Lubricant Additives Market Expected to Rake In $18.85 Billion by 2024
Industry experts are forecasting that the global lubricant additives market will reach USD18.85 billion by 2024. According to a new report by Grand View Research, Inc., the key driving factors for the perceived market growth are the “stringent regulations regarding the permissible amount of carbon emission in the atmosphere.”
Additives saw a massive price drop in 2015 because of the fluctuating prices of key raw materials in the global market, including calcium carbonate, zinc metal, and crude oil.
Viscosity index improvers were the leading product segment, with a 23.3-percent estimated demand share back in 2015. Friction modifiers, which minimize surface contacts by acting as a cushion between two coated surfaces, are projected to register the highest volume growth over the forecast period, at 3.5 percent. Meanwhile, global lubricant additives market demand is expected to reach 5.36 million tons by 2024. That’s a compound annual growth rate of 2.5 percent from 2015 to 2024.
Automotive lubricants accounted for over 59.5-percent total market volume in 2015, making it the largest application segment. Increasing passenger car production and sales, particularly in Asia, is expected to drive this segment over the forecast period.
Passenger car motor oil was the leading segment for automotive lubricant additives with its demand estimated at over 900 kilo tons in 2015. Consumption is expected to be driven by developing aftermarket for lubricating oils in emerging economies.
Asia Pacific emerged as the leading regional market with demand share exceeding 30 perent in 2015. High demand for passenger cars in China, South and Southeast Asia along with a robust lubricant aftermarket sale is expected to complement the regional demand.
Global lubricant additives market is highly concentrated in nature with Chevron Oronite, Afton Chemical, and Lubrizol being the top manufacturers. Top four companies account for over three-quarters of the industry share.
Other key participants include BASF, Evonik Industries, Chemtura Corporation, Shamrock Shipping & Trading Limited, Infineum International Limited, IOCL, Croda International plc., and Tianhe Chemicals Group.