The global lubricant additives market is expected to attain a valuation of USD 13.46 billion in 2023 and is projected to reach USD 21.7 billion by 2033, expanding at a CAGR of 4.8% during the forecast period.
The demand for lubricant additives is expected to witness robust growth due to the increasing demand from the automotive industry, particularly in engine oils, gear oils, transmission fluids, and hydraulic fluids. Additionally, the growing marine and aviation transportation sectors, coupled with stricter emission controls and fuel economy standards, are further contributing to the market's expansion.
One of the primary catalysts for the global industry is the rising sales of automobiles, especially high-performance passenger cars with extended service intervals. The emergence of automotive aftermarket sectors in developing economies and the subsequent establishment of domestic blending facilities are anticipated to drive growth in the foreseeable future.
Lubricants play a vital role in the industrial sector by enabling equipment to operate efficiently and reliably.
Various types of lubricants, such as mineral and synthetic lubricants, greases, compressor oils, and cutting fluids, are used as additives across multiple industries, including automotive, oil & gas, textile, glass, power generation, paper and pulp, chemicals and petrochemicals, agriculture, manufacturing, food & beverages, and pharmaceuticals.
The growth of these industries worldwide creates a substantial demand for both lubricants and lubricant additives. Notably, the textile finishing industries in the Asia Pacific region exhibit a significant demand for industrial lubricants. Consequently, the widespread application of lubricants in diverse industries and the rapid expansion of the industrial sector are key factors propelling the market for lubricant additives.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 13.46 billion |
| Anticipated Forecast Value (2033) | USD 21.7 billion |
| Projected Growth Rate (2023 to 2033) | CAGR 4.8% |
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The lubricant additives market was worth USD 11.1 billion in 2018. It accumulated a market value of USD 13 billion in 2022 while growing at a CAGR of 4% during the historical period.
Basic materials such as oils and greases can no longer meet today's demand for lubrication across the globe with various climatic conditions. As a result, additives are important parts of the lubricant industry.
The lifespan, thermal stability manufacturing, storage, performance, and lubricating ability of lubricant formulation are considerably improved by these effective additives. It is, therefore, feasible to develop highly efficient transmission fluids, metal working fluids, hydraulic oils, engine oils, chain oils, compressor oils, high-temperature lubricants, turbine oils, and greases by utilizing basic fluids to their maximum capacity.
The lubricant additives market is being driven by expansion in the automotive sector, technical advancements in modern engines, and nationwide attempts to reduce fuel consumption.
Additionally, this category of additives is utilized in industrial machines that are integral in food processing, power generation, and metalworking. The rising adoption of lubricant additives in the industrial sector will augment the growth in the market in the forthcoming years.
Expansion in the food processing sector is being driven by surging demand for processed food products and ready-to-eat meals. The consumption of healthful, natural, and easy ready-to-drink smoothies, juices, and yogurts has been on the rise in the beverage sector.
Food-grade lubricants are utilized in a variety of system elements across manufacturing and processing lines, such as gear oils, chain oils, compressor oils, hydraulic oils, and corrosion preventive oils. Lubricant additives such as antioxidants, anti-wear additives, thickeners, tackifiers, etc. are used in food processing. For both food safety and machinery health, food-grade lubricants are one of the key elements in food processing and handling.
Key players in the food lubricant additives market are investing heavily in research, development, and innovation activities to launch customized lubricant additives for better performance and to improve sales.
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Increasing Demand for Engine Restorers and Lubricants in the United States may Augment Growth
The automobile sector in the United States of America is vital for economic growth, with significant links across the country's industrial and cultural fabric. In the United States, Original Equipment Manufacturers (OEMs) have modified their manufacturing processes to prioritize high-margin and most-demanded models to retain profitability (e.g. trucks), which is driving the usage of high-performance lubricant additives.
According to the United States Energy Information Administration, utility-scale electricity-producing facilities in the region generated roughly 4,116 billion kilowatt-hours (kWh) (or about 4.12 trillion kWh) of energy in 2021. There is always a need for lubricant additives in power generation equipment, whether hydraulic or turbine lubricants for specific oils, coal-fired power plants, or greases for wind and hydropower plants.
The United States of America is expected to remain one of the leading markets for lubricant additives, with total sales reaching USD 4.5 billion by 2033. The demand for lubricant additives in the region is anticipated to rise with a CAGR of 4.9% during the forecast period.
Rising Adoption of Diesel Conditioners in China might Boost Sales
By both yearly manufacturing output and sales, China is the world's largest automobile market, with national production expected to go beyond 35 million vehicles by 2025.
