Enhanced production will see a boost to the US lubricant additives market, says a new report.
US demand for lubricant additives is set to reach $3.8 billion in 2017 according a recent report from the Freedonia Group. Rebounding lubricant production and modestly rising additive treat rates are responsible for this growth.
Longer lubricant service life and fuel efficiency benefits are driving demand for additives such as antioxidants and friction modifiers. In contrast, antiwear and extreme pressure additives, which contain potentially harmful chemicals, are showing less demand helped by a focus on fuel economy and emissions regulations.
However, weak growth in vehicle usage, combined with lengthening service intervals means industrial lubricants growth os set overtake the automotive sector, with little scope to increase auto lube additive concentrations, according to the report. Consequently, the demand for deposit control additives - the largest share of the total market - is likely to fall further despite upcoming GF-6 passenger car engine oil specifications.
Treat rates will rise most rapidly in general oils and hydraulic fluids, claims Freedonia, with trends in finished lubricant production offering a boost for these fluids as well. Industrial engine oils, such as those used in rail and marine applications, power generation and off-highway engines, contain among the highest levels of additives making this an important sector for the industry.
Environmental concerns will continue to play a major role in lubes formulation and use. Globally, lubes producers have significantly reduced the presence of chlorine, phosphorus, sulphur and metals over the past ten years, particularly in automotive lubricants. End users in all markets are set to increase demand for lubricants perceived to be less harmful to equipment, worker health and the environment even with immediate regulatory pressure.