Lubricant Additives Market Share, Size and Growth Analysis By 2029

The lubricant additives market was valued at approximately US$ 15,584.9 million in 2021 and is anticipated to grow to US$ 19,880.1 million by 2028, reflecting a compound annual growth rate (CAGR) of 3.5% from 2021 to 2028.

One of the key drivers for the growth of the lubricant additives market is the increasing demand for lubricants in the wind energy sector. This sector is part of the broader renewable energy industry, which is a significant consumer of industrial lubricants, particularly turbine and transformer oils. Wind energy is rapidly emerging as one of the most promising forms of renewable energy. According to the US Department of Energy, the United States installed 16,836 MW of new wind electric turbine capacity in 2020. Furthermore, there are plans to achieve 20% of the nation?s electricity consumption from wind energy by 2030. A study conducted by the University of Michigan suggests that the US is expected to double the installation rate of wind power generation facilities over the next decade to mitigate carbon emissions and combat climate change impacts on utilities. This upward trend in wind energy as a viable alternative to traditional energy sources presents significant opportunities for lubricant manufacturers, which is likely to enhance the lubricant additives market during the forecast period.

The COVID-19 pandemic, however, caused a downturn in the demand for lubricant additives due to the economic slowdown experienced globally in 2020. Additionally, fluctuations in raw material prices and stringent government regulations regarding the use of lubricant additives have posed challenges to the market's growth.

In terms of product type, the lubricant additives market is categorized into several segments, including dispersants, viscosity index improvers, detergents, antiwear agents, emulsifiers, and others. The dispersants segment was the largest contributor to the market in 2020. Dispersants are crucial lubricant additives that help prevent the formation of sludge, varnish, and other deposits in oils. The production of dispersants typically involves raw materials such as polyalkenyl-substituted mono or dicarboxylic acids, anhydrides, and nucleophilic reactants like amines, alcohols, amino alcohols, or polyols. Among these, succinimide dispersants are the most widely used, effectively preventing the flocculation of sludge and the precipitation of insoluble materials that can occur during oxidation.

Regionally, the Asia Pacific region dominated the lubricant additives market in terms of revenue in 2020. The primary driver of market growth in this area is the substantial demand for lubricant additives across various industries, including manufacturing, automotive, oil and gas, textiles, glass, power generation, paper and pulp, chemicals and petrochemicals, agriculture, food and beverages, and pharmaceuticals. The robust automotive and food and beverage sectors in countries like Japan, South Korea, China, and India significantly contribute to the demand for lubricant additives used in motor and engine oils. The rapid economic development and rising purchasing power in these developing nations further stimulate the consumption of passenger vehicles, thereby increasing the demand for automotive lubricants in the Asia Pacific region.

Key players in the lubricant additives market include Evonik Industries AG, The Lubrizol Corporation, LANXESS, Nouryon, Mol-lub Kft., Dover Chemical Corporation, Croda International plc, Chevron Corporation, BASF SE, and EXXON MOBIL CORPORATION. These companies are focusing on strategies such as investing in research and development and launching new products to meet customer needs. They aim to create high-quality and innovative solutions to stay competitive in the market.

The overall size of the lubricant additives market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the lubricant additives sector.