Automotive Additives Market

The market based on the additive type is divided into Lubricant Additives, Fuel Additives, Corrosion Inhibitors, Antifreeze Additives, and Other Additives. The lubricant Additives segment is expected to occupy a significant share of the market as of 2023, accounting for nearly 35% of the revenue. The segment is projected to grow with the influence of the rising need for high-performing lubricants across various automotive applications. The Fuel Additives segment is expected to grow with the support of the rising use of fuel-efficient vehicles and stringent regulations concerning emissions.

These additives help reduce fuel consumption, carbon emissions, and vehicle wear and tear. The decline in engine erosion and the formation of dirt and carbons also promote the growth of this segment. 

The Automotive Additives Market segmentation by Vehicle Type includes Passenger Cars, Commercial Vehicles, Off-Highway Vehicles, and Two-Wheelers. Among these segments, Passenger Cars hold the largest market share of around 55% in 2023. This dominance is attributed to the high production and sales volume of passenger cars globally. The growing demand for fuel-efficient and high-performance vehicles is expected to drive the growth of the Automotive Additives Market in this segment.

Commercial Vehicles are projected to witness significant growth during the forecast period due to increasing urbanization and industrialization, leading to higher demand for goods transportation.Off-Highway Vehicles and Two-Wheelers are also expected to contribute to the market growth, driven by rising recreational activities and increasing adoption of these vehicles in emerging economies.

The application segment of the Automotive Additives Market holds immense growth potential. Engine Oil, a crucial component of automotive engines, accounted for a significant share of the market revenue in 2023. Its primary function is to lubricate and protect the engine's moving parts, reducing friction and wear. Transmission Fluid, another important application, ensures smooth gear shifting and transmission performance. It plays a vital role in transferring power from the engine to the wheels. Hydraulic Fluid, used in hydraulic systems of vehicles, is essential for transmitting power and motion.It finds application in brakes, steering systems, and other hydraulic components.

Fuel Systems, comprising additives that enhance fuel efficiency, reduce emissions, and protect fuel system components, are also witnessing significant demand. Cooling Systems employing additives to prevent corrosion, scale formation, and coolant degradation hold a noteworthy market share. These additives ensure optimal engine temperature maintenance and extend coolant life.

The Automotive Additives Market segmentation by base type includes petroleum-based, synthetic-based, and bio-based additives. Petroleum-based additives held the largest market share in 2023, accounting for over 60% of the Automotive Additives Market revenue. The growth of this segment is attributed to the widespread availability and low cost of petroleum-based raw materials. However, the demand for synthetic-based additives is expected to grow rapidly in the coming years, owing to their superior performance and environmental benefits.Bio-based additives are also gaining popularity as they are derived from renewable resources and are biodegradable.

The Automotive Additives Market data shows that the demand for bio-based additives is expected to increase significantly in the future, driven by the growing awareness of environmental sustainability in the automotive industry.

The Performance Enhancement segment of the Automotive Additives Market is projected to experience significant growth in the coming years, driven by increasing demand for fuel-efficient and environmentally friendly vehicles. Fuel Efficiency Improvement additives reduce friction and improve fuel combustion, leading to better mileage and reduced emissions. Engine Protection and Durability additives extend the life of engines by reducing wear and tear, while Emissions Reduction additives help vehicles meet increasingly stringent emission regulations.Corrosion Protection additives safeguard metal components from rust and other forms of corrosion, and Anti-Wear Properties additives minimize friction and wear on moving parts.

The Automotive Additives Market for Performance Enhancement is expected to reach a value of USD 12.5 billion by 2024, growing at a CAGR of 6.2%. This growth is attributed to rising vehicle production, increasing adoption of fuel-efficient technologies, and growing awareness about environmental sustainability.