Engine Oil Market is expected to reach US$ 114.81 Billion by 2031

Growing Awareness of Preventive Maintenance Drives Engine Oil Market Growth

According to our latest study on "Engine Oil Market Forecast to 2031, Global and Regional Growth Opportunity Analysis – by Type and End-Use Industry," the market was valued at US$ 81.57 billion in 2024 and is expected to reach US$ 114.81 billion by 2031; it is estimated to register a CAGR of 5.2% during 2025–2031. The report highlights factors contributing to the engine oil market size and prominent players, along with their developments in the engine oil market.

The engine oil market growth is driven by an increasing vehicle population, developing industrial and construction sectors, and the need for high-performance synthetic and semi-synthetic lubricants with better engine protection, fuel efficiency, and a longer drain interval. These sophisticated formulations are essential in contemporary engines, particularly turbocharged, direct-injection, and hybrid engines, where high temperatures, pressure, and close tolerances render traditional mineral oils ineffective. Additionally, using traditional oils in such engines can result in increased wear, sludge formation, and lower efficiency. Demand is rising as stricter emissions standards (Euro 7, EPA, China VI), growing electric and hybrid sales requiring specialized thermal fluids, and strong lubricant exports from India, China, and Southeast Asia reshape the market. With cost of ownership, engine longevity, and compliance with OEM standards becoming priorities for fleets and consumers, high-quality engine oils are now a critical component in an increasingly regulated automotive and industrial landscape.

Engine Oil Market Breakdown – by Region

The engine oil market analysis has been performed by considering the following segments: type and end-use industry. By type, the engine oil market is segmented into mineral oil, synthetic oil, and bio-based oil. The mineral oil segment accounted for the largest engine oil market share in 2024. Mineral oil is cost-effective and highly compatible. It is popular among fleet operators, older vehicle fleets, and price-sensitive emerging markets that use traditional gasoline and diesel engines. The oil provides strong film strength, inherent detergency, and excellent solubility with older additive packages, ensuring reliable lubrication under moderate operating conditions. It also offers superior seal compatibility while maintaining low component compatibility in engines designed before the adoption of tighter tolerances and turbocharging. This is especially relevant for high-mileage vehicles, heavy-duty off-road equipment, and mixed-fleet operations. In these cases, extreme performance is not required, but consistent protection against wear, oxidation, and deposit formation is critical. This protection becomes important when service intervals are long, or the vehicle operates in high-temperature, dusty environments, or with high-sulfur fuels. Mineral oil formulations are still widely used in price-sensitive sectors and remain the most common and effective base oil category for cost-conscious applications across the engine oil market.

The engine oil market trends are influenced by ultra-low-viscosity grades (0W-8, 0W-16, 0W-20), pervasive change to synthetic and high-performance Group III+ / PAO base stocks, and the fast growth of specific EV/hybrid thermal-management fluids. Stringent emission regulations (Euro 7, China VI-b, EPA 2030), and the OEM fuel-economy requirements are compelling formulators to low-SAPS, friction-modified oils that reduce carbon dioxide by 1-3 percent and maintain engine life in downsize, turbocharged motors. Recent improvements in hydrocracking and GTL technology provide close PAO performance at a lower cost. At the same time, bio-based and re-refined base stocks containing up to 50 per cent of recycled content are becoming popular as a fleet operator, and OEMs pursue Scope 3 and ESG goals.

The Asia Pacific region is expected to register the fastest CAGR in the global engine oil market from 2025 to 2031, driven by rapid expansion in the automotive, industrial, and transportation sectors across emerging economies. Rising vehicle ownership, growing commercial fleets, and increasing production of passenger cars and two-wheelers are significantly boosting the demand for high-performance engine oils. Strengthening economic activity, urbanization, and expanding logistics networks across China, India, Southeast Asia, and Australia further support market growth. Additionally, leading lubricant manufacturers are investing in localized production facilities, advanced formulation technologies, and distribution network enhancements to meet rising regional demand. Increasing consumer preference for reliable, fuel-efficient, and emission-compliant engine oils continues to reinforce Asia Pacific’s strong growth trajectory.

Shell Plc, BP Plc, TotalEnergies SE, Exxon Mobil Corp, Chevron Corp, Lukoil, Gulf Oil International Ltd, AMSOIL Inc, Valvoline Inc, and Repsol SA are among the prominent players profiled in the engine oil market report. These players are focusing on providing high-quality products to fulfill customer demand. They are adopting strategies such as new product launches, capacity expansions, partnerships, and collaborations to stay competitive in the market.

Based on type, the engine oil market is segmented into mineral oil, synthetic oil, and bio-based oil. In terms of end-use industry, the market is categorized into automotive, building and construction, power generation, mining and metallurgy, oil and gas, marine, aviation, and others. The automotive segment is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and others.

The geographical scope of the engine oil market report focuses on North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The market in North America is segmented into the US, Canada, and Mexico. The market in Europe is categorized into Germany, France, Italy, the UK, Russia, and the Rest of Europe. The market in Asia Pacific is divided into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. The engine oil market in the Middle East & Africa is classified into South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa. The market in South & Central America is segmented into Brazil, Argentina, and the Rest of South & Central America.

Contact Us

Phone: +1-646-491-9876

Email Id: sales@theinsightpartners.com