Europe Viscosity Index Improvers Market

Market Overview

The Europe  region is expected to reach 954.10 million USD by 2030 with a CAGR of 2.50% in Europe Viscosity Index Improvers Market.

A viscosity index improver is a complex polymer addition that increases at high temperatures, thickening the lubricant and more stable and consistent viscosity. It guarantees that the lubricant protects the equipment completely at low and high temperatures. Viscosity Index (VI) improvers are chemical compounds commonly added to lubricants to avoid thinking, i.e. reduction in viscosity of the lubricant with increasing temperature and provide constant performance at varied temperatures. Viscosity Index improvers are polymeric molecules that expand as the temperature rises. The internal friction between fluid molecules rises as the molecules stretch out, causing the fluid to flow slower and ultimately raising the viscosity.

The intrinsic reluctance of a liquid to flow is referred to as the liquid's viscosity. In addition, the viscosity index describes how a liquid reacts when its temperature is changed (often between 40 and 100 degrees Celsius). If a lubricant has a significant shift in its viscosity when subjected to a range of temperatures, then we classify it as having a low viscosity index. Viscosity index improvers are polymers that are combined with a lubricant in order to produce a substance that is resistant to changes in its viscosity as a result of an increase in temperature.

On the worldwide market for viscosity index improvers, some of the most important product types that are now accessible are polyisobutylene, polymethacrylate, and olefin copolymer. In addition to this, their goods are being utilised in a wide variety of end-use sectors, including the off-road vehicle business, the industrial machinery industry, and the automobile industry. Because of the product's widespread applicability, there are now a number of interesting business prospects available in the market for viscosity index improvers.

Lubricants are compounds that are used to reduce the amount of friction that exists between two surfaces. As a result, lubricants give wear protection to surfaces and increase the operating efficiency of a system. As a result, lubricants contribute to longer runtimes for machines and prevent the wear and tear that occurs on machine parts. Viscosity index improvers are becoming increasingly popular since they are an essential component of each batch of lubricant additives. This is due to the fact that they have the capacity to assist in the preservation of viscosity even when lubricants are subjected to high operating temperatures. As a result, it is anticipated that an increase in the use of lubricants will drive the demand channels in the market for viscosity index improvers in the years to come.

The rate of urbanisation is increasing in a number of emerging nations, including those that make up BRICS. Because of this feature, the worldwide market for viscosity index improvers is seeing significant prospects for expansion. Additionally, the growth of a number of industries in these countries, such as the automotive industry, the energy industry, and the industrial equipment industry, is anticipated to boost the sales of lubricants along with their additives, which may include viscosity index improvers.

Companies that are active in the market for viscosity index improvers are becoming more interested in research and development initiatives. The primary goal of these investigations is to enhance the general quality of their wares in some way. In addition, companies that compete in the market for viscosity index improvers are engaging in a variety of business tactics, including mergers, acquisitions, partnerships, and collaborations. These initiatives are assisting businesses in maintaining their leading position in the viscosity index improvers market, which is essential for further success.

Market Dynamics

Drivers

The aerospace sector in Italy has the fourth position in the European area and the seventh position in the globe, with an annual turnover of close to $20 billion on average. In addition to that, the country is a significant producer of high-tech integrated systems. According to information provided by the Italian Aerospace Industry Federation (AIAD), the majority of the country's aerospace manufacturing companies may be found in a few of specific regions. These regions include Lombardy, Piedmont, Puglia, Lazio, Umbria, and Campania.

As a result of safety concerns, Italy is concentrating its efforts on the replacement of approximately 200 Boeing 757 and 767 aircraft. These kinds of ambitions have created new prospects for expansion for manufacturing companies like Boeing and Airbus. In light of the promising possibilities for the foreseeable future, Boeing has decided to construct a new aircraft. On the other hand, Airbus is working on producing an improved version of its A321 and a larger version of its A330neo.

Because of this, it is anticipated that there will be a rise in the use of lubricants, which will, in turn, contribute to the expansion of the Europe viscosity index improvers market in the not too distant future. In addition, the nation is in the process of recuperating from the aftereffects of the epidemic, and the government is also making plans to strategically manufacture industrial goods. These elements are also anticipated to have an impact on the expansion of the market that was analysed throughout the time that was forecast.

Restraints

The proliferation of the pandemic has recently had a substantial impact on the growth prospects of the aircraft sector. This is due to the fact that the epidemic is still ongoing.

In order to increase the viscosity index of lubricants that are produced from petroleum products, a lubricant additive that is known as a viscosity index improver (VII) is often utilised. It is possible for viscosity index improver to reduce emissions, save energy, and enhance the protection of a number of various operations. In recent years, the worldwide market for viscosity index improver has been afflicted by overcapacity, which has brought to light the sector's untapped development potential. In addition, this overcapacity has brought to light the untapped growth potential of the industry. This issue has surfaced in spite of the fact that the worldwide market share for viscosity index improver is still quite high. The demand for viscosity index improver products, which are used in engine oil, is being attempted to be increased by a number of different companies. These companies are doing this by advertising the application orientation of their products.

