Automotive Additives Market Research Report - By Additive Type (Lubricant Additives, Fuel Additives, Corrosion Inhibitors, Antifreeze Additives, Other Additives), By Vehicle Type (Passenger Cars, Commercial Vehicles, Off-Highway Vehicles, Two-Wheelers), By Application (Engine Oil, Transmission Fluid, Hydraulic Fluid, Fuel Systems, Cooling Systems), By Base Type (Petroleum Based, Synthetic Based, Bio-Based), By Performance Enhancement (Fuel Efficiency Improvement, Engine Protection and Durability, Emissions Reduction, Corrosion Protection, A

Global Automotive Additives Market Overview:

As per MRFR analysis, the Automotive Additives Market Size was estimated at 20.76 (USD Billion) in 2022. The Automotive Additives Market Industry is expected to grow from 22.06(USD Billion) in 2023 to 38.1 (USD Billion) by 2032. The Automotive Additives Market CAGR (growth rate) is expected to be around 6.26% during the forecast period (2024 - 2032).

Key Automotive Additives Market Trends Highlighted

The automotive additives market is influenced by several key market drivers. Rising concerns about vehicle emissions and fuel efficiency are driving the demand for engine additives that enhance performance and reduce exhaust emissions. Advancements in engine technology, particularly the adoption of turbochargers and direct injection systems, require specialized additives to maintain optimal operation. Furthermore, increasing vehicle production in emerging markets is creating a growing demand for additives.

However, fluctuating raw material prices and stringent environmental regulations regarding additive formulations pose challenges to the market. Opportunities for growth lie in developing additives that cater to specific engine requirements, promoting eco-friendly alternatives, and expanding into emerging markets. Industry trends include the increasing use of friction modifiers to improve fuel economy, the development of multipurpose additives, and the adoption of digital technologies for additive monitoring and optimization.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Additives Market Drivers

Growing Demand for Fuel-Efficient Vehicles

The need for fuel-efficient vehicles is a key factor that propels the demand in the market for automotive additives. On one hand, nearly every government across the world has implemented stringent rules and regulations regarding fuel economy. On the other hand, manufacturers of automobiles have felt a vital need to improve their production capacity, leaving no loopholes behind to enhance the fuel efficiency of their vehicles.

One of the primary advantages of automotive additives is that they help in the reduction of friction and wear of the engine, the lack of which results in loss of fuel efficiency. Moreover, the practice of adding engine cleaner along with additives helps in keeping the engine cleaner and free of any deposits. Given the fact that there is an ever-increasing demand for fuel-efficient vehicles, the market for automotive additives is anticipated to grow at a consistent rate in the next few years.

Rising Popularity of Electric Vehicles

The increased popularity of electric vehicles  is another major factor facilitating the development of the automotive additives market. The point is that electric vehicles do not use gasoline or other traditional types of fuel, which implies that they do not benefit from traditional automotive additives. At the same time, electric vehicles still consume various other types of additives, such as coolants or lubricants, so the growing interest in this type of transport would facilitate the emergence of new opportunities in the industry.

Increasing Demand for High-Performance Vehicles

The increasing demand for high-performance vehicles is also driving growth in the automotive additives market. High-performance vehicles require specialized additives that can help to protect engines from wear and tear. Automotive additives can also help to improve the performance of high-performance vehicles by reducing friction and increasing power output. The increasing demand for high-performance vehicles is expected to continue to drive growth in the automotive additives market in the coming years.

Automotive Additives Market Segment Insights:

Automotive Additives Market Additive Type Insights

The market based on the additive type is divided into Lubricant Additives, Fuel Additives, Corrosion Inhibitors, Antifreeze Additives, and Other Additives. The lubricant Additives segment is expected to occupy a significant share of the market as of 2023, accounting for nearly 35% of the revenue. The segment is projected to grow with the influence of the rising need for high-performing lubricants across various automotive applications. The Fuel Additives segment is expected to grow with the support of the rising use of fuel-efficient vehicles and stringent regulations concerning emissions. These additives help reduce fuel consumption, carbon emissions, and vehicle wear and tear. The decline in engine erosion and the formation of dirt and carbons also promote the growth of this segment. 

