Strong Lube Additive Growth Projected


A Frost & Sullivan analysis projects global lubricant additives revenue to grow 38.2 percent from $11.8 billion in 2013 to $16.3 billion in 2020, with deposit control additives showing the fastest growth.

Deposit control additives comprise the largest lubricant additives segment in terms of revenue, a 51.7 percent share, and is projected to grow the fastest, with a 5 percent compound annual growth rate, according to Raghu Tantry, Frost & Sullivans principal chemicals and materials consultant.

More expensive additives – including those which accommodate pollution control technologies – are boosting revenue growth in North America and Western Europe, the company said in a news release. Regulatory requirements are in place to achieve lower sulfur, phosphorus and ash levels, and have recently become more stringent, Tantry told Lube Report. Metal-free additives – zinc and lead – are also being required.

Asia-Pacific markets will see high volume growth of conventional additives. Tantry noted that, Asia-Pacific is projected to continue dominating the geographic landscape, with a 39.8 percent unit shipment share in 2020.

Increased activity in the commercial as well as passenger marine and aerospace sectors promises immense opportunities for additive packages, he said, adding that Asia-Pacific, in particular, will emerge as a significant market as rising air traffic favors the growth of aviation lubricants. Commercial cargo and passenger sectors are increasing worldwide due to the globalization of manufacturing and marketing, Tantry said. Increasing air traffic in the Asia-Pacific region – especially India and China – has favored the growth of aviation lubricants and additive packages, with an increase in trade and business travel.

However, Frost & Sullivan said this growth will be tempered by the introduction of lubricants with extended drain intervals, since OEMs continuously seek lubricant solutions that decrease maintenance costs and the frequency of servicing.

One of the reports findings is that global additive demand is driven by several trends creating needs for better lube performance, such as fuel efficiency standards and more demanding conditions in vehicles and equipment.

For plant managers and maintenance, repair and operations staff, using the best lubricants and additive packages reduces the risk of accidents and emissions with just a small incremental expense, Tantry said. Vehicle repair shops, gas stations and service providers are using more lubricants with additive packages when servicing vehicles and equipment because customers trust them with their capital assets.

Tantry suggested the drawbacks of biobased feedstock create opportunities for high-performance additives that are needed to make them equivalent in performance to mineral based oils.

Testing and verification processes are in development, and performance specifications are still being established, he said. The penetration of biobased lubricants varies across regions and countries, with regulations and government involvement helping the switch from mineral-based to biobased lubricants.

The international market research firms study is titled, Strategic Analysis of the Global Lubricant Additives Market.

Related Topics

Additives    Business