Global Two-wheeler Lubricants Growth Opportunities

Future Growth Potential of Two-wheeler Lubricants due to Increasing Trend in Digitization, VIO Pattern, and Consumer Awareness

The global 2W lubricants industry is growing at a steady pace due to rising demand for 2Ws as personal transportation and the emerging trend in leisure motorcycling.

This 2W lubricants analysis study covers engine oil, brake fluid, gear oil, chain lube, and coolant, which are considered to be the major types in 2W lubricants. The report covers specific regions and countries in North America, Europe, and Asia. It focuses mainly on ICE 2Ws due to its majority relevance. e2Ws are covered only wherever necessary, based on their dependence and advancements in eFluids technology. Production constraints in 2020 and spike in demand for 2Ws for personal mobility and leisure led to the boost of used 2Ws, especially in advanced economies, increasing the 2W VIO and average age.

The 2W market is witnessing the arrival of new riders into motorcycling and return of seasoned riders back to motorcycling, thereby increasing the average annual mileage. Off-highway and dirt motorcycles are becoming key contributors of sales in developed markets. Young riders are the primary targets in these segments. Increasing trend in internet penetration and eCommerce platforms will expand the growth opportunity for lubricant retailers with a wider potential customer base. Influence of online media platforms in promoting DIY and DIFM culture among 2W users will promote lubricant demand in the replacement market across regions. Collaboration to increase distribution network and to expand portfolio in related products and services will become the key focus for lubricant suppliers and retailers. Due to increasing trend in online on-demand services, the online 2W services, such as doorstep maintenance and vehicle care are likely to become key channels for lubricants.

Advanced economy with disposable income with major parc of large capacity motorcycles will continue to drive the demand for synthetic lubricants. Advanced road infrastructure and the large parc of powerful 2Ws will drive the demand for synthetic-based lubricants. Asian region is highly fragmented with large number of participants, but the demand for 2Ws and annual miles travelled are increasing YoY. Strict emission standards will create a demand for expensive, low-viscosity engine oil. Consumer preference toward hydraulic braking system for increased safety will also rise. Faster and more capable 2Ws will lead to demand for brake fluid with a higher boiling point. Steady demand for large capacity scooters will drive the demand for gear oil in the long run. Less than 125cc scooters in developing markets in Asia will continue to be the largest consumers of gear oil. Recent trend in off-road and adventure 2W segment sales will drive the demand for chain lube. Chain lubes are gaining rapid sales traction in developing countries due to new motorcycles adopting open chain design, and the challenging surrounding environment.