Summary

Overview
Global ZDDP (Zinc Dialkyldithiophosphate) Additive Market reached US$ 3.3 billion in 2022 and is expected to reach US$ 5.5 billion by 2030, growing with a CAGR of 6.4% during the forecast period 2023-2030.
The ZDDP additive market is significantly influenced by the worldwide automobile sector. Demand for high-performance lubricants with ZDDP additives has grown as vehicle production and sales throughout the world continue to rise. ZDDP additive demand is sustained by the automobile industry's continued expansion in developing areas and the replacement cycle of cars in developed nations.
The market for ZDDP additives is significantly influenced by the increasing focus on enhancing fuel economy and prolonging the lifespan of engines. Automotive and industrial producers are looking for lubricants that minimize friction and wear, resulting in lower fuel consumption and fewer emissions, as a result of stricter fuel economy standards and environmental restrictions. In this aspect, ZDDP additives shine since they increase engine durability and effectiveness.
Asia-Pacific dominates the ZDDP additive market covering nearly 1/3rd of the global revenue. Additionally, the automobile sector has seen a significant boom in the Asia-Pacific, making it a key center for ZDDP additives to grow in the region. There is a rising need for advanced lubricants containing ZDDP additives as stricter emissions standards are implemented to improve fuel economy and lower emissions. The use of ZDDP additives in automotive lubricants has increased, contributing to the growth of the market, as has the focus on enhancing engine efficiency and existence
Dynamics
Expansion of Industrial Sectors of ZDDP Additives
The need for machinery and the expansion of different industrial sectors are what are propelling the ZDDP additive market. Heavy machinery and equipment are used in a variety of industries, including manufacturing, construction, mining and agriculture and these items need to be properly lubricated to maintain smooth operation and reduce wear and tear. ZDDP additives are essential parts of industrial lubricants because they offer anti-wear and antioxidation qualities that increase the lifespan of important machinery parts.
For Instance, in 2021, Noble Midstream became an indirect, wholly-owned subsidiary of Chevron after the previously announced acquisition was finalized by Chevron Corporation and Noble Midstream Partners LP. Noble Midstream will no longer be a publicly traded corporation and its common units will no longer be listed on the Nasdaq Global Stock Market.
Growing demand for ZDDP Additive from Automotive Industry
ZDDP additives are widely used in the automobile sector, where producers strive to preserve engine efficiency while adhering to strict emission rules. Automakers are switching to cutting-edge engine designs, such as smaller turbocharged engines, which have greater lubrication requirements, as governments across the world implement tighter pollution laws.
For Instance, in 2022, Visitors at K 2022 may anticipate new Clariant additive solutions to advance more resource-efficient polymers. Applications now have more resilience thanks to new advances, enabling circularity by supporting extended usage and reuse. Additionally, overcomes manufacturing difficulties while improving efficiency and reducing carbon footprint during compounding and processing (Hall 8a Booth J11).
Engines technology Advancements
Engine technology advancements are a hindrance to the market for ZDDP additives. Modern engines are built to be more eco-friendly and efficient, which has changed how much lubrication is needed. Some cutting-edge engines employ components and coatings that lessen wear and friction, which eliminates the need for conventional ZDDP additives.
The lubricants industry has been working on research and development to provide new additives and lubricants that can fulfill the changing needs of these engines as a result of this trend toward increased engine efficiency. As a result, the market for ZDDP additives must adapt to the evolving state of engine technology, where other additives and lubricant formulas may gain popularity and replace ZDDP additives in some applications.
High Cost of Raw Materials
The market is severely restricted by fluctuations in the cost of the raw materials needed to produce ZDDP additives. Zinc is a crucial ingredient in ZDDP additives and its price is susceptible to fluctuations because of things like supply chain problems, geopolitical unrest and general economic situations.
Additionally, there may be changes in the cost of various additives and chemicals utilized in the production process. These cost concerns may make it difficult for ZDDP additives to maintain stable prices, which would be bad for both businesses and customers. As a result, to lessen the effects of changes in raw material prices, market actors must continuously analyze and manage their supply chains and pricing techniques.
Segment Analysis
The global ZDDP additive market is segmented based on product, application, end-user and region.
Growing Use of Primary Alkyl ZDDP Additives in the Automotive Industry
The main alkyl ZDDP (Zinc Dialkyl Dithiophosphate) sector of the ZDDP additive market has been expanding significantly leading it to cover more than 60.1% in 2022. The first major catalyst has been the rise in demand for high-performance lubricants in the automotive and industrial industries. According to the industry's sustainability objectives, these additives not only assist in reducing wear and friction but also increase engine longevity and fuel efficiency.
The remarkable anti-wear and antioxidation qualities of primary alkyl ZDDP additives make them a top choice for creating lubricants that shield vital engine components from wear and preserve oil stability under high-stress situations. The need for excellent lubricants with primary alkyl ZDDP additives has increased, driving market expansion, as the automobile industry continues to build more sophisticated and effective engines.
Geographical Penetration
Growing automotive and Industrial Activity of ZDDP Additives in Asia-Pacific
The demand for ZDDP (zinc dialkyl dithiophosphate) additives has significantly increased in Asia Pacific as a result of several significant factors, making the region a leading force in the worldwide ZDDP additive market. First and foremost, the rapid industrialization and urbanization of countries like China and India have increased automobile and industrial activities and have created immense growth prospects for the ZDDPaddiitves to grow in the region. The above countries have covered more than 57.5% and are expected to reach more than 60.4% in the forecast period.
