Two-Wheeler Lubricants Market

Introduction

The two-wheeler lubricants market is undergoing a transformative shift, capitalizing on the momentum generated by the electric vehicle revolution and the overarching sustainability trends. As electric two-wheelers gain prominence and traditional internal combustion engines evolve, lubricant manufacturers and suppliers are innovating to meet the specific requirements of these new vehicles. This shift towards electric and sustainable mobility aligns with global initiatives for reducing emissions and enhancing environmental responsibility, making the industry a key player in the broader transition towards cleaner and more efficient transportation solutions.

Key Findings

• The market for two-wheeler lubricants garnered revenue of about USD 15,873.9 Million in 2022.
• The two-wheeler lubricants industry is anticipated to get hold of a market share of USD 22,209 Million by 2033, up from USD 16,366 Million in 2023.
• During the forecast period, the two-wheeler lubricants market is likely to move ahead at a moderate CAGR of 3.1%.
• By application, the engine oil sub-segment is expected to capture a 63.4% share by 2033.
• South Asia Pacific is poised to dominate the market for two-wheeler lubricants with a market share of 46.7% by the end of the forecast period.

Increasing Lubricant Demand Fuels Two-Wheeler Lubricants Market Advancements

Lubricants designed for two-wheelers come in both synthetic and mineral forms, serving various essential functions such as engine oil, suspension oil, brake oil, and chain oil. These lubricants are distributed in various packaging formats including cans, pouches, bottles, and buckets.

These lubricants offer a host of benefits, including superior fuel efficiency, reduced oil consumption, decreased maintenance expenses, and extended engine life. They also ensure the robust durability of two-wheeler engines while delivering exceptional protection to critical components such as the engine, gears, and clutch. These favorable attributes contribute to the growing two-wheeler lubricants market demand in motorcycles and scooters.

Awareness about alternative options to mineral oil-based products has driven expansion in the global lubricants market, particularly in large-scale industries. Over the projected period, the demand for synthetic oils is poised to surge, owing to the expanding automotive sector and industrial growth. Synthetic variants have gained prominence due to their superior performance compared to natural mineral oils. They are progressively supplanting natural mineral oils as the preferred choice across various sectors requiring high levels of consistency, boasting reduced volatility, a superior viscosity index, a lower pour point, and enhanced oxidative/thermal stability, stemming from their inherent physical and chemical attributes.

Sales are Further Energized by a Growing Fleet of Two-Wheelers and Escalating Traffic in Emerging Economies

Increasing disposable income in rural areas and population growth, notably in regions like China, India, and South Asia & the Pacific, is driving the utilization of two-wheelers. In India, for instance, the two-wheeler lubricants market reported the sale of over 100 million two-wheelers in 2021, as indicated in Hero Moto Corp.’s annual report.

Prominent two-wheeler manufacturers such as Honda and TVS have contributed to this growth, selling nearly 2.1 million and 1.4 million units, respectively, in Asia. The two-wheeler fleet is expanding, and densely populated nations are witnessing a surge in the demand for two-wheeler lubricants. The escalating populace in these regions has resulted in heightened traffic, particularly within major urban centers.

As a response to today’s fast-paced lifestyles, consumers are increasingly opting for motorcycles and scooters as their preferred means of transportation. Less-developed areas still grapple with inadequate transportation infrastructure. This, coupled with taxation and the relatively high cost of four-wheelers, has led to a preference for two-wheelers among consumers in these regions.

The Growth of Electric Vehicles Constrains Two-Wheeler Lubricants Market Expansion

The global market for lubricating products is intricately tied to the automotive industry, where conventional vehicles rely on various oils to maintain engine quality over time. As the demand for crude oil continues to rise, so do environmental concerns.

Consumer enthusiasm for electric vehicles is surging in both developed and emerging economies, driven by evolving technology and the increasingly evident advantages of electric mobility. The adoption of electric vehicles is anticipated to exert a moderating influence on the expansion of the automotive sector.

In 2020, China experienced a remarkable surge in electric vehicle sales, with 3 million electric vehicles sold, marking a 40% increase from the previous year. China is a major global hub for electric vehicles, and a significant center for the production of electronic and electrical components, making it an attractive market for leading electric vehicle manufacturers, including Tesla. Furthermore, developed nations like the United States, Japan, and Western Europe are also witnessing a notable uptick in electric vehicle adoption.

