Changing consumer automotive lubricant quality levels in North American market present opportunities as well as challenges

Growing environmental concerns and tightening fuel efficiency norms, as well as lubricant product innovations, are bringing changes to the North American consumer automotive lubricants market. While it has remained flat in the last five years, the market is now experiencing a fast change in the quality levels of lubricants. The consumption of synthetic and semi-synthetic products, particularly in the United States and Canada, is growing, resulting in extended average drain intervals for passenger vehicle lubricants. Continue reading

Upcoming Webinar – Understanding the Basestocks Market

The global basestock industry continues to witness greater challenges. While the existing challenge of slow demand growth consistently outpaced by new supply creation persists, newer challenges in the form of alternate automobile technology, such as electric vehicles, are shaping the market landscape. On the other hand, the tightening fuel economy and emission regulations and original equipment manufacturers’ specifications are driving the use of high-performance basestocks. Attend this upcoming webinar on October 9 at 9 AM EDT to answer critical questions:Continue reading

Live Webinar – Global Trends in Lubricant Additives

Lubricant quality continues to improve, driven by regulations for fuel economy and emissions control. China has released their China VI emission standard for 2021, and India plans to skip Stage V and jump directly to Bharat Stage VI emission standard by 2020. These factors create new business and growth opportunities and challenges for the lubricant additive industry. Join our live webinar on Wednesday September 25Continue reading

lubricant additives market

Change is coming to the lubricant additives market!

The lubricant additives market has traditionally been slow to embrace major changes and shift to new chemistry, as traditional chemistries have served the industry well for many decades, and OEMs tend to be more comfortable with tried-and true-components such as ZDDP antiwear additive. However, with the ever-increasing push toward greater fuel economy, OEMs are being driven toward new technology and metallurgy for their drivetrains along with continuing to lower the engine oil viscosity requirements. These shifts, along with the push for longer lubricant life, may be pushing traditional chemistries to their performance limit, where adding more simply isn’t good enough or may be chemically limited to protect exhaust after treatment devices.Continue reading

Spotlight on Lubricants: Jeepney or EV?

Kline’s Energy Practice is regularly asked about volumetric lubricant demand growth and where opportunities exist for a supplier of industrial and automotive lubricants in a particular country market. In the not-too-distant past, emerging and developing country markets were rapidly growing in terms of lubricants demand and, as such, it wasn’t hard for a supplier to ride the wave and build volume. Those opportunities seem to be fewer and far between, and lubricant suppliers must now take a more focused approach to identifying and monitoring trends at or just below the surface in order to be on the right side of the demand wave going forward. Continue reading

Stable Overall Lubricant Demand Belies the Turmoil in Some Additive Categories

The dynamic lubricant additives market may appear stable with modest overall growth figures; however, these numbers mask the numerous changes impacting the additives industry. Regulations around emissions, fuel sulfur content, health and safety, and toxicity labeling are some of the main drivers of change in this industry.

The global drive toward lower emissions and better vehicle fuel economy in the commercial and consumer vehicle market is driving OEMs to squeeze every extra percent of fuel economy out of their drivetrains, shifting even the commercial truck industry toward lower viscosity grades while still requiring the lubricants to be more robust and provide longer fluid life. Continue reading

rubber process oils, rpo market

Kline presented at the 10th China International Rubber Oil Summit in Ningbo, China

I was invited to present at the 10th China International Rubber Oil Summit in Ningbo, China about the “Trends and Opportunities on the Global Rubber Process Oil Market” (全球橡胶加工油市场趋势和机遇). The conference was organized by ENMORE on July 11-12, 2019.

The global rubber consumption is expected to slow down in the next five to 10 years due to slower tire demand. Since tires are the major consumer of rubber and rubber process oil (RPO), the demand for RPO is expected to grow slower during this period. Furthermore, there is an emerging trend to use less RPO to produce lighter tires. However, demand for other rubber goods, such as shoes, toys, tubes, hoses, and belts, among others, is expected to grow and drive growth in the RPO market, which is estimated at close to 3.3 million tons globally in 2018.Continue reading

Loyalty Programs and Genuine Oil – OEMs’ Search for Revenue Sources Beyond Vehicle Sales

Vehicle OEMs are increasingly looking for revenue sources beyond vehicle sales to help boost profitability and are mainly focusing on the fixed operations side of their dealerships. OEMs and their dealerships are investing in advertising and expanding service departments with dedicated quick lube installations to help drive customers back into dealerships for after-sales service of their vehicles.Continue reading