Viscosity Index Improvers Market

Market Overview

Viscosity Index Improvers Market size was accounted for USD 3,451.4 Million in 2020 and expected to reach USD 4,552.9 Million by 2028.

A viscosity index improver is a complex polymer additive that grows at high temperatures, thickening the lubricant and more stable and consistent viscosity. It ensures that the lubricant protects the equipment completely at low and high temperatures. Viscosity Index (VI) improvers are chemical compounds typically added to lubricants to prevent thinking, i.e. decrease in viscosity of the lubricant with increasing temperature and ensure consistent performance at varying temperatures. Viscosity Index improvers are polymeric molecules that grow as the temperature rises. The internal friction between fluid molecules increases as the molecules stretch out, causing the fluid to flow slower and ultimately increasing the viscosity.

Market Dynamics

Increasing Focus on Improving Pollution index and Fuel Efficiency

The increasing focus of automakers worldwide on reducing carbon footprints and improving fuel efficiency is expected to drive demand for Viscosity Index Improvers. It will boost the production of high-quality lubricants like crankcase oil and gear lubes. Lubricants are used to reduce friction between two moving parts by introducing a thin film to avoid direct contact with the moving parts and reduce friction losses as the life of the parts increases.

In North America, the U.S. and Canadian countries are accounted for USD 607.12 Million and USD 54.41 Million in 2020, with a CAGR of 3.6% and 2.8 % during the forecast period of 2020-2028, respectively. Although due to the contact of moving parts, especially at high speeds, the temperature increases, which increases the temperature of the lubricant introduced between them and causes the lubricant to be thin, which can lead to evaporation of the lubricant or reduced performance. To ensure that the lubricant remains effective even at higher temperatures, various additives, including viscosity index improvers, are added to increase the consistency and effectiveness of the lubricant at various temperatures. 

Lubricants are used extensively in automotive and industrial applications, and the quality of the lubricant determines the lifespan of the mechanical components used in the industry. Because of the large capital investments, companies make in this continuous-operation machinery, preventive measures, corrective maintenance, and breakdown maintenance are required.

Increasing Costs in Production Process and Technology

Viscosity index improver (VII) is a lubricant additive used to increase the viscosity index of petroleum-derived lubricants. Viscosity index improver can reduce emissions, save energy, and strengthen the protection of various mechanisms. Although the global market share of the Viscosity index improver is still relatively high, it has suffered from overcapacity in recent years, drawing attention to the Viscosity index improver industry's development potential. Many companies are attempting to increase the demand for Viscosity index improver products in engine oil by promoting their application orientation.

Rising costs in the production process and technology, rising costs in raw materials, rising competition in mature markets, environmental requirements regarding emissions, increasing difficulty in protecting patents, and rising price pressure due to low growth rates in mature markets were the rising constraints to demand.

Drivers

1. Increasing demand for high-performance lubricants
2. Increase in global automobile sales

Restrains

1. Mechanical shearing sensitivity
2. Long duration of engine oil drain intervals

Opportunities

1. Increasing investment in research and development
2. Rapid ongoing industrialization in the world's developing economies
3. Increasing demand for fuel-efficient vehicles

Challenges

1. Issues Concerning the Disposal of Spent Lubricants t Dynamics Key Points

Long Engine Oil Drain Intervals

Over the last few years, ongoing technological advancements in the automotive industry have resulted in the evolution of engine technology and lubricant oil chemistry. The advancement has increased the engine oil drain interval for heavy-duty trucks from an average of 25,000 miles to as much as 50,000 miles. Furthermore, the increased use of cleaner fuels, superior lubricants, dependable engines, and superior filter technology has increased the average oil drain interval. This increase in the oil drain interval will reduce engine oil consumption in automobiles, and it is expected to limit demand for viscosity index improvers over the forecast period.

Lack of Strong Substitute

There are several applications for viscosity index improvers on the market that any other base oil cannot replace. And in most cases, there is no industry option to replace viscosity index Improver additives due to the impossibility of finding substitutes that work equally well or meet all quality specifications at a competitive price. As a result, the demand for viscosity index improvers is increasing in various fields because they are used in almost every aspect of the oil and gas industry, particularly in the petroleum processing and refinery segments.

It has been noted that there are currently no high-quality synthetic alternatives available on the market that provide comparable performance benefits in terms of stabilizing oils against hydrogen degradation and protection against wear.

An oil-soluble chain polymer with a weight-average molecular weight ranging from 10000 to 500000 is the main component of Viscosity Index Improvers. It works by causing changes in the dissolved state of oil-soluble polymers in lubricating oils.

At high temperatures, the polymer's solubility in lubricating oil is high, and the molecular chains spread, causing the viscosity of the lubricating oil to increase significantly. However, at low temperatures, the polymer's solubility is low, and the molecular chains become coiled, limiting the viscosity of the lubricating oil's increase. In short, one of VII's functions is to keep the viscosity of lubricating oil within a reasonable range.

