Global lubricant additive demand growth will exceed finished lubricant growth primarily due to transition to higher lubricant quality levels, according to Parsippany, N.J–based research and consulting firm, Kline. The firm predicts a compound annual growth rate of 1.6 percent for additives through 2019 while the CAGR for lubricants during that period is expected to be only 1.2 percent.

Last Tuesday, Milind Phadke, Kline's Energy Practice Director, hosted a free webinar sharing observations and market intelligence from Kline’s recently published study “Global Lubricant Additives: Market Analysis and Opportunities”. The objective of the study is to analyse in-depth:
− Types of additives used in various lubricant products
− Chemical classes of additives used in each function category
− Blending approaches, quality trends, and impact of trends on blends used
− Current and projected additive consumption by function category and chemical class

Phadke pointed out that global finished lubricant consumption in 2014 accounted for an estimated 39.4 million tons while global lubricant additive consumption in 2014 accounted for an estimated 4.2 million tons or 11% of the lubricant market. Since 2010, the global lube additive market has grown at 1.8% per year due to lube demand growth and transition to higher quality levels. “Higher quality lubricants require higher additive treat rates” stated Phadke.

Dispersants, VII, and detergents are the top three function classes accounting for nearly three-fourths of the total additive market. Antioxidants, VII, dispersants, and friction modifiers will experience stronger than average growth due to an increase in treat rates.

In the HDMO lubricants segment, additive consumption by function class in 2014 was led by dispersants, and VI improvers followed by detergents. Antiwear and antioxidants follow at a lower consumption rate, with corrosion inhibitors and pour point depressants following at a much lower consumption rate.

In the PCMO lubricants segment, again, additive consumption by additive class was led by dispersants, and VI improvers, even at a greater percentage, then followed by detergents, Antiwear and antioxidants followed at a much lower consumption rate, with friction modifiers and pour point depressants following at even a much lower consumption rate.