Report: Engine oil additives market to hit $11.9B by 2020

HYDERABAD, India (Feb. 2, 2016) — The engine oil additives market is estimated to reach $11.9 billion by 2020 at a high compound annual growth rate (CAGR), according to a report.

China, with the highest number of motorcycles on the road, plays a major role in the global engine oil additives market, according to the report, “Engine Oil Additives Market Analysis” published by India-based IndustryARC, a market research report, business consulting services and business analytics firm.

The study breaks down the market by additive type — including anti-oxidants, detergents, dispersants, anti-wear additives, VI improvers, corrosion inhibitors and friction modifiers, as well as by engine type (gasoline, diesel, natural gas) and by end user (passenger car, commercial vehicle, motorcycle). The combined market share for these types stands at around 64 percent of the global engine oil additives market currently, according to the report.

Engine oil additives are specialty chemicals mixed with engine oil to enhance its properties. These additives help in protecting engines from any wear and tear and also improve a vehicle's overall fuel economy, the study said. The engine oil additives market had sales revenue of approximately $9.9 billion in 2014, wherein the Asia-Pacific (APAC) region dominated with about 37 percent revenue share. IndustryARC said an increasing number of in-use vehicles as well new registrations in the APAC region is primarily driving the market growth. China, among all the countries, is the promising market, with rising demand for engine oil additives.

The global in-use passenger car fleet has been increasing, the research firm said, hence engine oil additives' market volume for passenger cars is estimated to grow at a CAGR of 4.3 percent from 2014 to 2020. Across the Americas, the number of commercial vehicles in use is very high, accounting for 52.2 percent of the global commercial vehicle in-use fleet in 2014. Because of this, the firm said America leads the engine oil additives market for commercial vehicles, followed by Europe and APAC.

In its analysis, IndustryARC singled out these key players in the additives sector: Afton Chemical Corp.; Lubrizol Corp.; Chevron Corp.; BASF SE; and Evonik Oil Additives USA Inc.

Globally, according to the report, there are multiple manufacturers listed in the engine oil additives market including many small- and medium-scale regional players. However, only a few of the companies — especially the ones noted above — are competing in the global market and garnering significant revenues and profits.

The top OEMs also are investing a huge share of their profitability in R&D to create innovative products and differentiate among competitors in the market, IndustryARC said, adding that according to its research, the “engine oil additives market is set to experience a lot of change in future in terms of demand and other technical aspects.”

India-based IndustryARC primarily focuses on what it calls cutting-edge technologies and newer applications of the market, with its custom research services designed “to provide insights on the constant flux in the global demand-supply gap of markets.”