Lubricant Additives Market, at a 3.33% CAGR, is expected to grow from USD 18.542 billion in 2025 to USD 21.840 billion in 2030.
Lubricant additives are chemical components that require the basic oil to function correctly as a single fluid. The primary goal of lubricant additives is to improve the characteristics of the base stock under varied operating conditions and to meet the high-performance needs of any machinery. Lubricant additives are also in demand with the increase in industrial production. In August 2022, the Euro stats reported that the production of manufactured products will grow by 8% in 2021 compared to 2020. In January 2023, according to the federal reserve report automobile production in the United States grew in January to 1.60 million units from 1.58 million units in December 2022. Technological developments and an increase in the usage of modern machinery and heavy engines are driving demand for high-performance lubricants with low friction and high working temperatures which is expected to boost the lubricant additives market.
The driving markets for lubricants are in the automotive and other transportation media like marine and aircraft. The most common lubricants used in all different types of cars include engine oils, gear oils, transmission oils, greases, and compressor oils which among manufacturers and the aftermarket, lubricants have rising demand. By replacing heavy metals with aluminium alloys in automotive technologies to lower inertia mass, the industry has greatly increased the window of utilization for a variety, as well as consumption of automotive, on as well as consumption of automotive has increased the need for a diverse variety of lubricating additives. According to the OICA data, North American truck production has increased from 479180 units in 2020 to 622401 in 2021 which has shown a rise of 30% in the production rate. Furthermore, as per the same source, the world’s commercial vehicle sales have increased from 22,005,464 units in 2020 to 22,957,816 in 2021 which has shown a rise of 4% in production. Such a rise in production and sales in the automotive sector is expected to boost the growth of the lubricant additives market.
In the market for lubricant additives, engine oil is used in a variety of machines and engines because it preserves engine performance, lessens machine wear and tear, and extends its lifespan with regular usage. Moreover, they are utilized in heavy machineries like vehicles and construction equipment. In 2019, According to the National Development and Reform Commission of China, authorized 26 infrastructure projects with completion dates projected for 2023. In October 2021, according to Infrastructure Australia, there was a two-fold increase in significant infrastructure projects involving residential, civil, and commercial construction during the following three years. During the next ten years, an estimated $290 billion will be invested, almost tripling in the following three years. Because of this need for affordable housing and the expansion of infrastructure projects globally, the demand for engine oil utilized in heavy machinery like cranes and scrapers the construction would also rise, which will boost the growth of the lubricant additives market.
The Lubricant Additives market share will be dominated by the Asia-Pacific region. As a result of the widespread use of lubricants in end-use application categories like automotive and construction due to their desired qualities. According to OCIA data in 2021, the vehicle production output in China stood at 26,082,220, representing a 3% increase from 25,225,242 units produced in 2020. As per the same source, the truck production in the Asia-Pacific region has also increased from 122576 units in 2020 to 246407 in 2021 which has shown a rise of 101% in the production rate. According to Infrastructure Australia, In Australia, annual infrastructure and building investment will reach a peak in 2023 of about $52 billion which is almost double the level of expenditures in 2020. The pace of vehicle manufacturing and increased construction project investments in the Asia-Pacific is pushing up the demand for lubricants in the region which is expected to drive the market growth during the forecast period.
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