Engine Oil Additive Market Forecasts to 2030 - Global Analysis By Type, Engine Type, Application, End User and By Geography

According to Stratistics MRC, the Global Engine Oil Additive Market is accounted for $15.9 billion in 2023 and is expected to reach $23.4 billion by 2030 growing at a CAGR of 5.6% during the forecast period. Engine oil additives are chemical supplements mixed with lubricating oils to enhance their performance. These additives often contain friction modifiers, detergents, dispersants, and anti-wear agents. Friction modifiers reduce wear and improve fuel efficiency, detergents clean deposits, dispersants prevent sludge formation, and anti-wear agents protect engine components. Some additives also address specific issues like reducing oil consumption or improving viscosity stability.

Market Dynamics:

Driver:

Increasing demand for high-performance lubricants

As industries and consumers seek enhanced engine efficiency, prolonged equipment life, and reduced maintenance costs, there is a growing need for advanced lubricants. Engine oil additives play a crucial role in augmenting the performance of these lubricants by providing anti-wear properties, viscosity stability, and improved thermal resistance. The market experiences a surge in demand for specialized additives catering to high-performance applications, reflecting a shift towards superior lubrication solutions. This trend is likely to persist as industries increasingly prioritize optimal equipment functioning and operational efficiency.

Restraint:

Concerns over compatibility and effectiveness

Users worry about potential adverse reactions when combining different additives or using them with specific engines, impacting overall performance. Compatibility issues may lead to reduced effectiveness, increased wear, and even engine damage. Manufacturers must invest in rigorous testing and clear product information to address these concerns. Misguided apprehensions may hinder market growth as consumers seek reliable, compatible, and effective solutions.

Opportunity:

Growing demand for fuel efficiency

Consumers and industries prioritize fuel economy to reduce costs and environmental impact, there's an increased need for lubricants that minimize friction and improve engine performance. Engine oil additives play a crucial role in achieving these objectives by enhancing lubrication, reducing wear, and optimizing fuel combustion. Manufacturers are developing innovative additives to meet stringent efficiency standards encourage in the growth of the market.

Threat:

Shift towards extended drain intervals and synthetic oils

As modern engines and synthetic oils promote longer service intervals, the demand for certain traditional additives diminishes. Consumers may perceive reduced necessity for frequent additive use, impacting market growth. Extended drain intervals also raise expectations for additive durability, requiring more robust formulations. The market must adapt by innovating additives that align with the longevity of synthetic oils and longer drain intervals.

Covid-19 Impact

Reduced automotive and industrial activities led to a temporary decline in demand. However, the market demonstrated resilience with a gradual recovery as economies reopened. The need for engine maintenance and optimization gained importance as people focused on vehicle reliability. The pandemic underscored the significance of preventive measures, driving awareness about engine health. Additionally, the market adapted to evolving environmental regulations, fostering the development of eco-friendly additives. Overall, the Engine Oil Additive Market exhibited adaptability and a trajectory towards recovery post-COVID-19.

The detergents segment is expected to be the largest during the forecast period

The detergents segment is estimated to have a lucrative growth, as they help prevent deposits and sludge formation by keeping engine components clean. Cleaner engines experience improved fuel efficiency, reduced emissions, and prolonged lifespan. As environmental regulations become stringent, the demand for detergents in engine oil additives is on the rise. Manufacturers focus on developing advanced detergent formulations to meet evolving industry standards drive the growth of the market.

The natural gas segment is expected to have the highest CAGR during the forecast period

The natural gas segment is anticipated to witness the highest CAGR growth during the forecast period, natural gas engines generally operate with cleaner combustion, reducing the formation of certain engine deposits. Consequently, the demand for specialized engine oil additives that cater to the unique requirements of natural gas engines is growing. These additives focus on minimizing wear, controlling oxidation, and enhancing lubrication in the context of natural gas engine conditions contributing to the growth of the market.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the development of fuel efficiency norms coupled with growing environmental concerns about carbon emissions in China, India, and Japan. Economic growth in the region coupled with industrialization has enabled greater production and possession of vehicles. These regions are also home to major countries such as China and Japan that are growing at a rapid rate due to increasing passenger car and heavy-duty vehicle production domestically.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to rising demand for fuel-efficient vehicles and stringent emission regulations propel the adoption of advanced engine oil additives. The region's key players focus on product innovation and partnerships to gain a competitive edge. Environmental concerns drive the shift towards eco-friendly formulations, such as bio-based additives. With a diverse range of applications, including passenger cars, commercial vehicles, and industrial machinery, the North America Engine Oil Additive Market is expected to continue its upward trajectory.

Key players in the market

Some of the key players in the Engine Oil Additive Market include Adeka Corporation, Afton Chemical Corporation, AMSOIL INC., BASF SE, BRB International BV, Chevron Oronite Company LLC, Croda International Plc, Dorf Ketal Chemicals, ENEOS Holdings, Inc., Evonik Industries AG, Functional Products Inc., Huntsman International LLC, Infineum International Limited, IPAC Inc., Lubrizol Corporation, Tianhe Chemicals Group Limited, TotalEnergies and Wynn's

Key Developments:

In February 2024, OQEMA and BASF collaborate on amines in the UK and Ireland, The companies, which have enjoyed a productive partnership in Germany and Eastern Europe for over two decades, will now join forces in the UK, combining OQEMA's extensive distribution and sales network

In February 2024, BASF Coatings signs Global Preferred Partnership agreement with INEOS Automotive for its Global Body and Paint Program, with its premium refinish brands Glasurit and R-M, BASF will provide expertise and paint innovation to develop body shop network requirements for the INEOS Grenadier worldwide

In February 2024, Chevron announces its first solar-to-hydrogen production project in california's central valley, The project aims to create lower carbon energy by utilizing solar power, land, and non-potable produced water from Chevron's existing assets at the Lost Hills Oil Field in Kern County. This low carbon intensity (LCI) electrolytic hydrogen

Types Covered:

• Dispersants
• Detergents
• Anti-Wear Agents
• Viscosity Index Improvers
• Anti-Oxidants
• Corrosion Inhibitors
• EP Additives
• Friction Modifiers

Engine Types Covered:

• Diesel
• Natural Gas
• Other Engine Types

Applications Covered:

• Passenger Vehicles
• Commercial Vehicles
• Off-Highway Vehicles
• Industrial Machinery
• Other Applications

End Users Covered:

• Automotive
• Oil & Gas
• Mining
• Power Generation
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances