DUBLIN, Dec. 13, 2022 /PRNewswire/ — The “Lubricant Additives Market – Global Outlook & Forecast 2022-2027” report has been added to ResearchAndMarkets.com’s offering.
The global lubricant additives market is expected to grow at a CAGR of 4.63% from 2022 to 2027 and is forecasted to reach $13.2 billion by 2027 from $10 billion in 2021.
Globally, the demand and adoption of high-performance lubricant oil additives are high for numerous reasons, such as the increasing production of vehicles, increasing use of marine voyages, and rising integration of sophisticated technology in the industrial units the market growth. This existing and upcoming demand can be broadly classified into product types and application segments.
Lubricant additives play a vital role in enhancing the overall functioning of base oil and extending the equipment life of machines and engines. Lubricant additives such as viscosity index improvers, dispersants, detergents, friction modifiers, corrosion, and rust inhibitor are vital components in formulating finished lubricant products and base oil.
Europe and North America regions are expected to witness high demand for high-performance lubricating oil additives during the forecast period due to the increasing adoption of 40 BN cylinder oil in marine equipment and the rising demand for hybrid vehicles in these regions. Thus, this offers vendors many opportunities during the forecast period.
KEY TRENDS, DRIVERS, AND RESTRAINTS
Escalating Demand for Vehicles in Emerging Economies
With the increasing production and demand for vehicles in emerging economies, the market for lubricant additives has witnessed significant growth over the past years.
Emerging economies such as India, China, South Korea, and Brazil has become a production hub for commercial and passenger vehicles because of the availability of low-cost labor, easy access to raw materials, and continuous investment from foreign players due to government support that helped MNCs set up their automotive assembly plants in their countries. In the automotive industry, lubricant additives are used in engine oil, gear oil, hydraulic fluid, and transmission fluid.
Growing Demand for Multifunctional Lubricant Additives
The increasing advancement in engine design and the inclination of customers toward high-performance products is driving the demand for multifunctional lubricant additives products. Multifunctional additives offer numerous benefits in a single product. It imparts excellent anti-wear, extreme pressure, corrosion resistance, and antioxidant properties to automotive and industrial lubricants. In addition, it also helps the company to save time & cost.
Volatility in Crude Oil Prices
The major challenge faced in the lubricant additive industry is the volatility in crude oil prices. Crude oil is the prime raw material to produce lubricant additives feedstock such as ZDDP, para cresol, isobutylene, and polytetrafluoroethylene (PTFE). An increase or change in the price of crude oil directly impacts the price of lubricant additives. Thus, fluctuating crude oil price poses a major threat to vendor profit margins.
RECENT DEVELOPMENTS
In November 2020, Evonik expanded its oil additives performance lab, state-of-the-art laboratory facilities, and testing services across China.
This new performance test lab is equipped with an FE8 bearing wear test, FZG efficiency test rig, mini traction, and the Denison HF-0 test rig that would enable the company to meet the increasing technical demand in the lubricant industry by formulating high-performance and fuel-efficient additives for lubricant industry.
In November 2021, Evonik announced “Brenntag Bulgaria EOOD” as its new distributor partner for lubricant additives in Greece.
In October 2021, Evonik announced Umongo Petroleum (PTY) Ltd as its new distributor partner for lubricant additives in South Africa. However, Umongo Petroleum (PTY) Ltd started offering the lubricant additives product in January 2022. This partnership would enable Evonik to expand its lubricant additives product line across South Africa.
SEGMENT ANALYSIS
TYPE
A dispersant is the most used lubricant additive in industrial and automotive oil. Approximately 75%-80% of their usage is used in heavy-duty diesel engine lubricants and gasoline engines. The prime function of dispersants is to keep suspended particles such as sludge, varnish, and dirt away from diesel engine oil to minimize the damage to engine equipment.
APPLICATION
Automotive lubricants held the largest share in the lubricant additives market in 2021, and it is also expected to lead the market during the forecast period. This is primarily due to the increasing production of commercial vehicles, passenger vehicles, and two-wheelers worldwide that consume engine oil not only for lubrication but also for preventing the accumulation of suspended particles over engine components.
