Driveline additives market size is set to experience a substantial boom during the period 2021 to 2027 on account of the surging obligation for finished lubricants. The rise in globalization along with vehicle production has made way for fuel-efficient solutions across on-road and off-road areas. Higher product penetration in construction and agriculture verticals coupled with the mount in emission legislations will enhance the market expansion.
In addition, the ongoing R&D investments and the rising penetration of gears in manual transmission systems are other factors driving the product demand.
On the basis of product, the transmission fluid driveline additives market will expand at a notable pace. This can be attributed to the rising influx of technological advancements and the increasing efforts undertaken by auto manufacturers to offer enhanced fuel efficiency. Higher demand for optimum frictional and wear resistance properties coupled with the soaring need for top-performance fuels are other parameters leading to industry progression.
In terms of additive type, the driveline additives market share from detergents will witness prominence through 2027 due to the higher utilization of cleaning agents. Apart from household applications for cleaning clothes and dishes, detergents are increasingly used in areas like carpet cleaning, moss killing, and oil spills. Growing product utilization to resist extreme pressure and the formation of sludge on metal surfaces will also favor the industry growth.
Based on application, the driveline additives market is segmented into passenger, commercial and off-highway vehicles. Out of these, the demand for driveline additives across passenger vehicles is expected to grow driven by the surge in the number of investments. The market size of off-highway vehicles will rise commendably with higher usage of road rollers and tractors. Increasing adoption in wet brakes and lubricate transmissions for heavy-duty off-highway equipment will add to the segment expansion.
Geographically, Asia Pacific is likely to capture a significant remuneration for the driveline additives industry owing to the flourishing agricultural activities and automobile sector. The rising household consumer incomes have led to the higher demand for vehicles across the passenger and commercial applications. According to IBEF (India Brand Equity Foundation), the passenger vehicles sales in India reached 27.11 lakh units, while the commercial vehicles sales crossed 5.69 lakh units in FY21. The growing concerns over VOC (volatile organic content) emissions have given rise to severe government regulations. Rising industrialization and the expanding population base are other prominent trends influencing regional market growth.
With respect to competitive market dynamics, Evonik Industries (RAG-Stiftung), Vanderbilt Chemicals (R.T. Vanderbilt Holding Company, Inc.), AB Petrochem, VPS Lubricants, Lubrilic, The Lubrizol Corporation (Berkshire Hathaway), Chevron Oronite Company LLC. (Chevron Corporation), Afton Chemical, LLC., DowDuPont, and BASF SE, are some major product suppliers.
These driveline additives industry participants are not only focusing on collaborative strategies, like partnerships, and mergers, but are also actively coming with new product launches and capacity expansions to tap into various global markets and for enhanced geographical presence.
In another instance, in May 2019, Netherlands-based driveline additives manufacturer, BRB International B.V., was bought by Malaysian Petronas Chemicals Group Bhd for USD 182 million in cash for the latter’s futuristic strategic positioning as well as venturing into specialty chemicals.
In response to the global coronavirus outbreak, which was responsible for major lifestyle, health, and business changes, the industry for driveline additives suffered a significant blow. This was mainly due to the abrupt closing down of the automotive manufacturing plants. The dearth of labor and components also plummeted the sales of vehicles. However, with the gradual resumption of most industrial operations, the product demand is expected to pick up an essential pace.