Sulphonate Additives Market

Sulfonate Additives Market Outlook (2022-2032)

Worldwide consumption of sulphonate additives is estimated at US$ 6.33 billion in 2022. North America currently accounts for nearly 24.7% share of the global sulphonate additives market value.

Report Attributes	Details
Sulphonate Additives Market Size (2021A)	US$ 6 Billion
Estimated Market Value (2022E)	US$ 6.33 Billion
Forecasted Market Value (2032F)	US$ 11.17 Billion
Global Market Growth Rate (2022-2032)	5.8% CAGR
North America Market Share (2021)	~24.8%
North America Growth Rate (2022-2032)	5.2% CAGR
U.S. Growth Rate (2022-2032)	5.6% CAGR
Top 3 Companies’ Market Share	~15%
Key Companies Profiled	Pilot Chemical Company Lanxess Daubert Chemical Company Ganesh Benzoplast Limited GOODWAY CHEMICALS PVT. LTD. JSD Limited Maxwell Additives Pvt. Ltd. MORESCO Corporation Mount Shivalik Chemicals PALMER HOLLAND Sasol Solvay Sonneborn

Detailed analysis reveals that sales of sulfonate additives are forecast to reach a market valuation of US$ 11.17 billion by 2032, increasing at a CAGR of 5.8% from 2022 to 2032.

Sulphonate Additive Consumption Analysis (2017-2021) Vs. Market Forecast Outlook (2022-2032)

Latest market analysis by Fact.MR, a market research and competitive intelligence provider, has calculated the market value for sulphonate additives over the past decade, which expanded at a CAGR of around 1.2%. Additionally, the consumption of sulfonate additives in 2021 stood at around 1,621.4 kilotons.

Sulphonate consumption as sulfonate engine oil additives accounted for a prominent market share. Market player Lubrizol has infused alkaryl sulfonates into engine oil, which has increased rust prevention and better detergent action and has driven demand for alkaryl sulfonates for use in engine oil.

Over the past half-decade, demand for sulphonate additives grew at a slow pace owing to moderate changes in the lubricant and engine oil industry. This scenario is picking up the pace by virtue of technological innovations on the supply side and consumer momentum toward engine maintenance.

In 2020, demand for lubricants and engine oils decreased by 6% due to COVID-19 but recovered by the 1st quarter of 2021 at a healthy growth of 8%. Market growth has remained stagnant till Q3 2021 and then reached the pre-COVID stage by the end of Q4 2021.

Demand for sulphonate additives depends on the tunes of lubricant and engine oil market growth. As such, over the period of 2020-2021, specialty fuel additives, such as sulphonate additives, observed synchronized movements in the engine oil and lubricant market.

The first quarter of 2022 observed a steep shift in trade graphs of the sulphonate market in East Asia and South Asia & Oceania, due to a huge surge in oil prices across the globe leading to a rise in demand for high-performance engine oils, paving way for the automotive additives market growth.

Over the forecast period of 2022-2032, sulphonate additive demand is anticipated to rise in three phases - short-run, medium-run, and long-run.

• Short-run (2022 Q2 to 2025): It is predicted that demand will gain pace in China and India on the back of rampant fuel price rise coupled with a surge in retail inflation. Additionally, toxic calcium sulfonate additives are being replaced by magnesium sulfonate additives, which can drive demand for sulphonate additives.
• Medium-run (2025-2028): Over the medium-run, 1.8X market growth is expected to be witnessed.
• Long-run (2028-2032): This period is expected to observe moderate to low growth owing to the saturation of demand for sulphonate additives.

This infographic provides an outlook of the cross matrix analysis where the market share of regions and applications have been provided in a nutshell. Of the sulfonate additive applications, engine oil dominates the demand pie with more than 40% share, as of 2022.

What’s Slowing Demand Growth of Sulphonate Additives?

“Weak Integration & Supply Chain Disruptions&rdquo

Investments in research and development to produce optimum additives that can enhance engine oil properties and further facilitate the smooth operation of engines are supporting market developments. This chain of events is anticipated to occur over the forecast period at a slow to moderate pace due to weak integration and supply chain disruption in engine oil and lubricants businesses.

