Increasing mobility and disposable income promise significant growth opportunities for the two-wheeler lubricants market according to a recent report by Kline and Company.
Most of the growth is expected in developing nations throughout Asia, Latin America and Africa where poor infrastructure, demographics and economic realities mandate two-wheelers as indispensable means of transportation. Although sales volumes are forecast to remain flat in North America and Europe, both of these mature markets are expected to see higher premium product demand.
The Asia region encompasses seven of the top 10 two-wheeler markets, with China alone accounting for 41 percent of global two-wheeler production. However, reflecting both a growing affluence and the result of legislation curbing city use, China’s two-wheeler sales are slowing down, contrasting with rising sales in India and Indonesia. Overall, the Asia-Pacific region is the largest motorcycle oil (MCO) market, claiming approximately 76 percent of the global market, followed by South America, Europe and North America.
"Despite the trends of extended drain intervals and the continuing sharp decline of the two-stroke vehicle population leading to an uptake in four-stroke vehicles, global MCO consumption is projected to grow at just over 6 percent per year over the next five years," notes Gabriel Tarle, Kline's energy practice analyst. "The strongest growth is expected in Asia and South America where two-wheelers are successfully penetrating rural and semi-urban areas and the usage of two-wheelers as taxis and for goods transportation has increased."
Engine oils account for more than 95 percent of the total MCO market, with the balance consisting of products including fork oils, rear suspension oils, greases and chain oils. Globally, the top 10 suppliers in the two-wheeler lubricants market include Castrol, Shell, Idemitsu, Pertamina, Chevron and Total.
While the mature European and North American MCO markets do not show dramatic growth in terms of volume, they are expanding in terms of value. The market penetration of synthetic lubricant products is exceptionally high in Europe. Semi-synthetics dominate with just less than 50 percent of the market followed by full synthetics. Conventional/mineral products are the smallest segment of the market. Viscosity grades 10W-30 and 10W-40 are the fastest growing viscosity grades globally due to manufacturer recommendations in their favor.
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