The two-wheel lubricants market is estimated to be valued at US$ 17,697.3 million in 2023 and is expected to increase to US$ 24,723.7 million by 2033. Sales of two-wheel lubricants are expected to increase at a CAGR of 3.4% from 2023 to 2023. 2033.
Increased use of engine oil
The growing demand for engine oils to reduce the wear and tear of the moving parts of a two-wheeler is expected to boost the sales of the market. Motor oils are commonly used to lubricate internal combustion engines in motorcycles. They are usually made up of base oils and additives. Petroleum, synthetic chemicals, or both are used to create the base stock. The base stock oversees the lubrication of the engine’s moving parts and the dissipation of excess heat.
Oxidation inhibitor additives, dispersant additives, antifoam additives, corrosion inhibitor additives, and antifreeze additives are some of the additives found in motor oils. These regulate oil viscosity and lubricity and protect engine components from wear and stress.
Corrosion and wear resistance 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
- Increased engine performance
- Reduction of fuel consumption
- Elimination of pollutants
- Getting the engine clean
- Engine efficiency optimization
- Prevention of energy loss through optimal cooling
The rapid adoption of two-wheeler lubricants has weighed on the same scale as the arrival of two-wheelers as a key mode of transport in emerging countries. If consumer interest grows in a carbon-free future through emission-free transportation, the growing importance of electric vehicles may pose a potential threat to market development.
Lubricants are fluids, oils or fats 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. With the passage of time, increased competition among recognized industry players has benefited the expansion of the market. To stay ahead of the competition, major manufacturers are investing significantly in the global market. As a result of all the factors mentioned above, the increase in the use of motor oils is likely to drive the market expansion during the forecast period.
The growing demand for lubricants supports the development of the market
Lubricants for two-wheelers can be synthetic or mineral. Along with engine oil, suspension oil, brake oil and chain oil, lubricants are often used. Cans, bags, bottles, buckets and other containers are used to package and supply these lubricants.
Lubricants provide excellent fuel economy, minimal oil usage, reduced maintenance costs and longer oil and engine life. The product also ensures high engine durability while providing exceptional protection to the motorcycle’s engine, gears and clutch. The need for two-wheel lubricants in motorcycles and scooters increases due to these favorable circumstances.
The knowledge of alternatives for mineral oil related products has grown the global lubricants market for large companies. During the forecast period, the demand for synthetic oils is expected to increase due to the expansion of the automotive industry and industrial expansion. As synthetic types outperform natural mineral oils, their appeal has increased. Natural mineral oils are gradually taking over as the preferred choice in various sectors where high levels of consistency are required. They have reduced volatility, high viscosity index, lower water point and higher oxidative/thermal stability as a result of their inherent physical and chemical characteristics.
Sales are driven by a growing two-wheeler fleet and increasing traffic in emerging economies
The use of two-wheelers is being boosted by rising rural disposable income and population growth in countries such as China, India and South Asia and the Pacific. In India, the business sold more than 100 million two-wheelers by 2021, according to Hero Moto Corp.’s annual report.
Major two-wheeler manufacturers like Honda and TVS have also sold nearly 2.1 million and 1.4 million units respectively in Asia. The two-wheeler fleet is growing and nations with a dense population are experiencing a sharp increase in the demand for two-wheeler lubricants. The growing population of these areas has led to heavy traffic, especially in their key cities.
To keep up with fast-paced lifestyles, customers choose motorbikes and scooters as their preferred means of transportation. Rural areas still lack adequate transport infrastructure. Customers in less developed regions favor two-wheelers because of taxes and the expensive cost of four-wheelers.
The expansion of the market is driven by the need for better lubrication in the growing industrial sector
The industrial sector is trying to reduce energy consumption and operating costs in view of 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 helps the same goal.
A small decrease in energy consumption can generate considerable economic benefits due to increased energy costs. Depending on the type of machine used, there are different opportunities to save energy. By dramatically improving lubrication, it can increase a company’s overall profits. The expansion of the global lubricants market is expected to be driven by significant industrialization and stringent environmental regulations of manufacturing companies.
Increasing use of electric vehicles is limiting the market expansion
The consumption and expansion of the global market for lubricating goods are strongly influenced by the automotive industry. Traditional cars use a variety of oils to preserve the quality of their engines over time. Demand for crude oil is increasing, but so are environmental concerns.
Consumer interest in electric vehicles is increasing in both developed and developing countries. The benefits of electric vehicles are also becoming increasingly clear as the technology develops. The adoption of electric vehicles is expected to slow the expansion of the automotive sector.
The International Energy Agency estimates that China sold 3 million electric vehicles in 2020, a 40% increase from 2019. It is a major growing electric vehicle market in the world, as well as a center key to produce electronic and electrical components.
Major electric vehicle producers, including Tesla, are making investments in the China market to tap into the market’s potential. Along with Western Europe, industrialized nations such as the United States and Japan are experiencing an increase in the use of electric vehicles.
The US industrial sector is increasing its demand for lubricants
The automotive industry dominated the market in the United States area, which is projected to expand at a CAGR of 1.4% by 2033.
The United States has a large vehicle industry, which has contributed to the huge increase in the market. The industrial sector has experienced steady growth and is expected to continue in the coming years. Due to strict environmental protection legislation, North America consumes many environmentally 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 customer base to gain a competitive edge over other companies in the ecosystem.
The United States is expected to be driven by strong sales of premium products. Automotive and industrial applications account for over 90% of lubricant sales in the US market.
Industrial motor oil is likely to be a significant contributor to the growth of the global lubricants market in the United States. This lubricant is used to reduce operating costs by dramatically reducing wear and tear on highly moving mechanical components. It also helps reduce fuel consumption as it has a low coefficient of friction. Consequently, it helps keep the engine parts clean, work efficiently and provide optimal combustion efficiency.
The automotive and industrial sectors are the main areas of application of lubricants in the United States. There have been several developments in the ecosystem focusing on product development, strategic product placement, value chain optimization and other factors. The implementation of new standards and regulations is likely to increase the demand for premium motor lubricants and synthetic formulations. With the presence of numerous market competitors in the United States, the automotive and industrial categories are expected to be saturated. The aeronautical and maritime industries are likely to grow significantly in the coming years.
Competitive landscape:
The global market for two-wheeler lubricants is very consolidated. Market leaders are focusing on strategic expansion initiatives, such as forming strong distribution relationships, joint ventures and collaborative agreements. They are also investing in research and development and introducing new products to meet the growing demand for motorcycle and scooter lubricants.
Some of the major players are also looking to expand their product line to increase revenue.
Recent developments:
July 2021 – Steel Bird announced the launch of a new range of two-wheel motor oils, grease and fork oil in a variety of variations for different types of two-wheelers.
October 2021 – ExxonMobil launched synthetic motor oils for motorcycles in India. The business also announced an update to its Mobil Super Moto line of synthetic base oil-based motorcycle engine oils.
