Market Structure: The Big Four and Other Players

The lubricant additive industry is dominated by a handful of large manufacturers known as the Big Four. These companies produce the majority of fully formulated additive packages and operate global manufacturing and technical support networks.

Afton Chemical a specialty chemicals company that develops and manufactures additives for fuels, engine oils, driveline fluids and industrial lubricants. Headquartered in Richmond, Virginia, it operates as a wholly owned subsidiary of NewMarket Corp. The company has a global manufacturing, R&D and technical support footprint across the Americas, Europe and Asia and forms part of NewMarket’s petroleum additives segment, which generates annual revenues in the low single-digit billions of dollars.

Lubrizol Corp. is a U.S. specialty chemicals company that manufactures additives for engine oils, fuels, driveline and industrial lubricants, as well as specialty materials for coatings, personal care and industrial markets. It has historically generated several billions in annual revenue (about $6.5 billion reported in 2016) under parent Berkshire Hathaway.

Chevron Oronite is the additives subsidiary of Chevron Corp. that develops, manufactures and markets lubricant and fuel additives and related specialty chemicals for automotive, marine, industrial and energy applications.

Infineum is a UK-based joint venture between Shell and ExxonMobil that formulates, manufactures and markets lubricant and fuel additives for the global petroleum industry. Headquartered in Abingdon, England and operating in multiple countries across Europe, Asia and the Americas, Infineum’s product portfolio includes engine oil additives, driveline additives, fuel additives, marine and industrial formulations.

Alongside them is a broad ecosystem of other suppliers.

BASF is one of the largest chemical companies in the world and a major player in the lubricant additives market, providing antioxidants, dispersants, detergents and other performance chemistries used in engine oils and industrial lubricants. It competes globally with extensive R&D and manufacturing capacity.

Evonik is a specialty chemicals producer with significant operations in lubricant additive technologies, particularly performance materials that improve oxidation stability, friction control, and component protection. It is regularly listed among the top lubricant additive suppliers after the Big Four.

Lanxess AG is a major international specialty chemicals company with additives businesses, including engine oil and industrial lubricant additives. It also appears frequently in industry company rankings just behind the largest firms.

Croda International Plc is a global specialty chemicals firm that produces lubricant and fuel additive technologies and is consistently listed among the significant players in both lubricant and fuel additive markets.

In China, domestic producers such as Richful are expanding rapidly, supported by government policies aimed at additive self-sufficiency and accelerated R&D investment. Richful is now at least 20% of the size of Afton, according to financial analysis comparing Richful’s full-year reporting to New Market’s Petroleum Additives segment, which also includes Ethyl Corp and AMPAC.

Global Demand and Regional Growth Patterns

Global lubricant additive consumption reached roughly 4 million tonnes in 2022 and is expected to grow steadily through 2027. Key regional trends include:

• Asia-Pacific: Fastest growth, led by China and India
• North America: Stable demand supported by automotive and industrial lubricants
• Europe: Moderate growth amid tightening environmental regulation

Key Application Segments Shaping Demand

1. Automotive: Passenger car motor oils (PCMO) are the largest single consumer of lubricant additives globally. Demand is strongest in Asia-Pacific, where internal combustion engine (ICE) vehicles continue to dominate new registrations despite accelerating electrification. Key drivers include higher-performance engine oil specifications requiring greater additive treat rates, increased focus on fuel economy, deposit control and oxidation resistance, and shorter oil drain intervals in emerging markets. In Europe, PCMO additive volumes are under pressure due to a declining ICE vehicle parc, while North America shows stable demand supported by light-duty truck and SUV dominance.

2. Heavy-Duty Diesel & Commercial Vehicles: Heavy-duty engine oils (HDEO) represent a critical and technically demanding segment for lubricant additives. Demand is strongest in regions with high freight movement and infrastructure development, notably China, India, Southeast Asia and North America. Growth factors include the expansion of logistics and construction activity, stricter emissions standards increasing reliance on dispersants and detergents and longer drain intervals requiring enhanced durability and soot control. While overall vehicle numbers are lower than passenger cars, additive intensity per liter of oil is significantly higher, making this a high-value segment for suppliers.

3. Industrial: Industrial lubricants form a diverse and steadily growing segment, particularly in Asia-Pacific. Applications include hydraulic fluids, gear oils, compressor oils, turbine oils, and metalworking fluids. Regional demand patterns reflect manufacturing expansion in China and Southeast Asia, increased automation and equipment uptime requirements and rising emphasis on wear protection oxidation stability, and foam control. Europe shows relatively flat industrial additive demand due to mature manufacturing sectors, while North America benefits from energy, mining, and specialty industrial applications.

4. Marine: Marine lubricant additive demand is currently the weakest-performing segment globally. The implementation of low-sulfur fuel regulations has reduced the need for high-detergent formulations traditionally used in marine cylinder oils. As a result, detergent treat rates have declined, overall additive volumes have fallen and demand is concentrated in maintenance rather than growth. While global shipping volumes remain robust, formulation simplification continues to limit additive consumption in this sector.