Driveline Additives Market Expected to Reach $10.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Driveline Additives Market," The driveline additives market was valued at $7.4 billion in 2021, and is estimated to reach $10.7 billion by 2031, growing at a CAGR of 3.8% from 2022 to 2031.

Driveline additives are referred to the additives which might be broadly utilized in automobiles for lubrication in the manual transmission, axles, automatic transmission, and differentials. The additives are classified into dispersants, detergents, viscosity index improvers, anti-wear agents, corrosion inhibitors, antioxidants, emulsifiers, and friction modifiers. These additives help in enhancing the fuel efficiency of the car and decrease emissions.

Rise in manufacturing of automobiles around the world coupled with surge in number of on-road and off-road motors in operation are predicted to fuel the market growth of the driveline additive. In addition, the growth in adoption of Continuously Variable Transmission (CVT) and the creation of transmissions with high operational temperatures are projected to propel the market growth. Moreover, growth in demand for longer drain intervals from the OEMs is projected to create excessive demand for driveline additives over the forecast timeframe. The increase in launch of innovative lubricant additives is predicted to foster the market growth of driveline additives. For instance, in April 2019, Lanxess launched an organic additive for passenger car and high-performance engine oils. The new Addition RC 3502 that has been specifically developed to reduce friction and deliver sustained performance &anti-wear protection. Moreover, it is non-corrosive, compatible with all synthetic and mineral engine oils, and has zero SAPS (sulphated ash, phosphorous, and sulphur). However, fluctuating prices of driveline additives around the globe has negatively impacted the market growth of driveline additives.

The driveline additives market is segmented into product type, vehicle type, additives type, and region. By product type, the market is categorized into transmission fluid additives, gear oil additives, and others. By vehicle type, it is fragmented into passenger vehicles, commercial vehicles, and off-highway vehicles. As per additives type, it is classified into dispersants, viscosity index improvers, detergents, anti-wear agents, antioxidants, corrosion inhibitors, friction modifiers, emulsifiers, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global driveline additives market analysis covers in-depth information about the major industry participants. The key players operating and profiled in the report include AB Petrochem Pvt. Ltd., Afton Chemical Corporation, BASF SE, BRB International B.V., Chevron Oronite Company, LLC, Evonik Industries AG, International Petroleum & Additives Company, Inc., The Lubrizol Corporation, Vanderbilt Chemicals, LLC, VPS Lubricants.

The global driveline additivesmarket is analyzed in accordance with the impacts of drivers, restraints, and opportunities. The period studied in this report is 2021–2031. The report includes the study of the market with respect to the growth prospects and restraints on the basis of regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.

KEY FINDINGS OF STUDY

• On the basis of product type, the transmission fluid additives segment emerged as the global leader with around 53.6% of the global market share in 2021, and is anticipated to be the largest markets during the forecast period.
• Depending on vehicle type,the passenger vehicles segment registered the highest market share of around 66.1%, and is projected to maintain the same during the forecast period.
• As per additives type, the dispersants segment registered the highest market share of around 29.1%, and is projected to maintain the same during the forecast period.
• Region wise, Asia-Pacific registered the highest market share of around 35.5%, and is projected to maintain the same during the forecast period.

IMPACT OF COVID-19 ON DRIVELINE ADDITIVES MARKET

• The COVID-19 pandemic is rapidly spreading and ruthlessly affecting the business environments of major markets. The demand for driveline additives is witnessing significant decline in all segments. Some regions, particularly, North America and Europe, are witnessing greater decline than Asia-Pacific. Amidst the ongoing crisis, driveline additives producers are operating at a lower capacity and are planning to scale up their operation after carefully assessing the course of COVID-19 in the near term.
• 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.
• As a result of the pandemic, many cars were rendered obsolete. In some households, they had been static for months. This necessitated the use of driveline additives such as detergents, dispersants and emulsifiers, and anti-wear additives to maintain and safeguard the cars.
• As a result of the reopening of various production facilities, the industry is gradually recovering from losses, resulting in strong sales expectations in the driveline additives market. In the coming years, rising prospects for transmission fluid additives are likely to improve demand for the product.