Two-Wheeler Lubricants – Tackling Electromobility and Delivering Fuel Economy
In the era of electric mobility where battery is the fuel, automotive and transportation industry has been witnessing significant transformation and megatrends. The engine technology is changing fast, as emission regulations intensify and consumer demand for affordable yet efficient vehicles increases. As electrification takes hold of the transportation sector, disruption is also expected in automotive lubricants space, which has traditionally been one of the most attractive areas in oil & gas value chain.
Although the global lubricant brands are not likely to be affected by electric mobility anytime soon, companies are getting ready to draft new strategies to thrive in the disruptive business world. The ‘two-wheeler lubricants market’, though slightly touched by the emerging technologies, remains a bright spot in an otherwise slow-moving lubricants market, owing to its significant growth in developing economies. To analyze what lies ahead on the horizon, Future Market Insights (FMI) has conducted an in-depth study on two-wheeler lubricants market and developed the growth projections up to 2029.
Two-wheeler Lubricants Market - Key Research Findings
- The global two-wheeler lubricants market size in 2018 was ~US$ 13 Bn.
- The two-wheeler lubricants market is expected to grow at a CAGR of ~4% during the forecast period of 2019 to 2029.
- Besides the significant growth of synthetic lubricants and functional fluids, synthetic oils, semi-synthetic oils, mineral oils, and grease segments, the bio-based two-wheeler lubricants segment is expected to project lucrative growth over the forecast period (2019 to 2029).
- South Asia and Oceania, collectively, are expected to account for more than half of the total share of the global two-wheeler lubricants market by the end of the forecast period (2019 to 2029).
- South Asia, attributing to the strong presence of the automotive industry, will continue to be a prominent region for manufacturers of two-wheeler lubricants market.
- The motorcycle type of two-wheelers is expected to remain as one of the prominent consumers of the global two-wheeler lubricants market over the forecast period (2019 to 2029).
- Growing population, coupled with the growing rate of urbanization resulted in a drastic increase in the number of working individuals across geographies.
- Motorcycles are the most preferred source of transportation in regions that has traffic related issues.
Key Factors Shaping the Two-wheeler Lubricants Market
Increasing Demand and Fleet of Two-wheelers to Fuel the Demand for Two-wheeler Lubricants
As a consequence of the increasing disposable income of the population in rural areas and the backwardness of well-established public transportation systems, the demand for two-wheelers such as conventional motorcycle and scooters has increased significantly in such areas. Furthermore, the transportation infrastructure of rural areas is still in its primary stage when compared to developed and urban areas. Therefore, to fulfil the demand for transportation infrastructure in rural areas and overcome the high prices and taxes of four wheelers, consumers are preferring two-wheelers, hence, increasing the demand for two-wheeler lubricants.
Furthermore, the fleet (vehicle in use) of two-wheelers in developing nations has increased considerably. This is estimated to create lucrative growth opportunities for all the two-wheeler lubricants market participants across the value chain in the global two-wheelers lubricants market.
Demand-Supply and Contango Situation
Prices of crude oil have witnessed a steep decline over the past year and a half. In 2014, the average crude oil price was pegged at ~US$ 96 per barrel as compared to ~US$ 43 per barrel in 2015. This steep decline in global crude oil prices can be attributed to the relatively weak economic growth in key markets, coupled with the global oil supply glut.
Since last few years, some of the key economies, such as China, a major importer of commodities and ASEAN countries, especially crude oil—have witnessed relatively low economic growth, which in turn, has affected the global oil imports and consumption. Conversely, the global oil supply has witnessed a steady increase over the same period due to the steadily increasing oil production in OPEC countries, the shale revolution, and re-entry of Iran in the global oil market.
Another trend of Two Wheeler Rental is also picking up in the market which is further expected to drive growth in consumption of two-wheeler lubricants across the globe.
Product Innovations Prompt a Continuous Stream of Opportunities
Consumers of two-wheeler lubricants in developed economies are demanding lubricants that are efficient, offers high load bearing capacity, adequate viscosity, and low coefficient of friction. Through R&D development and product innovation in advanced manufacturing, and refining of two-wheeler lubricants, manufacturers have significantly improved their product portfolio. Furthermore, the development of bio-based two-wheeler lubricants that are helping manufacturers achieve their targets of sustainable development has further enhanced the sales of the global two-wheeler lubricants market. This is expected to create ample opportunities for the market growth in the upcoming years, and in turn, boost the growth of the global two-wheeler lubricants market.
Two-wheeler Lubricants Market Structure Analysis
- The global two-wheeler lubricants market is significantly consolidated with few players holding prominent shares of the global two-wheeler lubricants market. A majority of the global two-wheeler lubricants market key players maintain their strategic focus on the development of solid distribution partnerships, joint ventures, and targeting a firmer global footprint.
- Prominent manufacturers of two-wheeler lubricants are presently prioritizing research and development (R&D) and new product launches to resonate with the booming demand for two-wheeler lubricants across geographies.
