Synthetic Lubricant Market Share

Growing automotive industry and vehicle sales boost the market growth

Rising demand from the automotive industry and vehicle sales, as well as surging industrialization in emerging regions, are expected to propel the Synthetic Lubricants Market during the forecast period. In addition, the qualities of synthetic lubricants, which are lacking from conventional lubricants, are likely to drive market expansion. These properties include high thermal stability, significant load-carrying capacity, wearing and tear prevention, and low friction. A rise in vehicle demands due to improved fuel efficiency owing to viscosity reduction in synthetic lubricants which decrease engine friction is also anticipated to boost the market during the predicted period.

Environmental regulations getting implemented in the automotive industry to reduce carbon emissions and these factors are also expected to support the market. According to the International Organization of Motor Vehicle Manufacturers, in 2020, the number of vehicles produced was 77.6 million and the number reached 80.1 million in 2021. As a result, the rising demand for automotive vehicles ly is anticipated to accelerate the market CAGR during the projected period.

Additionally, synthetic lubricants have superior mechanical compatibility with automobile components compared to mineral lubricants, which propels the market expansion of synthetic lubricants. These lubricants are less expensive than mineral and bio-based lubricants, which is expected to be one of the key drivers fueling the expansion of the market. Market limitations are likely to come in the form of elements like the high operational cost of manufacturing synthetic lubricants and potential breakdown issues in some environmental environments.

One important factor influencing the market's growth is the advent of bio-based lubricants as an effective replacement for synthetic lubricants. Furthermore, it is anticipated that fluctuating raw material prices may restrain market expansion. The adoption of cutting-edge new-age engines and the ongoing evolution of vehicle design is anticipated to provide potential growth opportunities. One of the newest synthetic lubricants market developments worldwide is the adoption of new-generation engines and high-end vehicle components.

Castrol will debut a new product in its VECTON commercial vehicle lubricant portfolio in 2024 that fulfills the Association of European Automobile Manufacturers' (ACEA) 2022 Heavy-Duty (HD) engine specifications*. Castrol VECTON LONG DRAIN 5W-30 E6/E9 is a fully synthetic engine oil designed to lubricate and preserve heavy-duty cars for an extended period of time while satisfying all regulatory and performance standards in Europe.

A new product was launched by Castrol in May 2024, which is a part of the VECTON commercial vehicle lubricant range and meets the Association of European Automobile Manufacturers (ACEA) 2022 specifications for Heavy-Duty (HD) engines*. Castrol VECTON LONG DRAIN 5W-30 E6/E9 is an entirely synthetic engine oil that has been formulated to further lube and protect heavy-duty vehicles for longer while still remaining within the legal frameworks and performance needs in Europe. The VECTON FUEL SAVER, 5W-30 E6/E9 of Castrol, is replaced by this new product with an improved specification profile, including ACEA HD specifications E8 and E11.

These new specifications aim to address the increasing complexity of hardware as well as the growth in the adoption of alternative fuels.

The automotive sector serves as a significant driver for the Global Synthetic Lubricants Market Industry, as the demand for advanced lubricants continues to rise with the increasing production of vehicles. The shift towards electric vehicles (EVs) and hybrid models also necessitates the use of specialized synthetic lubricants that can withstand higher temperatures and provide optimal performance. As the automotive industry evolves, manufacturers are increasingly incorporating synthetic lubricants into their products to enhance efficiency and reduce maintenance costs. This trend is expected to contribute to the market's growth, with an anticipated increase to 58.6 USD Billion by 2035, reflecting the sector's pivotal role in shaping lubricant demand.

The Global Synthetic Lubricants Market Industry is poised for substantial growth, with projections indicating a market size of 42.5 USD Billion in 2024 and an anticipated increase to 58.6 USD Billion by 2035. This growth trajectory suggests a robust demand for synthetic lubricants driven by various factors, including technological advancements, environmental regulations, and the expansion of industrial applications. The market is expected to experience a CAGR of 2.97% from 2025 to 2035, indicating a steady increase in adoption across multiple sectors. These projections highlight the industry's resilience and adaptability in meeting evolving consumer needs and regulatory requirements.

The Global Synthetic Lubricants Market Industry is significantly influenced by stringent environmental regulations aimed at reducing pollution and promoting sustainability. Governments worldwide are implementing policies that encourage the use of eco-friendly lubricants, which often include synthetic options due to their lower environmental impact. For instance, regulations on volatile organic compounds (VOCs) and hazardous air pollutants are pushing industries to adopt synthetic lubricants that comply with these standards. This regulatory landscape not only fosters market growth but also encourages manufacturers to innovate and develop greener products. Consequently, the market is poised for steady growth, with a projected CAGR of 2.97% from 2025 to 2035.