GEOGRAPHICAL ANALYSIS
APAC was the third largest and fastest growing market for lubricant additives. The region was led by China, India, and South Korea, where lubricant additives product is witnessing a surge in demand from the automotive & transportation sectors, increasing mining activities, and the manufacturing & machinery sector driven by the increasing regulation to reduce carbon emissions.
In addition, the implementation of manufacturing-friendly policy such as “Vocal for Local” and “Make in India” that intends to promote industrial output in India is offering domestic players to expand their footfall in the lubricating oil additives market.
COMPETITIVE LANDSCAPE
The global lubricant additives market is fragmented, and the degree of fragmentation is expected to accelerate during the forecast period. There is a significant number of global and domestic vendors across the geographies. High entry barriers characterize the market as new entrants require high technical skills to produce lubricant additives products and its package.
Additionally, the industry requires high investment in setting up the production unit and extensive testing of their product to receive a license to operate in a particular market. Thus, new players hesitate to enter the market due to these factors.
Key Vendors
BASF
Lanxess
The Lubrizol Corporation
Solvay
Chevron Oronite (Chevron Corporation)
Other Prominent Vendors
King Industries, Inc
DOUBLE BOND CHEMICAL. IND CO., LTD
Evonik
Chetas Biochem
Liqui Moly Gmbh
Ganesh Benzoplast
Shenyang Skychen Chemical Co., Ltd
Clariant
Croda International Plc
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
5 Report Assumptions and Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Premium Insights
6.1 Market Overview
6.2 Market Dynamics: Key Trends, Drivers & Restraints
6.2.1 Market Opportunities
6.2.2 Market Drivers
6.2.3 Market Restraints
6.3 Segment Analysis
6.4 Competitive Landscape
7 Market at a Glance
8 Introduction
8.1 Overview
8.1.1 Export & Import Analysis of Lubricant Additives
8.2 Evolution of Lubricant Additives
8.3 Evolving Electric & Hybrid Vehicles
8.4 Value Chain Analysis
8.4.1 Overview
8.4.2 Raw Material Suppliers
8.4.3 Manufacturers
8.4.4 Distributors
8.4.5 Lubricant Producers
8.4.6 End-Users
9 Market Opportunities & Trends
9.1 Increase in Demand for Vehicles in Emerging Economies
9.2 Industrial Expansion in APAC
9.2.1 China
9.2.2 India
9.2.3 Singapore
9.3 Advent of Bio-Based Lubricants
10 Market Growth Enablers
10.1 Growth in Demand for Multifunctional Lubricant Additives
10.2 Increase in Disposable Income
11 Market Restraints
11.1 Volatility in Crude Oil Prices
11.2 Highly Fragmented Marketplace
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.2.1 Value
12.2.2 Volume
12.3 Macroeconomic Factors That Affect Global Lubricant Additives Market
12.3.1 Automotive Industry
12.3.2 Power Industry
12.3.3 Construction Industry
12.3.4 Mining Industry
12.3.5 Marine Industry
12.3.6 Conclusion
12.4 Five Forces Analysis
13 Type
13.1 Market Snapshot & Growth Engine (Value)
13.2 Market Snapshot & Growth Engine (Volume)
13.3 Market Overview
13.4 Dispersant
13.5 Detergent
13.6 Oxidation Inhibitors
13.7 Anti-Wear Agent
13.8 Friction Modifier
13.9 Others
14 Application
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Snapshot & Growth Engine (Volume)
14.3 Market Overview
14.4 Automotive
14.5 Industrial
14.6 Driveline Fluid
15 Geography
15.1 Market Snapshot & Growth Engine (Value)
15.2 Market Snapshot & Growth Engine (Volume)
15.3 Geographic Overview
For more information about this report visit https://www.researchandmarkets.com/r/myt959
Media Contact:
Research and Markets
Laura Wood, Senior Manager
[email protected]
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