- Product portfolio diversification is also observed to be one of the key developmental strategies followed by key players in the global two-wheeler lubricants market.
- Furthermore, to achieve a stronger and firmer foothold in target regions, global two-wheeler lubricants manufacturers rely strongly on inorganic strategies for developmental growth such as mergers and acquisitions with other players involved in the same businesses.
- Expansion into high growth regions is another key strategy adopted by key market players.
Impressive Two-Wheeler Penetration in Rural Areas Points to Robust Opportunities
Today’s two-wheeler lubricants market is being shaped by a number of trends such as population growth, increasing mobility, rise in vehicle ownerships, and robust two-wheeler sales. In rural and semi-urban areas, poor infrastructure, demographic, and economic realities have mandated two-wheelers as indispensable means of transportation, thereby preparing ground for increasing the production of two-wheeler lubricants. Sensing continuous investments in infrastructure projects and increasing number of women and young population driving conventional motorcycles and scooters, especially in developing regions, stakeholders are gearing up to tap the market by rolling out new products, developing brand-specific lubricants, and expanding geographically.
However, it is pertinent to note that, today’s consumers are increasingly demanding fuel economy improvements, reduced CO2 emissions, and ultimately zero emissions travel – leading to a rise in sales of electric scooters (two-wheelers) as well as cars. In addition, restrictions on two-wheeler usage in major cities along with a sharp decline in two-stroke vehicle population leading to an uptake of four-stroke vehicles are likely to represent as a threat to the steady growth of the market.
Developing Countries Promise Lucrative Growth Opportunities
Volatility in crude oil prices in general, and two-wheeler sales in particular remain key growth influencers of the two-wheeler lubricants market. Upcoming trend of two wheeler rental services has positively impacted sales of two wheelers therby generating substantial push for two wheeler lubricants demand. Continuous R&D activities on formulation science are being applied in lubricant designs that not only meet ever-tightening regulations but also fulfil the needs of end customers. High growth prospects of the market are expected in developing countries across Asia Pacific, Latin America, and Africa, on the account of successful penetration of two-wheelers in both rural and urban areas along with increasing usage of such vehicles as taxis and for goods transportation. A rise in the demand for high-end motorbikes for recreational purposes in developed nations is further likely to open new avenues for market participants.
* This data is only a representation. Actual data may vary and will be available in report.
Notable Trends Influencing Two-Wheeler Lubricants Landscape
With a mass adoption of newer technologies and demand for qualitative evolution in two-wheeler lubricants, manufacturers are making a shift towards premiumization and developing a pipeline of technologically innovative and advanced products. In addition, an alarming level of air population has been forcing governments to tighten emission limits and improve fuel quality, which in turn, is likely to drive lubricant quality improvements.
Although the relationship between vehicle design and lubrication remained consistent, vehicle designs are changing. Advancements in two-wheeler designs are likely to call for more advanced lubricants with superior oxidative stability, capable of minimizing wear and maintaining hardware durability. As the focus on vehicular emissions intensifies, market players will need to venture into renewable energy space and explore the potential of bio-based lubricants that not only comply with regulations but also have lower impact on the environment.
Synthetic oil remains the top-selling category
Mineral oil demand surging significantly
Engine oil remains highly sought-after
Brake oil sales to pick pace
Use in motorcycle remains significant
Adoption in scooter grows considerably
Aftermarket sales take the lead
OEM sales to gain momentum
How Growth will Unfold
With increasing environmental concerns and an inclination towards enhanced fuel economy, two-wheeler lubricants industry has been moving to lighter viscosity grades. As components in next-generation two-wheeler become more compact, lubricants have to work synergistically to ensure smooth and safer ride. Market players are thus aggressively investing in R&D for advanced lubricants that can aid in improving theperformance of vehicular components. Sensing a saturation of certain products in mature markets, a number of OEMs are establishing strong partnerships and collaboration with local dealers to strengthen their distribution network. Additionally, advances in manufacturing and refining technologies have brought more focus on lubricants which have high load bearing capacity, adequate viscosity, and low coefficient friction. Strategic acquisitions and joint venture between global and local players will further remain a key to gaining distinct competitive edge in the two-wheeler lubricants market.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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Two Wheeler Lubricants Market Analysis 2019-2029
A recent market study published by FMI on the two wheeler lubricants market includes global industry analysis 2014-2018 & opportunity assessment 2019-2029, and delivers a comprehensive assessment of the most important market dynamics. After conducting a thorough research on the historic as well as current growth parameters of the two wheeler lubricants market, the growth prospects of the market are obtained with maximum precision.
Two Wheeler Lubricants Market Taxonomy
The global two wheeler lubricants market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.
- Synthetic Oils
- Semi-Synthetic Oils
- Mineral Oils
- Bio-Based Lubricants
By Two Wheeler Type
- Engine Oil
- Suspension Oil
- Break Oil
- Chain Oil
By Sales Channel
- North America
- Latin America
- South Asia
- East Asia
- Middle East and Africa
The report initiates with the executive summary of the two wheeler lubricants market, which includes a summary of key findings and statistics of the market. It also includes the demand-side & supply-side trends pertaining to the two wheeler lubricants market.