Corrosion Inhibitors additives are used for protecting metals from corrosion and rust. The growing demand for lightweight and durable vehicles is becoming an important factor that bolsters the growth of this segment. Antifreeze Additives are used in the period between -40 C to 110 C; these un-freezing types of additives help prevent freezing and overheating of the cooling systems. The growth of the automotive industry, particularly in the emerging markets, boosts the growth of this market.

Other Additive segments include a variety of additives such as friction modifiers, anti-wear additives, viscosity modifiers, and de-icers. Other chemicals include antioxidants, O2 scavengers, soot-controlling agents, and pour point depressants. The use of these chemicals enhances the operating efficiency, longevity, and performance of the additives currently being used. Overall, the Automotive Additives Market is driven by the increasing production of automobiles, the progress made in the automotive industry concerning technology, and the growing demand for fuel- and eco-efficient vehicles. Moreover, the market is influenced by the government regulations that are assisting in reduction in emissions and improvements in fuel economy.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Additives Market Vehicle Type Insights

The Automotive Additives Market segmentation by Vehicle Type includes Passenger Cars, Commercial Vehicles, Off-Highway Vehicles, and Two-Wheelers. Among these segments, Passenger Cars hold the largest market share of around 55% in 2023. This dominance is attributed to the high production and sales volume of passenger cars globally. The growing demand for fuel-efficient and high-performance vehicles is expected to drive the growth of the Automotive Additives Market in this segment. Commercial Vehicles are projected to witness significant growth during the forecast period due to increasing urbanization and industrialization, leading to higher demand for goods transportation.Off-Highway Vehicles and Two-Wheelers are also expected to contribute to the market growth, driven by rising recreational activities and increasing adoption of these vehicles in emerging economies.

Automotive Additives Market Application Insights

The application segment of the Automotive Additives Market holds immense growth potential. Engine Oil, a crucial component of automotive engines, accounted for a significant share of the market revenue in 2023. Its primary function is to lubricate and protect the engine's moving parts, reducing friction and wear. Transmission Fluid, another important application, ensures smooth gear shifting and transmission performance. It plays a vital role in transferring power from the engine to the wheels. Hydraulic Fluid, used in hydraulic systems of vehicles, is essential for transmitting power and motion.It finds application in brakes, steering systems, and other hydraulic components. Fuel Systems, comprising additives that enhance fuel efficiency, reduce emissions, and protect fuel system components, are also witnessing significant demand. Cooling Systems employing additives to prevent corrosion, scale formation, and coolant degradation hold a noteworthy market share. These additives ensure optimal engine temperature maintenance and extend coolant life.

Automotive Additives Market Base Type Insights

The Automotive Additives Market segmentation by base type includes petroleum-based, synthetic-based, and bio-based additives. Petroleum-based additives held the largest market share in 2023, accounting for over 60% of the Automotive Additives Market revenue. The growth of this segment is attributed to the widespread availability and low cost of petroleum-based raw materials. However, the demand for synthetic-based additives is expected to grow rapidly in the coming years, owing to their superior performance and environmental benefits.Bio-based additives are also gaining popularity as they are derived from renewable resources and are biodegradable. The Automotive Additives Market data shows that the demand for bio-based additives is expected to increase significantly in the future, driven by the growing awareness of environmental sustainability in the automotive industry.

Automotive Additives Market Performance Enhancement Insights

The Performance Enhancement segment of the Automotive Additives Market is projected to experience significant growth in the coming years, driven by increasing demand for fuel-efficient and environmentally friendly vehicles. Fuel Efficiency Improvement additives reduce friction and improve fuel combustion, leading to better mileage and reduced emissions. Engine Protection and Durability additives extend the life of engines by reducing wear and tear, while Emissions Reduction additives help vehicles meet increasingly stringent emission regulations.Corrosion Protection additives safeguard metal components from rust and other forms of corrosion, and Anti-Wear Properties additives minimize friction and wear on moving parts. The Automotive Additives Market for Performance Enhancement is expected to reach a value of USD 12.5 billion by 2024, growing at a CAGR of 6.2%. This growth is attributed to rising vehicle production, increasing adoption of fuel-efficient technologies, and growing awareness about environmental sustainability.

