Global Lubricant Additives Market - Segmented by Type, by End-user Industry, by Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global lubricant additive market was valued at USD 15,240.70 million in 2017 and is projected to reach USD 18,325.77 million by 2023, at a CAGR of 3.12% during the forecast period, 2018-2023. By lubricant type, engine oil dominated the market with almost 50% market share in 2017.
STRINGENT ENVIRONMENTAL REGULATIONS REGARDING EMISSIONS
All lubricants are composed of base fluids and additives. Lubricant additive technology provides many benefits to the environment and the end-users. Environmental concerns contribute a major factor in lubricant formulation and use. Lubricant additives are vital ingredients in modern lubricants. They are the performance products that help maintain engines, transmissions, and after treatment equipment, in design condition for a longer duration. The enhancement in durability allows for more effective use of energy resources, provides capabilities to employ alternative fuels, and maintains low levels of exhaust emissions. The use of more environment-friendly fuels, including renewable fuels, in both automotive and industrial engines, is expected to drive the market for lubricant additives over the forecast period.
Detergents to have Higher Demand in Automotive Industry
Detergents are the surface additives involved in the process related to cleaning surfaces or basically protecting the deposits from settling. During the equipment (engine) operation, dirt, and oil insoluble products are formed as a result of oxidation. Detergents prevent these products from settling on engine surface, thus preventing the degradation of engine surface. Detergents contain metals such as calcium, sodium, barium, and magnesium helping them in their purpose of action. They generally form a protective layer around the metal surfaces to prevent sludge etc. Detergents are primarily used in automotive lubricants whose demand is expanding at a rapid rate across the globe primarily in Asia-Pacific. Therefore, the detergents are likely to witness a significant demand from automotive industry in the next few years.
China to Lead the Market
China as a global manufacturing hub, has seen dynamic growth in various industries, such as consumer products, electronics, toys and transportation equipment (like automobiles, rail cars etc.), all of which use lubricants. China is the largest producer of automotive, with more than 24 million vehicles in 2015 and the largest growth in the SUV market, with more than 5% sales growth in 2016. Used car sales have also grown significantly in the country. In the recent years, the Chinese Government has been focusing on recycling of waste lubricants, which remains a very narrow domain, but embodies huge development potentials in years to come. These aforementioned factors are expected to offset the overall growth in the lubricant additives market thus, projecting a moderate growth rate for lubricant additives in the region.
Notable Developments in the market
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