Anti-wear Additives Market Research Report Information By Type (ZDDP, Phosphorus, Other), By Application (Engine Oil, Hydraulic Oil, Metalworking Fluid, Other), By End-use Industry (Automotive, Construction, Other), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) Forecast till 2032

Market Synopsis

According to MRFR analysis, the global Anti-wear Additives Market is projected to be worth USD USD 914.8 million by 2028, registering a CAGR of 2.65% during the forecast period (2024 - 2032), The market was valued at USD 798 million in 2020.

Anti-wear additives prevent wear and loss of the metal surfaces during boundary film and mixed-film lubrication. It is triggered by elevated temperature or pressure at the contact surfaces and forms a protective layer to reduce the wear. The anti-wear additives chemically react with the metal contact surfaces to protect them from corrosive acids, wear, and oxidation of the base oil. These additives have a chemical composition based on phosphorous and zinc compounds, often zinc dialkyl dithiophosphate (ZDDP). These are commonly employed in gear oils, engine oils, hydraulic oils, automatic transmission fluids, and some greases.

The major factors favoring the growth of the market are surging demand for anti-wear additives across various end-user industries, especially automotive industries. Increasing automotive production with a growing fleet of vehicles is fueling the market growth, owing to its extensive consumption in gearbox for the protection of its metal surfaces.

The technological advancement of new automobiles such as smart cars and aluminum trucks creates a lucrative opportunity for the growth of the anti-wear additives market. However, various regulations created to reduce greenhouse gas emissions in the environment negatively impact the market's growth.

Supplier Analysis

The supply chain includes raw material suppliers, anti-wear additives producers, distribution channels, and end use. Raw material procurement is the key to an optimized supply chain; hence, manufacturers maintain an effective supplier–manufacturer relationship through collaborations. Furthermore, the players with vertically integrated business models are expected to have a competitive edge over other market players.

The distribution channel consists of distributors, retailers, wholesalers, and e-commerce merchants. The distributors are companies engaged in long-term sales agreements with producers. Furthermore, the sale of products through e-commerce channels increases in the market; manufacturers use third-party online platforms to sell their products. The adoption of e-commerce as a distribution channel is expected to increase during the forecast period with the increasing digitalization and growth of the e-commerce industry.

Impact of Covid-19:

The pandemic of COVID-19 has resulted in a lockdown across regions, border restrictions, and breakdown of transportation networks. This is expected to significantly affect the chemicals & materials supply chains, global trade, and production capabilities across the world. The global economy is projected to decline by around 1% or more instead of registering a 2.5% growth projected by the World Economic Situation, and Prospects report 2020. The world economy contraction rate is expected to be more than 1% or possibly more than what was experienced in the 2009 global financial crisis (i.e., ~2.5%) if the governments (in the developing as well as developed countries) fail to provide the required income support and help lift consumer spending.

Amid the COVID-19 pandemic, economies across the globe are under lockdown; this has uprooted the supply chains worldwide, severely disrupting trade and major economic activities. As a result of lockdown across geographies, the production facilities have faced major disruptions. Additionally, closures of borders and export bans have led to a fluctuation in raw material prices and supplies; this has severely affected the production of anti-wear additives. Some market players build stocks of raw materials as part of their extensive business continuity planning measures to avoid disruptions in production. However, with the extension of lockdown and trade restriction measures, the demand for the product continues to plummet and, thus, affects the players' revenue operating in the anti-wear additives market.

Market Drivers

• Strong performance of the industrial sector.


• Growing demand from the automotive industry is driving the market growth.

Market Restraints

• Stringent government regulations are expected to hamper the growth during the forecast period.

Segmentation

By Type

• ZDDP: Zinc Dialkyl Dithiophosphate Lubricant Additives (ZDDP) segment accounted for a largest market share in 2019. ZDDP is one of the oldest and commonly used anti-wear additives. It helps to prevent oxidation and corrosion, driving the growth of this segment.


• Phosphorus: Phosphates containing anti-wear additives have ant oxidation and corrosion-inhibiting properties, resulting in aiding this segment's growth. In addition to this, phosphate esters are also used owing to their stability at elevated temperatures and excellent fire-resistance properties.   


• Others: The other segment consists of mineral oil and sulfur.