Furthermore, the increasing need for high-performance lubricants that heavily rely on ZDDP additives to shield equipment and engines from wear and tear is also escalating regional product growth. The demand for ZDDP additives in the area has increased as a direct result of this boom in the industrial and automotive sectors. Additionally, the automobile sector has seen a significant boom in the Asia Pacific area, making it a key center.
The use of ZDDP additives in automotive lubricants has increased, contributing to the growth of the market, as has the focus on enhancing engine efficiency and lifetime. All things considered, the Asia Pacific ZDDP additive market is anticipated to grow further as the region's industrial and automotive sectors continue to expand and environmental rules become more rigid, requiring the usage of premium lubricants with ZDDP additives.
There is a rising need for advanced lubricants containing ZDDP additives as stricter emissions standards are implemented to improve fuel economy and lower emissions. For instance, in 2022, With the introduction of Signis, a feed additive that enhances the intestinal health of pigs and poultry and increases the animals' resistance to stress, AB Vista is continuing its growth throughout the Asia Pacific. Signis was introduced in Vietnam, the Philippines and Thailand.
For Instance, in 2019, One of the top producers of additives worldwide, Baerlocher, continues to make considerable investments in its Malaysian business. The business added a new metal stearates production line, a new warehouse and office space to its Seremban location. With these more than US$10 million (U.S.) investments, Baerlocher is getting ready for the area's future expansion.
COVID-19 Impact Analysis
The COVID-19 pandemic hurt the worldwide ZDDP additives industry, particularly because supply chains were broken and there was less demand from the industrial and automotive industries. With these industries' operations returning to normal, the market is anticipated to gradually recover.
The worldwide ZDDP (Zinc Dialkyl Dithiophosphate) additive market has been significantly impacted by the COVID-19 pandemic. Early on in the pandemic, extensive lockdowns and travel restrictions caused a significant drop in automobile and industrial output. As a result, the market for lubricants and motor oils declined significantly.
These products rely substantially on ZDDP additives for their anti-wear and antioxidation qualities. ZDDP additive producers had difficulties as a result of this sudden drop in demand; some had to modify their supply chains and production levels to handle the drop in orders from the automotive and industrial sectors.
The need for companies in the ZDDP Additives business to be more watchful and forward-thinking is being pressed by worries about the downturn in the global economy, the Impact of the war in Ukraine, lockdowns in China with resurgent COVID cases and the Risks of stagflation imagining different market scenarios. Companies are being forced to adapt their strategy because of the significant changes brought about by the COVID-19 epidemic in the ZDDP Additives supply chain and the growing movement for a cleaner, more sustainable environment.
Russia-Ukraine War Impact Analysis
The market for ZDDP (Zinc Dialkyl Dithiophosphate) additives has been significantly impacted by the Russia-Ukraine conflict. ZDDP, which acts as an antioxidant and anti-wear agent, is a vital ingredient in engine oil compositions, especially for internal combustion engines. Before the conflict, Ukraine was one of the world's top producers of phosphorus, an essential raw ingredient for the manufacturing of ZDDP.
Concerns have been raised concerning the accessibility and cost of ZDDP additives due to the war's disruption of supply chains, especially the likely suspension of phosphorus shipments from Ukraine. With producers and customers actively watching the situation and looking for other sources of phosphorus to maintain a consistent supply, this uncertainty has created volatility in the ZDDP additive market.
By Product
• Primary Alkyl ZDDP
• Secondary Alkyl ZDDP
• Others
By Application
• Engine Oils
• Hydraulic Oils
• Gear Oils
• Metalworking Fluids
• Others
By End-User
• Automotive
• Industrial
• Aerospace
• Marine
• Mining
• Building and Construction
• Others
By Region
• North America
o U.S.
o Canada
o Mexico
• Europe
o Germany
o UK
o France
o Italy
o Russia
o Rest of Europe
• South America
o Brazil
o Argentina
o Rest of South America
• Asia-Pacific
o China
o India
o Japan
o Australia
o Rest of Asia-Pacific
• Middle East and Africa
Key Developments
• On May 18, 2022, MAN Energy Solutions (MAN ES) acquired Infineum a Main No-objection Letter (NOL) for its recently developed Infineum M8040 additive package, which provides exceptional performance in engine cleaning.
• On February 05, 2021, Chevron Corporation acquired Pipeline and gathering system supplier Noble Midstream Partners LP. The acquisition is anticipated to increase Chevron's research and development capabilities in the upstream, midstream and lubricant additive industries, especially zinc dialkyl dithiophosphate.
• On November 23, 2020, BASF increased by double its capacity for producing sophisticated additives at its entirely owned facility in Nanjing, China. With the new asset's cutting-edge technology, BASF will be able to locally create high molecular weight dispersion agents, slide and leveling agents and other additives for Asian markets.
Competitive Landscape
The major global players in the market include Afton Chemical Corporation, Chevron Oronite Company LLC, Infineum International Ltd., Prasol Chemicals Pvt. Ltd., BASF SE, The Lubrizol Corporation, Croda International Plc, Desire Chemical Pvt ltd, Sanyo Chemical Industries, Ltd. and Shanghai Minglan Chemical Co., Ltd.
Why Purchase the Report?
• To visualize the global ZDDP additive market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of ZDDP additive market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global ZDDP additive market report would provide approximately 61 tables, 63 figures and 186 Pages.
Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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