The viscosity index improver market size is estimated to be US$ 4.06 billion in 2024. The industry is projected to touch US$ 5.39 billion by 2034, exhibiting a CAGR of 2.9% from 2024 to 2034. The VII industry growth is driven by the adoption of electric vehicles and the potential evolution in emerging economies.
Consumption Analysis of Viscosity Index Improver
The viscosity index measures a liquid's resistance to flow and temperature changes. Improved lubricants use high molecular polymers to thicken lubricants, increasing the consumer base for VII applications in the metal manufacturing sector.
The demand for viscosity improvers is prevalent for enhancing lubricant protection at high and low temperatures as well as reducing seasonal changes. It also extends mineral oil's lubricating properties over a wider temperature range.
The industry is anticipated to develop due to the demand for high-performance lubricants and industrial growth in developing countries. The VII industry's proliferation prospect varies regionally, mainly influenced by aspects such as industrialization, value-added manufacturing, macroeconomic changes, and demographic changes.
The automotive industry heavily relies on lubricants to control engine friction, protect against rust, cool pistons, and protect engine oil from combustion gases. Because of an increase in automobile sales, especially in Asia Pacific, lubricant additives known as viscosity index improvers, aka VIIs, are used to improve the quality and performance of motor oil.
VIIs improve the viscosity-temperature characteristics of lubricating oils. These lessen viscosity variations with temperature changes for the best lubrication under varied circumstances.
| Attributes | Details |
|---|---|
| Value in 2024 | US$ 4.06 billion |
| Value by 2034 | US$ 5.39 billion |
| Forecast CAGR for 2024 to 2034 | 2.9% |
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Demand has historically developed at a CAGR of 2.3%. However, sales have started to progress at a slightly better pace, displaying a CAGR of 2.9% from 2024 to 2034.
| Attributes | Details |
|---|---|
| Historical CAGR for 2019 to 2023 | 2.3% |
The global pandemic has disrupted businesses, causing a drop in demand and lockdown regulations. However, the viscosity index improvers industry is anticipated to develop steadily due to increased consumption. As they have a direct impact on the entire lubricant cost structure, crude oil prices have a substantial effect on the cost of manufacturing base oils, especially viscosity index improvers.
The pricing strategies and manufacturing costs of viscosity index improvers are impacted by fluctuating crude oil prices, which also influence lubricant manufacturers and end users. Geopolitical factors and the state of the world economy also influence price volatility.
The viscosity improver sector is helmed by the elevated demand for high-performance lubricants with proper viscosity, divined to provide prospects in the automotive and industrial sectors.
Manufacturers in the VII sector are extending their operations due to the increasing demand for high-quality lubricants that function at varied temperatures. This ensures proper machine operation and longevity.
Environmental consciousness encourages bio-based viscosity improvers, utilizing renewable sources like vegetable oils and esters to enhance lubricant performance and support eco-friendly initiatives.
Principal Consultant
Widespread Electronic Automotive Industry Demand for Viscosity Improvers
The automotive industry compels the viscosity index improvers sector as global vehicle production demands high-quality lubricants with effective viscosity index improvers. The production of electric cars (EVs) necessitates the use of specialty lubricants containing VIIs, which are vital for components like bearings and gears in EVs.
Modern engines, designed for high-performance vehicles, use engine oils with viscosity improvers to maintain constant lubrication over a wide temperature range. For instance, multigrade oils like 5W-30 or 10W-40 to maintain the right viscosity at both high and low temperatures use VIIs, enhancing engine protection.
The automotive industry's focus on fuel efficiency, emission reduction, and advanced powertrain development is driving a rising demand for lubricants with efficient viscosity index improvers.
Industrialization to Boost Uptake of VIIs
The development of various sectors, a significant consumer of viscosity lubricants, is mainly propelled by the infrastructural improvements of emerging economies. On top of that, the widespread use of hydraulic fluid for heavy-load equipment lubrication supports this growth.
Industrial oil and grease manufacturers are eyeing promising revenue opportunities in the automotive and metalworking sectors. This is owing to the high durability, corrosion protection, and electrical resistance offered by their products.
The viscosity improver industry is poised for growth thanks to the increasing adoption of advanced technologies such as AI and automation in end-use industries like food processing and metal manufacturing. This trend is leading to enhanced machine usage, creating demand for viscosity improvers.
Nanoparticles and Copolymer Blends Intensify the Demand for Oil Additives
Manufacturers in the oil and lubricant industry are developing engine oils with nanoparticles to reduce cold-start engine damage, enhancing vehicle efficiency and performance in light-duty industries. Industry experts estimate that by 2027, the viscosity index improvers demand for automotive is anticipated to produce nearly 1,004 kilotons of engine oil.
