Synthetic Blend Oil Market - Forecasts from 2023 to 2028

The synthetic blend oils market is expected to grow at a CAGR of 8.45% during the forecast period.

Synthetic blend oil is a type of motor oil created by mixing a percentage of synthetic oil, typically 20-30%, with conventional mineral oil. Synthetic blend oils are designed to offer the benefits of synthetic oils at a lower cost while still providing some of the advantages of mineral oils. Synthetic blend oil is used in automotive, marine, and industrial activities as it provides superior lubrication and protection against wear and tear and can handle extreme temperatures while also reducing overall costs. Automotive and marine producers demand synthetic blend oils as they provide high-performance lubrication in engines under extreme conditions, extend the life of equipment, and reduce maintenance costs. Such factors are driving their market growth.

Increased automotive production is accelerating the demand for synthetic blend oils.

The main advantage of synthetic blend oils in the automotive industry is their ability to provide superior protection against wear and tear, which can extend the life of engines and reduce maintenance costs. This is particularly important for high-performance engines with heavy use and extreme operating conditions. Synthetic blend oils can improve fuel efficiency by reducing friction which helps automakers meet stricter environmental regulations. Reducing maintenance costs and improving fuel efficiency in the growing automotive industry will boost the demand for synthetic blend oil. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production of cars in China increased to 23.84 million in 2022 from 21.41 million in 2021. According to the Society of Indian Automobile Manufacturers (SIAM), the production of passenger cars increased from 3.06 million in 2020-2021 to 3.65 million in 2021-2022. This shows that synthetic blend oil will have a great demand in the future.

The expanding marine sector is positively impacting market growth.

The need for high-performance lubricants becomes increasingly important in the marine industry as ships and vessels become more sophisticated. Synthetic blend oils are available in a wide range of viscosities, grades, and formulations that meet various industry specifications, and this flexibility allows marine operators to select the right lubricant for each application, ensuring that engines are properly lubricated and protected. Synthetic blend oils reduce friction and improve engine efficiency, which helps marine operators reduce fuel consumption and minimize environmental impact. The increasing ship and vessel production will boost the demand for synthetic blend oil. According to the International Maritime Organization (IMO), the number of ships in the world merchant fleet increased by 3.04% from January 2020 to January 2021, with 99,800 ships registered.

The Asia Pacific is expected to hold a significant market share throughout the forecast period.

Asia Pacific region is expected to constitute a significant market share due to the growth of the automotive and marine sectors in countries such as South Korea and India - also, the regulations relating to strict fuel efficiency and emissions act as additional driving factors. In 2020, to promote the demand for ships built in India, ROFR (Right of First Refusal) guidelines were amended to give preference to ships built in India, flagged in India, and owned by Indians. In 2020, the South Korean government stated it would speed up customs clearance, arrange freight transportation and provide liquidity support for the automotive industry, which employs about 12% of South Korea’s workforce. Such developments will boost the demand for synthetic blend oil in Asia, thereby driving regional market growth.

Products:

• Castrol® GTX® High Mileage Motor Oil: This product made by Castrol Limited is a synthetic blend engine oil that helps extend the life of your engine by protecting against sludge, wear, and burn-off and liquid-engineered to protect your emission system.
• DIAMOND 5W-40 SL/CF: Such synthetic blend oil by Rexoil is a four-season engine oil formulated with synthetic oils and performance additives for superior protection and fluidity. It has been developed for diesel engines, passenger and commercial vehicles engines which work on gasoline.
• WARREN® Synthetic Blend SAE 5W-30 GF-5 Motor Oil: The product by Warren Oil Company LLC is a premium-quality, high-detergent automotive engine oil specially formulated to meet the stringent lubrication requirements of today’s engines.

Market Segmentation:

By Base Stock Type

• Diesters
• Phosphate Esters
• Polyol Esters
• Polyalkylene Glycol
• Others

By End-User

• Automotive
• Marine
• Industrial
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Other