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.