North America Viscosity Index Improvers Market Size, Share & Trends Analysis Report By Type (Polymethacrylate, Olefin Copolymer, Polyisobutylene), By End-Users (Manufacturing, Food Processing, Mining, Construction, Power Generation) and By Country(US, Canada) Forecasts, 2024-2032

Market Overview

A viscosity index improver is a complex polymer addition that increases at high temperatures, thickening the lubricant and creating a 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 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 the 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.

North America: 992.84 million USD (2030 value); CAGR: 3.50%

Market Dynamics

Market Drivers

One of the most important areas of use for North American viscosity index improvers is the automobile sector in the United States.

North American Viscosity Index The improver market is 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 countries of the United States and Canada accounted for a total of USD 607.12 million and USD 54.41 million in the North American market in the year 2020, respectively, and are expected to grow at a CAGR of 3.6% and 2.8%, respectively, over the course of the forecast period of 2020-2028. Although, because of the contact between moving parts, particularly when they are moving at high speeds, the temperature rises, which in turn raises the temperature of the lubricant that is introduced between them and causes the lubricant to be thin. This can either lead to the lubricant evaporating or to a reduction in the performance of the machine. To guarantee that the lubricant is still functional even at higher temperatures, a number of additives, including viscosity index improvers, are added. These additives improve the lubricant's consistency and its ability to function over a wide range of temperatures.

Market Restraints

A lubricant additive known as a viscosity index improver (VII) is used to raise the viscosity index of lubricants that are generated from petroleum products. Viscosity index improver has the potential to cut emissions, save energy, and bolster the protection of a variety of different processes. In recent years, the global market for viscosity index improvers has been plagued by overcapacity, which has brought to light the industry's untapped growth potential. Despite the fact that the global market share for viscosity index improvers is still relatively high, this problem has arisen. By advertising their products' application orientation, a number of different firms are trying to raise the demand for viscosity index improver goods that are used in engine oil.

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.

Regional Analysis

The North American area is the most influential, and in 2020, it accounted for the highest percentage. The growth of the automobile sector has been consistent. It is anticipated that the demand for automotive lubricants would expand in the nation as a result of an increase in the sales of commercial vehicles, particularly light trucks and pick-up trucks used for short-distance commerce and logistics. The consumption of viscosity index improvers is expected to rise over the course of the projected period as a direct result of the continued growth of the automotive sector. In addition, a growth in the production and exports of chemicals and pharmaceuticals as well as an increase in the output of sophisticated manufacturing is anticipated to result in an increase in demand for lubricant additives such as viscosity index improvers. By the year 2028, it is anticipated that the United States would have reached roughly 815.27 million USD.

The increase in sales of commercial vehicles, particularly light trucks used for local or short-distance commerce as well as pick-up trucks and activities related to logistics, has contributed to the consistent development seen by Canada's automotive sector. As a result, it is projected that the increasing demand for vehicles in the nation would lead to an increase in the need for automotive lubricants. As a consequence of this, the growth of the market for viscosity index (VI) improvers in North America is expected to be influenced by these variables over the duration of the forecast.

Fuel additives, lubricants, and chemicals are some of the products that Chevron Oronite, a company with its headquarters in the United States, develops, manufactures, and sells. In addition to hydraulic equipment, this firm provides additive solutions for a variety of industries, including the railroad, marine, and automotive sectors, among others. The business, which sells its viscosity modifiers under the brand name PARATONE, is a significant player on the global market.

It is anticipated that the United States would continue to hold a dominant position in the regional market. The automobile sector has been showing signs of continuous expansion. It is anticipated that the rise in sales of commercial vehicles in the nation, particularly light trucks and pick-up trucks used for short-distance commerce and logistical operations, would lead to an increase in the demand for automotive lubricants in the country. Over the course of the period covered by the projection, the consumption of North America viscosity index improvers market in the sector will expand as a direct result of the continued growth of the automotive industry.

The need for lubricants in the automobile sector is being pushed forward by technical improvements as well as a movement toward vehicles with better fuel efficiency. Additionally, a growth in the production and export of chemicals and pharmaceuticals, in addition to an increase in the output of manufacturing, is anticipated to enhance the need for lubricant additives such as North America viscosity index improvers market. By the year 2029, it is anticipated that the United States will have reached around $ 940.0 Mn.

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 Viscosity Index Improvers 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.

Impact of covid-19

COVID Impact: During COVID-19, supply chain interruptions hampered the trade, causing a lack of raw materials for producers and a delay in delivering finished items in the form of blind bolts to customers. As official prohibitions around the world have been lifted, demand for blind bolts has already begun to rebound to pre-pandemic levels.

Recent Developments

In September of 2020, the Lubrizol Corporation, which is headed by the billionaire Warren Buffet, will invest US$245 million in the construction of a chlorinated polyvinyl chloride (CPVC) pipe manufacturing factory in the Dahej industrial park in the Indian state of Gujarat. The typical GI pipes that are utilised in construction projects today, including residential and commercial developments, are being considered an alternative to the new hot and cold water distribution pipes that are being considered for use in Gujarat.

The FlowGuard CPVC Processor agreement for the manufacture and sale of Prince FlowGuard Plus CPVC (Chlorinated polyvinyl chloride) pipes and fittings in India was signed in August of 2020 by Lubrizol Advanced Materials, Inc., the world's largest CPVC compound manufacturer. Lubrizol Advanced Materials, Inc. is the company that invented CPVC and is the largest manufacturer of CPVC compounds. Beginning in the month of September, Prince Pipes and Fittings Ltd. will launch the sale of FlowGuard Plus products in India.