Longer drain intervals and slowing vehicle sales are expected to dampen gains in the lubricants market, according to a new research.
Auto sales, though relatively strong, have slowed in 2018 – down 0.7 per cent as of July 2018 compared to the same point last year, and expected to drop further. Combined with fewer oil changes needed for modern vehicles with advanced engine technology, ResearchAndMarket.com’s report Automotive Lubricants in Canada by Market, Product and Formulation sees reduced demand.
In its key findings, the report says that Canada is an affluent country with many vehicles that require fewer drain intervals and drivers can afford “high-quality synthetic lubricants that require less frequent replacement than conventional alternatives.”
It also found that synthetic options are also on the rise.
“Sales of synthetic lubricants are forecast to rise at a healthy pace through 2021, capturing further market share from conventional formulations, which historically dominated demand,” the report said. “An ongoing focus on improving fuel economy will continue to favour the switch to low viscosity synthetics.”
It does, however, paint a rosy picture for off-highway equipment, thanks to growth in the construction, agriculture and mining sectors.
“Off-highway equipment will be the only major automotive lubricants market in Canada to offer growth opportunities through 2021,” the group said. “Accelerated construction spending, combined with increased surface mining output and growth in the area of agricultural land harvested, will support more intensive use of bulldozers, excavators, tractors, and other similar machinery.”