Automotive Additives Market Regional Insights

The regional segmentation of the Automotive Additives Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is expected to dominate the market, accounting for a significant share of the revenue in 2023 and beyond. The region's advanced automotive industry, stringent emission regulations, and high consumer spending contribute to its dominance. Europe is another key market, driven by the presence of major automotive manufacturers and a growing focus on fuel efficiency. The Asia-Pacific region is projected to witness substantial growth, owing to the rapidly expanding automotive sector in countries like China and India.South America and the Middle East and Africa (MEA) are also expected to contribute to the overall market growth, albeit at a slower pace.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Additives Market Key Players And Competitive Insights:

Key players in the Automotive Additives Market industry are heavily investing in innovation to develop quality products and technologies, to develop products that meet the changing needs of the automotive market. The key Automotive Additives Market players work on strategies to improve the performance as well as efficiency of these products in the automotive field. The development goals in the Automotive Additives Market depend upon the improvement possibilities in the additives that could affect either the functionality, environment, or application of the product.

The intensifying competition in the Automotive Additives Market industry has led to the presence of regional as well as market players. These players engage in offering a range of products, investing in research and development and expanding their geographical presence to a wide range of markets. The key competitors in the industry also adopt mergers and acquisitions to fortify their market position in the automotive additives market.

A Automotive Additives Market company is Lubrizol Corporation, which offers a wide range of automotive additives, including engine oils, transmission fluids and fuel additives. Lubrizol Corporation acts as a key provider in the world and has a presence in over 100 countries globally, with their products constituting the most preferred markets for the leading automotive manufacturers worldwide. Lubrizol Corporation is dedicated to innovation and spearheads growth in the area through investing in research and development.

A Automotive Additives Market company is Afton Chemical Corporation, which offers a wide range of automotive additives, including engine oils, transmission fluids, and fuel additives. Afton Chemical Corporation has a presence in the Americas, Europe, and Asia Pacific and offers the most preferred products to leading automotive manufacturers all over the globe. Afton Chemical Corporation is focused on research and development and commitment to innovation.

Key Companies in the Automotive Additives Market Include:

• Chevron Oronite


• Pilot Chemical


• Lubrizol


• Petroliam Nasional Berhad


• BASF


• Evonik


• Infineum International


• Olin


• Royal Dutch Shell


• Nouryon


• Clariant


• TotalEnergies


• Afton Chemical


• The Lubrizol Corporation


• Croda International

Automotive Additives Market Industry Developments

The Automotive Additives Market is projected to reach USD 38.1 billion by 2032, exhibiting a CAGR of 6.26% from 2024 to 2032. The growing demand for fuel-efficient and high-performance vehicles is driving the market growth. Stringent emission regulations and advancements in automotive technology are further contributing to the market expansion. Key industry players are focusing on developing eco-friendly and cost-effective additives to meet the evolving market needs. Recent developments include the introduction of additives that enhance fuel efficiency, reduce emissions, and extend engine life. The market is expected to witness significant growth in emerging economies due to the increasing vehicle production and adoption of advanced automotive technologies.

Automotive Additives Market Segmentation Insights

• Automotive Additives Market Additive Type Outlook
  
  
  
  • Lubricant Additives
  
  
  • Fuel Additives
  
  
  • Corrosion Inhibitors
  
  
  • Antifreeze Additives
  
  
  • Other Additives
  
  
  
  

• Automotive Additives Market Vehicle Type Outlook
  
  
  
  • Passenger Cars
  
  
  • Commercial Vehicles
  
  
  • Off-Highway Vehicles
  
  
  • Two-Wheelers
  
  
  
  

• Automotive Additives Market Application Outlook
  
  
  
  • Engine Oil
  
  
  • Transmission Fluid
  
  
  • Hydraulic Fluid
  
  
  • Fuel Systems
  
  
  • Cooling Systems
  
  
  
  

• Automotive Additives Market Base Type Outlook
  
  
  
  • Petroleum Based
  
  
  • Synthetic Based
  
  
  • Bio-Based
  
  
  
  

• Automotive Additives Market Performance Enhancement Outlook
  
  
  
  • Fuel Efficiency Improvement
  
  
  • Engine Protection and Durability
  
  
  • Emissions Reduction
  
  
  • Corrosion Protection
  
  
  • Anti-Wear Properties
  
  
  
  

• Automotive Additives Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa