Lubricating Oil Additives Market

Lubricating Oil Additives Market Growth (2023-2028)

The Lubricating Oil Additives Market size was estimated at $ 19.29 billion in 2022 and is anticipated to reach $ 21.42 billion in 2028, with a CAGR of 3.15% during the forecast period 2023-2028

Lubricating oil additives are organic or inorganic materials that are dissolved or suspended as solids in lubricating oils to impart special properties. These vary depending on the type, application, and lubricant requirements. These additives help improve existing properties and remove unwanted properties from base oils, in addition to giving them special properties. Materials that help improve the existing properties of the base oil include defoamers, corrosion inhibitors, and antioxidants, while those that help suppress unwanted properties of the base oil include depressants pour point (PPD) and index improves viscosity. In addition, detergents, extreme pressure (EP) additives, and emulsifiers impart new properties to base oils.

The massive popularity of light commercial vehicles, the increase in auto manufacturing and sales in emerging countries such as India, Indonesia, and Thailand, and technological advancements leading to the launch of new vehicles such as Smart cars and aluminum trucks are some of the major factors likely to guide the growth path of the auto industry. This, in turn, will accelerate the market demand for lubricating oil additives in the years to come. Laws targeting fuel emissions are causing dramatic changes in the formulation and selection of additives and their use. These include the extensive use of low-viscosity materials and strict control of chemical limits in automotive fuels and additives. Additionally, specification updates lead to the improved and mandatory application of antioxidants and dispersants. In addition, economic development and industrialization are leading to increased demand for these additives for industrial applications. All of these aforementioned factors are increasing the expansion of the lubricating oil additives market.

Drivers in the Lubricating Oil Additives Market

In addition, the car ownership rate in the APAC region has increased steadily over the past five years. The main countries contributing to the growth of this region are China, India, Japan, South Korea, and Indonesia. China and India are expected to be the fastest-growing markets during the forecast period, due to the presence of more vehicles in circulation and the high rate of motorization. Companies like Maruti-Suzuki, GM, Tata Motors, VW Group, Toyota, Honda, and Hyundai are expanding their production capacities. Certain lubricant additives are also used to maintain the required physical properties (such as viscosity) at all temperatures and operating conditions. This provides the correct engine oil flow and viscosity in all situations. They also help keep engine surfaces and parts clean and control engine oil thickening induced by deposits. Additives with properties that change friction or viscosity can also help increase fuel economy. This is by reducing the friction between the moving surfaces or by allowing favorable viscosity profiles that offer greater efficiency. Advanced lubricant additives also benefit the environment, as they can help reduce carbon dioxide emissions from vehicles and also enable the efficient use of energy resources.

Restraints in the Lubricating Oil Additives Market

Different additive formulations depend on different chemicals and the price varies among suppliers. In 2019, BASF said the company intends to increase the costs of lubricating oil additives, base stocks, and finished lubricants by 6-10% depending on the specific product and also mentioned that adjustments to prices are necessary due to increasing costs of raw materials, transport, and regulatory policies. Formulating one set of lubricating oil additives requires considerable investment in R&D. Lubricant manufacturers mainly rely on OEM engine specifications and industrial lubricant requirements to manufacture different sets of additives for lubricating oil. Therefore, the development of the new additive package must comply with OEM requirements, engine, design and environmental legislation. In addition, the cost of engine testing is high because the tests are performed under various controlled conditions using the engine and fuel with specific tolerance to ensure performance. Therefore, additive manufacturers look forward to new product development and significant investment in R&D and innovation to meet the needs of automotive and industrial lubricants. Hence, the costly R&D process is the main challenge for the lubricating oil additives market.

LUBRICATING OIL ADDITIVES MARKET REPORT COVERAGE:

Lubricating Oil Additives Market  Segmentation

Lubricating Oil Additives Market - By Type:

• Anti-Oxidants

• Dispersants

• Detergents

• Friction Modifiers

• Extreme Pressure Additives

•  Emulsifiers

• Pour Point Depressants

• Viscosity Index Improvers

• Anti-Wear Agents

• Rust & Corrosion Inhibitors

• Boundary Lubricity

• Antimicrobial Pesticides

• Antifoam additives and defoamers

• Inhibiting Corrosion

• Metal Deactivators

• Chelating Agents

• Anti mist Additives

• Dyes

The dispersant segment held a significant share of the lubricating oil additive market in 2019. The dispersant is one of the essential additives for formulating additive packages for automotive and industrial segments. Helps suspend oil-insoluble contaminants to prevent sludge formation. Anti-foaming agents and antioxidants improve the properties of lubricating oil, while depressants help remove unwanted characteristics. Detergents and emulsifiers add new properties to lubricating oil. These additives are mainly used in the automotive and industrial sectors to facilitate the safe and efficient operation of the engine, and gearbox and also to increase the longevity of machines. Viscosity index improvers are large polymeric additives used during the mixing of multigrade engine oil, primarily to prevent oil dilution (loss of viscosity) as the temperature increases. 

