Driveline Additives Market
Driveline Additives Market By Type (Transmission Fluid Additives, Gear Oil Additives), By Application (Passenger Cars, Commercial Vehicles, Off-highway Vehicles), By Region - Global Forecast 2020-2029
Driveline Additives Market Outlook
The global driveline additives market is projected to grow at a CAGR of around 5% during the forecast period, 2019-2029. By type, Transmission fluid additive is projected to continue its reign in the market and is expected to account for over half of the market by 2029.
Passenger cars have dominated the driveline additives market in 2018 and are set to drive the demand for driveline additives with a leading growth rate over other applications.
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Shift towards Automatic and Dual-Clutch Transmission to Fuel Driveline Additives Market Growth
Automatic and continuous variable transmission is set to gain traction over the forecast period, which will accelerate the demand for driveline additives. Efficacy to offer unique metal friction and optimized driveline performance will propel the demand for driveline additives.
Rising fuel costs and growing consumer inclination for improving fuel efficiency of vehicles is poised to drive the market over the next few years. Driveline additives market is projected to grow at a higher rate over conventional lubricant additives market, due to its numerous on-road and off-road applications.
Owing to its increasing off-road applications in agriculture, construction, mining and forestry heavy machinery the global driveline additives market accounted for over 35% share of the global lubricant additives market in 2018.
The production of driveline additives is anticipated to soar in East Asia with a corresponding spurt in demand. This can be attributed to the growing popularity of automatic transmission cars in countries such as China as well as an increase in the number of domestic players.
Owing to the aforementioned factors, the prices for driveline additives in this region are projected to witness a steady course during the forecast period.
Extended Drain Intervals and Improved Temperature Stability to Spur Demand
Increasing adoption of continuous variable transmission (CVT) and development of transmissions with high operational temperatures, along with a need for longer drain intervals is expected to generate heightened demand for driveline additives over the forecast period. Proliferation of the number of vehicles manufactured globally coupled is a key driving factor for the market’s growth.
Additionally, OEM requirements for extended drain, fuel efficiency, and temperature stability will create a positive environment for the market’s growth during the forecast period.
Prominent players are constantly striving to improve lubricant quality to ensure adherence of vehicles to stringent carbon emission norms across the world, where driveline additives will play a key role in reducing carbon emissions from vehicles.
Increasing demand for aftersales services from customers and consistent demand for efficient lube quality from OEMs are poised to fuel the market growth at a rate of ~5% during the forecast period.
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East Asia to Accelerate Demand for Driveline Additives
APEJ is projected to register leading growth rate in the driveline additives market among other regions and is forecast to account for over one-fourth of the revenue share by 2029. Continuous growth in emerging economies such as China and India are poised to drive the regional demand and will contribute towards market growth throughout the forecast period.
Automatic transmission cars are becoming a popular choice in China and the country has witnessed notable growth in premium cars, which will significantly propel the demand for driveline additives. However, Europe has led the demand for driveline additives and is projected to account for over one-third of the market by the end of 2029.
Increasing preference for dual-clutch transmission will contribute to Europe's driveline additives market’s growth. European construction equipment market is poised to grow at a CAGR of ~7% in upcoming years which will create numerous opportunities in the driveline additives market.
Companies are Anchoring Their Presence in Emerging Economies
Global driveline additives market is partially fragmented, in which Afton Chemical Corporation, BASF SE, BRB International, Chevron Oronite Company, LLC, Lubrizol Corporation, and Vanderbilt Chemicals, LLC are the key stakeholders.
In recent years prominent players have been involved in the commercialization of their products to leverage immense potential in the market. Players are also involved in corporate tie-ups with automotive OEMs to retain their existing customers and deliver caustomized products.
- For instance, Afton Chemical Corporation is working with OEMs to meet today’s OEM requirements for extended drain, fuel efficiency, and temperature stability.
- Lubrizol has developed sulfur-phosphorus based chemistry to meet the performance needs of hypoid gears. The company is focusing on creating its monopoly in the market by offering thermally stable additive technology to meet the needs of higher speeds and loads.
The above illustrations are signaling that companies are adopting a range of strategies to strengthen their market position to leverage huge opportunities in the market.
Furthermore, momentum towards more complex, sophisticated drivetrains and an increasing gear ratio spread will generate remunerative opportunities for market players.
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Driveline Additive Market: Segmentation
Fact.MR has segmented the driveline additives market on the basis of type, application, and region.
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