Overview of the Lubricant
Additive Markets Milind Phadke, Kline Introduction
Lubricant additives both play an important role in the functioning of lubricants. The overall lubricant additives market is small in terms of volume but represents a significant market in terms of value. Lubricant additives represent unique challenges for anyone attempting to estimate the market size for these products, or to understand the market structure and market shares of key suppliers. Due to concerns around intellectual property and confidentiality of additive formulations, arriving at market estimates can be very difficult. This article will provide an overview of the market, identifying both market challenges and opportunities.
Lubricant Additives
The global market for lubricant additives in 2016 was estimated at 4.4 million tons. This market estimate represents the diluted additive volume (including both the active additive component, as well as the diluent oil) consumed by lubricant blenders. This market estimate includes both additive packages and individual components consumed by lubricant blenders. Lubricant additives are incorporated at the lubricant blend plant with minor quantities consumed directly by lubricant end users – for example biocides added tank side by metalworking fluid consumers. As a result, lubricant additive consumption is closely tied with finished lubricant consumption. Further, estimating typical additive treat rates for different lubricant products by quality levels and viscosity grades leads to a reasonably accurate estimate of the lubricant additive demand.
20 LUBE MAGAZINE NO.145 JUNE 2018
Lubricant products Not all lubricant products have similar treat rates. Metalworking fluids have among the highest treat rates, which results in a very high share in the lubricant additive market in contrast to its position in the finished lubricant market. On the other hand, general industrial oils and process oils have very low additive treat rates which results in a less than 5% share in the lubricant additive market in contrast to accounting for nearly one-third of the finished lubricant market. Treat rates for automotive engine oils (passenger car motor oils, motorcycle oils, and heavy duty motor oils) and industrial engine oils (marine engine oils, natural gas engine oils, railroad engine oils, and stationary diesel engine oils) lie between these two extremes.
Additive function classes Dispersants, which are largely consumed in automotive and industrial engine oils, are the largest function class for additives. Viscosity index improvers (VII) constitute the second largest function class. More than 85% of VIIs are consumed in PCMO and HDMO applications. The third-largest function class is detergents. More than 70% of the total detergent volume goes into marine engine oils and HDMO applications. The top three function classes together account for nearly 70% of the total consumption of lubricant additives. These three function classes, along with anti-wear additives, are primarily consumed for blending automotive and industrial engine oils. Other additive function classes include antioxidants,
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