US Passenger Car Motor Oil Market 2026 – 2035

Reports Description

As per the US Passenger Car Motor Oil Market analysis conducted by the CMI team, the US passenger car motor oil market is expected to record a CAGR of 6.97% from 2025 to 2035. In 2026, the market size was USD 7.95 Billion. By 2035, the valuation is anticipated to reach USD 14.55 Billion.

Overview

The car motor oil technology (also called automotive engine oil technology) is advancing with innovations in hybrid cars, which call for improvement in engine performance, improvement in fuel economy, and minimization of emissions. The engine oil makes provision for protection of engines. As such, these oils are formulated using a combination of base oils and additives for specific applications.

Plus, automotive engine oil neutralizes the acids originating from fuel (owing to oxidation of lubricants) and enhances sealing of piston rings. This does serve as an insulator and reduces the temperature of engine parts by taking the heat away from moving parts.

Market Highlights

• The mineral segment accounted for 44.32% of the market share in 2025.

• The hybrid (gasoline + electric) segment is expected to witness the fastest CAGR of 8.32% during the forecast period.

• The retail segment held 42.37% of the market share in 2025.

• The OEM segment is expected to witness the fastest CAGR of 7.24% during the forecast period.

Key Trends & Drivers

• Shift to Synthetic Oil amidst Technological Advancements

Synthetic oils do operate with less external and internal friction as compared to petroleum oils (that have a non-uniform molecular structure). The outcome is better heat control and less dissipation of heat, which means less stress to the lubricant. The environmental advantages also play a prime role, as synthetic oil’s efficiency and longevity do contribute toward lower emissions. Conventional engine oil, owing to its composition, ends up creating a sludge with gradual build-up on its parts, whereas synthetic oil is free from all these impurities. These advantages would continue to keep synthetic oil at the forefront of the US passenger car motor oil market during the forecast period.

What’s trending in the US Passenger Car Motor Oil Market?

The US passenger car motor oil market is witnessing a paradigm shift in the direction of low-viscosity, 100% synthetic, and high-performance formulations for meeting stringent environmental regulations and improving fuel efficiency. The key trends are inclusive of the rise in demand for products providing higher mileage and EV-specific lubricants. The OEMs and consumers are into the adoption of these oils for improving fuel economy, reducing emissions, and providing superlative protection. Research states that sales of synthetic oils reached almost 400 million liters in 2024. Additionally, use of intelligent, IoT-based, and synthetic oil formulations for real-time monitoring is rising.

What would be Business Impact of the US tariffs on the US Passenger Car Motor Oil Market?

Tariffs on various imported materials like Group III base oils, esters, polyalphaolefins (PAOs), and specialty additive packages are raising the cost of manufacturing synthetic lubricants. The manufacturers, particularly the ones who lack vertical integration, are witnessing tweaked margins. They, in order to maintain profitability, are passing the costs down, thereby resulting in higher costs of “finished motor oils.” With premium synthetic lubricants turning out to be more expensive, the cost-sensitive customers are likely to switch to conventional, lower-tier lubricants, thereby altering the product mix.

Key Threats

The US passenger car motor oil market is restrained by volatility in the price of raw materials, over-usage, continual focus on energy-efficient products, and stringent environmental regulations. Also, the cost of production is higher as various complex processes are involved in churning out the finished products. This cost does pose challenges for customers as they ask for a product that is reasonably priced.

Opportunities

The engine works well on it being lubricated. Less pressure needs to be put on the piston so that gliding on its part happens easily. The engine oil could be used so that the vehicle could operate using less fuel and also at a lower temperature. The rising demand for motor oil with lower viscosity is thus driven by the ability to improve fuel economy along with OEMs recommending such oils for maximizing performance and converting the fill requirement to the low viscosity grade products. Besides, bolt-on hardware technologies like turbochargers and gasoline are evolving, which would add to the growth of the market.

Category Wise Insights

By Grade

• Mineral

The mineral segment dominates the market by grade, and the scenario is expected to persist during the forecast period. This is credited to the minerals’ lower price point, thereby rendering them one of the preferred choices for fleet operators and mass-market consumers. The affordability does extend support to widespread adoption in the US wherein maintenance costs are paramount. This advantage does sustain higher demand in the aftermarket channels.

• Semi-synthetic

The semi-synthetic segment is expected to grow at the fastest CAGR in the US passenger car motor oil market during the forecast period. This is due to the consumers increasingly seeking improved engine protection with longer drain intervals without paying for the premium costs of full synthetics. The balanced value proposition does appeal to the mid-income service centers and buyers who are aiming to upgrade the customers from the basic mineral oils. This equilibrium on the part of price and performance is driving growth on a rapid count.

• Synthetic

The modern-day engines (hybrid, GDI, turbocharged) require superlative lubrication with thermal stability that only synthetics are capable of providing. They have also been produced to handle vagaries. In other words, synthetics offer a much better flow even in cold weather, resist the breakdown at higher temperatures, and avert deposits/sludge, thereby resulting in a longer life span and less engine wear. Also, stringent government standards (such as CAFÉ) do push for lower viscosity oils that lessen friction, thereby lowering emissions and enhancing gas mileage.

By Engine Type

• Gasoline

The gasoline engine type leads the market, and the status quo is expected to remain unchanged during the forecast period. This is indicative of the rising demand for engine oil replacement to reinforce the dominance. Also, the widely installed base does ensure a consistent and stable revenue stream.

