Lubricant and Fuel Additives Market Application (Automotive, Industry, and Others), Type (Single Component & Additive Package), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2024 - 2031

Market Perspective

The global Lubricant and Fuel Additives Market is a rapidly growing industry that is poised to experience significant growth in the coming years. In 2023, the market size was valued at approximately USD 19.60 billion, and it is predicted to reach around USD 28.85 billion by 2031, at a CAGR of 5.12% between 2024 and 2031.

The demand for lubricating oil compositions has risen significantly due to increased regulatory demand to increase vehicle fuel efficiency and lower greenhouse gas emissions. As a result, blenders have made major R&D investments in creating superior products that meet both customer and environmental requirements. Chemical elements or chemicals known as lubricant additives carry out one or more tasks in the fluid when used in a precise quantity. Additives for lubricants are combined with basic oils to create complete lubricants. These additives can be organic or inorganic substances that have dissolved or been excluded from oil as solids, and they can range from 0.1 to 30% of the entire oil volume, depending on the equipment.

Lubricant additives play a crucial role in extending the lifespan and increasing the output of final lubricants. The exceptional performance of these additives prolongs machine life and reduces maintenance costs. These mixtures are employed singly or in combination depending on the end-use application. The automotive industry's heavy-duty and commercial car lubricants use the maximum lubricant additives, followed by the industrial sector's mechanical engine oils and metalworking fluids. In a range of automotive and end-use sectors, lubricant additives are crucial for managing energy and emissions.

Key Insights

• By application, the industry segment held the largest market share
• By type, the additive package segment generated the highest revenue
• By region, North America accounted largest market share

Increasing Demand for Improved Quality of Industrial Lubrications

The market for lubricating oil additives is primarily driven by consumer demand for industrial lubricants of a higher grade. Consumers prefer higher-quality items that can withstand intense pressures and temperatures because they are more durable, have a longer shelf life, and operate better on machinery and equipment. The majority of industrial lubricant producers concentrate on creating products that are non-toxic, anti-foaming, anti-oxidant, waterproof, and rust-preventive. The growing nations of Europe and North America are experiencing an increase in demand for high-quality industrial lubricants. Using high-quality industrial lubricants saves money because they don't need to be changed as frequently.

Increasing Demand for E-Vehicles and Increasing Battery Price Parity

Hybrid vehicles have an electric motor as well as a tiny internal combustion engine (ICE) for the best power usage and lowest emissions. Fuel demand will decline as hybrid vehicles become more prevalent. The size of the global market for gasoline additives will be impacted by this element as well as the rising battery parity.

Electric vehicle batteries are very expensive, but thanks to advances in technology, their price is falling, and their driving range is rising. These elements significantly affect fuel usage, particularly in light of falling battery prices. It is anticipated that the demand for electric vehicles would rise, resulting in a reduction in overall fuel usage. As a result, the need for fuel additives will decline.

Recent Developments

In December 2021: Under the trade name KEROPUR-D, BASF debuted a brand-new multifunctional diesel additive in South Korea. It is a multipurpose, high-performance diesel additive that cleans the engine of deposits while preventing the growth of new ones

In January 2021: A distribution partnership between BASF Enzymes LLC and Innospec Fuel Specialties LLC demonstrates both parties' commitment to the ethanol yield sector and increases the overall value to consumers. As part of this deal, BASF will provide concentrated corrosion inhibitor DCI-11 Plus ClearTrak to ethanol producers in the U.S.

Segmental Analysis

The lubricating oil additives market can be categorized based on application into automotive, industrial, and others. Among these, the industrial sector holds the largest market share. Lubricating oil additives are extensively used in the industrial sector for various applications such as metalworking fluids, hydraulic fluids, process oils, gear oils, and general industrial oils. These additives are used to reduce wear, transfer heat, reduce friction, and clear lubricants of abrasive particles. They also enhance lubricity, limit the likelihood of residue formation, improve oxidation resistance and thermal stability, and provide exceptional performance at low temperatures.

The average amount of additives in finished industrial lubricants is between 5% and 10%. These additives include emulsifiers, extreme pressure additives, friction modifiers, anti-oxidants, corrosion inhibitors, anti-wear agents, dispersants, and other additives.

The market can also be categorized based on type into single component and additive packages. Among these, the additive package dominates the market share. Additive packages are substances that enhance the performance of a lubricant or fuel with respect to specific properties such as oxidation resistance. The most commonly used additive packages include detergent-inhibitor combinations, dispersants, pour point depressants, and anticorrosion agents. The market also includes solid particles dispersed in liquid oil for the reduction of friction between engine parts by filling gaps between them.

Asia Pacific to Lead the Global Lubricants and Fuel Additives Market

In 2022, the Asia Pacific region emerged as the largest consumer of lubricating oil additives in terms of value. Furthermore, it is projected that the region will maintain the highest CAGR throughout the forecast period. The strong growth in emerging economies, coupled with rising per capita disposable income, has made APAC an attractive market for lubricating oil additives.

The region's substantial consumption of lubricating oil additives is primarily driven by the rapid expansion of trade, industrial output, and vehicle ownership. As industrialization and economic development continue to advance, vehicle production and ownership have surged, leading to a surge in demand for lubricant additives in the region.

Moreover, the growing investments in India's industrial sector are bolstering the region's demand for lubricating oil additives. India, China, and Japan are the three primary marketplaces for lubricating oil additives in the APAC region.

North America Holds Second Largest Market Share Due to Advanced Automotive Industry and Increasing Demand for Passenger Vehicles

The North American lubricant and fuel additives market is poised for significant growth, with the U.S., Canada, and Mexico accounting for a considerable share of the market. The region benefits from a well-established and advanced automotive industry, which is driving demand for lubricant and fuel additives, particularly in the passenger vehicle segment. Additionally, the region's economies have shown resilience during previous recessions, contributing to steady growth in the lubricant and fuel additives market.

In addition to the automotive industry, the North American market is also being driven by the rapidly expanding defense and aerospace sectors, which rely heavily on lubricants and fuel additives for their operations. Furthermore, several U.S. government initiatives are expected to provide a boost to the market, creating new opportunities for lubricant and fuel additive manufacturers in the region.

Competitive Landscape

• Afton Chemical
• Chevron Corporation
• LANXESS
• Dorf Ketal Chemicals Pvt. Ltd.
• Miracema-Nuodex
• INNOSPEC
• SANYO CHEMICAL INDUSTRIES, LTD.
• Infineum International Limited.
• TotalEnergies

The global lubricant and fuel additives market is segmented as follows:

Application

• Automotive
• Industry
• Others

By Type

• Single Component
• Additive Package

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
• Benelux Reunion
  • • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America