Lubezine Magazine Vol. 9 April - June 2014 | Page 25

GLOBAL MARKET FEATURE DEMAND Global lubricant additive use to hit 4.5 million tons in 2017 T he global consumption of finished lubricants is estimated to grow annually at 1.7 per cent as the global lubricant additive consumption is expected to grow at 2.2 per cent annually from 4 million metric tons in 2012 to 4.5 million tons by 2017, according to the Parsippany-based Kline & Co. report. The report, presented in a webinar on the study, “Global Lubricant Additives: Market Analysis and Opportunities,” put the global consumption of finished lubricants in 2012 at 39 million tones, valuing 2012’s global lubricant additive consumption of 4 million tons at $13.3 billion. ‘By lubricant category, additive consumption in 2012 of heavy-duty motor oil accounted for 33 percent of global demand and passenger car motor oil accounted for 27 per cent’, the report says, adding that additives used in other automotive oils accounted for 7 per cent. Additives in metalworking fluids accounted for 14 per cent while industrial engine oils accounted for 13 per cent and general industrial oils accounted for 4 per cent as other types accounted for the remaining 2 per cent. The findings, presented by Upshi Ghosh, Project Manager for Kline’s Energy Practice, also suggests that PCMO and HDMO additives account for 60 per cent of global additive demand due to more additization in HDMO and PCMO products, as compared to industrial products. ‘The ACEA 2012 European Oil Sequence is tuned towards providing some degree of biodiesel compatibility. The increasing penetration of biodiesel led to increased use of antioxidants to handle sludge, acids and oil thickening issues,” she said. ‘ Growing use of biofuel in North America means this same need is on the wish-list for the PC-11 heavy-duty engine oil upgrade, due in 2016 for North American trucks’, she added. Dispersants VII, and detergents are the top three function classes, accounting for 70 per cent of total consumption in 2012, with dispersants accounting for 25 percent, viscosity index improvers, 24 percent, and detergents with 21 percent, followed by antiwear agents at 7 percent; antioxidants, 5 percent; corrosion February-April 2014 | LUBEZINE MAGAZINE 2012 Additives Usage By Lubricants Category 4% 2% Heavy-duty motor oil Passenger car motor oil 13% Other automotive oils 33% Metalworking fluids Industrial engine oils 14% General industrial oils Others 7% 27% inhibitors and friction modifiers, each 4 percent; and emulsifiers at 3 percent. Ghosh also noted that the shift from monogrades to higher-performance oils and multigrades will lead to an increase in the consumption of additives such as dispersants, antioxidants, and viscosity modifiers. In reference to extended drain intervals, she noted that to make engine oils more durable, an up-treat of antioxidants and dispersants will be required. On PCMO, Ghosh said the trends affecting the formulation of PCMO and demand for additives in this product category include the introduction of new specifications such as Dispersants VII and detergents are the top three function classes, accounting for 70 per cent of total consumption in 2012 ILSAC’s GF-5 and GF-6, which should increase the consumption of additives such as antioxidants and friction modifiers. . She said the continuous trend towards lower viscosity PCMO grades will increase the use of friction modifiers and that the extension of drain intervals for PCMO will result in an increase in dispersant and antioxidant treat rates. Also, with usage of flexible fuel vehicles that use ethanol, an increase is expected for rust and corrosion inhibitors, as well as increase in emulsion retention. Regarding metalworking fluids, she said the trend towards greater use of paraffinic basestock, especially Group II and Group III, is likely to result in some changes in additive use. With hydraulic fluids, there is a trend towards low-zinc and ashless fluids. Share of Zinc-free hydraulic fluids is expected to grow in the next 5 years, up from 7 per cent of the total market in 2012 to 12 per cent of the market in 2017. Rising demand for fire-resistant fluids is driving the usage of corrosion inhibitors, VIIs, and emulsifiers for ester based fluids, Ghosh said. . 23