Lubricant Additives Market: Snapshot
The automotive market has been in top gear in emerging economies, which is driving ancillary markets including that of lubricant additives, reports Transparency Market Research. Moreover, the increasing pressure on developed regions to bring down their carbon footprint has resulted in increasing research and development of efficient cars. This requirement has also percolated to the lubricants markets, encouraging manufacturers to produce lubricants that reduce not only friction but also emissions. This, in turn, has had a positive impact on the lubricants additives market in recent years. Additives such as friction modifiers, viscosity index (VI) improvers, pour point depressants (PPD), corrosion inhibitors (CI), and antioxidants are typically used for the effective functioning of the machines.
Analysts predict that the global consumption of lubricant additives will rise to 4,934.61 kilo tons by 2020 from 4,334.54 kilo tons in 2015, as the market expands at a steady CAGR of 2.66% from 2015 to 2020. The rising disposable income of consumers, which is translating into increased spending on passenger vehicles, is expected to boost the demand for lubricant additives in the coming years. Furthermore, initiatives taken by the governments to reduce the fuel consumption quantity of vehicles is also expected to accelerate the demand for high quality of lubricant additives as they enhance the quality of the engine, thereby reducing fuel consumption.
Preference for Low Viscosity makes VI Improvers an Emerging Segment
As of 2013, the dispersants segment held a leading share of 25.13% in the overall market. By the end of 2020, this product segment is expected to hold a share of 25.55%. Analysts predict that the antioxidants segment will be the fastest-growing segment in the forecast period due to its increasing application in new-age engines and turbines to prevent oxidation. The share of antioxidants additives is expected to stand at 5.4% by 2020 in the global lubricants additives market. Additionally, the viscosity index (VI) improvers segment will also be an emerging segment due to growing preference for lubricants with low viscosity, especially in developing economies of Asia Pacific. The rise of the automotive sector in this region is also expected to fuel the consumption of lubricants additives in the coming few years.
Booming Automotive Sector Boosts Demand for Lubricant Additives in Asia Pacific
The report states that lubricants additives market in North America has plateaued; however, the trend of using quality lubricants to maintain the machinery standards will continue to keep the market going at a steady pace. The Asia Pacific lubricant additives market will witness a rise due to growing disposable incomes that have led increasing automobile purchases. The Asia Pacific lubricants additives market is expected to grow at the fastest CAGR of 3.91% between 2014 and 2020.
Some of the key players in the global lubricants additives market are BASF SE, NewMarket Corp., Rhein Chemie Rheinau GmbH, The Lubrizol Corp., Infineum International Ltd., Chevron Oronite Company LLC, Evonik Industries AG, and Chemtura Corp. Companies will focus on product innovation through dedicated research and development in the coming years to build a significant brand equity.
Lubricants are indispensable for the proper functioning of machinery. Lubricants are typically used to reduce friction and wear & tear between different moving parts of machines. Lubricants aid in reducing the downtime of operating machines and thereby raise the overall productivity. Lubricants provide protection against residual deposition over mechanical parts which aids in increasing the operating lifespan of mechanical parts. They are typically manufactured from base oils, while few additives are also used along with the base oils to give lubricants the desired properties. Lubricant additives are imperative for the proper functioning of lubricants and for increasing their life span. There are different kinds of additives, which are blended with the base oils to produce finished lubricants. The percentage of lubricant additives in the finished lubricants varies depending upon the end-use application. For example, the percentage of additives for steam turbines or compressors varies between 0.5% and 5%, whereas for hydraulic systems the percentage of additives is between 2% and 10%. Types of additives added to the finished lubricants are specific for specific applications. For example, extreme pressure additives are not used in steam turbine oils or compressor oils.
Consumption of lubricant additives is increasing significantly due to frequent amendments in emission norms. The automotive industry is expected to be the major consumer of lubricant additives. Environmental regulations have limited the permissible amount of carbon dioxide emitted per kilometer. Europe has the most stringent norms followed by North America. Passenger vehicle OEMs have to adhere to the emission limits of 130 grams of carbon dioxide per kilometer by 2015. The permissible limit in Europe would be reduced to 95 grams of carbon dioxide per kilometer by 2021. Projected permissible limit for the U.S. is slightly higher for 2021. In Asia Pacific, Japan and South Korea have introduced stringent emission norms that aid in curbing carbon footprints. Emerging economies such as China and India are also improving their emission standards. Revising emission standards for the automotive industry is one of the key steps taken by the Government of China to reduce emission levels in the country. OEMs are also contributing in reducing the emission levels by improving engine technology. Europe and North America use better technology engines and advanced quality finished lubricant oils. The same trend is being followed in some countries of Asia Pacific and the Middle East.
The research study analyzes the global demand for lubricant additives and provides estimates and forecasts for the market from the consumption point of view. The market for lubricant additives has been segmented based on product in order to provide a holistic view of the market. Market data for products has been provided on a regional level for the 2013−2020 period. A comprehensive competitive landscape, which includes company market share analysis, has also been provided in the study. Key product segments analyzed in the report include viscosity index (VI) improvers, pour point depressants (PPD), detergents, dispersants, antioxidants, and others. Market data has been provided for Europe, Asia Pacific, North America, the Middle East, and Rest of the World (RoW). The regions included in RoW are Africa and Latin America.
The report also includes Porter’s Five Forces model along with the value chain analysis of the market. The report analyzes market attractiveness by product type. Key players in the market for lubricant additives include BASF SE, Chevron Oronite Company, LLC., Chemtura Corporation, Evonik Industries AG, Infineum International Limited, The Lubrizol Corporation, and Tianhe Chemicals Group Limited. The report provides an overview of these companies along with their financial details, business strategies, and recent developments.
Lubricant Additives Market: Product Segment Analysis
- VI Improvers
- PPD (Pour Point Depressants)
- Other Additives (Corrosion Inhibitors, Metal Deactivators, Anti-wear Additives, etc.)
Lubricant Additives Market: Regional Analysis
- North America
- Asia Pacific
- Middle East
- RoW (Rest of the world)