diesel engine lubricants market?
4. Who are the major vendors in the global diesel engine lubricants market?
5. Which region accounted for the largest diesel engine lubricants market share?