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Global Diesel Engine Lubricants Market - Outlook and Forecast 2022-2027
The global diesel engine lubricants market had a value of $23.14 billion in 2021 and is anticipated to reach $32.16 billion by 2027, exhibiting a compound annual growth rate (CAGR) of 5.64%. These lubricants are widely used in heavy machinery, construction equipment, commercial vehicles, agricultural machinery and equipment, and other applications. The demand for diesel engine lubricants is driven by the ongoing need for effective lubrication in these diverse end-use sectors to ensure optimal performance. Furthermore, the increasing demand for heavy vehicles and construction equipment worldwide contributes to the growth of the diesel engine lubricants market.
Emerging economies, including India, China, Brazil, South Korea, Argentina, Mexico, and South Africa, are witnessing robust growth in commercial vehicle demand due to rapid developments in the automotive and infrastructure industries. This favorable environment has created opportunities for the expansion of the diesel engine lubricants market.
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USD 23.1 billion in 2020
Oil Type, End Use, and Geography
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Infrastructure development projects in emerging economies receive substantial support from local governments through industrial development subsidies and foreign direct investments (FDIs). Consequently, the demand for heavy equipment rises, directly impacting the demand for lubricants.
Diesel engines find application in various sectors such as heavy and light commercial vehicles, passenger cars, heavy construction equipment, warehousing machinery and equipment, railway and marine transportation, and others. However, the use of diesel engines in passenger cars is declining due to environmental regulations and emission control measures. Nonetheless, commercial and heavy equipment still heavily rely on diesel engines for efficient operation.
Diesel engines offer superior fuel efficiency and torque compared to petrol engines. These engines possess distinct characteristics that contribute to their higher performance and fuel efficiency. Diesel engines generate more torque than petrol engines due to their higher compression ratio, faster combustion speed, longer stroke length, utilization of turbochargers, and higher calorific value of diesel fuel.
Countries such as the US, China, India, South Korea, Brazil, the UK, Germany, Canada, and Saudi Arabia have experienced rapid infrastructure development. These projects have stimulated the demand for construction equipment such as loaders, excavators, and dumpers. Moreover, emerging economies’ infrastructure development initiatives, supported by government subsidies and FDIs, further drive the demand for heavy equipment and subsequently increase the demand for lubricants.
The global diesel engine lubricants market is significantly influenced by the overall supply and demand dynamics of the lubricants industry as a whole. Lubricants account for a considerable share of approximately 20% to 25% in the general industrial sector. Factors such as increased requirements for commercial vehicles, substantial demand for lower viscosity oils, and growth in construction activities are expected to propel the diesel engine lubricants market during the forecast period.
The market is segmented based on various factors, including oil type, end use, and geography.
Segmentation by Oil Type
Segmentation by End Use
Automotive & Transportation
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, Russia, Italy, Spain
APAC – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, Iran, UAE
There are two main types of lubricants available: synthetic oil and mineral oil. While both offer certain benefits, synthetic oil dominates the market for diesel engine lubricants, particularly for new engine designs.
The global diesel engine lubricants market is divided into three major end-use industries: automotive and transport, power generation, and heavy industrial, among others. The demand and production of lubricants used in the automotive and transportation sector are expected to be the highest. This can be attributed to factors such as population growth, urbanization, increasing demand for commercial products and consumables, and transportation requirements.
Several established companies operate in the diesel engine lubricants market across different regions. The Asia-Pacific (APAC) region, in particular, has a significant industry presence. This can be attributed to the rapid industrialization and infrastructure development in sectors such as automotive, transportation, power generation, and heavy industries.
North America and Europe have implemented stringent emission regulations that impact the automotive industry. However, the slow but steady growth of the biodiesel vehicle industry is projected to drive the automotive and transportation sectors in these regions in the coming years.
While Europe and North America currently dominate the demand and production of diesel engine lubricants, emerging economies in the Asia-Pacific region, such as China and India, are witnessing increased adoption of these lubricants. This can be attributed to the advantageous properties of these lubricants and changing demographics in these countries.
By 2027, the Asia-Pacific region is expected to experience substantial growth in terms of demand and revenue for diesel engine lubricants. The increasing demand for environmentally sustainable and efficient lubricants from sectors such as commercial automotive, manufacturing, heavy machinery, construction equipment, and agriculture is driving the growth of the diesel engine lubricants market.
Developed economies such as the US and Western European countries have a high concentration of the lubricants industry. On the other hand, the industry in developing economies like China and India is flourishing due to the presence of numerous international brands including Shell PLC (UK), ExxonMobil (US), Gulf Oil, and Castrol (UK) in these regions.
Chevron, a prominent player in the market, offers lubricants under the brand Delo. Delo provides fats specifically for commercial vehicles and heavy industrial vehicles. Recognizing the current industry landscape, Chevron has developed a dedicated portfolio of synthetic oil-based lubricants.
The competition among vendors in the lubricants market is based on various parameters such as product portfolio, product quality, geographical presence, brand image, cost differentiation, and others.
Major companies operating in this industry include Shell (UK), Valvoline (US), ExxonMobil (US), Total (France), BP (UK), and others.
ExxonMobil, a leading supplier of automotive and industrial lubricants, stands out in the market. The company is among the world’s largest manufacturers of base oil. Their product portfolio encompasses a wide range of automotive and industrial lubricants specifically designed for diesel engines.
Key companies profiled in this report include Castrol Limited, Chevron Corporation, ExxonMobil Corporation, Shell PLC, TotalEnergies, 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
What is the revenue of the global diesel engine lubricants market?
The global diesel engine lubricants market is expected to reach a value of USD 32.16 billion by 2027.
What is the growth rate projected for the diesel engine lubricants market?
The diesel engine lubricants market is projected to grow at a compound annual growth rate (CAGR) of 5.64% during the period of 2021-2027.
What are the key factors driving the growth of the diesel engine lubricants market?
The increasing demand for commercial vehicles in emerging economies and significant growth in the power generation sector are among the major driving factors for the development of the diesel engine lubricants market.
Who are the major vendors in the global diesel engine lubricants market?
Major vendors participating in the diesel engine lubricants market include Shell (UK), Valvoline (US), ExxonMobil (US), Total (France), BP (UK), and others.
Which region holds the largest market share in the diesel engine lubricants market?
The Asia-Pacific (APAC) region accounts for the largest market share in the diesel engine lubricants market.