Market Size and Overview:

The Worldwide Market for Automotive Lubricant Additives achieved a valuation of USD 19.90 Billion and is anticipated to attain a market magnitude of USD 22.15 Billion by the conclusion of 2030. Throughout the prognosticate span spanning 2024 to 2030, there is an estimated compound annual growth rate (CAGR) of 1.54% expected for the market.

Overview of the Industry:

Lubricant components encompass chemical elements or materials that, when applied in specific quantities, serve one or more functions in the fluid. These components are combined with base oils to create complete lubricants. Referred to as "solids," these organic or inorganic elements can either dissolve or be excluded as solids in oil, constituting 0.1% to 30% of the total oil volume, depending on the equipment. Their inclusion significantly improves the lifespan and production efficiency of final lubricants, leading to prolonged machinery life and reduced maintenance costs.

The application of these mixes, either separately or in combination, varies based on end-use. In the automotive industry, heavy-duty and passenger vehicle lubricants are the primary consumers of lubricant additives, followed by metalworking fluids and mechanical engine oils in the industrial sector. Lubricant components play a crucial role in energy and emissions management across various vehicle and end-use sectors.

Basic lubrication substances like oils and greases alone cannot meet the diverse demands for lubrication worldwide, given different climatic conditions. Therefore, lubricant components play a vital role in the industry, significantly enhancing the thermal stability, production, storage, performance, and lubricating capabilities of lubricant formulations. This enhancement allows for the development of highly efficient transmission fluids, metalworking fluids, hydraulic oils, engine oils, chain oils, compressor oils, high-temperature lubricants, turbine oils, and greases, maximizing the potential of primary fluids.

Impact of COVID-19 on the Automotive Lubricant Additives Market:

The global pandemic has cast a shadow over nearly every sector worldwide, including the lubricating oil components market. Disruptions in the global supply chain and a decline in oil prices have adversely impacted the market, primarily due to reduced demand in the automotive sector. The market, heavily structured in the automotive and industrial sectors, has seen a significant drop in demand.

The Asia-Pacific (APAC) region, being the largest in terms of value for the lubricating oil components market, experienced reduced oil production and operational closures in major ports such as Shenzhen and Shanghai due to travel bans and lockdowns in China. However, signs of recovery are evident in the United States, with the reopening of many businesses after a three-month lockdown. The rollout of mass vaccination drives has also prompted other developing countries to increase their automobile production in 2021.

Market Drivers:

Increased demand from the Automotive sector and increasing demand from developing countries are driving the growth of the market.

The growth of the market is driven by increased demand from the automotive sector and rising demand from developing countries. The escalating sales of passenger cars and commercial vehicles fuel the lubricating oil components market in the automotive industry. These components are predominantly used in engine oil, gear oil, transmission fluid, and hydraulic fluid to prevent adhesive wear and safeguard metal components. The surge in motor vehicle production globally, as highlighted by statistics from the European Automobile Manufacturers Association, the International Organization of Motor Vehicle Manufacturers, and Trading Economics, substantiates the heightened demand for lubricants and, consequently, lubricant additives.

Market Restraints:

Health Concerns Associated with the Use of Humic Acid is restraining the growth of the market.

The market faces a constraint due to health concerns associated with the use of humic acid. Major lubricant oil component manufacturers encounter stiff competition from unorganized players offering cheaper and sub-standard products. Local and gray market players, operating on reduced costs, competitiveness, and local supply networks, challenge larger players. This competition restricts the entry of international players into local markets, limiting their investments and market share expansion. The challenge lies in overcoming the dominance of unorganized players and establishing a foothold in these markets.

Automotive Lubricant Additives Market - By Function:

The market is categorized based on various functions, including:

• Dispersants
• Viscosity Index Improvers
• Detergents
• Antioxidants
• Anti-wear Additives
• Friction Modifiers
• Other Functions

As of 2021, the Viscosity Index Improvers segment is anticipated to constitute 22.3% of the overall market share. Lubricant components, suspended in oil, play a crucial role in providing characteristics such as viscosity index improvement, detergency, dispersancy, anti-wear properties, friction modification, and oxidation resistance. These functions find applications across diverse industries, including automotive, marine, and metallurgy sectors.