The increasing difficulty of protecting patents, rising price pressure as a result of slow growth rates in mature markets, increasing environmental requirements regarding emissions, rising costs in the production process and technology, rising costs in raw materials, and increasing competition in mature markets were the rising constraints to demand. In addition, increasing expenses in the production process and technology led to an increase in the price of raw materials.

Because of the rise in popularity of high-performance engines, there has been a corresponding increase in demand for high-performance lubricants with the proper viscosity. Viscosity has an effect on many different significant factors, including as wear, the amount of contamination that may be tolerated, and energy consumption. Lubricants have widespread use throughout many different sectors, such as the oil and gas industry, the automobile industry, the metal and fabrication industry, the power and energy transmission industry, the chemical industry, and general manufacturing.

Transmission oil, process oils, metalworking fluids, drilling fluids, and other types of fluids are all examples of lubricants that are utilised in the aforementioned fields. As a result of their widespread application in industrial settings, Europe viscosity index improvers market are anticipated to see significant expansion as a result of rising levels of industrialization and the establishment of new businesses in Russia.

Regional Analysis

It is anticipated that the market would expand at a compound annual growth rate of 2.5% from 2020 to 2028. During the time covered by the projections, it is anticipated that Russia would see economic expansion at a rate much higher than that of the European market. There has been a growth in the usage of high-performance engines, which has led to an increase in the need for lubricants that are high-performance and have the appropriate viscosity. Viscosity has an effect on a number of important aspects, such as wear, contaminant tolerance, and energy consumption. Using lubricants is common practise in the following industries: oil and gas, automotive, metal and fabrication, power and energy transfer, chemicals, and general manufacturing. Transmission oils, process oils, metalworking fluids, drilling fluids, and other types of lubricants are utilised in these many sectors. It is anticipated that the expansion of manufacturing in Russia, as well as the introduction of new programmes and policies, will drive the growth of viscosity index improvers, which are used in the market.

The economy of Germany is the largest in Europe and the fifth largest economy in the world. It is one of the most significant users of lubricants in the surrounding area. It is anticipated that the need for automotive lubricants would increase in the country as a consequence of the steady growth in automotive sales and production, which is a direct outcome of the increased demand for luxury automobiles. It is anticipated that expansion in the food and beverage sector, as well as a rise in the production of transportation equipment and machinery, will both contribute to an increase in the demand for and consumption of industrial lubricants. As a result of this, it is projected that the viscosity index improvers market in Germany would expand at a healthy rate over the next several years.

Croda International Plc is a business that specialises in the production and distribution of specialised chemicals. A variety of humectants, cellulose derivatives, synthetic waxes, surfactants, and polymeric emulsifiers are all part of the product catalogue offered by this business. Croda provides goods in the following categories: polymers and coatings; lubricants; healthcare and nutrition; personal care; home care; textiles; agrochemicals; fibres; and general industrial uses. Goole, which is located near Snaith, East Yorkshire, is the location of the company's headquarters, which was established in 1925.

Infineum is a multinational company with its headquarters in the United Kingdom that specialises in the formulation, manufacture, and marketing of petroleum additives for use in lubricants as well as fuels. The additive products that the firm focuses on include those that are employed in the automotive industry, diesel fuels, marine engine oils, heavy-duty diesel, and speciality applications. These applications include industrial oils and transmission fluids. Shell and ExxonMobil are the two companies that started the joint venture that is now known as Infineum.

Segmental Analysis

The Olefin Copolymer Segment has been the most dominant in the market, and it is anticipated to develop at a high compound annual growth rate of 3.7% between the years 2020 and 2027, the period covered by the forecast. The global market for Olefin Copolymer-based Europe Viscosity Index Improvers market is witnessing rising demand as a result of the widespread usage of these products in a variety of industrial and automotive applications. Due to an increase in demand for lubricants from end-user sectors such as automotive, construction, and others, it is anticipated that the global market for Olefin Copolymer-based Viscosity Index Improvers would expand during the period covered by the projection. According to the findings of the SMR study, the worldwide Olefin Copolymer-based Viscosity Index market will expand as a result of technical advancements and product innovations in the near future. The grade of Olefin Copolymer-based Europe Viscosity Index Improvers market is frequently utilised in the process of lubricating oil formulation. This is due to the grade's stability as well as its resistance to thermal breakdown. Additionally, because there is less friction between moving elements, it helps to enhance the efficiency of the vehicle's fuel consumption.

Recent Developments

The acquisition agreement to buy Botanica, a Swiss manufacturer of plant extracts, was signed by Evonik in October 2021, and it was anticipated that the transaction would be finalised in November of that same year. Botanica, a European company with offices in Switzerland, France, and Germany, is a market leader in the production of sustainable botanical extracts for the personal care sector.

In March of 2019, Evonik Industries introduced a whole new business line focusing on oil additives. The specialist methacrylate monomers of the company were included into the oil additives business line that was already in existence. Evonik Industries is going to integrate its new business line with its resource efficiency sector in order to create a new oil additives business line. The purpose of this merger is to increase the manufacturing capacity of the firm as well as its technical productivity.

The capacity of the petroleum additives factory will be expanded as a result of investments made by Evonik Industries AG between April 2017 and July 2019. Viscosity modifiers that are based on polyalkyl methacrylate (PAMA) will have their production capacity increased by the corporation by fifteen percent in the near future.