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Lubricant Additives Market

Lubricant Additives Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and Application : Global Opportunity Analysis and Industry Forecast, 2021-2030

MC : Paints, Coatings and Additives

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Author's: Sushant Moon and Amit Narune | Eswara Prasad
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Lubricant Additives Market Statistics – 2030

The lubricant additives market size was valued at $18.3 billion in 2020, and is projected to reach $31.3 billion by 2030, growing at a CAGR of 3.7% from 2021 to 2030.

Lubricant additives are chemical components or substances that, when applied at a specific amount, perform one or more functions in the fluid. To make complete lubricants, lubricant additives are blended with base oils. Organic or inorganic components dissolved or excluded as solids in oil are referred to as "solids." Depending on the equipment, they can range from 0.1 to 30% of the total oil volume. These additives improve the life and production of final lubricants in a variety of ways. These additives' outstanding performance also increases the life of machines and lowers maintenance expenses. Depending on the end-use application, these mixes are used separately or in combination. Heavy-duty and passenger car lubricants in the automotive industry, consume the most lubricant additives, followed by metalworking fluids and mechanical engine oils in the industrial sector. Lubricant additives are also important for the management of energy and emissions in a variety of automobile and end-use sectors.

The growing need for lubricant additives in the automotive industry drives the global lubricant additives market. The lubricant additives market in the automotive industry is driven by rise in sales of passenger automobiles and commercial vehicles. In the automotive industry, lubricating oil additives are primarily used in transmission fluids, engine oils, hydraulic fluids, and gear oils. Globally, the number of automobile cars has increased in recent years as a result of rise in living standards, rise in per capita income, and change in consumer preferences. Moreover, the lubricant additives market is also being driven by the ever-increasing use of marine and aircraft transportation, as well as improved pollution regulations in conjunction with fuel economy standards. As additives are critical components in defining the specification and production of oils, they play an essential role in base oil mixing and subsequent formulations. The increase in use in marine and aviation transport has had a significant impact on the industry's development in the past and is expected to continue to drive the lubricant additives market in the future.

However, fluctuating raw material prices are projected to be a major hindrance to the lubricant additives market's expansion. Friction modifiers, dispersants, antioxidants, viscosity index improvers, detergents, emulsifiers, anti-wear agents, corrosion inhibitors, and other functional kinds make up an additive pack. Different chemical compounds are used in different additive formulations, and the price varies depending on the provider. The development of a lubricating oil additive package necessitates a significant amount of R&D. Lubricant manufacturers manufacture various lubricating oil additive packages based on OEM engine blueprints and technical lubricant requirements. As a result, the market for lubricating oil additives has a significant challenge due to the lengthy R&D process.

The lubricant additives market is segmented into type, application, and region. On the basis of type, it is divided into dispersants, viscosity index improvers, detergents, anti-wear agents, antioxidants, corrosion inhibitors, friction modifiers, emulsifiers, and others. By application, the lubricant additives market is bifurcated into automotive lubricants and industrial lubricants. Automotive lubricants are further segmented into heavy-duty, passenger car, and other automotive. In addition, industrial lubricants are divided into metalworking fluids, industrial engine oils, general industrial oils, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The lubricant additives market share is analyzed across all significant regions and countries.

The key players operating in the lubricant additives market are BASF SE, Evonik Industries AG, Infineum International Limited, Chevron Oronite Company LLC, Chemtura Corporation, The Lubrizol Corporation, Croda International PLC, Afton Chemical Corporation, VAnderbilt Chemicals LLC, and Rhein Chemie Corporation. Other players operating in the lubricant additives market are Laxness Corporation, Dover Chemical Corporation and Wuxi South Petroleum Additives.

Lubricant Additives Market, by Type

By type, the dispersant segment is estimated to garner highest market share during the forecast period. The dispersant is one of the necessary additives to form additive packages for both, automotive and industrial segments. It supports suspending the insoluble contaminants in the oil to inhibit sludge formation. Dispersants are extensively used to limit sludge or varnish or other deposit formation on surfaces. Approximately three-quarters of their usage is in diesel and gasoline engine oils, wherever their usage is governed to engine protection.

Lubricant Additives Market
By Type
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Antioxidants is projected as the most lucrative segment.

Lubricant Additives Market, by Application

On the basis of application, the market is bifurcated into automotive and industrial. The automotive segment dominated the major market share in past years but industrial application is estimated to witness a substantial growth rate during the forecast period. Passenger car motor oil was the dominant segment in 2020 and is expected to maintain its dominance during the forecast period. EURO norms, regulating the amount of nitrogen oxide, carbon monoxide, soot, and hydrocarbons linked with turn in consumer choices towards using operationally efficient and low thickness fuel drives the need for passenger car motor oil.

Lubricant Additives Market
By Application
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Industrial Lubricant Additives is projected as the most lucrative segment.

Lubricant Additives Market, by Region

Asia-Pacific garnered the highest share in the lubricant additives market in 2020, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. Economic growth in the region coupled with increasing industrialization has allowed greater production and possession of vehicles driving the demand for lubricant additives in the region.

