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Lubricant Additives Market - Global Outlook & Forecast 2022-2027

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    Report

  • 266 Pages
  • October 2022
  • Region: Global
  • Arizton
  • ID: 5661950
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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. 

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. Lubricant additives play a vital role in enhancing the overall functioning of base oil and extending the equipment life of machines and engines.

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.

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.

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.

Market Segmentation by Type

  • Dispersant
  • Detergent
  • Oxidation Inhibitors
  • Anti-Wear Agent
  • Friction Modifiers
  • Others

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.

Market Segmentation by Application

  • Automotive Fluid
  • Industrial Fluid
  • Driveline Fluid

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.

Market Segmentation by Region

  • North America
  • US
  • Canada
  • Europe
  • Germany
  • Italy
  • France
  • UK
  • Russia
  • Rest Of Europe
  • APAC
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
  • Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
  • Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of The Middle East & Africa

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

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.

KEY QUESTIONS ANSWERED

1. How big is the global lubricant additives market?
2. What is the growth rate of the global lubricant additives market?
3. Who are the key players in the lubricant additives market?
4. What are the growth factors in the global lubricant additives market?
4. Which region in expected to hold the largest share in the global lubricant additives market?

Frequently Asked Questions about the Lubricant Additives Market

What is the estimated value of the Lubricant Additives Market?

The Lubricant Additives Market was estimated to be valued at $10064 Million in 2021.

What is the growth rate of the Lubricant Additives Market?

The growth rate of the Lubricant Additives Market is 4.6%, with an estimated value of $13206.06 Million by 2027.

What is the forecasted size of the Lubricant Additives Market?

The Lubricant Additives Market is estimated to be worth $13206.06 Million by 2027.

Who are the key companies in the Lubricant Additives Market?

Key companies in the Lubricant Additives Market include BASF, Lanxess, The Lubrizol Corporation, Solvay, Chevron Oronite (Chevron Corporation), King Industries, Inc, DOUBLE BOND CHEMICAL. IND CO., LTD, Evonik, Chetas Biochem and Liqui Moly Gmbh.

