Industry Outlook

Friction modifier additives market projected to exhibit the CAGR of 3.5% during the forecast period from 2021 to 2029. Friction modifier additives are mixed with lubricants to maintain oil solubility and to enable film formation between contacting surfaces. The primary function of friction modifier additives is to enhance the lubricant’s coefficient of friction to mitigate the heat and friction between the contacting surfaces, which are in relative motion. The coefficient of friction across the contacting surfaces decides the amount of friction modifier required in lubricants. Friction modifiers are also known as boundary lubrication additives. These additives are mainly bifurcated into two categories: organic friction modifiers and synthetic friction modifier.

Wide range of organic and synthetic materials such as esters, fatty acids, ethers, amide, amines, methacrylate, graphite, molybdenum disulfide, PTFE, etc. are used to modify lubricant’s coefficient of friction. These materials have a polar head and an oil-soluble tail structure. The purpose of a friction modifier varies based on the different type of applications. For example, in a combustion engine, to attain the higher fuel economy, friction modifier additives are used in high proportion, whereas, in clutches, automatic transmissions and industrial Types, the aim of using friction modifier additives is to reduce slippage while minimizing friction in order to maximize efficiency.

Rising automobile sale has resulted in the increased demand for lubricants across the globe, thereby driving the overall friction modifier additives market. Moreover, the increasing demand for friction modifiers from manufacturing economies such as China, India, and South Korea also propelling the growth of the friction modifiers market across the globe. In developed economies such as North America and Europe, strict regulations regarding the use of fuel-efficient lubricants in automotive lubricants boosting the friction modifier additives demand. Also, friction modifiers enhances formulations for improved fuel economy while meeting emission requirements in the automobile industry consequently driving the demand for friction modifier additives in these economies. However, fluctuating raw material prices, growing preferences towards electric vehicles, availability of cheaper substitutes, and shift in trend toward the usage of alternative fuel sources expected to hinder the market during the forecast period. Key players operating in the friction modifier additives market includes Lubrizol Corporation (U.S.), Chevron Oronite Company LLC (U.S.), Infineum International Limited (U.K.), Croda International PLC (U.K.), Afton Chemical Corporation (U.S.), and BASF SE (Germany) among others.

"Inorganic Segment Dominated the Friction Modifier Additives by Type Market"

Inorganic segment expected to lead the friction modifiers market during the forecast period, in terms of value and volume both and expected to maintain its dominance during the forecast period. Growth of this segment can be attributed to the outstanding performance at lower price as compared to organic friction modifiers. Low price, ease of availability, and widespread use in various applications are some of the factor boosting the segment growth.

Organic friction modifier additives segment is identified as the fastest growing segment with the CAGR of 4.0%, owing to unique frictional characteristics in a wide range of engine oils. Organic friction modifier additives segment includes fatty acids, esters & amides, and functional polymers.

"Growing Transportation Industry Driving Transportation Lubricant’s Demand, Thereby Fueling the Friction Modifier Additives Market"

Transportation lubricants segment accounted for more than 70% of friction modifier additives market demand in 2020. Transportation lubricants segment is further categorized into commercial vehicle lubricants, passenger vehicle lubricants, aviation lubricants, and marine lubricants.

Passenger vehicle lubricants sub-segment market is projected to grow at the highest CAGR between 2021 and 2029 owing to surge in passenger vehicle sale across the globe.

Industrial lubricants segment includes hydraulic oil, gear oil, compressor oil, metalworking fluid and others. Continuous industrialization and growth in the manufacturing sector especially in Asia-Pacific and Middle East & Africa region coupled with emergence of automation in manufacturing sector creating immense opportunities for industrial lubricants which in turn fuelling the demand for friction modifier additives to improve the performance of industrial lubricants.

"Burgeoning Automotive and Manufacturing Sector in Asia-Pacific, Making It the Leading Region"

Asia Pacific held the largest share of friction modifier additives market, followed by North America and Europe in 2020. Asia Pacific is also expected to be the fastest growing market with the CAGR of 4.2% during the forecast period. Asia-Pacific is the world’s manufacturing hub for cement, metal, chemical, and automotive.

After a period of sluggish growth between 2011 and 2013, the automotive sale has regained momentum in Asia-Pacific region. Countries such as China and India have witnessed a significant growth in the sale of automotive from 2013 to 2020, and this trend is expected to continue in coming years, which in turn will propel the demand for lubricants in automotive industry. Hence, the use of friction modifier additives will continue to grow between 2021 and 2029.

"Expansion and New Product Development are Preferred Strategy Adopted by Key Players in Friction Modifier Additives Market"

The competitive rivalry is quite high in friction modifier additives market due to the presence of large number of big players. Majority of the key players present in the market are considerably high on business strength consequently leading to high competition. Market players such as Lubrizol Corporation, Afton Chemical Corporation, and Croda International PLC dominate the market with its high business strength and strong product offering across the globe. Market players are striving to develop new sustainable solution to cater varying customer needs. However, expansion is the preferred strategy adopted by key players to strengthen their market presence and get an edge over other players. For instance, In January 2020, Global petroleum additive specialist, Afton Chemical Corporation inaugurated its China Technology Center located in Suzhou to cater customer base in the region by delivering differentiated solutions that are designed and proven to meet the unique and demanding needs of the Chinese market. Key manufacturers of friction modifier additives market includes Lubrizol Corporation, Afton Chemical Corporation, Infineum International Limited, Chevron Oronite Company LLC, Croda International PLC, BASF SE, and Chemtura Corporation among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Friction Modifier Additives market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Friction Modifier Additives market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Friction Modifier Additives market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Friction Modifier Additives market?
• Which is the largest regional market for Friction Modifier Additives market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Friction Modifier Additives market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Friction Modifier Additives market worldwide?