The Driveline Additives Market, estimated at USD 10,905.2 Mn in 2025, is expected to exhibit a CAGR of 6.57% and reach USD 17,024.7 Mn by 2032.
The industry is witnessing significant growth driven by increasing demand for advanced, reliable, and cost-effective solutions across key application areas. Rapid technological developments, shifting market dynamics, and heightened focus on quality and efficiency are shaping the competitive landscape. Furthermore, sustainability initiatives, regulatory support, and ongoing investments in research and innovation are expected to open new avenues for market players.
According to Global Driveline Additives Market Report, By Product Type (Transmission Fluid Additives and Gear Oil Additives), By Application (Passenger Cars, Commercial Vehicles, and Off-highway Vehicles), and By Region (North America, Europe, Asia Pacific, Latin America, Europe, and Middle East & Africa) as highlighted in a new report published by Coherent Market Insights.
Driveline additives are used to optimize automobile performance by achieving sufficient lubrication, as it decreases the friction and removes heat. These additives are also used to prevent scuffing, scoring, and other types of distress that can cause failure of equipment. These are used for protecting the equipment against copper corrosion, rust, oxidation, thermal degradation and foaming. Driveline additives are widely used in passenger cars, commercial vehicles, and off-highway vehicles.
Global Driveline Additives Market- Drivers
Increasing demand for fuel-efficient vehicles
Rising demand for fuel-efficient vehicles is expected to drive the market growth. Driveline additives are used to reduce the loss of energy, and thus, ensures energy efficiency. Therefore, increasing fuel costs and shifting consumer inclination towards enhancing the fuel efficiency of vehicles is expected to drive the market growth. Moreover, implementation of government emission rules and regulation as driveline additives helps in reducing the carbon emissions from the vehicle is expected to drive the market growth.
Global Driveline Additives Market- Opportunities
Increasing launch of dual clutch technology (DCT) that enhances the power and performance, and also assure the smooth transmission of the vehicle is expected to offer growth opportunities to market. Moreover, it also lowers the carbon emission, and offer superior fuel efficiency. Moreover, dual clutch technology (DCT) reduces fuel consumption of vehicles by 25–30%. DCT requires specially formulated additives to attain high performance. Hence, this is an opportunity for the manufacturer to produce specialized and advanced additives.
Global Driveline Additives Market- Trends
Increasing number of partnerships among players to develop high-performance lubricants is expected to drive the market growth. For instance, in October 2025, The Lubrizol Corporation, announced a 10-year phased investment plan to upgrade operations, and to increase global additive capacity. The company manufactures and distributes additives for engine oils, gasoline, diesel fuels, transportation-related fluids, and industrial lubricants for global transportation and industrial customers, as well as ingredients for personal care products, pharmaceuticals, and specialty materials, improving the quality, performance, and value of customers' products while lowering their environmental impact.
Increasing focus of the manufacturer for expanding the production capacity of the driveline additives is expected to drive the market growth. Moreover, various key players in the global driveline additives market are focusing on maintaining relationships with automobile manufacturers to provide customized solutions to the customer. Hence, this is expected to drive the market growth.
Global Driveline Additives Market- Restraints
Decreasing oil drain intervals due to increased durability of the powertrain that leads to rising usage of high-quality fuels are expected to restrict the market growth. Moreover, the use of low-quality lubricants, such as those with a high viscosity, can affect oil flow shortages and increased drag, resulting in a loss of efficiency. This factor is anticipated to suppress market growth.
Global Driveline Additives Market - COVID- 19 Impact
The COVID-19 pandemic is causing problems in the business environments of important markets. Demand for driveline additives was decreased during the pandemic. North America and Europe witnessed huge decline than Asia Pacific. During the pandemic, driveline additives manufacturers were operating at a reduced capacity and intended to ramp up production after carefully assessing the course of COVID-19.
As a result of the pandemic, many automobiles became obsolete.. The industry is gradually recovering from losses, as a result of the reopening of various production facilities that results in strong sales expectations. Rising demand for transmission fluid additives is expected to drive up demand in the coming years.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/driveline-additives-market-3251
Key Market Takeaways
- Based on product type, global driveline additives market is segmented into transmission fluid additives and gear oil additives
- Global driveline additives market is expected to witness growth due to increased application in the mining, construction, and agriculture industries, as these additives are used in off-highway vehicles
- Global driveline additives market is expected to be driven by the implementation of stringent government norms/regulations regarding volatile organic content (VOC) emissions from automobiles in regions such as Asia Pacific
- Consumer preference for fuel-efficient vehicles, increasing number of off-road and on-road vehicles are expected to drive the market growth
- Market players include 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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