The two-wheeler lubricant market is estimated to be valued at US$ 17,697.3 million in 2023 and is anticipated to rise to US$ 24,723.7 million in 2033. The sales of two-wheeler lubricants are projected to increase at a 3.4% CAGR from 2023 to 2033.
Increasing Engine Oil Use
The rising demand for engine oils to lessen the wear and tear on a two-wheeler’s moving parts is predicted to boost sales of the market. Engine oils are commonly used to lubricate internal combustion engines in motorcycles. They are typically made up of base oils and additives. Petroleum, synthetic chemicals, or both are used to create the base stock. The base stock oversees lubricating the engine’s moving parts and dissipating excess heat.
Oxidation inhibitor additives, dispersion additives, anti-foaming additives, corrosion inhibitor additives, and anti-freeze additives are some of the additives found in engine oils. These regulate the viscosity and lubricity of the oil and protect engine components from wear and strain.
Resistance to corrosion and wear and tear are two of the most important functions of engine oils in two-wheelers. Its purpose is to extend engine life and improve performance by:
- Reducing friction
- Increasing engine performance
- Lowering fuel consumption
- Removing pollutants
- Achieving engine cleanliness
- Optimizing engine efficiency
- Preventing energy loss through optimal cooling
The quick adoption of two-wheeler lubricants has weighed on the same scale as the advent of two-wheelers as a key means of transportation in emerging countries. If consumer interest grows in a carbon-free future via zero-emission transportation, the growing importance of electric vehicles may pose a possible threat to market development.
Lubricants are fluids, oils, or greases that minimize friction between two surfaces that are close to each other. Because they minimize friction between moving elements, these fluids are essential in automotive and industrial applications. Over time, the increased competition among renowned industry players has benefited market expansion. To stay ahead of the competition, the leading manufacturers are significantly investing in the worldwide market. As a result of all of the aforementioned factors, increased use of engine oils is likely to fuel market expansion throughout the forecast period.
Growing Demand for Lubricants Support Market Development
The lubricants for two-wheelers may be made synthetically or from minerals. Along with engine oil, suspension oil, brake oil, and chain oil, lubricants are frequently used. Cans, pouches, bottles, buckets, and other containers are used to package and supply these lubricants.
The lubricants provide excellent fuel economy, minimal oil usage, reduced maintenance costs, and increased oil and engine life. The product also ensures the high durability of the engine while offering exceptional protection to the motorcycle’s engine, gears, and clutch. The need for two-wheeler lubricants in motorcycles and scooters is increased by these favorable circumstances.
The knowledge of alternatives for products connected to mineral oil has led to growth in the global market for lubricants for large-scale businesses. During the projected period, demand for synthetic oils is anticipated to increase due to the expanding automotive industry and industrial expansion. Because synthetic kinds outperform natural mineral oils, their appeal has increased. They are gradually taking over natural mineral oils as the favored option in a variety of sectors where high levels of consistency are required. They have decreased volatility, a great viscosity index, a lower pour point, and increased oxidative/thermal stability as a result of their inherent physical and chemical characteristics.
Sales are Boosted by a Fleet of Two-wheelers and Rising Traffic in Emerging Economies
Two-wheeler use is being boosted by rising rural disposable income and population growth in nations like China, India, and South Asia & the Pacific. In India, the business sold more than 100 million two-wheelers in 2021, according to Hero Moto Corp.’s annual report.
Leading two-wheeler manufacturers like Honda and TVS have also sold almost 2.1 million and 1.4 million units respectively in Asia. The fleet of two-wheelers is growing, and nations with dense populations are seeing a sharp increase in demand for two-wheeler lubricants. The growing population of these areas has led to high traffic, particularly in their key cities.
To keep up with fast-paced lifestyles, customers are choosing motorbikes and scooters as their preferred form of transportation. Rural areas still lack adequate transportation infrastructure. Customers in less developed regions favor two-wheelers due to taxes and the expensive cost of four-wheelers.
