Driveline Additives Market is estimated to be valued at USD 10,905.2 Mn in 2025 and is expected to reach USD 17,024.7 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.57% from 2025 to 2032.
The driveline additives market is expanding gradually as manufacturers and consumers demand better vehicle performance, improved fuel economy, and stricter adherence to emission standards. These additives play a vital role in enhancing the longevity and performance of vehicle driveline parts such as axles, differentials, and transmissions. As technology advances, especially with the shift toward automatic and hybrid vehicles, the industry increasingly requires specialized additives that can meet higher performance demands.
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Rising commercial, passenger, and two-wheeled vehicle production around the world that uses engine oil not only for lubrication but also to prevent the buildup of suspended particles over engine components is expected to drive the segment growth in the market. Heavy duty off-highway equipment uses driveline additives to lubricate the transmissions, axle differentials, final drives, and wet brakes. Global driveline additives market is expected to witness growth in the near future, owing to increasing number of vehicles manufactured every year and the requirement for axle and transmission fluids to provide longer service drain intervals. Gear oil additives serve a variety of industrial and automotive purposes.
For Instance, in July 2024, the Maharashtra government and US-based specialty chemicals producer Lubrizol have signed a Memorandum of Understanding to allocate 120 acres of land for a new manufacturing facility. The new factory will focus on the mobility sector and will produce additive packages for engine oils, lubricants, driveline lubricants, and industrial lubricants.
A confluence of consumer, regulatory, and technological trends drives the transmission fluid additives segment of the driveline additives market. Consumers increasingly demand lower vehicle emissions and greater fuel efficiency, prompting automakers to adopt sophisticated transmission systems that rely on high-performance fluid additives for optimal operation. These additives enable smoother gear shifts, reduce friction, minimize oxidation, and extend transmission life. As automatic and continuously variable transmissions (CVTs) become more common—particularly in passenger and light commercial vehicles—manufacturers increasingly develop specialized formulations to meet evolving performance requirements.
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Asia Pacific acquires the largest share of 32% in 2025. The region’s rapidly growing automotive sector—especially in countries like China, India, and South Korea—continues to boost driveline additives market demand that enhance performance and fuel efficiency. Technological innovations also shape the market, with the widespread adoption of automatic and dual-clutch transmissions requiring specialized additives to ensure smooth operation and durability. Additionally, companies now integrate artificial intelligence (AI) and machine learning into additive formulations, allowing them to monitor and optimize driveline performance in real time, extend component life, and reduce maintenance costs.
For example, the Lubrizol Corporation unveiled a state-of-the-art additives manufacturing facility in Zhuhai, Guangdong, China. This new plant marks the latest step in Lubrizol’s ongoing investment and expanding footprint in the Chinese market.
The mature automotive sector, strict environmental regulations, and rising consumer awareness of vehicle maintenance drive the steady growth of the North American driveline additives market. Automakers increasingly adopt automatic and dual-clutch transmissions, which require specialized additives to ensure smooth operation and long-term durability. Additionally, companies are shifting toward bio-based and eco-friendly additives to comply with environmental regulations and meet consumer demand for sustainable solutions, further accelerating market expansion. For Instance, in order to serve the North American automotive market, ATC Drivetrain, an independent worldwide remanufacturer of automotive powertrain and drivetrain systems, began remanufacture electric vehicle systems at its facilities.
The developed automotive sector, strict environmental laws, and rising customer awareness of car maintenance drive the steady expansion of the U.S. driveline additives market. The increasing use of automatic, dual‑clutch (DCT), and CVT transmissions in both passenger and commercial vehicles requires specialized driveline additive solutions tailored for smooth gear shifts, torque management, and thermal performance. DCT systems alone can reduce fuel consumption by 25–30%, which drives demand for appropriate additives.
India’s growing automotive industry and rising demand for fuel-efficient automobiles drive the strong expansion of the country’s driveline additives market. Manufacturers produce more passenger and commercial vehicles, which require sophisticated driveline additives to improve performance and reduce emissions. The increased use of automatic and dual-clutch transmissions boosts demand for specialized additives that ensure durability and smooth operation.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 10,905.2 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.57% | 2032 Value Projection: | USD 17,024.7 Mn |
| Geographies covered: |
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| Companies covered: |
Lubrizol Corporation, BASF SE, Afton Chemical Corporation, Vanderbilt Chemicals, LLC, Infineum International Limited, BRB International B.V, Chevron Oronite Company, LLC, and Lubrilic |
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Increasing launch of innovative lubricant additives is expected to drive the driveline additives market demand. Rising production of vehicles around the globe coupled with increasing number of on-road and off-road vehicles is also propelling the adoption of driveline additives. Moreover, the introduction of transmissions with high operating temperatures and increasing use of continuously variable transmissions (CVT) are anticipated to fuel market expansion. Moreover, increasing demand for longer drain intervals from the Original Equipment Manufacturer (OEMs) is expected to boost demand for driveline additives over the forecast period.
The expanding adoption of electric and hybrid vehicles opens new avenues for driveline additives specifically designed for these advanced drivetrains. Unlike traditional combustion engines, electric drivetrains have unique lubrication and additive requirements to ensure efficiency, reduce wear, and enhance thermal stability. This shift creates opportunities for additive manufacturers to innovate specialized products tailored to electric vehicle (EV) components such as e-axles and gearboxes.
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About Author
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
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