Lubricating Oil Additives Market - By Application:

• Industrial Oils

• Metalworking Fluids

• Hydraulic Fluids

• Engine Oils

• Process Oils

• Gear Oils

The engine oils segment accounted for a significant share of the lubricating oil additives market in 2019. They mainly prolong the life of cars under many conditions such as pressure, temperature, and speed. The main purpose of lubricants is to reduce the friction and heat of moving parts of vehicles and also to prevent various contaminants from causing damage. Certain additives improve the viscosity of engine oil for optimum performance under different operating temperatures, thereby reducing wear. Additives that reduce friction improve engine performance.

Lubricating Oil Additives Market - By End-User:

• Automotive

• Industrial

• Others

The massive popularity of light commercial vehicles, the increase in auto manufacturing and sales in emerging countries such as India, Indonesia and Thailand, and technological advancements leading to the launch of new vehicles such as smart cars and aluminum trucks are the main factors likely to boost the growth path of the automotive industry This, in turn, will accelerate the market demand for lubricating oil additives during the forecast period. According to OICA, the production of passenger cars increased from 69,481,371 units in 2016 to 72,812,821 units in 2019. Therefore, the increase in the automotive sector is expected to boost the lubricating oil additives market.

Lubricating Oil Additives Market Regional Analysis:

In 2020, Asia-Pacific accounted for about 47.8% of the lubricating oil additives market share, cumulative to $ 6.24 billion. The regional industry will grow due to urbanization, large-scale urbanization, and the related demand for passenger vehicles. In addition, favorable growth of automotive and industrial sectors of countries in the region including China, India, and other Asian countries will increase the revenue share of lubricating oil additives through 2026. The lubricating oil additives market in the APAC region is driven by increasing annual vehicle sales, globally, new laws and regulations aimed at improving lubricant efficiency to reduce emissions, optimization of the engine and transmission system to deliver more power efficiently; and also the increased use of additives to formulate lubricants to OEM specifications to reduce viscosity and improve fuel economy.

North America is expected to hold nearly 21.7% of the market, a larger share of sales by 2026. As North America is the second-largest regional automotive production center, it will drive sales price trends for lubricating oil additives for years to come. In addition, the presence of the main car manufacturers in the region will also stimulate the proliferation of products.

Lubricating Oil Additives Market Recent Developments in the Industry:

• In December 2021, Castrol is launching a new oil change pre-treatment product. Castrol has launched a new oil change pre-treatment product, Castrol Engine Shampoo, which helps keep gasoline and light diesel engines running efficiently. Engine sludge builds up in an engine over time and is not removed during a standard oil change. It can clog vital oil passages, reducing power, efficiency, and overall engine life.

• In June 2021, Vestige introduced an engine oil additive that reduces emissions and improves fuel economy. Vestige Marketing Pvt. Ltd., one of India's leading direct-selling hygiene, health, and wellness product companies, has launched a new automotive product portfolio with the launch of Mach Drive Nano Energiser. Mach Drive is an engine oil additive believed to improve engine life and reduce engine drag, friction, and noise. It uses unique and revolutionary technology, containing 20 nanometers of zirconia powder coated with platinum emulsified in mineral oil.

• In March 2021, Jlm Lubricants launches JLM Vortec oil additive to reduce engine friction Products. It is a state-of-the-art additive that allows engine oil to provide better protection for combustion engines and reduce fuel consumption by reducing friction inside the engine. Without solid particles, the product is completely liquid. Therefore, it is much more efficient than conventional engine oil and drags / friction-reducing additives to minimize wear and frictional resistance between moving parts of combustion engines.

Lubricating Oil Additives Market Key Players:

Some of the key players operating in the global lubricating oil additives market are

1. Afton Chemical Corporation

2. BASF SE

3. Chevron Oronite Company LLC

4. Croda International Plc

5. Evonik Industries AG

6. Infineum International Limited

7. LANXESS Group

8. Shamrock Shipping & Trading Ltd.

9. The Lubrizol Corporation

10. Tianhe Chemicals Group.

11. Chevron Oronite Company LLC