Driveline Additives Market Size Report, Industry Share, Analysis, Growth, 2030

Driveline Additives Industry Prospective:

The global driveline additives market size was evaluated at $9.11 billion in 2022 and is slated to hit $15.11 billion by the end of 2030 with a CAGR of nearly 7% between 2023 and 2030.

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Driveline Additives Market: Overview

Driveline additives are devised to enhance vehicle performance in terms of fuel conservation as well as the longevity of the vehicles. For achieving maximum lubrication, the use of driveline additives is necessary in automobiles. These products when added to transmission fluid formulations reduce friction and annihilate heat. Furthermore, driveline additives such as high-pressure anti-corrosive additives are utilized for preventing downtime or device failure due to scuffing, spalling, wear & tear, and scoring. These products shield & safeguard the vehicles from heat degradation, foams, and copper rusting.

Key Insights

• As per the analysis shared by our research analyst, the global driveline additives market is projected to expand annually at the annual growth rate of around 7% over the forecast timespan (2023-2030)
• In terms of revenue, the global driveline additives market size was evaluated at nearly $9.11 billion in 2022 and is expected to reach $15.11 billion by 2030.
• The global driveline additives market is anticipated to grow rapidly over the forecast timeline owing to escalating consumer preference for the buyout of energy-conserving automobiles along with on-road as well as off-road application of driveline additives.
• In terms of product, the transmission fluid additives segment is slated to register the highest CAGR over the analysis period.
• Based on vehicle, the passenger vehicles segment is projected to record a massive surge in the coming years.
• Region-wise, the European driveline additives industry is expected to register the fastest CAGR during the assessment timeline.

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Driveline Additives Market: Growth Factors

Growing demand for low fuel consumption in vehicles to boost the global market surge by 2030

Escalating consumer preference for the buyout of energy-conserving automobiles along with on-road as well as off-road application of driveline additives will boost the market expansion over the ensuing years. Apart from this, strict execution of fuel emission norms will augment the expansion of the global market over the forecast timeline. An increase in automotive manufacturing and globalization will aggrandize the scope of the business over the forthcoming years.  

Furthermore, an increase in the proportion of gears in manual broadcasts will propel the expansion of the market in the years to come. In addition to this, strategic partnerships among the vehicle device producers and lubricant & additive dealers along with large-scale fund allocation for research activities will propel the global market expansion in the next couple of years. New product launches and the establishment of new production units are slated to make lucrative contributions to the global market size in the upcoming years. For instance, in May 2018, The Lubrizol Corporation, a key U.S.-based firm providing specialty chemicals for consumer, transport, and specialty chemicals sectors, established a new additive production unit in China aimed at expanding its presence in the Asia-Pacific region and as a part of its long-term investment initiative.

Driveline Additives Market: Restraints

Financial instability minimizing vehicle production can put brakes on the global industry expansion over the forecast period

Economic downturns can result in a reduction in automotive production, low customer expenditure on vehicle maintenance, and a slowdown in aftermarket, thereby restricting the growth of the global driveline additives industry. Oscillations in the raw component costs can decimate the expansion of the global industry in the upcoming years.

Driveline Additives Market: Opportunities

Rise the need for improving fuel efficiency in automotive to expand the scope of the global market demand over 2023-2030

A surge in fuel prices and a rise in the customer preference for enhancing the fuel efficacy of automobiles are predicted to open new growth avenues for the global driveline additives market. Apart from this, strict enforcement of emission norms globally will further steer the expansion of the market globally. Product innovations will translate into huge market elevations in the years ahead. 

Driveline Additives Market: Challenges

Less knowhow about the product benefits among the consumer can prove as a big challenge for the global industry

Lack of awareness about the benefits of the product among the customers has made them hesitant towards product acceptance, thereby posing a huge challenge for the global driveline additives industry. Restricted use of the product due to strict legislation over product use in some of the emerging economies can further stagnate the expansion of the industry in the years ahead.

Driveline Additives Market: Segmentation

The global driveline additives market is sectored into vehicle, product, additive, and region.                   

In product terms, the global driveline additives market is segregated into gear oil additives, transmission fluid additives, and others segments. Furthermore, the transmission fluid additives segment, which acquired approximately half of the global market share in 2022, is prognosis to register the fastest rate of growth in the next couple of years. The growth of the segment during the assessment timeframe can be attributed to the surging focus of OEMs on fuel conservation along with the escalating acceptance of new technologies such as dual-clutch by firms.  

Based on the additive, the global driveline additives industry is sectored into passenger vehicles, commercial vehicles, and off-highway vehicles segments. Moreover, the passenger vehicles segment, which accumulated the largest share of the global industry in 2022, is predicted to dominate the segmental space in the upcoming years. The expansion of the segment in the ensuing years can be owing to a rise in the use of driveline additives in lubricants used massively in the lubrication of passenger cars.

Based on the vehicle, the driveline additives market globally is bifurcated into dispersants, viscosity anti-wear agents, index improvers, emulsifiers, friction modifiers, corrosion inhibitors, detergents, antioxidants, and others segments.

Driveline Additives Market: Report Scope

Driveline Additives Market: Regional Insights

Asia-Pacific is predicted to maintain its dominant position in the global Driveline Additives market over the prognosis timespan

Asia-Pacific, which amassed nearly three-fourths of the global driveline additives market revenue share in 2022, is predicted to dominate the regional landscape in the upcoming years. Additionally, the regional market expansion over the years ahead can be attributed to an increase in the population base and swift industrialization along with the flourishing automotive sector in countries such as Malaysia, South Korea, India, and Thailand will steer the regional market trends. Apart from this, strict implementation of regulations for regulating volatile organic compound emissions will embellish the growth of the market in the region.  

The European driveline additives industry is set to register the highest CAGR in the ensuing years subject to the presence of key players in the European countries such as Germany, France, Spain, Italy, and the UK. Apart from this, a prominent increment in the use of products in the various end-use industries will proliferate the industry size in the continent.

Driveline Additives Market: Competitive Space

The global driveline additives market profiles key players such as:

• Vanderbilt Chemicals LLC
• Evonik Industries
• VPS Lubricants
• Afton Chemical Corp.
• BASF SE
• Infineum International Ltd.
• Chevron Oronite Company
• Lubrilic
• The Dow Chemical Company
• The Lubrizol Corporation
• International Petroleum and Additives Company Inc.
• Petroleum Chemicals LLC
• AB Petrochem Pvt Ltd.
• BRB International B.V.

The global driveline additives market is segmented as follows:

By Vehicle

• Commercial Vehicles
• Passenger Vehicles
• Off-Highway Vehicles

By Product

• Transmission Fluid Additives
• Gear Oil Additives
• Others

By Additive

• Viscosity Index Improvers
• Corrosion Inhibitors
• Dispersants
• Anti-Wear Agents
• Detergents
• Antioxidants
• Emulsifiers
• Friction Modifiers
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa