Driveline Additives Market Size, Regional Outlook, Industry Analysis Report, Price Trends, Application Development Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2783
Driveline Additives Market size is likely to experience growth with a prominent CAGR over the forecast timeframe, 2018 - 2025. Driveline additives market is anticipated to witness a highest CAGR compared to traditional lubricants. This can be attributed to the various benefits offered by these additives in formulation of automatic transmission fluids, gear oils and in off-road application fluids.
Increasing consumer preference towards fuel-efficient vehicles and rising on-road and off-road applications are the factors driving the global driveline additives market. Moreover, rise in the number of vehicles manufactured annually, need for longer service drain intervals for axle fluids, transmission fluids are anticipated to increase the product demand in near future. Booming trend of using more numbers of gears in manual transmission has been fueling the driveline additives market from last few years.
Many countries are imposing strict regulations on emission and more hardware durability requirement which in turn will fuel the driveline additives market growth over the forecast timespan. Collaborations among automotive equipment manufacturers, lubricant & additive suppliers, continuous R&D initiatives to improve additives efficiency and increasing investments in the underdeveloped regions are expected to provide lucrative opportunities for the players operating in the global driveline additives market.
However, factors such as high price of driveline additives compared to the conventional additives such as lubricant additives & viscosity modifiers is hampering the product demand. In addition, fluctuating raw material prices are likely to affect the product demand in near future.
The driveline additives market is changing constantly due to the continuing evolution in driveline industry. Developments in the industry such as emission legislations, increased vehicle production and globalization have significant impact on the driveline additives industry. This is likely to provide the new opportunities for driveline additives market in coming years.
The driveline additives market can be segmented based on product, application, additive type and region. In terms of product the market can be divided into transmission fluid additives, gear oil additives and others. Transmission fluids additives segment led the driveline additives market in 2017 due to its high wear resistance and frictional properties. Transmission fluid additives are likely to have a major market share and highest CAGR over the forecast period. Gear oil additives segment accounted for prominent market share in past few years.
Based on application the market is segmented into passenger vehicles, commercial vehicles and off-highway vehicles. Passenger vehicles and off-highway vehicles segments seem to be lucrative for investment in the driveline additives market. Based on additives the market can be classified into dispersants, viscosity index improvers, anti-wear agents, detergents, corrosion inhibitors, friction modifiers, emulsifiers, antioxidants and others.
In terms of product consumption Asia Pacific led the global driveline additives market in 2017. This can be attributed to the growing automobile industry in emerging economies include China, India, Vietnam, Philippines and Indonesia. Moreover, consumer’s increasing disposable income in the region have increased their expenditure on the vehicles due to which product demand has increased drastically in last few years. China is having the major market share in the region owing to its vast economy growth, expansion of automotive industry and rise in industrialization. In addition, implementation of stringent regulations on volatile content emission from automobiles is projected to further boost the driveline additives market during the forecast period. European driveline additives market size likely to grow at rapid pace, due to its automobile industry and strict environmental regulations. Moreover, consumer awareness about lubricants and additives in the region is very high and shall propel the product demand in near future.
Many multinational giants and medium-scale companies are operating in the industry. Key players operating in the industry incudes BRB International, BASF SE, Vanderbilt Chemicals, The Lubrizol Corporation, Afton Chemical, LLC., Infineum International Limited, Chevron Oronite Company LLC., Lubrilic, Evonik Industries, AB Petrochem, DowDuPont and VPS Lubricants.
Players operating in the industry are indulged in merger and acquisition strategy to expand their business and product portfolio. In December 2016, Afton Chemicals, a global leader fuel additives and lubricants entered into a definitive agreement to acquire Aditivos Mexicanos, S.A. de C.V. for approximately USD 180 million. Aditivos Mexicanos, S.A. de C.V. is a petroleum additives manufacturing company. A Mexico based company also involved in distribution and sale of petroleum additives. This transaction will increase the global customer base of Afton Chemicals.
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