Lubricant Additives Market
By Region
North America

Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.

COVID-19 Impact on the Market

  • The COVID-19 outbreak impacted the lubricant additives market negatively. The market witnessed a sharp decline in demand for lubricant additives from end-use industry such as automobile.
  • Due to the lockdown and shutdown of production factories, the COVID-19 pandemic had negative impact on market demand. According to the International Organization of Motor Vehicle Manufacturers (OICA), vehicle manufacturing declined by roughly 16% in 2020, owing primarily to COVID-19.
  • Due to the outbreak of the COVID-19 pandemic, the automotive sector, including autonomous, connected, electric, and shared driving autos, has been under tremendous pressure to survive. Widespread staff layoffs, massive plant closures, and falling car sales have resulted from disruptions in the export of Chinese automotive parts and large-scale manufacturing of autos and components. To improve their organizational structures and operations, companies are shifting their focus to asset deployment optimization, recurring revenue streams, digital channels, zero-based budgeting (ZBB), and establishing resilient supply chain systems.

Key Benefits For Stakeholders

  • The report includes in-depth analysis of different segments and provides market estimations between 2021 and 2030.
  • A comprehensive analysis of the factors that drive and restrict the growth of the lubricant additives market is provided.
  • Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
  • Estimations and forecast are based on factors impacting the lubricant additives market growth, in terms of $million and kilotons.
  • Key market players are profiled to gain an understanding of the strategies adopted by them.
  • This report provides a detailed analysis of the current lubricant additives market trends and future estimations from 2021 to 2030, which helps to identify the prevailing market opportunities.

Lubricant Additives Market Report Highlights

Aspects Details
By Type
  • Dispersants
  • Viscosity Index Improvers
  • Detergents
  • Anti-wear Agents
  • Antioxidants
  • Corrosion Inhibitors
  • Friction Modifiers
  • Emulsifiers
  • Others
By Application
  • Automotive
    • Heavy Duty
    • Passenger Car
    • Other Automotive
  • Industrial
    • Metalwork Fluids
    • Industrial Engine Oils
    • General Industrial Oils
    • Others
By Region
  • Mid and High-End Phones  (The U.S., Canada, Mexico )
  • Europe  (Germany, France, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, South Korea, India, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Rest of LAMEA)

Analyst Review

Increase in demand for lubricant additives in developing economies such as Asia-Pacific, rapid growth of the automobile industry, rise in demand for heavy duty engine oil, and growth of end users are major drivers of this market. In 2020, Asia-Pacific occupied the highest market share in the market, and is expected to be the fastest growing region during the forecast period. However, the COVID-19 pandemic has halted the market growth due to the lockdown imposed by various governments, but soon the lubricant additives market is expected to recover owing to the government incentives and various steps taken by manufacturers to tackle the pandemic situation. However, volatility of crude oil prices poses a threat to the growth of the lubricant additives market. In addition, government regulations are influencing the lubricating oil additives market, which is further expected to boost the demand for lubricating oil additives during the forecast period

China emerged as the one of the leaders in the lubricant additives market in 2020 both, in terms of volume and value. This is attributed to numerous factors, such as manufacturing facilities, R&D infrastructure, and key players in the region. However, the market in India is expected to grow at a rapid rate in the near future.

Author Name(s) : Sushant Moon and Amit Narune | Eswara Prasad
Frequently Asked Questions?

Factors such as increasing demand from the automotive and industrial sector are the major driving factors of the lubricating oil additives market. The increasing sales of passenger cars and commercial vehicles drive the lubricating oil additives market in the automotive industry. Lubricating oil additives are majorly used in engine oil, gear oil, transmission fluid, and hydraulic fluid to prevent adhesive wear and protect metal components.

The global lubricant additives market size was valued at $18.3 billion in 2020, and is projected to reach $31.3 billion by 2030, growing at a CAGR of 3.7% from 2021 to 2030.

o BASF SE o Evonik Industries AG o Chevron Oronite Company LLC o Croda International PLC

The industrial application is projected to increase the demand for lubricant additives market.

By Type o Dispersants o Viscosity Index Improvers o Detergents o Anti-wear Agents o Antioxidants o Corrosion Inhibitors o Friction Modifiers o Emulsifiers o Others • By Application ? Automotive ? Industrial

The growing need for lubricant additives in the automotive industry is the major factors driving the global lubricant additives addition, increasing demand form developing countries like China, Brazil, South Africa and India will further boost the demand for lubricant additives.

Industrial application is expected to drive the adoption of lubricant additives market.

The COVID-19 outbreak has severely affected several industries such as automobile and industrial manufacturing activities causing a temporary shutdown of manufacturing plants, leading to a drop in sales and disturbance in the supply–demand chain. This disruption in sales has affected the demand and consumption of products, leading to a substantial decline in market growth.

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Lubricant Additives Market

Global Opportunity Analysis and Industry Forecast, 2021-2030