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The lubricant viscosity grade improvers market size is forecast to increase by USD 452.7 million at a CAGR of 2.09% between 2024 and 2028. The growth of the market depends on several factors, including increasing demand from end-user industries, the rising need for reliable machinery and effective maintenance, and growing investment in the infrastructure sector in APAC. These elements collectively drive market expansion by addressing industrial needs, ensuring operational efficiency, and capitalizing on regional development. The increasing demand from end-user industries highlights the diverse applications and reliance on market products. Simultaneously, the rising need for reliable machinery and effective maintenance underscores the importance of minimizing downtime and enhancing productivity. Additionally, growing investment in the infrastructure sector in APAC reflects significant regional growth opportunities and development projects.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is expanding, driven by growth in the automotive industry and rising automobile output. VIIs are essential in enhancing lubricating oils, including braking fluids, transmission lubricants, and engine lubricants. Olefin Copolymer is a key component used to maintain performance across various operating temperatures. The demand for fuel economy and efficient vehicles bolsters market growth. Additionally, the energy sector and industries utilizing drilling fluids, metalworking fluids, and quenching oils contribute to the rising need for high-quality viscosity improvers. As the market evolves, advancements in lubricant technology and increasing focus on fuel efficiency present significant opportunities for industry stakeholders. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing investment in the infrastructure sector in APAC is the key factor driving the growth of the market. China accounts for the largest, fastest-growing value pool driven by growth across sectors, including road transport, construction, and manufacturing. China invested around USD 13.1 billion in the development and construction of the Beijing International Airport in 2020, which is designed to handle about 72 million passengers by 2025. In 2022, China invested USD 3.9 billion in Olympic infrastructure.
In March 2021, the Indian Government allocated nearly 2,92,86,259 USD to enhance the transport infrastructure, giving a massive push to the infrastructure sector in the country. An expense of USD 8.8 billion over six years to strengthen the capacities of primary, secondary, and tertiary care and healthcare systems. These actions taken by governments to improve the infrastructure are expected to drive the growth of construction machinery in APAC, thereby increasing the demand. This, in turn, will drive the growth of the market during the forecast period.
The rising adoption of synthetic lubricants is the primary trend in the market growth. Synthetic lubricants are lubricants formulated using base oil from an advanced chemical industry, such as Esthers, PAO (Poly Alpha Olephine). Better-performing synthetic lubricants are corrosion-resistant and antioxidant. Withstands a wide temperature range from -60°C to over 450°C. It also extends lubricant life 4-8 times over petroleum-based lubricants. Provides better performance compared to mineral-based lubricants.
Using synthetic lubricants results in longer machinery life because less wear results in more production during the life of machines and tools. All such benefits are expected to increase the demand for synthetic lubricants, which is expected to have a positive impact on the market during the forecast period.
Fluctuation in crude oil prices is a major challenge to the growth of the market. The variable cost of raw materials used in the production of lubricating oil thickeners, such as polyalkyl methacrylates and olefin copolymers, poses a major challenge to the global lubricating oil thickener market. Prices for raw materials such as thermoplastic polymers have fluctuated since 2015. In addition, petroleum and natural gas derivatives are lubricant thickeners. Therefore, the price of these materials fluctuates with the price of natural gas and crude oil. Strong fluctuations in the price of crude oil and its derivatives are caused by a systemic demand-supply imbalance in the global crude oil industry.
As some of the raw materials used extensively to manufacture lubricant viscosity grade improvers are petroleum derivatives, fluctuations in their prices can lead to unpredictability in the market. This can adversely affect production costs and reduce profit margins. Hence, volatility in the price of crude oil will hamper the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BPT Chemicals Co. Ltd.: The company offers lubricant viscosity grade improvers such as BPT Viscotech EPC-100, BPT Viscotech OCP-100, and BPT Viscotech SIS-100. Also, the company specializes in the manufacturing of viscosity index improvers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the vehicle lubricants segment will be significant during the forecast period. The rising production of automobiles, coupled with their high demand, mainly in developing countries, has led to an increased demand for lubricants in the automotive industry.
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The vehicle lubricants segment was valued at USD 2.85 billion in 2018. Automotive lubricants are used in oils such as engine oils, hydraulic oils, and shock absorber oils. Lubricants reduce friction and wear, improving fuel efficiency and the life of automotive components. This will extend the life of your vehicle. Currently, the life expectancy of a car in the US is 13 to 17 years. Auto parts lubrication mainly reduces the effort required to overcome friction and reduces wear between friction and bearing surfaces, thereby increasing power output and engine life. Lubrication also helps prevent parts from seizing and causing severe damage. Lubricants provide high resistance to oil degradation, reduce evaporation, and increase fuel efficiency. The demand for high-performance lubricants in the automotive industry is overgrowing as the shift to fuel-efficient cars and motorcycles continues.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for lubricants in APAC is mainly led by the growing automotive industry. The increasing sales of passenger and commercial vehicles in APAC, mainly in China, India, and Japan, have been driving the consumption of lubricant products. For instance, in 2022, the Federation of Automobile Dealers Associations (FADA) reported retail sales of 21,120,441 passenger vehicles and tractors in India. This was a 15% increase in sales compared with 2021.
In addition, the region witnesses a high demand for lubricants from heavy engineering, steel manufacturing, mining and refining, and plastics and polymer industries. For instance, in May 2021, Vedanta Ltd. announced that it is planning to invest USD 1.34 billion to set up an aluminum park in Odisha, India. Such investments are expected to increase the demand for lubricants, thereby propelling the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Lubricants Market: Lubricants Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, India, Japan, Russia - Size and Forecast
UAE Lubricants Market: UAE Lubricants Market by Product, Type, and End-user - Forecast and Analysis
Automotive Suspension System Lubricants Market: Automotive Suspension System Lubricants Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, India, Germany - Size and Forecast
The market is thriving, driven by automotive industry growth and rising automotive industry demands. Key players like Oronite, Infineum, Afton, and High-Lube Additives are innovating with effective viscosity index improvers and Expanding potential markets. The market benefits from increased light vehicle production, the rise of electric cars (EVs), and the need for specialty lubricants. Multigrade oils and bio-based viscosity index improvers from renewable sources like vegetable oils and ester-based lubricants are gaining traction amid fluctuating crude oil prices and market restraints.
Furthermore, regulatory initiatives and certifications, such as the Renewable Energy Directive (RED), drive opportunities in the auto sector, food processing, power generation, and the aerospace sector. Companies focus on sustainable lubricant solutions to meet environmental regulations and improve engine performance, service life, and equipment performance with products like Olefin Copolymer VI Improver and Polymethacrylate Viscosity Index for better shear stability and temperature resistance.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 2.09% |
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Market growth 2024-2028 |
USD 452.7 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.03 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
North America at 33% |
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Key countries |
China, US, Japan, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Hitech Petroleum and Chemicals Inc., Asian Oil Co., BASF SE, BPT Chemicals Co. Ltd., CHETAS BIOCHEM, Chevron Corp., Croda International Plc, Eni SpA, Evonik Industries AG, Goodway Chemicals Pvt. Ltd., Innov Oil Pte Ltd., Jinzhou Kangtai Lubricant Additives Co. Ltd., Lanxess AG, Mitsui Chemicals Inc., NewMarket Corp., PETRONAS Chemicals Group Berhad, Sanyo Chemical Industries Ltd., Shanghai Minglan Chemical Co. Ltd., Shell plc, and The Lubrizol Corp. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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