• Diesel

Diesel engines, particularly in large SUVs and light trucks, do hold more oil and need longer intervals owing to soot, thereby raising the demand for oils that help in maintaining performance. Higher compression ratios along with operating temperatures translate into the fact that diesel oils require better film strength and thermal stability. Inherent efficiency of diesel, followed by the drive for better MPG in the passenger vehicles (SUVs/trucks), does push demand for various advanced oils that lessen friction, thereby benefiting the oil makers.

• Hybrid (Gasoline + Electric)

The hybrid (gasoline + electric) segment is expected to witness the fastest CAGR in the US passenger car motor oil market. This is credited to a rise in consumers’ interest in fuel efficiency, followed by stringent emission standards. The hybrid vehicles have engines equipped with low-viscosity PCMO formulations for extending support to frequent start-stop cycles. This shift is, in turn, driving the demand for hybrid-compatible, advanced lubricants.

By Viscosity Grade

• Low Viscosity Grades

The Low Viscosity Grades (0W-16, 0W-20, 5W-20) segment is likely to witness the fastest CAGR in the US passenger car motor oil market during the forecast period. This is due to the fact that automakers are specifying the low-viscosity oils for improving fuel efficiency and meeting strict emission standards. Such formulations curtail internal friction and extend support to optimized engine performance in the modern-day vehicles.

• Medium Viscosity Grades

Medium Viscosity Grades (5W-30, 10W-30) led the US passenger car motor oil market in 2024 and the scenario is expected to remain the same during the forecast period as well. This is owing to the realization of the fact that these grades are widely suitable across mid-range and legacy diesel and gasoline vehicles. With billions of cars running on the road, the aftermarket consumption stays consistently high.

• High Viscosity Grades

High viscosity oils make provisions for superlative film strength along with protection for the engines with huge gaps between the moving parts, thereby averting wear. Modern-day engines, even the ones using lower viscosity oils, do rely on various advanced Viscosity Index Improvers (VIIs) in their formulas for maintaining appropriate thickness at higher operating temperatures. This could be categorized as a form of high-viscosity performance.

By Distribution Channel

• Retail

The retail segment dominated the US passenger car motor oil market in 2025 and is expected to continue with the dominating streak during the forecast period. This is owing to the widespread presence of the retail vertical across auto-parts stores, service stations, and e-Commerce platforms, thereby ensuring effortless access for the end-users.

• OEM

The OEM segment is expected to witness the fastest CAGR in the US passenger car motor oil market during the forecast period. This is credited to the automakers increasingly endorsing specified PCMO brands, thereby leveraging service networks and sales of vehicles for enhancing the brand adoption and credibility.

• Service Centers

With the introduction of services such as online booking and express services, there is an increased demand witnessed for service centers. They play a vital role in the encouragement of adoption of premium, higher-margin products such as semi-synthetic and synthetic oils, which are recommended by the manufacturers for complex, modern engines. Such advanced oils do offer improved longevity and performance.

Historical Context

The demand for car motor oil is basically dependent on cost, quality, and time taken during the supply chain. However, the major functions of car motor oil are that of reducing wear and friction, maintaining the temperature of seal components and engine components to avoid leakage, preventing corrosion and rust, reducing the shock from pressure, and improving the fuel economy.

Additionally, rising demand for high class lubricants and a raised standard of living on the part of the middle-class population are leading the US passenger car motor oil market. The car manufacturers are showing inclination toward continual research for maintaining consistency regarding the supply of raw materials and ascertaining the lowering of production costs for higher returns.

How is AI impacting the US Passenger Car Motor Oil Market?

Majority of the US passenger car motor oil market players are resorting to AI for reducing the time required for test loops, thereby expediting the development of high-performance, novel, and fuel-efficient formulations of oil. AI aids in better control of additive synergies (such as LSPI mitigation and controlling volatility). Machine Learning models help in simulating lubricant behavior under various operating conditions (shear, pressure, temperature) for predicting wear performance and viscosity. AI-driven formulations are reported to extend the life of the engine by close to 25% while lessening the friction losses. The AI-enabled platforms also reduce the chances of unscheduled maintenance in the commercial fleets.

Report Scope

Key Developments

The US passenger car motor oil market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In March 2025, Chevron Corporation announced that it would begin with full-scale manufacturing of Group III+ base oils at its facility based at Pascagoula, Mississippi by Q4 of 2026, thereby becoming the first manufacturer of Group III+ base oils all over North America. NEXBASE 4 XP is being introduced to meet the rising demand from the automotive industry for lower viscosity engine oils that resist oxidation and bolster fuel efficiency.

• In March 2024, AMSOIL Inc. announced that it had expanded its line of OE 100% synthetic motor oil with the launch of the 0W-40 viscosity grade. It is designed for novel RAM HD trucks that are equipped with a 6.4-liter HEMI engine. The product adheres to API licensing standards and is reported to offer 47% more wear protection as compared to the one needed as per GM dexos 1 Gen 2 specifications.

Leading Players

The US passenger car motor oil market is highly competitive, with a large number of service providers. Some of the key players in the market include:

• PETRONAS Lubricants International
• ExxonMobil
• Valvoline Inc.
• PetroChina Co. Ltd.
• Fuchs SE ADR
• BP PLC
• Sinopec Oilfield Service Corp
• Shell PLC
• Others

These firms apply a plethora of strategies to enter the market, including innovations and mergers and acquisitions, as well as collaboration. The US passenger car motor oil market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The US Passenger Car Motor Oil Market is segmented as follows:

By Grade

• Mineral
• Semi-synthetic
• Synthetic

By Engine Type

• Gasoline
• Diesel
• Hybrid (Gasoline + Electric)

By Viscosity Grade

• Low Viscosity Grades
• Medium Viscosity Grades
• High Viscosity Grades

By Distribution Channel

• Retail
• OEM
• Service Centers