The Driveline Additives Market is driven by
increasing adoption of electric vehicles

The driveline additives market deals with the production and supply of various chemical additives that are added to lubricants for improved performance of drivelines in automobiles. These additives help in reducing friction and wearing of components in the drive system that transmits power from the engine or motor to the wheels.

Driveline additives such as dispersants, detergents, antioxidants, antiwear agents, viscosity modifiers and corrosion inhibitors are utilized in gears, bearings, CV joints and other transmission parts to enhance their durability and fuel efficiency. Rise in sales of vehicles equipped with automatic transmissions and all-wheel drive systems has created heightened demand for driveline additives.

The Global Driveline Additives Market is estimated to be valued at US$ 9,010 million in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the driveline additives market are Lubrizol Corporation, Vanderbilt Chemicals, Infineum, Afton Chemical, and BASF SE. Lubrizol Corporation and Infineum together command over 30% of the global market share.

Growing demand for passenger cars fitted with automatic transmissions as well as commercial vehicles across developing economies in Asia Pacific and Latin America is a major factor driving the Driveline Additives Market Demand.

Key players are focusing their efforts on expanding their footprints in fast-growing automotive hubs like China, India and Mexico through partnerships with local manufacturers. They are also investing in R&D to develop new eco-friendly driveline additive formulations for electric vehicles.

Market Drivers

Increasing adoption of electric vehicles worldwide is a key driver for the driveline additives market. EVs require innovative driveline additive packages that are compatible with newer lithium-ion batteries and electric motors producing higher torque levels. Additive companies are engaged in offering customized solutions for gear oils, greases and CV joint greases tailored for electric drive systems. Stringent fuel economy and emission regulations for traditional gasoline and diesel vehicles are also prompting automakers to deploy driveline additives for improved efficiency.

The ongoing Russia-Ukraine war is having a significant impact on the driveline additives market growth. Both Russia and Ukraine are important producers and suppliers of raw materials like mineral oils used in driveline additive formulations. The conflict has disrupted supply chains and export of these raw materials from the region. This is hampering the production volumes of driveline additive manufacturers globally. The manufacturers are facing challenges in procuring crucial feedstocks at reasonable prices. This is negatively impacting the market.

Rising geopolitical tensions are also pushing up commodity prices worldwide. Prices of mineral oils and other petrochemicals used in driveline additives have seen sharp rise. This is increasing production costs for manufacturers substantially. To maintain margins, many players are compelled to hike product prices as well. Higher additive prices are deterring demand from automakers and other end-users to some extent. The war has further raised global inflation rates and slowed down Europe's economic growth. This can negatively influence automotive sales and in turn drag driveline additives consumption in the critical European market.

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