Two-wheeler Lubricant Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Two-wheeler Lubricant Market is projected to expand from USD 22.19 Billion in 2025 to USD 31.98 Billion by 2031, reflecting a CAGR of 6.28%. These specialized fluid formulations, primarily comprising engine and gear oils, are essential for minimizing friction and dissipating heat within the mechanical systems of motorcycles and scooters. The market is largely propelled by rising vehicle ownership in developing economies and the increasing use of two-wheelers for last-mile commercial logistics, which demands frequent maintenance. This robust demand is supported by production data; for instance, the 'Society of Indian Automobile Manufacturers' reported in '2024' that domestic two-wheeler sales in India reached approximately 17.97 million units for the fiscal year ending in March, underscoring the substantial installed base requiring regular lubrication.

However, the market confronts a significant challenge due to the rapid electrification of the global automotive sector. The transition toward electric vehicles acts as a major barrier to expansion, as these machines rely on electric motors instead of internal combustion engines, thereby removing the need for traditional engine oils. This structural shift threatens to shrink the total addressable market for conventional hydrocarbon-based fluids as both manufacturers and consumers increasingly adopt battery-operated alternatives to achieve sustainability goals.

Market Drivers

The surging ownership of two-wheelers in emerging economies serves as a fundamental catalyst for market expansion. As rapid urbanization and limited public transit infrastructure in regions like Southeast Asia force populations to depend on personal mobility, the aggregate volume of engine and gear oil required for the global fleet increases proportionally. This proliferation generates sustained aftermarket demand, particularly where motorcycles function as the primary mode of transport for daily commuting and commerce. For example, according to the Association of Indonesia Motorcycle Industry, January 2024, in the '2023 Sales Data Release', domestic motorcycle sales in Indonesia totaled 6,236,992 units for the full year, highlighting the massive scale of fluid consumption required to service these new additions to the fleet.

Additionally, the accelerating shift towards synthetic and semi-synthetic lubricants marks a critical evolution driving value growth within the sector. Modern engine designs, developed to comply with strict emission standards and fuel efficiency mandates, operate under higher thermal and mechanical stress, necessitating advanced fluid formulations that offer superior viscosity stability compared to mineral oils. This transition towards premium products is reinforced by consumer awareness regarding engine longevity. According to Gulf Oil Lubricants India Limited, May 2024, in the 'Financial Results for the Year Ended March 31, 2024', the company reported revenue from operations of Rs 3,284 Crores, driven by volume growth in the motorcycle oil category. Furthermore, the Vietnam Association of Motorcycle Manufacturers noted in 2024 that member sales reached 2,516,212 units for the accumulated year of 2023, ensuring a continuous baseline for lubricant application.

Market Challenges

The rapid electrification of the global automotive sector stands as a formidable barrier to the continued expansion of the lubricant industry. This structural shift directly hampers market growth because electric two-wheelers utilize battery-operated motors instead of internal combustion engines, thereby completely eliminating the necessity for engine oils. Since engine oil represents the largest volume category within the lubricant market, the rising substitution of conventional motorcycles with electric alternatives permanently removes a significant portion of the addressable consumer base. Consequently, lubricant manufacturers face the risk of stagnating volumes even as total vehicle fleets expand, as the new inventory entering the market requires substantially fewer fluid commodities.

This displacement is clearly illustrated by recent consumption data from key high-volume markets. According to the 'Federation of Automobile Dealers Associations' (FADA), in '2024', retail sales of electric two-wheelers in India reached 947,087 units, registering a remarkable year-on-year growth of 30.06 percent. This sharp increase in non-combustion vehicle adoption underscores the accelerating erosion of demand for traditional hydrocarbon-based fluids, forcing the market to contend with a shrinking potential for its core engine oil products.

Market Trends

The emergence of bio-based and eco-friendly lubricant solutions is reshaping the sector, driven by circular economy principles. Manufacturers are increasingly integrating re-refined base oils and sustainable packaging to reduce the carbon footprint of the global two-wheeler fleet while maintaining engine performance. This trend caters to tightening environmental regulations and the rising preference for greener alternatives among riders. Highlighting this evolution, according to The Times of India, November 2025, in the article 'How Motul's green chemistry and circular engineering is driving the future of lubrication', Motul has revolutionized its portfolio by utilizing up to 50 percent recycled material in its NGEN lubricant packaging alongside regenerated base oils.

The expansion of OEM co-branded and genuine oil portfolios is also accelerating as lubricant companies seek to secure reliable aftermarket volumes. By forging strategic alliances with vehicle manufacturers, blenders develop specialized formulations certified for specific engines, locking in consumption through official dealership networks. This business model is critical for ensuring long-term value capture in a fragmented market. Illustrating the scale of this collaboration, according to The Times of India, June 2025, in the article 'Inside Gulf Oil India's EV Push, R&D Drive and Future Roadmap', Gulf Oil Lubricants India has established partnerships with over 40 OEMs across various segments, including two-wheelers, to supply dedicated fluids.

Key Players Profiled in the Two-wheeler Lubricant Market

• Shell PLC
• ExxonMobil Corporation
• TotalEnergies
• Chevron Corporation
• Idemitsu Kosan Co., Ltd.
• Petroliam Nasional Berhad
• PT Pertamina
• Fuchs Petrolub SE
• Motul S.A.

Report Scope

In this report, the Global Two-wheeler Lubricant Market has been segmented into the following categories:

Two-wheeler Lubricant Market, by Vehicle Type:

• Motorcycle
• Scooter

Two-wheeler Lubricant Market, by Sales Channel:

• OEM
• Replacement

Two-wheeler Lubricant Market, by Product Type:

• Engine Oil
• Transmission Oil
• Hydraulic Oil
• Grease

Two-wheeler Lubricant Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Two-wheeler Lubricant Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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