U.S. Oil Change Service Market Size, Share & Trends Analysis Report, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The U.S. oil change service market size was valued at USD 7.48 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. The growth is mainly driven by rising demand for oil change services to enhance vehicle performance, an ever-increasing number of four-wheelers, and government mandates for timely repair and maintenance of vehicles. According to statistics published by the U.S. Bureau of Labor Statistics, the number of oil change and lubrication shops in the U.S. stood at 7,276 in 2019. The growth is projected to continue in the coming years on account of subsequent automotive maintenance and repair services for regular vehicle checkups to enhance vehicle performance and avoid any malfunctions. This is expected to boost the demand for oil change services across the U.S.

The increasing trend of car ownership in the U.S. is boosting the market growth. According to an analysis of U.S. Census Bureau American Community Survey data, in 2020, approximately 91.55 % of U.S. households had access to at least one vehicle. According to statistics published by Take-profit.org, total vehicle sales in the U.S. stood at 13.35 million units in July 2022.

The rising demand for vehicles across the region directly impacts oil change services. Moreover, internal combustion engines are lubricated with engine oils, which are typically made up of 10% to 25% additives and 75% to 90% basic oils. They are commonly utilized for purposes like smooth engine internal operation, wear reduction, and corrosion protection. As the number of commercial and residential automobiles grows, the demand for brake fluids, engine oils, and transmission fluids is expected to rise.

Changing oil regularly is crucial for maintaining vehicle health and offers various benefits such as avoiding freezing up of the engine, less downtime at the repair shop, efficiency, mileage, and smooth running. Increasing concerns over vehicle safety have necessitated vehicle owners in the region to opt for repair and maintenance services, including oil changes, filter changes, and tire repairs. Increased durability of vehicles, along with increased values of used cars and light trucks in the U.S. emerged as a major factor for the growth of the average age of light vehicles.

According to the Bureau of Transportation Statistics (BTS), the average age of light trucks and cars in the U.S. grew to 12.1 years in 2021, which stood at 11.9 years in 2020. Such factors are expected to increase awareness of vehicle owners towards the timely benefits of vehicle maintenance and repairs, thereby ensuring market growth. Additionally, key companies operating in the market are offering discounts or complimentary inspections to gain lucrative market share and strengthen their aftermarket positions.

Oil change service providers often find it challenging to engage their consumers effectively. Due to the availability of numerous local and renowned oil change service providers, customer loyalty in this market cannot be easily defined. It has been observed that customers prefer services that offer discounts, which increases the probability of them switching to service providers that offer these. Proper customer services and experiences are significant in this industry. Moreover, poor oil change service station infrastructure or business owners' limited ability to invest in technologically updated brands and equipment can also limit the market's growth.

The spread of COVID-19 has significantly impacted the U.S. oil change service market, and key players operating in the regional market witnessed severe financial discrepancies. However, as the government lifted the lockdown norms in the region and people resumed travel, the market regained its pace. Government agencies in the region, such as the U.S. Environmental Protection Agency (EPA), are creating awareness regarding the negative impact of greenhouse emissions and are working closely with companies and automotive manufacturers to lay down stringent regulations for vehicles to reduce environmental impact.

As a result, several manufacturers engaged in R&D to create products that comply with emission standards while improving engine performance. Governments have also established pollution standards to reduce fuel use and improve performance. This is expected to make proactive arrangements for vehicle owners to adhere to vehicle repair and maintenance policies and regularly change their vehicle oil in the post-pandemic environment.

Regular oil changes are essential for preserving a vehicle's health and provide several advantages, including preventing engine freeze-up, reducing downtime at the repair shop, and improving productivity, mileage, and smooth operation. Vehicle owners in the area have been forced to choose repair and maintenance services such as oil changes, filter changes, and tire repairs due to growing concerns over vehicle safety. The average age of light vehicles has grown more quickly as a result of enhanced vehicle longevity as well as rising used car and light truck values in the U.S.