Segmental Analysis

The global Viscosity Index Improvers market is segmented into 2 different parts and they are by types and end-users respectively.

Based On Type

TheOlefin Copolymer Segment has dominated the market, and it is expected to grow at a high CAGR of 3.7% during the forecast period of 2020−2027. Because of their use in various industrial and automotive applications, the global market for Olefin Copolymer-based Viscosity Index Improvers is experiencing increased demand. Over the forecast period, the global Olefin Copolymer-based Viscosity Index Improvers market is expected to grow due to increased demand for lubricants from end-user industries such as automotive, construction, and others. According to the SMR report, technological advances and product innovation will drive the global Olefin Copolymer-based Viscosity Index to improve market size. Because of its stability and resistance to thermal breakdown, the grade of Olefin Copolymer-based Viscosity Index Improvers is commonly used in lubricating oil formulation. Furthermore, because of the reduced friction between moving parts, it helps to improve fuel economy.

Impact of covid-19

The global economy is harmed by the COVID-19 pandemic, which has disrupted many business lines due to a downfall in demand from end-users and COVID standards and laws. Many businesses, including those in the industrial, automotive, and transportation sectors, have suffered due to lockdown regulations. People were forced to stay indoors, which reduced end-product consumption. The market is expected to increase dramatically in the coming years due to the events of COVID-19. However, due to the increasing cost of viscosity index improvers in end-use industries, the market is expected to grow faster during the forecast period, and it is expected to grow further in the future due to the compound's widespread use in some emerging applications.

Regional Analysis

Global Viscosity Index Improvers Market, by Regions

• North America
• Europe
• Asia−Pacific
• The Middle East and Africa
• South America

The North American region is dominant, and it accounted largest share in 2020. The automotive industry has grown steadily. Increased sales of commercial vehicles, primarily light trucks and pick-up trucks used for short-distance trading and logistics, are expected to increase demand for automotive lubricants in the country. Over the forecast period, the automotive industry's future development will increase the consumption of viscosity index improvers. Additionally, increased production and exports of chemicals and pharmaceuticals and advanced manufacturing output are expected to increase demand for lubricant additives such as viscosity index improvers. The United States is expected to reach approximately USD 815.27 Million by 2028.

From 2020 to 2028, the market is expected to grow at a 2.5 % CAGR. Russia is expected to grow significantly faster than the European market during the forecast period in the Eastern Europe region. Because of the increased use of high-performance engines, there is a greater demand for high-performance lubricants with the proper viscosity. Viscosity influences various critical factors, including wear, contamination tolerance, energy consumption, Oil and gas, automotive, metal and fabrication, power and energy transmission, chemicals, and general manufacturing, using lubricants. These industries use transmission oils, process oils, metalworking fluids, drilling fluids, and other lubricants. Growing manufacturing and the development of new initiatives in Russia are expected to fuel the growth of viscosity index improvers, which are used in the industry.

China is expected to reach a total value of USD 1,064.36 million by the end of 2028. China is a leading producer and consumer of viscosity index improvers due to key players in the overall market. The dominance of Asia is primarily due to rising per capita disposable income and a sizeable on-road vehicle fleet in developing economies such as China and India. Accelerating urbanization coupled with rapid industrialization is expected to impact the lubricant oil market growth of the viscosity index over the forecast period. As the world relies on lubricants to improve performance efficiency, the global demand for these resources rapidly increases.

Recent Developments

In March 2019, Evonik Industries launched a new oil additives business line. The company's specialized methacrylate monomers were integrated with the existing oil additives business line. The new business line will be combined with Evonik Industries' resource efficiency sector to form a new oil additives business line aimed at boosting the company's manufacturing capacity and technological productivity.

In August 2020, Lubrizol Advanced Materials, Inc., the inventors and largest CPVC compound manufacturers globally, that 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 September, Prince Pipes and Fittings Ltd. will begin selling FlowGuard Plus products in India. 

In Sept 2020, Lubrizol Corporation, led by billionaire Warren Buffet, will invest USD 245 million in establishing a Chlorinated Polyvinyl Chloride (CPVC) pipe manufacturing plant in Gujarat's Dahej industrial estate. The new hot and cold-water distribution pipes proposed in Gujarat are being viewed as an alternative to the traditional GI pipes currently used in residential and commercial projects.

In Oct 2021, Evonik signed a purchase agreement to acquire Botanica, a Swiss producer of plant extracts and that deal where expected to close in a month in November. Botanica is a European leader in sustainable botanical extracts for the personal care industry, with Switzerland, France, and Germany locations.

Viscosity Index Improvers Market Segmentation

By Types

• Polymethacrylate
• Olefin Copolymer
• Polyisobutylene

By End-User

• Manufacturing
• Food processing
• mining, construction
• Power generation