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Global Pour Point Depressant Market - Outlook and Forecast 2022-2027
The global pour point depressant market is projected to reach USD 2.02 billion by 2027, with a compound annual growth rate (CAGR) of 3.93% from USD 1.61 billion in 2021. This growth is driven by the increased production of crude oil and the high demand for lubricants from industries such as marine, construction equipment, heavy machinery, agriculture vehicles, and original equipment manufacturers (OEMs).
Pour point depressant additives are crucial in formulating finished lubricant products and base oil. They prevent the formation of wax crystals at low temperatures, which can hinder lubrication and oil flow in industrial equipment and during crude oil transportation.
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USD 1.6 billion in 2020
Chemistry, End-Use, and Geography
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The established markets of Europe and North America are expected to experience significant demand for high-performance pour point depressant products. This is due to their high crude oil production capacity and increasing use of premium base oils (such as group II, III, and synthetic base oils) that align with the demand for low viscosity lubricant formulations. As a result, vendors have ample opportunities in the pour point depressant market in these regions.
The global pour point depressant market has witnessed substantial growth due to the increasing production and demand for crude oil worldwide. Countries like the United States, Saudi Arabia, Russia, Canada, and China are major crude oil producers, thanks to lower production costs and government support. Pour point depressants are used in waxy crude oil to ensure smooth oil flow during processing, storage, and transportation in cold weather conditions.
The growing emphasis on low carbon footprint, improved fuel economy, extended drain intervals, and engine oil durability is driving the demand for pour point depressant products in the premium base oil segment. Adding low viscosity additives to premium base oils enhances the performance of lubricants and enables OEMs and industries like marine to achieve sustainability by reducing carbon emissions.
One of the major challenges in the pour point depressant market is the volatility of crude oil prices. Crude oil is the primary raw material for producing pour point depressants, which utilize chemicals such as polymethacrylate, vinyl acetate, styrene-maleic anhydride, and polyoxyethylene lauryl ether phosphate. Fluctuating crude oil prices directly impact the cost of pour point depressant additives, posing a significant threat to vendor profit margins.
The market is segmented based on various factors, including chemistry, end-use, and geography.
Segmentation by Chemistry
Styrene- Maleic Anhyride
Polyoxyethylene Lauryl Ether Phosphate
Ethylene Vinyl Acetate
Segmentation by End-Use
Oil & Gas
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain, Russia, Rest of Europe
APAC – China, Japan, India, South Korea, Australia, Rest of APAC
Latin America – Brazil, Mexico, Rest of Latin America
Middle East & Africa – South Africa, Saudi Arabia, UAE, Iran, Rest of the Middle East & Africa
The polymethyacrylate segment is projected to be the largest in the global pour point depressant market, accounting for a revenue share of 46.22% of the total industry. The market is divided into six segments based on chemistry: polymethyacrylate, poly alkyl methacryalte, styrene-maleic anhydride, polyoxyethylene lauryl ether phosphate, ethylene vinyl acetate, and others. Polymethyacrylate holds the highest market share due to its extensive use in crude oil facilities and lubricating oil applications such as engine oil, hydraulic fluid, and driveline fluid. It enhances viscosity index and provides better shear stability.
Styrene-maleic anhydride is the third-largest segment in the global pour point depressant market and is projected to reach USD 283 million by 2027. It is characterized by high gloss, heat and chemical resistance, viscosity, and dimensional stability. Styrene-maleic anhydride is widely used in various applications including cooking utensils, business machine housings, electronic appliances, and car interiors such as ventilation ducts and lenses.
Based on end-use, the global pour point depressant market is divided into oil & gas, automotive, heavy industrial, and power generation. The oil & gas segment currently holds the largest market share (43.54%), but the automotive segment is expected to lead the industry in the forecast period. This is attributed to the increasing production of commercial vehicles, passenger vehicles, and two-wheelers globally, which operate in low-temperature environments. Pour point depressants are added to automotive lubricants to ensure smooth oil flow in engine systems, suspension and steering joints, brake systems, and other components.