Market Expansion is Fueled by the Rising Industrial Sector’s Need for Best Lubrication
The industrial sector is attempting to reduce energy consumption and operating costs considering the rising cost of energy to power industrial activities. Without lubrication, engine components are likely to experience friction, which increases fuel consumption and contributes to emissions and pollution. By minimizing friction between parts and improving machine efficiency, a high-quality product aids in the same goal.
A little decrease in energy usage can generate considerable financial benefits due to rising energy costs. Depending on the kind of machine being used, different energy-saving opportunities exist. By dramatically enhancing lubrication, it can increase a company’s overall earnings. Global lubricants market expansion is anticipated to be driven by significant industrialization and severe environmental regulations on manufacturing companies.
Increasing Use of Electric Vehicles Limits the Market Expansion
The consumption and expansion of the worldwide lubricating goods market are both strongly influenced by the automotive industry. Traditional cars use a variety of oils to preserve the quality of their engines throughout time. The demand for crude oil is rising, but so are environmental worries.
Consumer interest in electric vehicles is increasing in both developed and developing nations. The advantages of electric vehicles also become increasingly clear as technology develops. The adoption of electric vehicles is anticipated to slow the expansion of the automotive sector.
The International Energy Agency estimates that China sold 3 million electric vehicles in 2020, an increase of 40% from 2019. It is a significantly growing market for electric vehicles in the world as well as a key center to produce electronic and electrical components.
Leading producers of electric vehicles, including Tesla, are making investments in China market to tap into the market’s potential. Along with Western Europe, industrialized nations like the United States and Japan are seeing a rise in the use of electric vehicles.
The Industrial Sector in the United States is growing its Demand for Lubricants
The automobile industry dominated the market in the United States area, which is anticipated to expand at a CAGR of 1.4% by 2033.
The United States has a big vehicle industry, which has contributed to the market’s enormous rise. The industrial sector has shown consistent growth and is expected to continue in the next years. Because of rigorous environmental protection legislation, North America consumes a lot of environment-friendly products. ExxonMobil Corporation, Royal Dutch Shell Corporation, and Chevron Corporation are all from the United States.
The market has been marked by fierce competition, with all key industry participants focused on expanding their client base in to acquire a competitive advantage over other companies in the ecosystem.
The United States is expected to be driven by high-volume sales of premium products. Automotive and industrial applications account for more than 90% of lubricant sales in the United States market.
Industrial engine oil is likely to be a significant contribution to the growth of the overall lubricant market in the United States. This lubricant is used to reduce operating costs by dramatically reducing wear and tear on heavily moving mechanical components. It also helps to reduce fuel consumption since it has a low coefficient of friction. Consequently, it helps to keep the engine parts clean, work efficiently, and give optimum combustion efficiency.
The automotive and industrial sectors are the primary application areas for lubricants in the United States. There have been several advances in the ecosystem centered on product development, strategic product placement, value chain optimization, and other factors. The implementation of new standards and regulations is likely to increase demand for premium engine lubricants and synthetic formulations. With the presence of numerous market competitors in the United States, the automotive and industrial categories are projected to be saturated. The aviation and maritime industries are likely to grow significantly in the next years.
Competitive Landscape:
The global market for two-wheeler lubricants is highly consolidated. Market leaders are focusing on strategic expansion initiatives such as the formation of strong distribution relationships, joint ventures, and collaborative agreements. They are also investing in research and development and new product introductions to meet the increasing demand for motorcycle and scooter lubricants.
Some of the leading players are also looking to expand their product line to enhance income.
Recent Developments:
July 2021 – Steel Bird announced the launch of a new range of two-wheeler engine oils, grease, and fork oil in a variety of variations for different types of two-wheelers.
October 2021 – ExxonMobil launched synthetic engine oils for motorcycles in India. The business also announced an upgrade to its Mobil Super Moto line of synthetic base oil-based motorcycle engine oils.
