The global lubricant additives market is led by companies such as Lubrizol Corporation, Chevron Oronite LLC, and Infineum International Ltd. Key companies in this market are focusing on innovative technologies so as to enable better product development, says a new report by Transparency Market Research (TMR). In the global lubricant additives market, brand equity plays an important role in gaining market shares. The threat from substitutes is expected to remain low as there exists only an internal substitute. There is a low threat of backward integration from additive companies. There are limited number of suppliers providing distinctive raw materials and thus, the supplier power is expected to remain medium over the coming years. Lubricant additives are mostly sold through long term contracts and thus, the buyer power is likely to remain low.
According to the report, the global lubricant additives market is expected to rise from 4334.54 kilo tons in 2015 to 4934.61 kilo tons by 2020 in terms of volume. On the basis of product, the dispersants segment is expected to lead and account for 25.55% of the market by volume by 2020. However, antioxidants is expected to grow at a significant CAGR during the forecast period owing to the increase in consumption of antioxidants and the high damage caused to engines due to oxidation in lubricants. By geography, the market is expected to be led by Asia Pacific, followed by North America. Asia Pacific is projected to account for 33.84% of the market in terms of volume by 2022.
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Stringent Emission Regulations to Push Consumers to Adopt High Quality Lubricant Additives
Regions such as Europe and North America have various stringent emission regulations which is impacting the automotive industry. Thus, high quality lubricant additives are in high demand for engines so as to ensure better fuel quality and fulfil emission standards. The growing number of vehicles in developing nations such as China and India will also help increase the consumption of lubricant additives. The sales volume of automobiles is projected to increase in the coming years as the disposable income of consumers increase in Asia Pacific and this will help drive the market for lubricant additives.
One of the factors deterring consumers from adopting lubricant additives is the improved oil drain interval. The recent development in technology and extensive research and development carried out have led to cleaner fuels, dependable engines, and enhanced drain interval period. This improvement in engine oil drain interval will reduce the consumption of engine oils in commercial vehicles, which in turn will decrease the consumption of lubricant additives. “The impact of this restraint will thankfully be low as the development of high performance engine oils will generate the need for more additives,” says a TMR analyst.
Manufacturers Need to Find Alternatives for Zinc dialkyldithiophosphate (ZDDP)
The new vehicles manufactured in Europe and North America are fitted with vehicle exhaust after-treatment systems, which help in reducing emissions. However, the sulfated ash, phosphorous, and sulfur (SAPS) produced from lubricant decomposition can damage the catalyst and block filters. Zinc dialkyldithiophosphate (ZDDP), which is used in lubricants to control engine wear and tear, contains SAPS. Thus, manufacturers are required to develop new additives that can replace ZDDP in engine oils and this difference can help position a company among the top players in the market.
The global lubricant additives market is segmented as follows:
By Product
- VI Improvers
- PPD (Pour Point Depressants)
- Detergents
- Dispersants
- Antioxidants
- Other Additives (Corrosion inhibitors, Metal deactivators, Anti-wear additives, etc.)
