Lubricating Oil Additives Market size is forecast to reach $22.32 billion by 2025, after growing at a CAGR of 3.09% during 2020-2025. Lubricating oil additives are used to improve the performance of lubricants and functional fluids. Each functional type of lubricating oil additives is chosen for its ability to perform one or more particular tasks in amalgamation with other additives. Specific additives are formulated into packages to be used with particular base stocks for automotive and industrial applications.
By Type – Segment Analysis
Dispersants segment held a significant share in lubricating oil additives market in 2019. The dispersant is one of the essential additives to formulate additive packages for both automotive and industrial segments. It helps suspend the insoluble contaminants in the oil to prevent sludge formation. Anti-foaming agents and antioxidants enhance the properties of lubricating oil, whereas depressants help in suppressing unwanted features. Detergents and emulsifiers add new properties to the lubricating oil. These additives are mainly used in the automotive and industrial sector to facilitate safe and efficient working of the engine, gearbox, and also to increase the longevity of machines. Viscosity index improvers are large-sized polymer additives used during the blending of multi-grade engine oil, primarily to prevent the thinning out of the oil (viscosity loss) as the temperature increases. Olefin copolymers are the most common types of viscosity index improvers available in the market.
Request for Sample of the Report @ https://www.industryarc.com/pdfdownload.php?id=500032
Report Price: $ 4500 (Single User License)
By Application – Segment Analysis
Engine oils segment held a significant share in lubricating oil additives market in 2019. Engine oil lubricants are the one that make almost one half of the lubricant market and therefore have much more demand. They mainly extend the life of automobiles under many conditions such as pressure, temperature and speed. The main wok of lubricants is to reduce friction and heat from the moving parts of vehicles and also prevents various contaminants from doing any damage. Certain additives improve the viscosity of the engine oil for optimum performance under varying operating temperatures, thereby reducing wear and tear. Additives that reduce friction enhance the performance of the engine. Lubrication is crucial in hydraulic components to protect internal parts from wear and tear and downright melting, due to metal-to-metal friction.
By End-User Industry – Segment Analysis
Automotive segment held a significant share in lubricating oil additives market in 2019 growing at a CAGR of 3.30% during the forecast period. Massive popularity of lightweight vehicles, rise in the manufacture and sales of automotive in emerging countries such as India, Indonesia, and Thailand, and breakthroughs in technology resulting in the launching of new vehicles such as smart cars and aluminum trucks are some of the major factors likely to push the growth trajectory of the automotive industry. This, in turn, will accelerate the demand for lubricating oil additives market in the forecast period. According to OICA, the number of passenger vehicles production increased from 68,539,516 units in 2015 to 71,750,946 units in 2018. Hence, increase in automotive sector is expected to drive the lubricating oil additives market.
However, due to the outbreak of the novel coronavirus (COVID-19), automobile and component manufacturing plants are being shuttered around the world, consumer footfalls in showrooms have fallen sharply, vehicle sales are dropping dramatically and almost every major industry event is either being cancelled or going the digital way. The impact of coronavirus on other markets, and particularly China, has also led to disruption in supply chains. This is particularly concerning considering that the global automotive industry reportedly imports more than $34 billion in parts from China.
Geography- Segment Analysis
Asia Pacific dominated the lubricating oil additives market with a share of more than 43%, followed by North America and Europe. This is primarily because of higher demand from the automotive sector due to a growing population. Lubricating oil additives are primarily manufactured in APAC due to low labor and production cost and exported globally. China is the largest producer of automotive, with more than 27.8 million vehicles. Additionally, used car sales have also registered significant growth in the country. In India, the sales of automotive vehicles have been increasing over the recent past. This has resulted in increased active number of automotive vehicles, in turn, leading to rising demand for lubricants. However, the automotive sales are likely to affect due to the coronavirus breakdown which in turn impacts the lubricating oil additives market.
Drivers – Lubricating Oil Additives Market
Growing demand from the automotive industry
The increasing sales of passenger cars and commercial vehicles drive the lubricating oil additives market in the automotive industry. Lubricating oil additives find application, primarily in engine oils, gear oils, transmission fluids, and hydraulic fluids in the automotive industry. Also, the motorization rate in APAC has constantly been increasing over the past five years. The key countries contributing to the growth in this region include China, India, Japan, South Korea, and Indonesia. China and India are projected to be the fastest-growing markets during the forecast period, owing to the presence of more vehicles in use and high motorization rate. Companies such as Maruti-Suzuki, GM, Tata Motors, VW Group, Toyota, Honda, and Hyundai are expanding their production capacities. Therefore, this robust growth in the automotive industry is driving the demand for lubricating oil additives.
Talk to one of our sales representative about the full report by providing your details in the link below:
Challenges – Lubricating Oil Additives Market
Fluctuating raw material prices
An additive package is a combination of different functional types such as dispersants, viscosity index improver, detergents, anti-wear agents, antioxidants, corrosion inhibitors, friction modifiers, emulsifiers, extreme pressure additives, PPD, and others. Different additive formulations depend on various chemical substances, and the price varies according to different suppliers. In 2017, BASF stated that the company intended to increase the costs for lubricating oil additives, base stocks, and finished lubricants by 5–9% depending on the specific product and also mentioned that the price adjustments are necessary due to the increase in the cost of raw materials, transportation, and regulatory policies. Therefore, the fluctuating prices of raw materials are considered as one of the restraining factors for the lubricating oil additives market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the lubricating oil additives market. In 2019, the market of lubricating oil additives has been consolidated by the top five players accounting for xx% of the share. Major players in the lubricating oil additives market are Chevron Corporation, Lubrizol Corporation, Chemtura Corporation, BASE SE, Afton Chemical, Arkema, Infineum, Evonik Industries, Baker Hughes GE, among others.
Technological Innovation/ Geographical Expansion
In November 2018, GE Power’s has opened Biotechnology manufacturing centre in Stevenage Bioscience Catalyst. It is planned that in the first half of 2019 this unit will start producing fibre-based purification platform.
In March 2016, Infineum started of operations at its new lubricant additive production and blending plant at Zhangjiagang, China. The plant is located at Yangtze River International Chemical Industrial Park and has a capacity to produce 100,000 Tons of lubricant additives per year.
Asia Pacific region has the highest prevalence rate for lubricating oil additives owing to the growing automotive and industrial sector in regions like India, China, among others.
The growing demand for engine oils is the key driver for this market in the automotive industry.
The primary function of lubricating oil additives is to reduce friction, prevent wear and corrosion, and control formation of slush and oxidation.
Related Reports :
A. Engine Oil Additives Market
B. Lubricants Market
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.