Readers can find the definition and a detailed taxonomy of the two wheeler lubricants market in this chapter, which will help them understand the basic information about the two wheeler lubricants market. Along with this, a comprehensive information pertaining to two wheeler lubricants and their properties are provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the two wheeler lubricants market report.
The two wheeler lubricants market report provides key market trends that are expected to significantly impact the market growth during the forecast period. Detailed industry trends are provided in this section.
This section includes factors that have emerged as key successful factors and strategies adopted by key market participants.
This section explains the global market value analysis and forecast for the two wheeler lubricants market between the forecast periods of 2019-2029. This chapter includes a detailed analysis of the historical two wheeler lubricants market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019), and an incremental $ opportunity for the forecast period (2019–2029). Along with this, pricing analysis of the two wheeler lubricants market at the regional level has been provided in this section. This section also explains the global market volume analysis and forecast for the two wheeler lubricants market between the forecast periods of 2019-2029.
This chapter explains the key macro-economic factors that are expected to influence the growth of the two wheeler lubricants market over the forecast period. Along with the macroeconomic factors, this section also highlights the value chain, supply chain, forecast factors, and value chain analysis for the two wheeler lubricants market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been provided in the successive section.
Based on the type, the two wheeler lubricants market is segmented into synthetic oils, semi-synthetic oils, mineral oils, bio-based lubricants, and greases. In this chapter, readers can find information about the key trends and developments in the two wheeler lubricants market and market attractiveness analysis based on the product type.
This chapter provides details about the two wheeler lubricants market based on the two wheeler type, and has been classified into motorcycle and scooter. The motorcycle has been sub-segmented into standard, cruiser, sports and mopeds, while scooter has been sub-segmented into standard maxi, enclosed, and three-wheeled. In this chapter, readers can understand the market attractiveness analysis based on the two wheeler type.
This chapter provides details about the two wheeler lubricants market based on the application, and has been classified into engine oils, suspension oils, break oils, and chain oil. In this chapter, readers can understand the market attractiveness analysis based on the application.
This chapter provides details about the two wheeler lubricants market based on the sales channel, and has been classified into OEM and aftermarket. In this chapter, readers can understand the market attractiveness analysis based on the sales channel.
This chapter explains how the two wheeler lubricants market will grow across several geographic regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa (MEA).
This chapter includes a detailed analysis of the growth of the North America two wheeler lubricants market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on segments and countries in North America.
This chapter provides the growth scenario of the two wheeler lubricants market in Latin American countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, assessment of the market across target segments has been provided.
Important growth prospects of the two wheeler lubricants market based on its end users in several countries such as Germany, the U.K., France, Spain, Italy, Russia, BENELUX, and the Rest of Europe are included in this chapter.
In this chapter, India and ASEAN countries are prominent countries in the South Asia region that are the prime subjects of assessment to obtain the growth prospects of the South Asia two wheeler lubricants market. Readers can find detailed information about the growth parameters of the South Asia two wheeler lubricants market during the forecast period of 2019-2029.
This chapter highlights the growth of the two wheeler lubricants market in East Asia by focusing on China, Japan, and South Korea. This section also help readers understand the key factors that are responsible for the growth of the two wheeler lubricants market in East Asia.
This chapter highlights the growth of the two wheeler lubricants market in Oceania by focusing on Australia and New Zealand. This section also help readers understand the key factors that are responsible for the growth of the two wheeler lubricants market in Oceania.
This chapter provides information about how the two wheeler lubricants market will grow in major countries in the MEA region such as GCC Countries, South Africa, Turkey, and the Rest of MEA, during the forecast period of 2019-2029.
This section highlights the growth prospects of the two wheeler lubricants market for emerging markets such as India, China and Indonesia.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the two wheeler lubricants market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the two wheeler lubricants market, along with a detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are BP Castrol, Royal Dutch Shell, Pertamina, Petronas, Chevron (Caltex), ExxonMobil, and Petron, among others.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the two wheeler lubricants market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the two wheeler lubricants market.
How the research was conducted?
- C - Level Executives
- Marketing Directors
- Product Managers
- Business Development Officers
- Production Managers
- Procurement Heads
- Sales Executives
- Raw Material Suppliers
- Industry Experts
- End Users
- Current market dynamics and challenges
- Yesteryear trends
- Market characteristics
- Market performance and growth quadrants
- Competition structure and market structure
- Strategic growth initiatives
- Near-term and long-term market growth prospects
- Market segment splits and authenticity
- Opinions on market projections and validity of assumptions
- Industry Publications
- World of Chemicals
- Chemical Weekly
- Chemical Engineering World, etc.
- Industry Associations
- The European Chemical Industry Council
- The American Chemical Society
- China Chemical Society
- Indian Chemical Council
- Company Press Releases
- Annual Reports and Investor Presentations
- Research Papers
- Government Websites and Publications
- Trade Websites
Primary Interview Splits