Lubricating Additives Market by Type (Friction Modifiers, Dispersants, VI Improvers, Detergents, Emulsifiers, Anti-wear, Antioxidants, Pour Point Depressants, Corrosion Inhibitors, Extreme Pressure, and Others), by Product (Gear Oils, Transmission Oils, Engine Oils, Compressor Oil, and Hydraulic Oils), and by End User Industry (Construction, Automotive, Agriculture, Manufacturing, Energy, Food and Beverages, and Others) – Global Opportunity Analysis and Industry Forecast 2023 – 2030

Market Definition

The global Lubricating Additives Market was valued at 17.57 billion in 2022 and is predicted to reach 23.68 billion by 2030 with a CAGR of 3.80% from 2023-2030. Lubricating additives are chemical compounds that are blended with lubricants, such as oils and greases to enhance their performance and functionality. These additives are formulated to improve the lubricant's properties and optimize its effectiveness in reducing friction, wear, and heat generation in mechanical systems.

Thus, lubricating additives play a vital role in preserving the cleanliness and efficiency of machinery, and extending the lifespan of equipment across various industrial applications.

Market Dynamics and Trends

The surging global production of motor vehicles is driving the need for lubricating additives in the automotive sector. As the number of vehicles being manufactured there is a greater need for proper lubrication to ensure the maintenance and smooth operation of engines, which in turn drives the growth of the market. As per European Automobile Manufacturers’ Association (ACEA) in 2022, the global production of motor vehicles reached 85.4 million units, reflecting a 5.7% growth compared to the previous year, 2021.

In addition, the increasing adoption of lubricants in crucial industries, including manufacturing, mining, and construction to protect machine tools and other equipment from wear and corrosion, which in turn thrives the demand for lubricant additives. According to International Trade Administration, China is the biggest market for construction in the world. This market has been greatly affected by changes in government rules and policies. The construction industry as a whole is expected to keep growing in the next few years, mainly because the government is investing in infrastructure projects to boost the economy.

However, the high cost of raw materials such as ethylene, propylene, and palm kernel oil are a significant factor that is expected to restrain the growth of lubricating additives market. On the contrary, the incorporation of nanotechnology into lubricants to improve anti-oxidation capabilities, reducing friction among moving components, and augmenting thermal properties is anticipated to create growth opportunities for the market. 

Market Segmentations and Scope of the Study

The lubricating additives market report is segmented on the basis of type, product, end user industry, and region. On the basis of type, the market is categorized into friction modifiers, dispersants, VI improvers, detergents, emulsifiers, anti-wear, antioxidants, pour point depressants, corrosion inhibitors, extreme pressure, and others.  On the basis of product, the market is bifurcated into gear oils, transmission oils, engine oils, compressor oil and hydraulic oils. On the basis of compressor oil the market is sub- categorized into refrigerator compressor oil, gas compressor oil, and air compressor oil.  On the basis of end user industry, the market is classified into construction, automotive, agriculture, manufacturing, energy, food and beverages, and others.

Based on f construction, the market is sub- divided into crane draglines, bull dozer, dump trucks and others. On the basis of automotive the market is sub- bifurcated into heavy vehicles, passenger’s cars, light vehicles and others. On the basis of agriculture, the market is sub- segmented into tractors, harvesters, harrows and balers and others.  On the basis of energy, the market is sub- segmented into wind turbine, hydropower plant and solar plant. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the predominant share of lubricating additives market at present and is expected to continue its dominance during the forecast period. The increasing demand for lubricating additives in automotive industry to improve fuel economy, extend engine life, and others are driving the growth of the market. For instance, China is the largest automobile market worldwide, both in terms of demand and supply. China's automobile registrations climbed to approximately 23.24 million units in 2022, representing a rise of around 10 percent. The growth of the automotive industry in China will create new market opportunities for lubricant additives manufacturers. As there is a growing demand for high-performance lubricants that can meet the needs of newer, more fuel-efficient vehicles.

Furthermore, the market is experiencing significant growth owing to the increasing number of lubricant manufacturing plants in the region, established by major market players. For instance, in July 2023, ExxonMobil invested USD 110 million to build lubricant plant in Indian state of Maharashtra. The plant will produce Mobil-branded engine oils, greases, and lubricants, which are expected to boost market growth.

On the other hand, Europe is expected to show a steady rise in the market due to presence of key market players such as BASF SE, Evonik Industries AG, and Infineum International Limited that are adopting strategies including product launch to increase their market presence. For instance, in February 2022, BASF launched RegXcellence, the digital platform and solution offered by BASF that extends its benefits to the field of lubricant additives. This platform aims to simplify regulatory issue management and accelerate innovation opportunities aligns with the specific needs of the lubricant additives industry. 

Competitive Landscape

The lubricating additives industry comprises of various market players such as BASF SE, Evonik Industries AG, Infineum International Limited, Gear Hugger, Chemtura Corporation, The Lubrizol Corporation, Croda International PLC, Afton Chemical Corporation, Vanderbilt Chemicals LLC, and Innov Oils . These market players are adopting various strategies such as product launches and planning expansion of business across various regions to maintain their dominance in the global market.

For instance, in August 2022, Innov Oils, a Singapore-based lubricant additives manufacturer, expanded its capacity to produce viscosity index (VI) improvers. VI improvers are additives that increase the viscosity of lubricants, making them more resistant to changes in temperature. This can improve the performance of lubricants in a variety of applications, including automotive, industrial, and marine.

In addition, November 2020, Evonik inaugurated a cutting-edge Asia Pacific Oil Additives Performance Lab in Shanghai. The primary objective of this advanced test lab, equipped with state-of-the-art laboratory facilities and comprehensive testing services, is to cater to customers within the lubricant industry located in China and the broader Asia Pacific region.

Key Benefits

• The report provides quantitative analysis and estimations of the lubricating additives market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the lubricating additives market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the global market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Lubricating Additives Market Key Segments

By Type

• Friction Modifiers

• Dispersants

• Vi Improvers

• Detergents

• Emulsifiers

• Anti-Wear

• Antioxidants

• Pour Point Depressants

• Corrosion Inhibitors

• Extreme Pressure

• Others

By Product

• Gear Oils

• Transmission Oils

• Engine Oils

• Compressor Oil 

  • Refrigerator Compressor Oil

  • Gas Compressor Oil 

  • Air Compressor Oil

• Hydraulic Oils

By End User Industry  

• Construction

  • Crane Draglines

  • Bull Dozer

  • Dump Trucks 

  • Others

• Automotive

  • Heavy Vehicles

  • Passenger’s Cars

  • Light Vehicles 

  • Others

• Agriculture

  • Tractors

  • Harvesters

  • Harrows

  • Balers and Others

• Manufacturing

• Energy

  • Wind Turbine

  • Hydropower Plant

  • Solar Plant

• Food and Beverages 

• Others

By Region

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland 

  • Sweden

  • Norway

  • Russia    

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East 

  • Africa

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