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 favours 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. Further, 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.
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 Growth Partnership Service program. For more information, visit www.chemicals.frost.com.