MOUNTAIN
VIEW, Calif. – Regulations across the globe encourage improved fuel
efficiency, health, safety and environmental profiles, driving the
market for high-performance lubricant additives used in the automotive,
marine, aviation and industrial sectors, according to Frost &
Sullivan. As an example, in North America and Western Europe, policies
mandating emissions-related testing before the granting of vehicle
licenses have spurred more frequent servicing, oil changes and the use
of higher grade lubricants, thereby fuelling additive sale volumes, the
firm states.
New analysis from Frost & Sullivan, "Strategic
Analysis of the Global Lubricant Additives Market," finds that the
market earned revenues of $11.77 billion in 2013 and estimates this to
reach $16.28 billion in 2020. While more expensive and safer lubricant
additives boost revenue growth in North America and Western Europe,
Asia-Pacific markets will see high-volume growth of conventional
additives.
“Increased activity in the commercial as well as
passenger marine and aerospace sectors promises immense opportunities
for additive packages,” said Frost & Sullivan Chemicals, Materials
and Food Principal Consultant Raghu Tantry. “Asia-Pacific, in
particular, will emerge as a significant market as rising air traffic
favors the growth of aviation lubricants.”
However, this growth
will be tempered by the introduction of lubricants with extended drain
intervals, since OEMs continuously seek lubricant solutions that
decrease maintenance costs and the frequency of servicing. In addition,
the complex, technical nature of additives requires highly
sophisticated, expensive testing and evaluation methods achievable only
by investing in a well-equipped R&D facility and qualified
scientists. This restricts the global market to a few integrated
companies, according to Frost & Sullivan.
In addition,
higher workloads on limited technical and customer service staff have
made it difficult for suppliers to reach new customers or keep existing
ones engaged over the long term. Many large buyers such as major oil
companies find it difficult to streamline domestic and overseas demand.
“To
address these challenges, additive vendors must create account managers
in the base country as well as in key global locations, to meet the
needs of each major customer,” stated Tantry. “This will be especially
important in the near future, considering the anticipated rise in the
number of operational industrial machinery and driven vehicles.”
Finally,
participants must upgrade their marketing and sales support systems to
remain one step ahead in the intensely competitive market.
Strategic
Analysis of the Global Lubricant Additives Market is part of the
Chemicals & Materials (http://www.chemicals.frost.com)Growth
Partnership Service program. Frost & Sullivan’s related studies
include: Global Lubricant Market and the Impact of Bio-based Feedstock,
Indian Fuel Additive Market, and Global Industrial Greases Market and
Opportunities for Bio-based Materials. All studies included in
subscriptions provide detailed market opportunities and industry trends
evaluated following extensive interviews with market participants.
