The Lubricant Additive Market is to Touch $24.5 Billion by 2030; Advancements in Automotive Engine Technology and The nation's initiative to improve fuel propels market growth.

The Lubricant Additive Market size is estimated to reach $24.5 Billion by 2030, growing at a CAGR of 3.2% during the forecast period 2023-2030, according to a recent report published by IndustryARC, titled, “Lubricant Additive Market – By Product Type (Hydraulic Oil, Gear Oil, Engine Oil, Transmission Oil, Compressor Oil (Air Compressor Oil, Gas Compressor Oil, Refrigerator Compressor Oil)), By Additive Type (Anti-Oxidants, Anti-Wear, Viscosity Improvers, Corrosion Inhibitors, Detergents, Dispersants, Others), By Application (Heavy Duty engine, Metal Working Fluids, Industrial Machinery, Others), By End-User industry (Construction (Draglines, Crane, Bulldozer, Dump Trucks, Others), Automotive (Passenger Vehicles, Heavy Vehicles, Light Vehicles, Others), Agriculture (Tractors, Harvester, Balers, Harrows, Others), Food & Beverages, Energy (Wind Turbine, Solar Plant, Hydropower plant) Manufacturing, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030” Advancements in Automotive Engine Technology and The nation's initiative to improve fuel are fueling the growth of the Lubricant Additive industry during the forecast period.

In 2023, the Asia-Pacific region held the largest share of the lubricant additives market, accounting for over 35%. This dominance is driven by factors such as growing economies and increasing investments across various industrial sectors. According to the Indian Brand and Equity Foundation, the automobile industry in India attracted Foreign Direct Investment (FDI) worth US$34.74 billion between April 2000 and March 2023, making up 5.45% of the total equity FDI during that period. The European Automobile Manufacturers Association's 2022 report highlights that China produced 34.1% of the 68.5 million cars manufactured globally, followed by Europe with 19.4%. Additionally, according to China Electronic Information Industry Development, the country is expected to invest US$1.4 trillion in new infrastructure projects between 2020 and 2025, including renewable energy and residential construction. With rapid development in the construction and automobile sectors in China and India, as well as in Japan and Korea's automotive industries, there is a growing demand for advanced lubrication solutions in the Asia-Pacific region.

Modern engines' reliability and efficiency are closely tied to the performance of their lubrication systems. Effective lubrication plays a crucial role in cooling engine components that interact with each other, reducing friction and preventing overheating. With advances in passenger car engine technologies, such as Gasoline Direct Injection (GDI) and Turbocharged Gasoline Direct Injection (T-GDI), lubricant standards have also evolved. In 2022, evaluation began for the new ILSAC GF-7 standard, which is set to replace the current GF-6. This update introduces improvements in key engine tests to better accommodate new engine technologies, address component shortages, and comply with EPA/CARB regulations. As a result, the demand for low-viscosity lubricants is expected to rise, as these lubricants efficiently minimize engine friction and are suitable for use in all vehicles.

To enhance vehicle efficiency and accelerate the transition to low-carbon vehicles, various global initiatives have been launched targeting all segments of the automotive industry, including light-duty vehicles, heavy-duty vehicles, buses, motorcycles, and trucks. One notable example is the Global Fuel Economy Initiative (GFEI), which advocates for improved fuel efficiency in cars and light-duty vans through the adoption of cost-effective fuel-efficient technologies. These advancements are projected to reduce CO2 emissions by 33Gt by 2050 and save $2 trillion by 2025, funds that could further support the shift to electric vehicles. Consequently, such initiatives are expected to drive demand for more efficient lubricants, such as bio-based and nanotube-based lubricants, which can be used in new vehicles to minimize engine friction and enhance fuel economy.