By Application:

• Engine Oil: Engine oil accounted for a significant market share in 2019 in terms of volume. Engine oils are made of a composition of additives and base oils. To provide anti-wear protection, additives such as ZDDP acts as corrosion inhibitors used in engine oils. Engine oil is used on a large scale for maintaining viscosity, thereby reducing engine friction and wear. It helps keep the engine cool over long working durations, prevents corrosion, increases fuel efficiency, and reduces carbon emissions.


• Hydraulic Oil: Anti-wear additives in hydraulic fluids provide excellent filterability performance and have good air release properties to meet the fluid requirements.


• Metalworking Fluid: Metalworking fluid anti-wear additives are lubricant components that react chemically with the metal surfaces to prevent making a lubricious coating additive layer that protects the metal from wear under boundary lubrication conditions.


• Others: The others segments includes transmission fluids, gear oils, and others.

By End-use Industry

• Automotive: The automotive end-use industry segment accounted for the largest market share in 2019 and is one of the fastest-growing segments. The growing demand from the automotive industry is fueling the growth of this segment. For instance, according to the MRFR analysis, the sale of commercial vehicles in the Indian market increased by 66% from 2014 to 2018. Similarly, the sale of commercial vehicles in China increased by over 15% during the same period. Thus, the increasing sale of commercial vehicles in the Americas, Europe, and Asia-Pacific, which account for a combined of over 80% of the global market, is expected to fuel the demand for anti-wear additives and drive the growth of the global market during the review period.


• Construction: The construction segment held a significant market share of more than15% in 2019 and is projected to dominate the market during the review period. The increasing number of construction activities in developing regions such as Latin America and Asia-Pacific is driving the demand for anti-wear additives for use in construction equipment.


• Others: The other segment consists of metals, melamine, PVC wood-plastic composites, and ABS wood plastic composites

By Region

• North America


• Europe


• Asia-Pacific


• Latin America


• Middle East & Africa

Regional Analysis

• North America: A development of construction activities is propelling the North American market's growth. Amongst the top metropolitan cities, the construction growth in 2018 increased by 17% in Oklahoma City, 15% in Las Vegas, 15% in Hartford, and 14% in Houston.


• Thus, owing to these factors, the construction industry is expected to propel the momentum for the growth of the anti-wear additives market in the region.


• Europe: The European market is expected to account for a significant share in the global market in terms of value during the forecast period. The major contributors are Germany, Russia, and France. For instance, the growing industrial sector in Russia is encouraging various foreign investments in the country. The increasing demand for high-quality and high-performance anti-wear additives is encouraging global players to shift to local manufacturing, bringing cutting-edge, technologically superior specialty products. As newer manufacturing technologies gain momentum, the market is gearing up to meet the need for customized specialty products, giving its customers best-in-class products developed through global expertise of decades. Manufacturers are developing specialized lubrication products across industries, sectors, and applications.


• Asia-Pacific: Held the largest market share, over 35%, in 2019 and is projected to retain its dominance during the forecast period. The prominent factor favoring the market's growth is the increase in demand for anti-wear additives in diverse end-use industries such as industrial, mining, and construction industries. Demand for high-performance anti-wear agents and advancements in technologies are expected to support the growth of the market during the forecast period.


• Latin America: Latin America is a high growth potential automotive market with an expanding consumer base and production. In recent years, the production and sale of automobiles have surged in major economies, such as Mexico and Brazil. The growing middle-class population in the region with increased purchasing power, continued investments in infrastructure development, increasing focus of the governments on in-house automobile production as well as initiatives to promote the automotive market are some of the prominent factors driving the growth of the automotive market in the region, aiding the growth of anti-wear additives market.


• Middle East & Africa: The automotive industry in the Middle East is dynamic and one of the fastest-growing, owing to factors such as high per capita disposable income, growing population, and availability of lucrative financing options in the region. Besides, increasing government investments to boost domestic manufacturing is likely to drive the demand for vehicles in the region in the years to follow, leading to the steady growth of the automotive industry.

Key Players

• Chemtura Corporation


• Evonik


• Lubrizol


• Infineum


• Chevron Oronite


• Vanderbilt Chemicals


• Tianhe Chemicals Group


• Afton Chemical Corporation