Furthermore, government initiatives and mandates across the globe are expected to play a major role in driving the market. The U.S. Government has enacted several major policy changes with significant implications for the automotive industry to ensure commercial and residential vehicle owners focus on the timely repair and maintenance of their vehicles.

For instance, In February 2022, U.S. lawmakers introduced "Right to Repair" legislation to ensure consumers can get agriculture equipment, electronic devices, and vehicle services from independent outlets. With this initiative, consumers will be allowed to repair their devices without the need to get the Copyright Office’s permission every three years.

Regulatory bodies including the U.S. Environmental Protection Agency and others monitor the environmental impact of the automotive industry. Additionally, they have built standards related to automotive components such as engines, resonators, and mufflers. The government has implemented stringent auto emission regulations in many regions, putting pressure on product manufacturers to create environmentally friendly and high-efficiency automobile parts for domestic and international markets. This has boosted the demand for automotive aftermarket services including oil change, which is anticipated to grow rapidly in the upcoming years.

Companies operating in the U.S. oil change service market have been building their distribution network intending to expand their customer reach. Companies in the market also partner with other players in the network for applications across various industries, including car wash services and auto detailing, fuel, & gas stations, and supermarkets/hypermarkets. The promotion and availability of oil change services near shopping malls, gas stations, and car & auto detailing service centers can be done via online and offline channels.

The presence of companies with a large base of dealers and distributors in the market has increased the penetration of oil change services across business segments. Robust growth in the e-commerce industry has increased the traction of oil change services through company websites and apps.

App-based oil change service is a major trend prevalent in the U.S. market. Many service providers are developing apps and websites for their oil change service centers. These apps help book home services and can also be used at oil change service centers. Some of the apps developed also compare various oil change services in terms of pricing, services offered, and locations.

These apps offer deals and discounts to premium users and customers can avail of numerous benefits from them. This is likely to drive the adoption of oil change services through online channels. Along with oil change services, car wash, auto detailing, and vehicle interior and exterior cleaning/detailing services are in huge demand across the U.S. enabling key companies to expand their service portfolio across the aforementioned business areas.

Key Companies & Market Share Insights

New product developments in many parts, technological upgrades, and the spurring rise in the OEMs and aftermarkets are some of the significant tailwinds contributing to the growth of the global automotive industry. The industry is growing quickly due to rapid urbanization and the expansion of international manufacturers into new emerging markets.

With the proliferation of new technology, increased customer demands, and sustainability policies, the automotive sector is undergoing game-changing shifts. Leading companies operating in the market are expanding their service portfolio to launch the advanced oil formulations and combinations required by modern-age vehicles. Players in the market are diversifying their service offerings to maintain market share.

• In May 2022, in its joint venture VCA Solutions, Valvoline Inc. announced the acquisition of the remaining 50% shares. Automotive batteries of the highest caliber and battery testing tools are distributed by VCA Solutions. With this transaction, Valvoline put itself in a unique position to support installers, Valvoline Express Care stores, and Valvoline Instant Oil Change (VIOC) locations in meeting customer needs

• In June 2021, Chevron U.S.A. Inc., a unit of Chevron Corporation, confirmed the formal launch of the organization's new Chevron xpress lube program for qualified U.S. fast lube owners and investor opportunities. Chevron expects great interest in its new image program with the opening of its first Chevron xpress lube plant in Fountain Hills, Arizona, and another outstanding facility in Meridian, Idaho

Some prominent players in the U.S. oil change service market include:

• Valvoline Inc.

• Take 5 Oil Change

• Jiffy Lube International, Inc.

• Strickland Brothers

• Meineke Car Care Centers, LLC

• Chevron Corporation

• Express Oil Change & Tire Engineers

• FullSpeed Automotive

• Victory Lane Quick Oil Change

• Dipstx Mobile Oil Change

U.S. Oil Change Service Market Report Scope