The lubricant Anti-wear Agents Market is segmented By Type (ZDDP, Phosphate, Phosphite, Phosphonate), By Application (Engine Oil, Automotive Gear Oil, Automotive Transmission Fluid, Hydraulic Oil, Metalworking Fluid, Grease, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030
Lubricant Anti-wear Agents Market Overview
The report on Global Lubricant Anti-wear Agents Market is expected to reach at a CAGR of 2.3% during the forecast period 2023-2030. The Global Lubricant Anti-wear Agents Market size, shares, recent trends, competitive intelligence, and future market outlook. Lubricant anti-wear usage in engine oil is on the rise. Demand from the automotive sector in ‘The Asia Pacific’ is spiking. The competitive rivalry intensifies with Afton Chemical, BASF SE, Solvay S.A., and others active in the market. Anti-wear agents are lubricant components that chemically react with the protected metal surface, forming a lubricious sacrificial coating protecting the metal from wear under boundary lubrication conditions. Anti-wear agents create a harder surface than unprotected base metal. Dispersants, viscosity index improvers, detergents, anti-wear agents, antioxidants, corrosion inhibitors, friction modifiers, and emulsifiers are the most common additives.
Lubricant agents are organic or inorganic chemical compounds dissolved or suspended in lubricants and functional fluids to enhance performance. Depending on the end-use application, the combinations are used individually or as a package. Heavy-duty and passenger car lubricants consume the most lubricant additives in the automotive segment, followed by metalworking fluids and industrial engine oils in the industrial segment.
Lubricant Anti-wear Agents Market Scope and Summary
Metrics |
Details |
Market CAGR |
2.3% |
Segments Covered |
By Type, By Application, and By Region |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
Fastest Growing Region |
Asia Pacific |
Largest Market Share |
North America |
Lubricant Anti-wear Agents Market Dynamics and Trends
The rising demand from the automotive industry is propelling the growth of the lubricant anti-wear agents industry. One of the critical factors is the agreements and plant expansions made by many prominent players in the lubricant anti-wear agents industry. The lucrative market opportunities in the BRIC countries and the rising demand for renewable energy are expected to drive the lubricant anti-wear agent market.
Rising demand from the automotive sector
The healthy increasing sales of commercial and passenger vehicles propel the automotive industry's lubricating oil additives market. Lubricant anti-wear agents are commonly found in engine oil, gear oil, transmission fluid, and hydraulic fluid to protect metal components and prevent adhesive wear. Furthermore, the Asia-Pacific motorization rate has steadily increased over the last five years. China, India, Japan, Indonesia, and South Korea are among the key countries driving growth in the region.
As per the NIPFA- National Investment Promotion and Facilitation Agency, India's annual vehicle production reached US$ 29.08 million in 2018, up from US$ 25.33 million in 2017. By 2021, India is expected to be the world's third-largest passenger vehicle market. Compared to F.Y. 2017-18, passenger vehicle sales increased by 2.7%, two-wheeler sales increased by 4.8% and three-wheeler sales increased by 10.27%in F.Y. 2018-19. Trading Economics said car sales in China increased 12.8% in September 2020, reaching 2.57 million. Thus, rising demand for automobiles is expected to drive up demand for lubricants, which will drive up demand for lubricant anti-wear agents.
Growing demand from BRIC countries
The BRICS countries (Brazil, Russia, India, China, and South Africa) are expected to account for a sizable market for lubricant anti-wear agents during the forecast period. According to World Bank estimates, the BRICS countries account for approximately 41% of the world's population, which is 31 percent higher than the G7 (Canada, France, Germany, Italy, Japan, UK, and the U.S.) countries' 10% share of the population and this population is expected to grow further. The BRICS countries collectively account for more than one-fifth of the global economy.
According to International Monetary Fund (IMF) projections, the BRICS countries will account for roughly half of the global growth between 2016 and 2021. Governments in these countries are heavily focused on industrial development to meet the demands of their large populations. Foreign and domestic investments are expected to rise exponentially in these countries over the next five years as financial infrastructure is strengthened. It is expected to benefit all related industries, including lubricant anti-wear agents.
Presence of alternative fuels
The use of petroleum products contributes to global warming, a worldwide concern. Their service has a variety of negative environmental consequences, including rising sea levels, high temperatures, severe flooding, and droughts, all of which are becoming more common. According to the Union of Concerned Scientists, cars and trucks account for roughly one-fifth of all U.S. emissions, emitting roughly 24 pounds of carbon dioxide and other global-warming gases for every gallon of gas used.
It has resulted in various alternative fuels that can replace gasoline while reducing environmental pollution. Throughout the fuel lifecycle, natural gas emits approximately 6% to 11% fewer GHGs than gasoline, according to the U.S. Department of Energy. Hydrogen, biodiesel, ethanol, natural gas, and propane are alternative fuels for gasoline and diesel.
COVID-19 Impact on Lubricant Anti-wear Agents Market
The pandemic is expected to significantly impact the end-use industries of lubricant anti-wear agents during the forecast period. COVID-19 significantly impacts the automotive sector, including engine oil, automotive gear oil, and automotive transmission fluid. Demand for cars and commercial vehicles will fall in 2020 and 2021. Because of the COVID-19 pandemic, more than 80% of North American automobile production has been halted.