Manufacturers are introducing Nano-lubricant oils containing MWCNT and ZnO nanoparticles. These significantly reduce viscosity, preventing damage during cold start conditions.
Automotive manufacturers are developing hydrogenated styrene-isoprene (HSD) copolymers to improve thermal oxidation stability in engines. This development is influencing the growing demand for HSD copolymers in long-span multistage internal combustion engine oil.
The following section compares the viscosity index improver market to the lubricant additive market and industrial lubricant market, examining trends, opportunities, and CAGR from 2024 to 2034.
Viscosity Index Improver Market:
| Attributes | Viscosity Index Improver Market |
|---|---|
| CAGR (2024 to 2034) | 2.9% |
| Opportunity | Players can experiment with novel industrial greases |
| Key Trends | Rise in automotive engine usage |
Industrial Lubricant Market:
| Attributes | Industrial Lubricant Market |
|---|---|
| CAGR (2024 to 2034) | 4.4% |
| Opportunity | Makers can develop novel consumer bases in different industries |
| Key Trends | High investment in research and development |
Lubricant Additive Market:
| Attributes | Lubricant Additive Market |
|---|---|
| CAGR (2024 to 2034) | 4.8% |
| Opportunity | Players can provide novel products with high-quality soluble |
| Key Trends | Rising demand for high-performance passenger cars |
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Comprehensive assessments of segments of the viscosity index improver market are provided in the section that follows. While there is substantial demand for ethylene-propylene copolymer, there is projected to be an uptick in the requirement for vehicle lubricants in 2024.
| Attributes | Details |
|---|---|
| Top Product Type | Ethylene Propylene Copolymer (OCP) |
| Industry Share in 2024 | 30.4% |
OCP is set to hold a 30.4% industry share in 2024 due to augmented applications in multiple industries. Ethylene propylene copolymers are gaining popularity in various industries, including automobile parts, industrial components, and elements, showcasing their versatility and adaptability.
The VII market is shifting towards bio-based OCPs due to sustainability and environmental regulations, corresponding with the increasing demand for eco-friendly materials across various industries. OCP production is being affected by supply chain disruptions, plant shutdowns, and fluctuating crude oil prices, necessitating effective management to maintain industry supply stability.
Manufacturers in Asia Pacific are experiencing significant economic growth, a growing middle-class population, and a thriving automotive industry. This is compelling the demand for ethylene propylene copolymers (OCP).
Demand for vehicle lubricants is augmenting, and it is leading the industry with a share of 51.6% in 2024. Although multi-grade vehicle lubricants may be created without VIIs, VIIs are polymer additives that help bring viscosity variances closer together.
| Attributes | Details |
|---|---|
| Top Application | Vehicle Lubricants |
| Industry Share in 2024 | 51.6% |
Vehicle lubricants, typically oil or grease, are essential for various applications, and understanding their functions and functions is vital for effective use. Vehicle lubricants reduce friction, eliminate wear, and transmit power. Common additives include viscosity index improvers, dispersants, and friction modifiers, improving performance and performance.
The automotive industry heavily relies on engine oil as a lubricant. This is leading to increased demand for vehicle lubricants due to rising production and fleet size. Such a trend is desired to boost growth in the future.
Based on the statistical data, industries in the United States and the United Kingdom are set to develop at a relative pace in the upcoming decade. Simultaneously, the VII industry in China and India is on track to hit the roof. The viscosity improvers sector in Spain is anticipated to climb gradually in the upcoming decade.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| United States | 1.6% |
| Spain | 2.2% |
| China | 3.2% |
| India | 4.3% |
| United Kingdom | 1.1% |
A CAGR of 1.6% is anticipated for the United States viscosity index improver market as the auto sector has been growing steadily. The need for automotive lubricants is foreseen to rise as more people buy commercial vehicles, especially light trucks and pick-up trucks. Hence, the United States is likely to continue to lead the regional industry
The need for lubricant additives such as viscosity index improvers is predicted to rise in response to increasing industrial output, greater exports of chemicals and pharmaceuticals, and developed manufacture of these goods. Future growth in the automotive sector is anticipated to result in higher lubricant usage.
Demand for viscosity improvers in Spain is estimated to develop at a CAGR of 2.2%, with auto manufacturers developing novel applications. VII additives are essential in power generation equipment, including hydraulic and turbine lubricants for specific oils, coal-fired power plants, and greases for wind and hydropower plants in Spain.
