Lubricant Additives Market Growth Analysis | 2023-2028

Market Insights

The lubricant additives market was estimated at USD 25.1 billion in 2022 and is likely to grow at a CAGR of 3.7% during 2023-2028 to reach USD 31.3 billion in 2028.

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Market Dynamics

Introduction

Lubricant additives are chemical components or substances that, when applied at a specific amount, perform one or more functions in the fluid. Additives for lubricants are combined with basic oils to create complete lubricants. "Solids" are defined as organic or inorganic substances that have dissolved or been excluded from oil as solids. They can be anything between 0.1 and 30% of the entire oil volume, depending on the equipment. In many different ways, these additives extend the lifespan and increase the output of final lubricants.

Market Drivers

Emerging economies in the Asia-Pacific region, which account for approximately 30% of the demand for lubricant additives, are the main market drivers in this sector. Due to the region's price sensitivity, the growing construction, manufacturing, and automotive industries—which are not subject to severe environmental regulations—fuel the demand for lubricant additives of moderate grade. Due to this, Asia-Pacific has become a key global manufacturing and commercial hub where many large corporations are establishing their new factories to compete in fast-growing markets. Manufacturers are drawn to the area for a variety of reasons, including affordable labor and simple access to feedstocks. The market for alternative fuels, such as biofuels, liquefied petroleum gas (LPG), and compressed natural gas (CNG), is driven by environmental restrictions in Europe and North America.

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Key Players

The following are the key players in the lubricant additives market:

• Afton Chemical Corporation.
• BASF SE
• Chemtura Corporation
• Chevron Oronite Company Llc
• Croda International Plc
• Evonik Industries Ag
• Infineum International Ltd.
• The Lubrizol Corporation
• Shamrock Shipping & Trading Limited
• Tianhe Chemicals Group

Note: The above list does not necessarily include all the top players of the market.

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Segment Analysis

By Function Type

"Dispersants segment accounted for the largest market share."

Based on the function type, the lubricant additives market is segmented into dispersants, VII, detergents, antiwear, antioxidants, corrosion inhibitors, emulsifiers, and others. Dispersants are expected to remain the largest function type in the market during the forecast period. The dispersant is one of the components required to create additive packages for the industrial and automotive markets. It recommends suspending the insoluble impurities in the oil to prevent the formation of sludge. Dispersants are frequently used to prevent deposits on surfaces, such as varnish, sludge, and other types of deposits. Diesel and petrol engine oils, where their use is restricted to engine protection, make up about three-quarters of all usage.

By Application Type

"The automotive segment accounted for the largest market share."

Based on the application type, the market is segmented into automotive and industrial lubricants. Automotive is expected to remain the dominant as well as the fastest-growing application in the market during the forecast period. While the industrial application is anticipated to experience a significant growth rate throughout the projected period, the automotive segment is expected to continue to hold the majority of the market share. In 2022, passenger car motor oil dominated the market, and this dominance is anticipated to continue during the forecast period. The requirement for passenger car motor oil is driven by EURO norms, which control the levels of nitrogen oxide, carbon monoxide, soot, and hydrocarbons associated with customer decisions to use fuel that is low in thickness and operationally efficient.

Regional Insights

"Asia-Pacific accounted for the largest market share."

In terms of regions, Asia-Pacific is expected to remain the largest market for lubricant additives during the forecast period. This is supported by the region's substantial customer base and important player presence. The region's expanding industrialization and economic development have enabled greater vehicle production and ownership, which has increased the demand for lubricant additives in the area.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s lubricant additives market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our lubricant additives market report from the industry stakeholders, we have tried to further accentuate our research scope to the lubricant additives market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The lubricant additives market is segmented into the following categories:

By Function Type

• Dispersants
• Viscosity Index Improvers
• Detergents
• Anti-Wear Additives
• Antioxidants
• Corrosion Inhibitors
• Emulsifiers
• Others

By Application Type

• Automotive
• Industrial Lubricants

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabian, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.