Extended oil drain intervals will suppress demand for passenger car motor oil (PCMO according to research.
Spoilt for choice in lubes Image: Sparts |
Kline's report into "Opportunities in Lubricants" confirms that the US market is now second in size to Asia-Pacific, where demand is increasing in synthetics and other low viscosity grade lubricants despite increased vehicle production and sales in the US.
PCMO leads the product categories in North America (25% of the total lubricants market) with process oil and heavy-duty motor oil (HDMO) following with 17% and 16% shares, respectively, in 2014.
Total consumption of automotive and industrial lubricants in North America in 2014 is estimated at over two billion gallons in a market valued at a projected $28 billion.
Fuel economy has driven the growth in HDMO demand for 10W-30, although demand increased by only about 1% between 2011 and 2014 as a result of heavy marketing.
Despite the consumer automotive lubricants segment accounting for nearly 30% of the total volume, industrial oils and fluids are the leading market segment in North America.
Kline estimates that OWs, one of the lighter viscosity grades, will account for more than 10% of total North American PCMO demand in 10 years.