Table of Contents

1 Research Methodology2 Research Objectives3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Geography
5 Report Assumptions & 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
6.3.1 Insights by Type
6.3.2 Insights by Application
6.3.3 Geographical Analysis
6.4 Competitive Landscape
6.4.1 Companies & Strategies
6.4.2 Recent Developments
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
12.4.1 Threat of New Entrants
12.4.2 Bargaining Power of Suppliers
12.4.3 Bargaining Power of Buyers
12.4.4 Threat of Substitutes
12.4.5 Competitive Rivalry
13 Type
13.1 Market Snapshot & Growth Engine (Value)
13.2 Market Snapshot & Growth Engine (Volume)
13.3 Market Overview
13.4 Dispersant
13.4.1 Market Overview
13.4.2 Market Size & Forecast (Value & Volume)
13.4.3 Market by Geography
13.5 Detergent
13.5.1 Market Overview
13.5.2 Market Size & Forecast (Value & Volume)
13.5.3 Market by Geography
13.6 Oxidation Inhibitors
13.6.1 Market Overview
13.6.2 Market Size & Forecast (Value & Volume)
13.6.3 Market by Geography
13.7 Anti-Wear Agent
13.7.1 Market Overview
13.7.2 Market Size & Forecast (Value & Volume)
13.7.3 Market by Geography
13.8 Friction Modifier
13.8.1 Market Overview
13.8.2 Market Size & Forecast (Value & Volume)
13.8.3 Market by Geography
13.9 Others
13.9.1 Market Overview
13.9.2 Market Size & Forecast (Value & Volume)
13.9.3 Market by Geography
14 Application
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Snapshot & Growth Engine (Volume)
14.3 Market Overview
14.4 Automotive
14.4.1 Market Overview
14.4.2 Market Size & Forecast (Value & Volume)
14.4.3 Market by Geography
14.5 Industrial
14.5.1 Market Overview
14.5.2 Market Size & Forecast (Value & Volume)
14.5.3 Market by Geography
14.6 Driveline Fluid
14.6.1 Market Overview
14.6.2 Market Size & Forecast (Value & Volume)
14.6.3 Market by Geography
15 Geography
15.1 Market Snapshot & Growth Engine (Value)
15.2 Market Snapshot & Growth Engine (Volume)
15.3 Geographic Overview
16 North America
16.1 Market Overview
16.2 Market Size & Forecast
16.2.1 by Value
16.2.2 by Volume
16.3 Type
16.3.1 Market Size & Forecast
16.4 Application
16.4.1 Market Size & Forecast
16.5 Key Countries
16.5.1 Us: Market Size & Forecast
16.5.2 Canada: Market Size & Forecast
17 Latin America
17.1 Market Overview
17.2 Market Size & Forecast
17.2.1 by Value
17.2.2 by Volume
17.3 Type
17.3.1 Market Size & Forecast
17.4 Application
17.4.1 Market Size & Forecast
17.5 Key Countries
17.5.1 Brazil: Market Size & Forecast
17.5.2 Mexico: Market Size & Forecast
17.5.3 Rest of Latin America: Market Size & Forecast
18 Middle East & Africa
18.1 Market Overview
18.2 Market Size & Forecast
18.2.1 by Value
18.2.2 by Volume
18.3 Type
18.3.1 Market Size & Forecast
18.4 Application
18.4.1 Market Size & Forecast
18.5 Key Countries
18.5.1 South Africa: Market Size & Forecast
18.5.2 Saudi Arabia: Market Size & Forecast
18.5.3 Uae: Market Size & Forecast
18.5.4 Rest of Middle East & Africa: Market Size & Forecast
19 Europe
19.1 Market Overview
19.2 Market Size & Forecast
19.2.1 by Value
19.2.2 by Volume
19.3 Type
19.3.1 Market Size & Forecast
19.4 Application
19.4.1 Market Size & Forecast
19.5 Key Countries
19.5.1 Italy: Market Size & Forecast
19.5.2 Germany: Market Size & Forecast
19.5.3 France: Market Size & Forecast
19.5.4 Uk: Market Size & Forecast
19.5.5 Russia: Market Size & Forecast
19.5.6 Rest of Europe: Market Size & Forecast
20 Apac
20.1 Market Overview
20.2 Market Size & Forecast
20.2.1 by Value
20.2.2 by Volume
20.3 Type
20.3.1 Market Size & Forecast
20.4 Application
20.4.1 Market Size & Forecast
20.5 Key Countries
20.5.1 China: Market Size & Forecast
20.5.2 India: Market Size & Forecast
20.5.3 Japan: Market Size & Forecast
20.5.4 South Korea: Market Size & Forecast
20.5.5 Australia: Market Size & Forecast
20.5.6 Rest of Apac: Market Size & Forecast
21 Competitive Landscape
21.1 Competition Overview
21.2 Recent Developments
22 Key Company Profiles
22.1 Basf
22.1.1 Business Overview
22.1.2 Basf in Global Lubricant Additives Market
22.1.3 Product Offerings
22.1.4 Key Strategies
22.1.5 Key Strengths
22.1.6 Key Opportunities
22.2 Lanxess
22.2.1 Business Overview
22.2.2 Lanxess in Global Lubricant Additives Market
22.2.3 Product Offerings
22.2.4 Key Strategies
22.2.5 Key Strengths
22.2.6 Key Opportunities
22.3 the Lubrizol Corporation
22.3.1 Business Overview
22.3.2 the Lubrizol Corporation in Global Lubricant Additives Market
22.3.3 Product Offerings
22.3.4 Key Strategies
22.3.5 Key Strengths
22.3.6 Key Opportunities
22.4 Solvay
22.4.1 Business Overview
22.4.2 Solvay in Global Lubricant Additives Market
22.4.3 Product Offerings
22.4.4 Key Strategies
22.4.5 Key Strengths
22.4.6 Key Opportunities
22.5 Chevron Oronite (Chevron Corporation)
22.5.1 Business Overview
22.5.2 Chevron Oronite in Global Lubricant Additives Market
22.5.3 Product Offerings
22.5.4 Key Strategies
22.5.5 Key Strengths
22.5.6 Key Opportunities
23 Other Prominent Vendors
23.1 King Industries, Inc
23.1.1 Business Overview
23.1.2 Product Offerings
23.2 Double Bond Chemical Ind. Co. Ltd
23.2.1 Business Overview
23.2.2 Product Offerings
23.3 Evonik
23.3.1 Business Overview
23.3.2 Product Offerings
23.4 Chetas Biochem
23.4.1 Business Overview
23.4.2 Product Offerings
23.5 Liqui Moly GmbH
23.5.1 Business Overview
23.5.2 Product Offerings
23.6 Ganesh Benzoplast
23.6.1 Business Overview
23.6.2 Product Offerings
23.7 Shenyang Skychen Chemical Co. Ltd
23.7.1 Business Overview
23.7.2 Product Offerings
23.8 Clariant
23.8.1 Business Overview
23.8.2 Product Offerings
23.9 Croda International plc
23.9.1 Business Overview
23.9.2 Product Offerings
24 Report Summary
24.1 Key Takeaways
24.2 Strategic Recommendations
25 Quantitative Summary
25.1 Market by Type
25.1.1 Dispersant
25.1.2 Detergent
25.1.3 Anti-Wear Agent
25.1.4 Oxidation Inhibitors
25.1.5 Friction Modifier
25.1.6 Others
25.2 Market by Application
25.2.1 Automotive
25.2.2 Industrial
25.2.3 Driveline Fluid
26 Market by Geography
26.1 North America
26.1.1 Type
26.1.2 Application
26.2 Europe
26.2.1 Type
26.2.2 Application
26.3 Apac
26.3.1 Type
26.3.2 Application
26.4 Latin America
26.4.1 Type
26.4.2 Application
26.5 Middle East & Africa
26.5.1 Type
26.5.2 Application
27 Appendix
27.1 Abbreviations

Companies Mentioned

  • BASF
  • Lanxess
  • The Lubrizol Corporation
  • Solvay
  • Chevron Oronite (Chevron Corporation)
  • 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

Methodology


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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