Lubricant Additives Market

Lubricant Additives Market Size & Growth (2023-2028)

The lubricant additives market was valued at $ 15.41 billion in 2022 and is predicted to reach $ 32.40 billion in 2028, with a CAGR of 2.7%. during the forecast period 

The automotive industry's lubricant demand accounts for more than half of global lubricant demand. With rising global demand for lubricants, the global market value of lubricants is expected to reach 182.6 billion USD by 2025. First and foremost, Lubricant additives manufacturers and marketers benefit from competitive advantages because it has a comprehensive range of lubricant components and aftermarket performance chemicals. This market has developed a deep market understanding and formulation expertise for a wide range of end-use applications, particularly for water-based and synthetic-based industrial lubricants, which in turn provide a way to manufacture. Lubricant additives are chemical components or blends that, when used at a specific treatment rate, perform one or more functions in the fluid. At the moment, a wide range of lubricant additives is used in industrial oils and passenger car lubricants. Friction modifiers, anti-wear additives, and extreme pressure additives are among them. Additives are chemical components or blends that are used at a specific time. In 2020, the total global demand for lubricants reached a high of 37 million metric tonnes. Lubricant additives are used in a range of areas. The global demand for lubricants is expected to reach 37.4 million metric tonnes by 2023.

Lubricant Additives Market Trends:

The lubricant additives have various applications in all sectors overall the globe. Current automotive lubricants are designed specifically for internal combustion engines and drive trains. Longer service intervals, improved fuel efficiency, and increased machine durability have resulted from advancements in lubricant additives and lubricant formulation. Future trends in lubricant development and use, as well as the rise of electric vehicles, appear promising, with several stakeholders already taking the first steps. As a result, new lubricants will help to advance ‘Green Tribology.' The future of lubricant formulation, manufacturing, and end-use is oriented toward cost and time efficiency, customized and optimized for each individual. Several OEMs have recently introduced their first lines of dedicated EV fluids and lubricants.

Lubricant Additives Market Drivers:

Marine and aviation transportation is constantly expanding, as is the automotive industry. With significant R&D investments to design and formulate superior lubricants that meet current and future environmental regulations as well as consumer expectations. Growing demand from the automotive industry has increased the active number of automotive vehicles, which has led to an increased demand for lubricants. Industrial lubricants are important in a wide range of industries, including machine building, chemical, textile, wood, food processing, automotive, and wind power. Lubricant research and development have become essential in automotive engines and drive trains as they have shrunk in size, gained power, improved fuel economy, and become more efficient—growing demand for food processing in the FMCG sector. Furthermore, the rise in food processing applications around the world. Additionally, the adoption of new technology EVs in the global market will be a driving factor for the lubricant additives market. Increasing demand for the global business unit Fuel and Lubricant Solutions is expanding antioxidant lubricant production in Mexico and China.

Lubricant Additives Market Restraints:

Short-term production bottlenecks contribute to an overall shortage of all types of raw materials.

Opportunities in the Lubricant Additives Market:

Companies should focus on broadening the product portfolios of lubricant additives concerning specific applications to explore investment opportunities. The lubricant additive market is expected to grow in the coming years, with opportunities in automotive lubricants, heavy-duty motor oil (HDMO), passenger car motor oil (PCMO), other automotive, industrial lubricant, metalworking fluids, industrial engine oils, and general industrial oils.

Challenges in the Lubricant Additives Market:

Raw material prices fluctuate. Various countries' strictly private and government regulations pose a challenge to the expansion of the lubricant additives market.

LUBRICANT ADDITIVES MARKET REPORT COVERAGE:

Lubricant Additives Market Segmentation:

By Type:

• Detergents
• Antioxidants 
• Emulsifiers
• Dispersants 
• Corrosion inhibitors 
• Friction Modifiers 
• Anti-wear Additives 
• Others

The antioxidants and anti-wear additives segment accounted for the largest market share in terms of value and is expected to grow at the fastest CAGR over the forecast period. 

By Application:

• Heavy-duty
• Metalworking Fluids 
• Passenger car
• Industrial Engine Oil
• General Industrial Oil 

The Industrial Engine Oil segment is expected to grow at the fastest rate due to the high demand for lubricant additives, product innovation, and product life extension.

By End-user:

• Automotive and Other Transportation
• Heavy Equipment
• Power Generation
• Food Processing
• Metallurgy & Metal Working
• Other Industries

Lubricant Additives Market Regional Analysis:

 The Lubricant Additives Report includes the segmentation of Regions:

•  North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

Due to R&D focus on developing lubricant additives and their application, the Asia-Pacific region will dominate the global market in 2021, accounting for the largest share of the total lubricant additives market by value, followed by North America and Europe. With a market volume of 7.3 million tons in 2019, China was the global lubricants market leader 2019. With 6.05 million tons and 1.7 million tons, respectively, the United States and India are in second and third place. Because of its high population and rising automotive applications, the Asia-Pacific region is expected to grow the most during the forecast period Because of the low labor and production costs, lubricating oil additives are primarily manufactured in APAC and exported globally. However, due to the coronavirus breakdown, automotive sales are likely to be affected throughout the region, affecting the lubricating additives market.

Europe is sustained to have a significant growth rate by the end of 2026. Rising investments by government and non-government organizations are leveling up the demand of the market. 

Latin America, and Middle East & Africa are expected to have a slow growth rate during the forecast period 2022 - 2027.

Impact of COVID-19 on the Lubricant Additives Market:

COVID-19 could last anywhere from six to eighteen months around the world. Economic consequences are already severe, and evolving national policies will shape and lengthen the economic recovery. Oil markets are in free fall, with transportation fuels bearing the brunt of the damage. All lubricant manufacturers rely heavily on the timely and complete supply and delivery of base oils, additives, and chemicals, all of which are critical to the development of lubricants. It comes as no surprise that the COVID-19 pandemic has resulted in a shortage of such raw materials and presented the industry with several new challenges, including the inability to obtain these materials in the desired quantity and reliance on fewer suppliers. Lockdowns throughout Europe and beyond have also reduced the number of employees working at lubricant facilities, resulting in production bottlenecks and increased costs due to orders that cannot be produced and delivered on time. However, the food processing industry in the country is maturing and growing at a moderate rate. Processed and packaged frozen foods, particularly dairy, baby food, and confectionery products, are driving the food processing industry. As a result, the FMCG industry, is expected to generate demand for new lubricant additives, providing market opportunities. The rising demand for lubricant additives in the pharma drug and medicine industries due to their lubricant applications is also expected to drive the growth of the lubricant additives market in the future.

Recent Developments in the Lubricant Additives Market:

• Jan 2019, BASF's global business unit Fuel and Lubricant Solutions is increasing the production of lubricant antioxidants in Mexico and China.
• Chemtura, one of the world's major manufacturers of lubricant additives, was acquired by LANXESS, a specialty chemical firm, on April 21, 2017.

Lubricant Additives Market Key Players:

The major players covered in the Lubricant Additives market report are 

• BASF SE

• Evonik Industries AG

• Lubrizol Corporation 

• Infineum International Limited 

• Afton Chemical Corporation 

• Croda International PLC 

• Chevron Oronite Company LLC 

• Chemtura Corporation

• Vanderbilt Chemicals LLC 

• Italmatch Chemicals SpA (The Elco Corporation)

• Shamrock and Tianhe Chemicals.