Pour Point Depressant (PPD) Market by End User (Lubricant, Oil & Gas), by Chemistry (Polyalkyl-Methacrylate, Styrene Esters, Ethylene Co-Vinyl-Acetate, Poly Alpha Olefin), by Application (Automotive, Aviation, Industrial, Marine, Production, Refining, Exploration), by Geography (India, China, Japan, Russia, Germany, U.K., France, Italy, Spain, U.S., Canada, Brazil, Mexico, Venezuela, South Africa, Saudi Arabia, Iran) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013-2023

Pour Point Depressant Market Overview

Global pour point depressant market attained a size of $1,487.2 million in 2016 and is projected to witnes a CAGR of 3.7% during 2017-2023. The application of PPD is growing in the lubricant, automotive, and oil and gas industries. Some of the factors that are driving the growth of the industry around the world are the growing demand of vehicles, resulting in high demand of lubricants and increasing crude oil refining capacity to cater to the growing energy demand.

Globally, Asia-Pacific was the largest Pour point depressant market during the historical period. The increasing demand of pour point depressant in Asia-Pacific is attributed to the increasing demand of lubricants in the region, which is driven by the increasing demand of vehicles in the automotive sector.

The formation of ASEAN Economic Community will act as a positive catalyst for ASEAN’s lubricant market, as it has proposed the removal of tariffs on vehicles, which will create a direct impact on the demand of vehicles. This will also prompt lubricant manufacturers to expand and penetrate the emerging markets in ASEAN, which will drive the growth of the Pour point depressant market. Asia-Pacific has the highest refining capacity, accounting for 32.1% of the world’s total refining capacity, where China, India, Japan, and South Korea held 77.1% of the region’s refining capacity.

On the basis of chemistry, the Pour point depressant market for lubricant industry is segmented into polyalkyl- methacrylate (PAMA), styrene esters, and others. Others include oligomerized alkyl phenols, phthalic acid esters and copolymers. PAMA and styrene esters are the two common types of chemistries used in the Pour point depressant market. Out of these two chemistries, PAMA is expected to register a faster growth in the Pour point depressant market during the forecast period.

Similarly, on the basis of chemistry, the Pour point depressant market for oil and gas industry is segmented into ethylene co-vinyl-acetate (EVA), poly alpha olefin, and PAMA. Among these three chemistries, EVA is expected to register the fastest growth in the Pour point depressant market during the forecast period.

PPDs are used to control wax formation in lubricants, thus lowering the pour point and improving low temperature flow performance of lubricants. It is the lubricant additive that is being used in various industries dealing with bulk oil and lubricants. It helps base oils to function at low temperature, while retaining viscosity benefits at high temperature. It is used in various types of lubricants including crankcase engine oils, automotive and power transmission fluids, automotive gear oils, tractor fluids, hydraulic fluids, and circulating oils. It is increasingly used by industries to keep the lubricant in liquid state, to improve the flow performance, and optimize engine output.

Pour Point Depressant Market Dynamics

The growing automotive industry, increasing adoption of PPDs across oil and gas, and lubricant industries, increasing demand of the same in emerging economies, and recovery from oil and gas downturn have been identified as the major drivers for the growth of the global Pour point depressant market during the forecast period.

Drivers

The Pour point depressant market is expected to witness a significant growth in the automotive industry during the forecast period. The government of various countries are enforcing stringent rules and regulation regarding fuel usage in vehicles to control the pollution, which is further forcing automobile manufacturers to develop technologies to curb carbon emissions, such as dual-clutch transmission (DCT), that in turn helps in improving fuel economy by up to 10%. Also, the consumers are inclining more toward premium quality lubricants to boost the engine performance and avoid any engine related issue, which is expected to boost the demand of the product in the lubricant industry.

The cross-country pipeline projects and increasing investments in refinery set up will offer vast opportunities for manufacturers and will fuel the growth of industry. Wax formation leads to many serious issues in pipeline transportation of crude oil and associated products, such as clogged pipeline, which results in increased operation and maintenance costs. It plays a significant role in inhibiting wax formation and reducing the transportation cost of crude oil. Therefore, the increasing demand from emerging economies will fuel the growth of the global market in the oil and gas industry.

Restraints

The refining capacities of developed countries have reached their peak and there is little scope of setting up new refineries, which has negatively affected the Pour point depressant market in the oil and gas industry. The strict carbon emission norms for refineries and increasing reliance on renewable sources for power generation, have further reduced its demand in developed economies.

In order to meet the stringent environmental norms and handle the growing concern of cleaner and sustainable source of energy in transportation sector, the consumers are inclining towards electric vehicles, particularly in North America and Europe. This has negatively impacted the market growth in the lubricant industry. The market in developed economies has reached saturation and is expected to experience a sluggish growth in the coming years. Therefore, saturation in demand from developed economies has been identified as the major restraint in the market growth.

Pour Point Depressant Market Competitive Landscape

Some of the major players operating in the pour point depressant industry are Afton Chemical Corporation, Chevron Corporation, Croda International Plc., The Lubrizol Corporation, Sanyo Chemical Industries Ltd., Innospec Inc., Clariant AG, Messina Incorporated, Akzo Nobel N.V., and Evonik Industries AG.