The global market for polyol esters in expected to grow at a CAGR of 4% during the forecast period of 2023 to 2030. The growth is due to the growing demand for esters from a variety of end-use industries such as the chemical, food & beverage, and automotive industries.The expansion of the industrial sector will be fuelled by an increasing need for high-performance lubricants.The lubricants business has exerted significant effort toward the development of high-performance lubricants for use in the industrial, aerospace, and automotive markets. The utilisation of synthetic esters in the production of these highly effective lubricants was one significant development along these lines. Nevertheless, there are significant amount of market challenges that are presenting complexities to market players. The report through its 360-degree research presents solutions to industry challenges that enable companies to make pre-informed decisions.
High-Performance Applications of Polyol Esters Leading to Market Expansion
For high-performance applications, certain types of esters, such as polyol esters, can be modified to be used in the formulation of lubricants. They provide a number of benefits, including greater temperature operations and longer life spans, among other advantages.The rising use of polyol esters in the production of a wide range of high-performance lubricants is anticipated to be a driving force behind the expansion of the esters market during the course of the forthcoming year.
Application Across Verticals Due to Superior Characteristic
As a result of its superior characteristics, polyol esters are a substance that is in great demand. These characteristics include thermal stability, excellent lubricity, and improved viscosity. The expansion of the market for polyol esters is being driven in large part by several factors, including the rise in population in emerging nations and their demand for improved transportation infrastructure and the automotive sector. In addition, the expansion of the automotive sector is anticipated to simultaneously increase the demand for polyol esters as lubricants in the near future. This rise in demand is likely to promote the expansion of the market in the near future.
High-level of Maintenance Cost Restraints the Application
Ester lubricants, which include phosphate esters, complex esters, and silicate esters, deliver excellent lubricating and safety properties; however, various turbine users, such as those who use Electro-Hydraulic-Control (EHC), and users of food processing equipment struggle with the maintenance of ester lubricants. Ester lubricant maintenance require expensive instruments and equipment. Because the expense of maintaining outdated or erroneous EHC fluid maintenance equipment, which is utilised in industrial and aviation applications, is in the hundreds of millions of dollars, synthetic lubricant makers are unable to develop ester lubricants in large quantities.
There Is Just a Minimal Amount of Standardisation for Food-Grade Lubricants
The standards of NSF International's H-1 for finished lubricants and HX-1 for additives used in food grade and industrial application formulations are met by food grade lubricants. These lubricants are considered to be food grade. Because the HX-1 standard is not tailored to any one use in particular, all lubricants designed for use, regardless of whether they are food grade or industrial, are grouped together under the same heading. These applications include everything from gear oils with a high viscosity to compressor oils with a lower viscosity. Additionally, the industry of food grade lubricants is facing a variety of limits on the quantity of additives that are permitted to be used in combination with other types of chemistry. These restrictions are becoming increasingly stringent.
Easy Availability of Economical Alternatives
For a variety of lubrication applications, readily accessible cheaper alternatives to friction modifier additives include dispersion additives, detergent additives, extreme-pressure, oxidation and corrosion inhibitor anti-wear agents, and oiliness agents.Maintenance of laboratories with raw materials such as fatty acids, MoDTC, molybdenum disulphide, boron, and other mechanical equipment used to test and evaluate friction modifier additives and the performance of lubricants requires a significant investment and is relatively more expensive in comparison to laboratories that handle other types of raw materials. This is because these laboratories are required to test and evaluate friction modifier additives and the performance of lubricants.
Decline In Additives for Automotive Lubricant
Around 75% of all lubricant additives that are purchased in the U.S. are used in automotive applications. As a result, companies that manufacture lubricant additives have a far closer relationship to the development of automobile lubricants than do companies that supply lubricants. As a result of the increased use of fuel cells brought about by the rapidly improving fuel cell technology. Because engine oil makes up around 85% of the lubricants that are now used in automotive applications, and automobiles powered by fuel cells do not require engine oil, this can be a significant factor that slows the growth of the market for friction modifier additives.
The Introduction of New Fuels Presents Complexities in Lubricants and Additives Market
In industrial and aviation applications, the increased utilisation of ashfree neutralising molecules (ANM) as an alternative to calcium sulphur or boron-based lubricant additives is restraining the demand for friction modifier additives. ANMs are stable and compatible when blended with other cylinder lubricants since they are completely soluble in all types of base oils. This property allows them to be used interchangeably.ANMs react with acids significantly more quickly than the calcium carbonate or disulfides that are traditionally utilised, and as a result, they offer improved fuel economy. They are capable of meeting the performance requirements of a variety of fuels, including second-generation single-cylinder oils for engines and cylinder lubricants that are devoted to dual fuel two-stroke engines.
NPG to be the Fastest Growing Market Segment Among the Type Segment, While Carrier Fluids Led the Application Market
As a result of its superior low-temperature fluidity features and diverse applications in the oil and gas industry, NPG is anticipated to be the segment with the highest CAGR during the forecast period of 2023 to 2030. Neat Polyglycol (Polyol), often known as NPG, is a fluid that contains no additives and has an extremely low volatility. Because of its great thermal stability, it is suitable for use in heat transfer fluids due to its capacity to maintain a working temperature that is lower than 150 °F even when subjected to intense heating. Because of the chemical nature of neat polyols, they are solids at room temperature but turn into liquids when heated. This is because neat polyols do not dissolve in water. They are ideal as plasticizer alternatives across a variety of sectors due to the fact that they maintain their mechanical strength at high temperatures and have good electrical insulation qualities.In terms of application Carrier Fluids contributed over 30% of revenue share in 2021.
North America Remains as the Global Leader, APAC to be the Growth Leader
It is projected that North America will account for the highest share in 2021, with 40% of revenue share and it is anticipated that the region will experience significant increase during the forecast period. In terms of value, it is anticipated that Europe would emerge as the second-largest market for polyol esters during the forecast period. It is anticipated that Asia Pacific will expand at the greatest CAGR over the period covered by the forecast due to the fast-increasing demand from a variety of applications including gear oils, automobile crankcase material, and carrier fluids. China is expected to grow at a CAGR of almost 6.8% during the forecast period of 2023 to 2030. The market in Asia is being driven by a number of significant factors, the most important of which are the rapid growth of end-use industries, the availability of raw materials at low rates, the growing consumer awareness, and the existence of leading market competitors.Japan and Canada are two more important geographic markets. Over the forecast period, each of these countries is expected to increase at a rate of 1.5% and 3% respectively. It is anticipated that Germany will have growth of roughly 2% CAGR within Europe. The primary factor driving growth in the ester market in the United Kingdom is the increased demand from end-use industries such as the food and beverage, cosmetic and personal care, and chemical sectors. By the end of 2023, it is anticipated that the United Kingdom will lead the polyol ester market in Europe, which is expected to account for more than 22% of the revenue share.
Market Challenges to Create Complexities Among Market Players to Enhance Market Shares
In order to get a competitive edge in the global market for esters, the leading players that are currently active in this market are making significant investments in partnerships, advanced product launches, collaborations, acquisitions, and the establishment of new facilities. INOLEX, Purinova Sp. z oo, Ultrachem Inc., Calumet Specialty Products Partners, L.P., Vantage Performance Materials, KLK OLEO, Dow Chemical Company, Huntsman Corporation, Chemtura Corporation., and Shell Chemicals Ltd. are some of the major companies that are active in the global market for polyol esters.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Polyol Ester market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