The rate of expansion varies significantly depending on the specific function category. Increased emphasis on engine cleanliness, fuel efficiency, and durable engine lubrication has led to heightened utilization of dispersants, antioxidants, and friction modifiers. Additionally, the growing use of multi-grade engine oils has contributed to the increased demand for viscosity index improvers (VIIs). However, the use of detergents and anti-wear additives faces restrictions due to concerns regarding compatibility with emission control systems.

Automotive Lubricant Additives Market - By End-Use:

The market is segmented based on end-use applications, including:

• Automotive & Transportation
• Food Processing
• Metal Working
• Power Generation
• Others

The automotive and transportation segment is expected to witness substantial growth over the forecast period. The increasing production of automobiles, both light and heavy industrial vehicles, and two-wheelers is a significant driver for the demand for lubricant components on a global scale.

In the automotive sector, these components play a vital role in cleansing, cooling, and protecting metal components against corrosion and rust. Engine oil enhances fuel efficiency and performance in vehicles, while gear oil safeguards tool components in car gearboxes from excessive mechanical stress. The rapid expansion of the automotive industry and the continuous growth in automobile production contribute to the rising demand for gear and engine oil, given their extensive applications in the sector.

Automotive Lubricant Additives Market - By Region:

Geographically, the market is segmented into regions, including:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

As of 2021, Asia-Pacific has secured the highest share in the lubricant components market, both in terms of revenue and market dominance. This is attributed to the presence of key industry players and a substantial customer base in the region. The region's economic growth, coupled with increased industrialization, has led to higher vehicle production and ownership, thereby driving the demand for lubricant components.

In the U.S., the automotive sector is integral to economic growth, with Original Equipment Manufacturers (OEMs) adapting production strategies to prioritize high-margin and in-demand models, such as trucks. This shift contributes to the increased utilization of high-performance lubricant additives.

Europe, particularly key countries like Italy, Spain, and the UK, holds a significant share of the European lubricating oil additives market. The European market is closely regulated, with stringent guidelines from REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) ensuring a high level of safety for the environment and human health in the use of chemicals.

Automotive Lubricant Additives Market Share by Company:

The market is characterized by the presence of several key players, including:

• BASF SE
• Chevron Oronite Company LLC
• The Lubrizol Corporation
• Afton Chemical
• Evonik Industries AG
• LANXESS AG
• Croda International Plc.
• Infineum International Limited
• ADEKA CORPORATION
• BRB International
• International Petroleum Additives Company
• Tianhe Chemicals
• Vanderbilt Chemicals, LLC
• MOL-LUB Ltd
• Eni S.p.A.
• Clariant AG (Switzerland)

Recent Developments:

• Chevron Oronite Company LLC recently entered into an agreement with Quantity for the distribution of OLOA lubricant additives, OGA gasoline additives, PARATONE viscosity additives, and raw material intermediates and components, including PIBSA and inhibitors.
• Afton Chemical Corporation successfully completed the expansion of its chemical additive manufacturing facility in Jurong Island, Singapore.

Market Dynamics:

The global market is highly competitive, featuring a diverse range of regional and independent small- and large-scale manufacturers and suppliers. Small-scale companies primarily compete based on pricing, after sales services, and delivery timelines, while large-scale enterprises focus on product development, innovations, and marketing strategies. Some companies are strategically restructuring their supply chains to reduce costs and minimize customer delays.

Key players and new entrants are investing in the development of bio-lubricants to address future energy security challenges for petroleum products. However, bio-lubricants are in the early stages, facing limitations such as temperature resistance and oxidative stability. To overcome these challenges, companies are actively engaging in research and development activities. Major manufacturers are expanding their production facilities in developing regions like Asia, Africa, and South America to meet the growing demand for industrial and automotive lubricants. In addition to increasing lubricant manufacturing capacities, significant players are exploring new oil wells to achieve self-sustainability in raw materials for internal production and maintain consistent revenue streams.

Recent Notable Events in the Global Automotive Lubricant Additive Market:

• Product Expansion (June 2021): Infineum expanded their single oil category II solutions for MAN B&W two-stroke engines with the introduction of Infineum M7095, featuring the Infineum performance booster additive package, meeting the demands of MAN Energy Solutions category II lubricants.
• Product Launch (February 2021): Dover Chemical Corporation released a lubricity-improving polymeric ester additive designed for the metalworking sector.

These developments signify the industry's commitment to innovation, meeting evolving demands, and addressing challenges in lubricant technology.