A similar situation is unfolding in Europe and Asia-Pacific. Ford, General Motors, Fiat Chrysler Automobiles, Honda, and Tesla have temporarily halted production. Due to a supply-demand mismatch, automobile sales in China, the U.S., and Europe fell in 2020. Furthermore, with global production activities at an all-time low due to a lack of consumer demand, grease production is likely to be affected. The impact on the automotive industry will directly impact the market for lubricant anti-wear agents.
Lubricant Anti-wear Agents Market Segmentation Analysis
By type, the lubricant anti-wear agents market is segmented into ZDDP, phosphate, phosphite, and phosphonate.
Multifunctionality and unique properties of ZDDP drive the segment growth
Zinc dialkyl dithiophosphate (ZDDP) is a class of uncharged compounds containing traces of phosphorus, zinc, and sulfur primarily used as anti-wear additives in lubricants such as gear oil, grease, and motor oil. Zinc dialkyl dithiophosphate has excellent thermal and hydrolytic stability and forms protective chemical films on metal surfaces, preventing corrosive damage to the valve train and bearings.
ZDDPs are multifunctional because they protect against wear, oxidation, and corrosion. Their antioxidant properties keep soot and sludge from forming on engine components. This additive is used in diesel and gasoline engines to control oxidation, copper-lead bearing corrosion, and wear. It is especially effective in extreme temperatures and loads. Thus, zinc dialkyl dithiophosphate improves lubricant properties and is used in various applications such as engine oil, hydraulic oil, and compressor oil.
Lubricant Anti-wear Agents Market Geographical Share
Rising industrialization and increasing automotive industry in Asia-Pacific
Asia-Pacific will be the largest market for lubricant anti-wear agents. Because of the region's growing automotive industry, demand for lubricant anti-wear agents is increasing in Asia-Pacific. Furthermore, rising GDP in the region is expected to fuel demand for automobiles, propelling the lubricant anti-wear agents market growth. China, Japan, and India are the largest consumers of lubricant anti-wear agents in this region. With about 27.8 million automobiles produced yearly, China is the world's largest automotive producer.
Additionally, the country has seen a considerable increase in used car purchases. The recent past has seen an increase in motor vehicle sales in India. As a result, more automobiles are on the road, which has raised the demand for lubricants. The coronavirus breakdown, which also affects the market for lubricating oil additives, is anticipated to influence automobile sales. Many businesses are increasing their production capacities, including Maruti-Suzuki, GM, Tata Motors, VW Group, Toyota, Honda, and Hyundai. Asia-Pacific’s growing industrial activities have increased demand for lubricant anti-wear agents. Furthermore, expanding transportation, power generation, mining, and other sectors are driving Asia-Pacific lubricant anti-wear agent market growth.
Lubricant Anti-wear Agents Companies and Competitive Landscape
Lubricant anti-wear agents have a crowded global market. Key players are focusing heavily on product launch and expansion strategies. Introducing new and improved products is critical for market penetration as the demand for high-quality lubricants and anti-wear agents grows.
To focus on globally lean supply chain solutions that are anticipated to enable quicker support and efficient supply in Asia, Afton Chemical Company is investing in Gasoline Performance Additives (GPA) blending capabilities at its Singapore chemical additive manufacturing facility in August 2020. Additionally, it is anticipated that this would give the corporation the extra infrastructure it needs to meet its global long-term expansion objectives.
Chevron Oronite and quantity Distribuidora Ltd agreed to be each other's distributors in Brazil in July 2020. According to the agreement, Chevron Oronite lubricant additives will be distributed by quantic Distribuidora Ltda, strengthening the company's supply chain.
Major global lubricant anti-wear agents market companies include Afton Chemical, BASF SE, Solvay S.A., Lanxess AG, King Industries, Lubrizol Corporation, Parasol Chemicals, Israel Chemicals (ICL), Italmatch Chemicals SPA and Transasia Petrochem.
Afton Chemical
Overview: Afton Chemical Corporation is a subsidiary of NewMarket Corporation (NYSE: NEU) and has been active in the fuel & lubricant additives market for over 90 years. Afton Chemical is one of the leading suppliers of lubricant components and provides fully developed additive packages. It has over 90 years of lubricant research and expertise. The Singapore chemical additive manufacturing facility is the company's first to combine the three Quality, Environmental, and Occupational Health & Safety Assessments, ISO9001, ISO14001, and OHSAS18001, into a single Integrated Management System.
Product Portfolio: Driveline, Engine Oils, Performance & Refinery Fuels, and Industrial Additives are among the technology solutions offered by the company.
Key Development: Afton Chemical Corporation completed its previously announced acquisition of Aditivos Mexicanos, S.A. de C.V. (AMSA), a petroleum additives manufacturing, sales, and Distribution Company headquartered in Mexico, in 2017. Following the Mexican Federal Economic Competition Commission (Comisión Federal de Competencia Económica, COFECE), the transaction was completed on July 3, 2017. The acquisition supplements Afton's existing Latin American footprint, including subsidiaries in Brazil, Mexico, Argentina, and Venezuela.
