With an estimated global population of 490 million units, accounting for little under 3% of the global lubricant demand, the near 1,080 kilotonnes two-wheeler lubricants market’s potential reveals itself as overlooked and underestimated. However, ever greater mobility and disposable income promise significant growth opportunities for this means of transport according to the Lubricants for Motorcycles, Scooters, and Mopeds: Global Market Analysis and Opportunities report by global consulting and research firm Kline & Company.
Kline’s Energy Practice analyst, Gabriel Tarle, notes, “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% per year over the next five years. 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.”
While Europe claims only 4% of the global MCO market, it is a highly varied market where, challenged by Euro zone austerity, many suppliers are struggling to maintain their market share and successfully promote brand loyalty. In contrast to Northern Europe where two-wheelers tend to be used recreationally, in the Southern European market, they are primarily used for transportation. This consequently growing MCO segment deemed the “high-street” market emergence.
Tarle elaborates, “This channel consists of corner or part-time owner-mechanics running their own independent service garages. It’s called ‘high street’ because the initial lubricant purchase is made through the retail segment, either from mass merchandisers or from auto part stores. The ability to provide two-wheeler maintenance and repair services at significantly lower labor costs than franchised dealerships is the major reason for the growth of this segment.”
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, accounting for well over 85% of the total lubricants demand. Semi-synthetics dominate with just under 50% of the market followed by full synthetics, while conventional/mineral products are the smallest segment of the market.
Kline’s Lubricants for Motorcycles, Scooters, and Mopeds: Global Market Analysis and Opportunities is a comprehensive assessment covering lubricant consumption for two-wheelers in both the emerging world, as well as developed nations.
— Kline & Company