The expansion of industrial applications significantly impacts the Global Synthetic Lubricants Market Industry, as various sectors, including manufacturing, construction, and mining, increasingly adopt synthetic lubricants for their operational advantages. Synthetic lubricants offer superior performance in extreme conditions, reducing wear and tear on machinery and extending equipment life. This is particularly crucial in industries where downtime can result in substantial financial losses. As industries continue to modernize and seek efficient solutions, the demand for synthetic lubricants is expected to rise. The market is projected to grow steadily, with a CAGR of 2.97% from 2025 to 2035, reflecting the ongoing expansion of industrial applications.

The Global Synthetic Lubricants Market Industry experiences a notable increase in demand for high-performance lubricants across various sectors, including automotive and industrial applications. This trend is driven by the need for enhanced efficiency and reduced emissions, as synthetic lubricants offer superior thermal stability and oxidation resistance compared to conventional oils. In 2024, the market is projected to reach 42.5 USD Billion, reflecting a growing preference for products that improve engine performance and longevity. As industries increasingly prioritize sustainability, the shift towards synthetic options is likely to continue, further propelling market growth.

Technological advancements play a pivotal role in shaping the Global Synthetic Lubricants Market Industry. Innovations in formulation chemistry lead to the development of synthetic lubricants that provide better protection against wear and tear, improved fuel economy, and extended service intervals. These advancements are particularly relevant in sectors such as aerospace and automotive, where precision and reliability are paramount. The introduction of bio-based synthetic lubricants also aligns with environmental regulations, appealing to eco-conscious consumers. As a result, the market is expected to grow, with projections indicating a rise to 58.6 USD Billion by 2035, driven by these technological improvements.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the synthetic lubricants market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the synthetic lubricants industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the synthetic lubricants industry to benefit customers and expand the market sector is to manufacture locally to reduce operating costs. In recent years, the synthetic lubricants industry has provided lubricants with some of the most significant benefits. The synthetic lubricants market major players such as Chevron Corporation, ExxonMobil Corporation, Total Lubricants, and others are working to expand the market demand by investing in research and development activities.

American multinational oil and gas company Chevron Corporation specializes mostly in oil and gas. Its headquarters are in San Ramon, California, and it operates in more than 175 countries. It is the second-largest direct descendant of Standard Oil and was once known as the Standard Oil Company of California. The company’s Chevron, Texaco, and Caltex brands are well known for their high standards of performance, quality, and technology. Their lubricating products are commonly used in automobiles, trucks, buses, and industrial machinery.

In Jan 2023, Chevron announced intentions to increase its share buyback budget by three times, to a stunning USD75 billion, making it the largest shareholder payout in the history of the oil industry. The decision was made as the company prepares to announce 2022 profits that have increased by a factor of two to USD 37.2 billion.

Also, The Irving, Texas-based ExxonMobil Corporation is a multinational American oil and gas company. ExxonMobil develops and deploys next-generation technologies to enable safely and ethically meet the world's growing demand for energy and high-quality chemical products. ExxonMobil is one of the leading public companies’ energy providers and chemical manufacturers in the world. In March 2020, Mobil Serv SM Lubrication Management, a low-cost automated maintenance management system that enables operators to effectively coordinate, automate, and accelerate maintenance-related processes, has been launched by ExxonMobil.

Bharat Petroleum Corporation Ltd (BPCL), which controls around 12 percent of the lubes market through Mak-branded lubricants, will introduce two high-quality synthetic lubes for premium cars and bikes next week. Mak’s main brand sells about 3.3 lakh tonnes of lubes yearly, valued at around Rs 3,000 crore. The company said it would launch Mak TitaniumCK4, which is an ultra-low emission diesel engine lube for BS-VI cars, and Mak BlazeSynth for high-end bikes; both are fully synthetic oils.

Steelbird International, a Delhi-based automotive system maker, has launched its own motorcycle engine oil, including lubricants, into a new market segment in July 2021. Helmets manufacturer Steelbird International has entered into a new line of business with its latest venture into the lubricant market space targeting two-wheelers. The Steelbird’s lubricating agent line counts on starting from 4T engine oil SAE 20W40 API SL (900 ml), having a price as low as Rs.366 per unit. The lubricant sold in the quantity of one liter is Steelbird 4T engine oil SAE 20W40 API SL, which costs Rs. 394.

The third oil listed under lubricants is Steelbird 4T engine oil SAE 15W50 API Semi-Synthetic (2.5L); its price is Rs.1075.