Furthermore, the slow turnaround time for lubricant businesses to adopt and integrate a potential additive is also a prime factor in the slow growth of the market

According to Fact.MR, slow growth couldn’t be considered a drawback in the market but can only be visualized as an opportunistic space to set foot in the sulfonate engine oil additives business.

Country-wise Analysis

Why Will India Be a Lucrative Market for Sulphonate Additives?

“Surging Fuel Prices in India Making Sulphonate Additives More Attractive”

Fuel prices have remained a pivotal point for sulfonate additives market growth over the past half-decade. From industries to individual consumers, tackling the price points and saving on fuel prices have remained the prime reasons for the choice of engine oils and lubricants.

Currently, in 2022, a demand surge has been observed in lubricants and engine oils from industries as well as individual customers, as they are leaning on savings to balance out the spending on fuel. This cascades the effect on the extensive utilization of sulphonate additives, further bolstering market growth in India.

The aforementioned factors are anticipated to bolster market growth at 7.8% CAGR over the forecast period.

Why Does North America Still Hold Strong Potential Despite Market Saturation?

“Rising Focus on Local Lubricant Manufacturing in USA”

The imposition of sanctions by the United States and enhanced focus on local production of lubricants will provide an optimistic scenario to the market over the forecast period.

Over the past half-decade, the market grew at a CAGR of 0.7% and reached a stable growth phase by the end of 2021. The shift in dynamics, increase in local manufacturing, and expansion of existing lubricant production units in the region are anticipated to provide optimistic growth at 5.2% CAGR in North America.

Category-Wise Analysis

Which Sulphonate Additive Application Leads Market Growth?

“High Application of Sulphonate Additives in Engine Oil”  

Sodium dodecyl sulfate additives are specially used for producing sulfonate engine oil additives, ranging from automotive, marine, and machine tools. The scale of sulphonate utilization in the industry is unmatchable to other industries such as functional fluids and detergents. The rate of consumption of these additives is projected to hold strong over the forecast period.

Moreover, rise in investments in research & development in producing sulphonate additives for engine oil applications to provide an optimum environment of product integration along with increasing demand for sulphonate additives bode well for segment growth

These factors are anticipated to bolster the integration of sulphonate additives in engine oil production at a CAGR of 5.8% over the decade.

Competition Landscape

Key manufacturers of sulfonate additives are Daubert Chemical Company, Eastern Petroleum Pvt. Ltd., Ganesh Benzoplast Limited, Gars Lubricants, and GOODWAY CHEMICALS PVT. LTD., JSD Limited, Lubrizol, Maxwell Additives Pvt. Ltd., MORESCO Corporation, Mount Shivalik Chemicals, Royal Castor Products Limited, Sasol, Solvay, Sonneborn, and Xinji Rongchao Petroleum Chemical Plant.

Sulphonate additive manufacturers are constantly trying to acquire new clients and are collaborating with existing customers in the engine oil and lubricants business. Moreover, they are trying to debottleneck the existing supply chain to enhance their sales of sulphonate additives.

Fact.MR has provided detailed information about the top sulfonate additive manufacturers positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion, in the recently published report.

Key Segments of Sulphonate Additives Industry Survey

• Sulphonate Additives Market by Type :

  • Alkaryl Sulfonates
  • Sodium Sulfonate
  • Calcium Sulfonate
  • Magnesium Sulfonate
  • Others

• Sulphonate Additives Market by Application :

  • Engine Oil
    • Transportation
      • Automotive
      • Marine
    • Power Tools
  • Detergent Production
  • Metalworking Fluids
  • Automatic Transmission Fluid
  • Automotive Gear Oil additives
  • Others

• Sulphonate Additives Market by Region :

  • North America Sulphonate Additives Market
  • Latin America Sulphonate Additives Market
  • Europe Sulphonate Additives Market
  • East Asia Sulphonate Additives Market
  • South Asia & Oceania Sulphonate Additives Market
  • Middle East & Africa Sulphonate Additives Market