The global lubricant additives market is growing significantly

Due to the comprehensive influence of many factors, such as the pick-up of the transportation industry, the increasingly strict supervision of relevant laws and regulations, and the increasing use of oil products, the global lubricant additive market will maintain a rapid growth trend in the coming years, and the investment potential will be greater. In July, the US growth consulting firm Frost & Sullivan conducted a detailed analysis of the global lubricant additives market.

Scale will exceed 16.2 billion U.S. dollars

From the perspective of market structure, the global lubricant additive market is mainly divided into four categories: deposition control additives, viscosity control additives, film forming additives, and other lubricant additives. Among them, deposition control additives, viscosity control additives, and film-forming additives are the main parts of the market, with sales revenue accounting for 51.7%, 23.5%, and 19.1%, respectively. The remaining percentage of other lubricant additives is relatively small, at 5.8%.

At present, the global lubricant additive market has matured. In 2013, the market scale of total sales revenue reached US$11.77 billion, and the total amount reached 3.65 million tons. Frost & Sullivan expects the market size to reach US$16.28 billion by 2020 and an average annual growth rate of 4.6% from 2013 to 2020.

Four factors drive growth

Analyzing the factors that affect the growth of the global lubricant additive market, the company believes that it is mainly in the following areas:

The first is the continuous increase of business and passenger activities in the shipping and aviation sectors. In addition to road transport, lubricant additives also have a great deal of demand in ships and air transport. Container-based maritime transport is gradually recovering from the decline in goods and trade caused by the financial crisis. In 2009, there were about 4,661 container ships worldwide. From 2009 to 2013, another 1,181 new ships were added to the transportation industry. Passenger ships, including cruise ships and ferries, are not affected by the economic downturn. The development of the aviation industry in the Asia Pacific region will also bring tremendous growth opportunities to the aviation lubricants market.

Followed by the increase in the number of cars and mileage. With the increase in the number of vehicle mileage, the demand for vehicle lubricant additives has increased, especially in North America and Western Europe, where the used car market has prospered and the average fuel consumption per vehicle has increased significantly compared with the past. Asian consumers pay more attention to the maintenance of cars when buying new cars, thereby boosting the demand for high-performance automotive lubricant additives. The rapid industrialization of the BRICS and the increase in car ownership will also increase the use of lubricants.

Once again, it is more stringent automobile exhaust and industrial exhaust emission standards. In North America and Western Europe, emissions testing must be passed before getting permission to drive a car, thereby stimulating the replacement of oil products and the use of higher grade lubricant additives. A European Union regulation on reducing CO2 emissions from light vehicles requires equipment manufacturers to reduce CO2 emissions from 130.0 g/km to 95.0 g/km in 2015–2020. China also imposes mandatory requirements on exhaust emissions from passenger vehicles, from 6.9 kilometers per 100 kilometers in 2015 to 5 litres per 100 kilometers in 2020. The increase in environmental protection requirements means an increase in the demand for lubricant additives.

Finally, strong recommendations from repair shops and service stations. Auto repair stations and gas stations are more willing to choose high-quality products when they recommend lubricant additives to customers. Because the function of lubricant additives cannot be directly seen, customers often pay attention to listening to the opinions of professional service personnel.

The toxic gas emissions from industrial machinery and equipment are closely related to the safety of workers. Therefore, the company's managers and maintenance personnel generally tend to purchase high-grade lubricant additives to reduce emissions and accident risks.

High market concentration

The global lubricant additive market is highly concentrated and is dominated by the following four companies: Lubrizol, Infineum, ChevronOronite, and Afton. The four companies occupy more than 85% of the market. Among them, Lubrizol holds a leading position with a market share of 34.0%, followed by Infineum and Chevron, which accounted for 23.5% and 18.0% respectively.

In short, the future challenges and opportunities for the global lubricant additive market coexist. The main trends include the following: as the demand for high-quality products from customers increases, the penetration rate of high-grade base oil and bio-based oil additives in the automotive and industrial sectors will increase. Continue to improve; Asia-Pacific economic development and accelerated urbanization will drive the region’s demand for low-grade lubricant additives to increase; globally, the concept of sustainable development and environmental protection, health and safety standards will stimulate lubricants. Additive manufacturers try their best to develop more dust-free, nontoxic additives and biodegradable products.