Automotive lubricants are liquid products, who re deployed to decrease the friction between the two surfaces in contact.
Growing expansion in the automobile industry globally has driven the growth in the automotive lubricant market.
Also, increasing demand for quality lubricants such as synthetic or semi-synthetic oil products is expected to fuel the growth in the global automotive lubricant market, in the coming years. A key reason behind the rising demand is that these products have shown to offer improved lubrication as compared to mineral oil.
Also, key authorities and original equipment manufacturers are looking to introduce a global standardization on lubricant grades. The implementation of these grades could propel the demand for synthetic oil products and, in turn, propel the automotive lubricant market, in future.
Increasing Need to Protect Automotive Components from Wear and Tear Could Fuel Automotive Lubricant Demand
Automotive lubricants have proven beneficial in offering protection to various automotive components against wear and tear and this aspect could bolster product demand and contribute to the growth of the global automotive lubricant market, in the years ahead.
With increasing demand for smaller automotive parts for different vehicles, the demand for lubricants with reduced viscosity levels, that offer improved performance, has risen. This is expected to bolster the growth in the overall automotive lubricant market, in future.
Consumers globally are looking to purchase automobiles that are durable and this trend could help increase the demand for automotive lubricants in the subsequent years.
Stringent government rules and regulations concerning pollution control as well as carbon emissions are also anticipated to play a key role in increasing the demand for automotive lubricants, in the coming years.
Some of the commonly-deployed automotive lubricants include transmission oil, engine oil, hydraulic fluid, greases, and brake oil.
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COVID-19 Pandemic Negatively Impacts Growth in Automotive Lubricant Market
The outbreak of the COVID-19 pandemic negatively impacted the growth in the global automotive lubricant market. With governments imposing strict government regulations and lockdowns in a bid to contain the spread of the virus, supply chains worldwide were disrupted significantly.
Also, automotive manufacturing facilities globally were closed either temporarily or permanently, which led to reduced production and sales. These factors led to a decrease in demand for automotive lubricants and adversely affected the growth in the global automotive lubricant market.
But with subsequent decline in cases and availability of different vaccines, it is expected that production facilities will start operations soon at close to full capacity, leading to increased product sales and demand and, in turn, improving the automotive lubricant market.
While automotive lubricants have proven beneficial for different automobiles, they do have disadvantages, which could impact product demand in future.
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Growth in EV Product Segment, Rising Biofuels Demand Could Adversely Affect Automotive Lubricant Market Growth in Future
Growth in the electric vehicles product segment could be a key restraining factor for the growth of the automotive lubricant market since these vehicles deploy an electric motor instead of lubricants for their operation. This could lead to reduced automotive lubricant demand and dent the growth in the global market, too.
Also, growing awareness about keeping the environment clean could lead to an increase in demand for biofuels, which are more eco-friendly in nature and this could negatively impact the automotive lubricant demand, in future.
Prominent players could engage in growth strategies such as novel product launches in a bid to gain a competitive edge over others.
In July 2021, Eurol Lubricants launched a new line of synthetic engine oil products and coolants named ‘Actence RNT 5W-30’ which can be deployed in diesel and gasoline engines.
Well-established market players could collaborate with smaller players in a bid to expand their market presence and increase their revenue shares.