The high demand for crude oil production is driven by the use of oil in power generation and the petrochemical industry, which encompasses the production of various goods such as fertilizers, packaging materials, clothing, medical equipment, tires, and digital devices. The United States is one of the largest oil-consuming countries globally, with average daily consumption of 19.78 million barrels in 2021, an increase of over 1.6 million barrels compared to 2020, according to data from the Energy Information Administration (EIA).
The Asia Pacific (APAC) region dominates the global pour point depressant market due to significant growth in the automotive, transportation, power generation, and heavy industrial sectors driven by ongoing industrialization and infrastructure development. APAC holds 38.00% of the global market share and is expected to grow at a CAGR of 4.25%. Countries such as China, Japan, India, South Korea, and Australia contribute to this growth, with China, Japan, and India leading the region. Increased demand from the automotive and transportation sectors, rising crude oil exploration activities, and growth in the machinery manufacturing sector, fueled by regulations to reduce carbon emissions and ongoing industrialization and infrastructure development, are key factors driving market growth.
North America is the second-largest pour point depressant market and is estimated to grow at a CAGR of 3.98% during the forecast period. The United States and Canada are the major markets for pour point depressants in this region. The market in North America is primarily driven by the presence of numerous lubricant manufacturers that blend additives with final lubricant products. The region is also characterized by increased production and processing of base oil. Leading lubricant manufacturers such as Exxon Mobil Corporation, Chevron Corporation, and Phillips 66 operate in North America.
The global pour point depressant market exhibits a moderate level of fragmentation, and this fragmentation is expected to slowly increase over the forecast period. Numerous international and domestic vendors from different regions compete based on factors such as brand reputation, pricing strategies, geographical reach, and technological innovations. For instance, in 2019, Clariant Oil & Services introduced the WAXTREAT Subzero pour point depressants technology specifically designed for cold weather conditions.
The market is characterized by high entry barriers, as new entrants require technical expertise to manufacture pour point depressant chemical additives. Furthermore, market players in the pour point depressant industry closely collaborate with industry experts to understand the current demands of consumers. This enables them to develop products that adhere to the latest engine oil specifications and meet the varied requirements of the power generation sector, including multiple types of gas. While these factors present opportunities for new players to enter the industry, the high costs associated with establishing production units and complying with stringent testing facilities in Europe and North America often deter prospective entrants.
Key companies profiled in this report include BASF, Evonik, Clariant, The Lubrizol Corporation, Afton Chemical, Callington Haven, Ganesh Benzoplast, Goodway Chemicals Private Limited, Infenium International Limited, Innospec, Jinzhou Kangtai Lubricant Additives, Kemipex, Octane Incorporated FZC, RX Marine International, Shaoxing Shangyu Simo Research Institute of Organic Chemistry, Zhengzhou Chorus Lubricant Additive Co., Ltd, A S Harrison & Co Pty Limited, Dana Lubricants Factory LLC
Key Questions Answered
What is the revenue generated by the global pour point depressant market?
The global pour point depressant market achieved a valuation of USD 1.6 billion in 2021.
What is the projected market size of the global pour point depressant market by 2027?
The global pour point depressant market is expected to reach a market size of USD 2.0292 billion by 2027. This growth is primarily driven by the widespread adoption of pour point depressants in various industries, including automotive, marine, aerospace, construction, and food & beverage.
What is the growth rate of the pour point depressant market?
The pour point depressant market is projected to grow at a compound annual growth rate (CAGR) of 3.93% from 2022 to 2027.
Which region dominates the global pour point depressant market?
The Asia Pacific region holds the largest share of the pour point depressant market and dominates the industry. The automotive, transportation, power generation, and heavy industrial sectors in this region are witnessing significant growth due to ongoing industrialization and infrastructure development, thereby driving the market’s dominance.
What are the key driving factors in the pour point depressant market?
The global pour point depressant market is driven by the increasing demand for crude oil production and the growing automotive production worldwide.
Who are the key players in the global pour point depressant market?
The key players in the global pour point depressant market include BASF, Evonik, Clariant, and The Lubrizol Corporation.