Category-wise Insights

Surging Demand for Engine Oil in Premium Motorcycle Segments Bolsters Aftermarket Sales

Engine oil is poised to take the lead within the application segment, driven by manufacturers’ strategic emphasis on premiumization, prompted by the integration of modern technology and the evolving demand for qualitative enhancements. This strategic shift has prompted the development of a pipeline of cutting-edge and technologically advanced products.

According to the two-wheeler lubricants market analysis by ChemView, the engine oil sub-segment is anticipated to be at the forefront of the market with a market share of 63.4% by 2033.

The increasing popularity of premium motorcycle categories such as cruisers and sports bikes has contributed to a heightened demand for engine oil lubricants. Forecasts for 2023 indicate that this segment is expected to exhibit a remarkable year-on-year volume growth of over 90.2%.

This growing need underscores the rising demand for engine oil within the premium motorcycle sector, subsequently fueling the aftermarket sales of two-wheeler lubricants. This heightened demand is driven by the increasing necessity for regular and periodic servicing of two-wheelers, ensuring smooth performance and prolonged durability, even in regions characterized by challenging road infrastructure.

Increased Adoption of Cruiser and Sports Motorcycles Drives Growth in Synthetic Oil Sales

Synthetic oil is registering a robust CAGR during the forecast period. Anticipated growth in product demand for both synthetic and semi-synthetic oils is expected during the forecast period. While mineral oils will continue to have a significant presence, manufacturers are channeling their efforts into producing synthetic lubricants to capitalize on the surging popularity of premium motorcycles.

The integration of advanced engines in cruiser and sports motorcycles is set to fuel the demand for high-quality synthetic lubricants tailored for two-wheelers. The escalating sales of premium motorcycle categories, particularly sports and cruisers, in developing economies have led to increased engine maintenance expenditures.

Country-wise Insights

South Asia Pacific Region is to Lead the Two-Wheeler Lubricants Market

The South Asia Pacific region is poised to lead the market due to its rapid urbanization, burgeoning population, and the increasing adoption of two-wheelers as a primary mode of transportation, with a projected market share of 46.7% by 2033.

With these densely populated areas facing traffic congestion and seeking cost-effective transportation solutions, two-wheelers have become the preferred choice. This growing trend, coupled with the rising disposable income in the region, particularly in countries like India and China, is driving significant demand for two-wheeler lubricants, making the South Asia Pacific the front-runner in the market by region.

Expanding Demand for Lubricants in the Thriving United States Industrial Sector

In the United States, the automotive industry has traditionally been in one of the leading positions. The robust presence of a large-scale automotive sector has significantly fueled two-wheeler lubricants market expansion in the United States.

The industrial sector in the region has exhibited steadfast growth and is poised to maintain this trajectory in the years to come, driven in part by stringent environmental regulations favoring eco-friendly products. Key industry players including ExxonMobil Corporation, Royal Dutch Shell Corporation, and Chevron Corporation are headquartered in the United States.

The market landscape has been marked by intense competition, with major industry players vying to expand their customer base and secure a competitive edge within the ecosystem. In the United States, the high-volume sales of premium lubricants are expected to steer market growth, with automotive and industrial applications collectively accounting for over 90% of lubricant sales in the region.

Competition Landscape

The global two-wheeler lubricants market exhibits a high degree of consolidation, with industry leaders directing their efforts toward strategic expansion endeavors, including the establishment of robust distribution partnerships, joint ventures, and collaborative agreements. These key players are also channeling investments into research and development and introducing new products to cater to the growing demand for motorcycle and scooter lubricants.

Furthermore, some prominent market participants are exploring opportunities to diversify their product portfolios in a bid to augment their revenue streams.

Recent Industry Highlights:

• In July 2021, Steel Bird unveiled a comprehensive range of two-wheeler engine oils, grease, and fork oil in various variants, tailored to meet the specific requirements of different types of two-wheelers.
• In October 2021, ExxonMobil introduced a line of synthetic engine oils designed for motorcycles in the Indian market. The company also announced enhancements to its Mobil Super Moto range of synthetic base oil-based motorcycle engine oils.

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