Over 25 million automobiles were sold in 2020, according to figures revealed by the Ministry of Industry and Information Technology. Sales in the China lubricant additives market are estimated to grow at a CAGR of 5.4% between 2023 and 2033.
China is one of the leading countries across the globe in the manufacturing sector, China is the world's largest user of metal processing lubricants, with an incredible yearly growth rate, which in turn is driving sales of lubricant additives.
Demand for Viscosity Index Improvers Expected to Remain High
Based on function, the viscosity index improvers segment is expected to account for 23.5% of the total market share in 2023. The demand of lubricant additives as viscosity index improvers is expected to rise with a CAGR of 5.8% during the forecast period.
Lubricant additives suspended in oil are utilized to impart functions such as viscosity index improvers, detergents, dispersants, anti-wear additives, friction modifiers, and antioxidants, among others such as corrosion inhibitors and emulsifiers. These are being used across industries such as the automotive, marine, and metallurgy sectors.
Depending on the function class, the pace of increase varies substantially. An emphasis on engine cleanliness, fuel economy, and long-lasting engine lubricants, for example, has boosted the usage of dispersants, antioxidants, and friction modifiers.
As more multi-grade engine oils are utilized, the usage of VII (viscosity index improvers) is rising. The use of detergents and anti-wear chemicals, on the other hand, is prohibited due to concerns regarding compatibility with emission control systems.
Increasing Sales of Gear Oil Treatment may Spur Demand for Lubricant Additives
By end-use industry, demand in the automotive and transportation segment is expected to increase at a CAGR of 6.2% during the forecast period. The production of automobiles, light, and heavy commercial vehicles, and two-wheelers is increasing, which is driving lubricant additives demand all over the globe.
In a car, lubricant additives are used to clean, cool, and protect metal parts against corrosion and rust. Engine oil is used in vehicles to improve fuel efficiency and performance, and gear oil is used in automotive gearboxes to protect gear components from intense mechanical pressure.
As a result of the fast expansion of the automotive industry and increasing vehicle production, demand for gear and engine oil will rise, as it has a wide range of applications in the automotive sector.
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Start-ups have a crucial role in recognizing growth prospects and driving industry expansion. Their proficiency in transforming inputs into outputs and adapting to market uncertainties is valuable. In the lubricant additives market, several start-ups are engaged in manufacturing and providing related services.
The market for lubricant additives is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities.
The key industry players are Afton Chemical Corporation, BASF SE, BRB International, Chevron Chemicals, Evonik, Lubrizol, Infineum International, Croda International PLC, Dover Chemical Corporation.
Some recent developments in lubricant additives market are:
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 13.46 billion |
| Market Value in 2033 | USD 21.7 billion |
| Growth Rate | CAGR of 4.8% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
Function Type, Lubricant Type, End Use Industry, Region |
| Regions Covered |
North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, Russia, Poland, Czech Republic, Romania, China, Japan, South Korea, India, Bangladesh, Australia, New Zealand, GCC countries, South Africa, Israel |
| Key Companies Profiled |
Afton Chemical Corporation; BASF SE; BRB International; Chevron Chemicals; Evonik; Lubrizol; Infineum International; Croda International PLC; Dover Chemical Corporation |
| Customization & Pricing | Available Upon Request |
The market is valued at USD 21.7 billion in 2023.
The market is likely to secure a 4.8% CAGR through 2033.
Increasing sales of automobiles drive the market forward.
The market expanded at a CAGR of 4% from 2018 to 2022.
Viscosity index improvers are predicted to expand at a CAGR of 5.8%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Function Type 5.1. Dispersants 5.2. Viscosity Index Improvers 5.3. Detergents 5.4. Antioxidants 5.5. Anti-wear Additives 5.6. Friction Modifiers 5.7. Other Functions 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Lubricant Type 6.1. Automotive 6.2. Metal Working Fluids 6.3. Industrial Engine Oil 6.4. General Industrial Oil 6.5. Grease 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use Industry 7.1. Automotive & Transportation 7.2. Food Processing 7.3. Metal Working 7.4. Power Generation 7.5. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Afton Chemical Corporation 18.2. BASF SE 18.3. BRB International 18.4. Chevron Chemicals 18.5. Evonik 18.6. Lubrizol 18.7. Infineum International 18.8. Croda International PLC 18.9. Dover Chemical Corporation 18.10. Chemtura Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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Lubricant Additives Market
