LAMEA: 526.65 million USD (2030 value); CAGR: 2.10%
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 market for viscosity index improvers, which is essential for further success.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
LAMEA Viscosity Index Improvers market are projected to see increased demand as a result of the growing emphasis that automakers all over the world are placing on minimising their carbon footprints and maximising their fuel economy. It will lead to an increase in the manufacturing of lubricants of a higher grade, such as crankcase oil and gear lubes. Lubricants are used to reduce the amount of friction that occurs between two moving parts by introducing a thin film between the parts. This allows the lubricant to avoid coming into direct contact with the moving parts and reduces the amount of friction loss that occurs as the life of the parts increases.
The increasing difficulty in protecting patents, rising price pressure due to low growth rates in mature markets, increasing environmental requirements regarding emissions, rising costs in the production process and technology, rising costs in raw materials, and rising competition in mature markets were the rising constraints to demand. Additionally, rising costs in the production process and technology led to rising costs in raw materials.
The evolution of engine technology and the chemistry of lubricating oil has occurred over the course of the past few years as a direct result of continuous technical breakthroughs within the automobile industry. Because to this innovation, the amount of time between oil changes for heavy-duty vehicles has been extended to as much as 50,000 miles, up from the previous average of 25,000 miles. In addition, the typical amount of time between oil changes has lengthened as a result of the greater usage of cleaner fuels, superior lubricants, reliable engines, and superior filter technology. This change to the length of time between oil changes will cut down on the amount of engine oil that is used in vehicles, which is predicted to have a negative impact on the demand for LAMEA viscosity index improvers market throughout the course of the forecast period.
There are a number of uses for viscosity index improvers available on the market today that just cannot be met by using any other type of base oil. In the vast majority of instances, the industry does not offer an alternative to the viscosity index. Improver additives are used because it is impossible to locate equivalents that function in the same way or fulfil all of the quality standards at a price that is competitive. As a consequence of this, there is a growing need for viscosity index improvers in a variety of disciplines. This is due to the fact that these products are utilised in virtually every facet of the oil and gas industry, most notably in the petroleum processing and refinery sectors.
It has been observed that there are currently no high-quality synthetic alternatives available on the market that offer comparable performance benefits in terms of stabilising oils against hydrogen degradation and protection against wear. This is because there is currently no synthetic alternative that can provide these benefits.
Chile's economy is one of the fastest growing in the rest of Latin America. The manufacture of food, beverages, and tobacco products accounts for close to a third of the value contributed by the manufacturing sector. The nation has significantly improved its standing as one of the most important participants in the international food business. The food processing industry in the United States accounts for 25 percent of the economy and generates yearly sales of $34 billion. The following are some of the main food processing enterprises that are located in this area: Nestlé Chile SA, Agrosuper SA, CCU SA, Coln Ltda, Empresas Carozzi SA, and Agrcola Arizta.
In addition, after a prolonged period of decline, the building sector in Chile began to see growth again once the year 2018 passed. The introduction of a new foreign direct investment (FDI) policy has led to a rise in investments made by international players, which has been a significant contributor to the expansion of the sector. In 2019, there were construction projects in different phases of development that were valued close to $25 million combined. Because of this, there has been a rise in the need for lubricants, and therefore, there has been an increase in the demand for viscosity index improvers. In the upcoming time period, the expansion of the LAMEA viscosity index improvers market is anticipated to be fueled by the rising demand for these products.
The manufacturing industry in South Africa had the most substantial expansion in the automobile sector, which is also the country's largest manufacturing sector. Despite this, there has been a decrease in the number of sales of new vehicles over the course of the past several years. Because of this, there has been a significant drop in the number of vehicles that use lubricants. Despite this, it is anticipated that there will be an increased need for lubricants in this sector over the course of the next years.
In addition, the country is home to a number of the world's most well-known automobile producers, including Volkswagen, Ford, Toyota, Nissan, and Mercedes-Benz SA. In recent years, a significant number of these vehicle manufacturers have increased their output as well as their exports from their facilities, capitalising on the opportunities presented by the Automotive Production and Development Plan implemented by the federal government (APDP).
For example, BAIC, a vehicle manufacturer based in China, recently declared its intention to make an investment of R826 million in its assembly factory located in South Africa. It is anticipated that the market for viscosity index improvers in the nation would see development over the course of the period covered by the projection. This is due to the expanding use of lubricants in a variety of applications within the automotive sector.
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 percent between the years 2020 and 2027, the period covered by the forecast. The global market for Olefin Copolymer-based LAMEA 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 Viscosity Index Improvers 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.