Spain's automobile sector is vital for economic growth, with OEMs prioritizing high-margin models like trucks to maintain profitability. This shift is influencing the use of high-performance lubricants in manufacturing processes.
China is on the brink of an expansion in the viscosity index improver market, with a projected CAGR of 3.2% from 2024 to 2034. Asia Pacific is experiencing a significant rise in VII industry share due to China's industrialization and infrastructure development. This has resulted in an increased demand for high-strength lubricants.
China dominates the demand for viscosity index improvers due to rising per capita disposable income and a large on-road vehicle fleet in developing economies. These factors make it a leading producer and consumer of these products.
China's urbanization of machinery is anticipated to compel lubricant demand. This is prompted by increased global consumption of viscosity improvers and the adoption of complex machinery.
The United Kingdom viscosity index improver market is projected to register a CAGR of 1.1% by 2034. This is due to its bolstering businesses and its demand for industrial lubricants. The country is predicted to experience significant growth in Europe’s industry due to the rise in high-performance engines. This necessitates the use of lubricants with appropriate viscosity, which impacts factors like wear, contamination tolerance, and energy consumption.
Lubricants are utilized in various industries like oil and gas, automotive, metal fabrication, power transmission, chemicals, and manufacturing. United Kingdom industrialization and new sectors are anticipated to compel the growth of viscosity improvers.
Demand for viscosity index improvers in India is foreseen to experience a CAGR of 4.3% from 2024 to 2034. India's rapid economic development and disposable income make it a lucrative souk for the lubricating industry.
India's high lubricating oil consumption is primarily due to the growth of industrial production, commerce, and automobiles. Increasing investments in the industrial sector also contribute to the country's growing demand for lubricating oil.
Government regulations and environmental sustainability policies in India are influencing the industry for lubricating oil additives. This is anticipated to increase demand in the forthcoming decade.
New contestants in the industry are innovative disruptors, continuously investing in research and development to provide more convenient solutions to industry verticals despite being new players.
Manufacturers, in response to the increasing demand for viscosity improvers, have strategically shifted their focus to emerging regions in recent years. This move not only meets the demand but also opens up new growth opportunities. Several key players are also focusing on increasing their production capacities, new product launches, research and development, and mergers and acquisitions.
The industry is competitive, with some companies focusing on online sales. Small-scale companies are pivotal players, transforming inputs into outputs and adapting to industry uncertainties. Numerous start-ups are involved in manufacturing and providing related services, contributing to the industry's dynamism. They are also catalysts for growth and expansion in the lubricant additives industry.
Recent Developments in the Viscosity Index Improver Market
The industry can be classified into polymethacrylate (PMA), ethylene propylene copolymer (OCP), hydrostyrene diene copolymer (HSD), polyisobutylene (PIB), and others.
Viscosity index improvers find applications as vehicle lubricants, industrial lubricants, and transmission fluids.
The industry is examined throughout key regions, including North America, Latin America, Europe, East Asia, South Asia, and Oceania, as well as the Middle East and Africa.
The industry is valued at US$ 4.06 billion in 2024.
The industry will be valued at US$ 5.39 billion by 2034.
In the United States, demand is anticipated to develop at a CAGR of 1.6%.
The industry is to register a CAGR of 2.9% from 2024 to 2034.
Polymethacrylate, polyisobutylene, hydro styrene diene copolymer, and ethylene-propylene copolymer are used as viscosity index improvers.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Application 6.3. Region 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type 7.1. Polymethacrylate (PMA) 7.2. Ethylene Propylene Copolymer (OCP) 7.3. Hydrostyrene Diene Copolymer (HSD) 7.4. Polyisobutylene (PIB) 7.5. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application 8.1. Vehicle Lubricants 8.2. Industrial Lubricants 8.3. Transmission Fluids 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. East Asia 9.6. South Asia and Pacific 9.7. Middle East and Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Product Type, and by Application for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. The Lubrizol Corporation 19.2. Infineum International Limited 19.3. Chevron Oronite Company LLC 19.4. Evonik Industries AG 19.5. Afton Chemical Corporation 19.6. BASF SE 19.7. Sanyo Chemical Industries 19.8. Croda International Plc 19.9. Lanxess AG 19.10. Mitsui Chemicals, Inc. 19.11. Shenyang Great Wall Lubricating Oil Manufacturing Co., Ltd.
Chemicals & Materials
September 2017
REP-GB-1656
August 2023
333 pages
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Viscosity Index Improver Market
