Strategic Analysis of the Global Lubricant Additives Market

Growing Car Population, Passenger Marine and

Aerospace Sectors Drive Lubricant Additives Market,

Finds Frost & Sullivan

Research PREVIEW for the

Strategic Analysis of the Global Lubricant Additives Market

(NCB4-39)

Section Slide Numbers

Executive Summary 4

Market Overview 11

Mega Trends and Industry Convergence Implications 23

Total Market

• Drivers and Restraints 26

• Forecasts and Trends 43

• Value Chain and Competitive Analysis 69

CEO’s 360 Degree Perspective 81

Regulatory Trends 83

Deposit Control Additives Segment 89

Viscosity Control Additives Segment 106

Film Forming Additives Segment 121

Other Lubricant Additives Segment 136

The Last Word 144

Appendix 147

Contents

NCB4-39

• Need for enhanced lubrication drive the global lubricant additives market due to fuel efficiency

standards, improved vehicular and equipment operations, and compensation for drawbacks

of lower grade/inconsistent, and often higher grade (group II, III, and synthetic), and bio-

based oils.

• Stringent regulations, particularly in North America and Western Europe, aimed at reducing

the carbon footprint, toxic emissions, and effluents propel demand for lubricant additives that

are free of metals, halogens, and phosphorous.

• APAC and rest of world markets have regulations for emissions, yet urbanization and

economic development increase both vehicles on the road and industrial hubs, where modern

equipment demands quality lubricants and additives.

• North American and Western European lubricant additive demand is linked to technological

advances, new engine designs, and the need for high-value, high-performance additives.

Suitable additive packages are needed at the levels of original equipment manufacturers

(OEMs) for newly produced vehicles and machinery and for maintenance of older cars and

equipment.

• Revenue share is concentrated among four multinational suppliers that are either associates

of oil majors or large specialty chemical suppliers due to the high level of barriers to entry.

Key Findings

Source: Frost & Sullivan

NCB4-39

*Key: Brazil, Russia, India, and China

(BRIC) and Association of Southeast Asian

Nations (ASEAN) Source: Frost & Sullivan

Impact of Mega Trends on the Lubricant Additives Market

Predictable High Performance

Environmental, Health, and

Safety Regulations

Urbanization and Mobility

Lubricant Additives Industry:

Impact of Mega Trends, Global, 2013

NCB4-39

Predictable High Performance

Need for enhanced lubricant performance is an overarching Mega

Trend in the Western European and North American automotive,

marine, aviation, and industrial segments. Base oils are

complemented by additive packages that can enhance lubrication

performance and fuel efficiency, as well as reduce toxic emissions.

Additionally, growing economies and urbanization in Asia-Pacific and

Latin America provide opportunities in urban corridors and industrial

clusters, cities, and suburbs with more vehicles, traffic, and factories.

Urbanization and Mobility

Economies and GDP of countries within BRIC and ASEAN* are

rapidly undergoing urbanization. More cars owned and more miles

driven, more manufacturing plants installed, and more goods

transported/shipped creates opportunities in the lubricant additives

market.

Environmental, Health, and Safety Regulations

Reducing consumption of expensive and non-renewable petroleum-

based fuels and lubricants has resulted in a continual search for high-

performance lubricants and additives. Regional, national, and global

organizations and governments continue introducing new and stringent

regulations across sectors in an attempt to reduce carbon footprints,

emissions, and toxic effluents that impact people and the environment.

CEO’s Perspective

2

More expensive and safer additives contribute to revenue growth

in Western Europe and North America, high volume growth of

conventional additives is expected in APAC and rest of world

markets.

3

The global lubricant additives market is dominated by the top four

multinational suppliers with established brand image among

lubricant formulators and end users in the automotive and

industrial sectors

4

Establishing strong product lines of lubricant additive packages

compatible with various grades of base oils and other additives

are critical competitive factors for OEMs to achieve

equipment/vehicle efficiency, longevity, and environmental

sustainability.

5

Establishing and maintaining laboratories with different types of

gasoline and diesel engines, driveline, and other mechanical

equipment used to test and evaluate additive and lubricant

performance are major investment decisions.

1

Demand from automotive, marine, aviation, and industrial sectors

for high-performance lubricant additives is driven by regulatory

trends towards improved fuel efficiency and health, safety, and

environmental profiles.

Source: Frost & Sullivan

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Key Questions This Study Will Answer

Is the market growing, how long will it continue to grow, and at what rate?

Which segments are poised to grow in the future?

What are the key factors driving and restricting growth in this market?

What are the regional trends in the market?

Who are the leading market participants?

What are the key competitive factors governing this market?

Source: Frost & Sullivan

NCB4-39

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