The burgeoning requirement for pour point depressants (PPDs) in the automotive industry is one of the major factors driving their demand across the world. These polymers are used for producing lubricants, which are required in automobiles. Because of this reason, the soaring manufacturing of automobiles in several countries such as India, Indonesia, Brazil, and Thailand is propelling the requirement for PPDs. These materials are also being increasingly used in the oil and gas industry.
Owing to their extensive requirement in several industries, many organizations are making huge investments in research and development (R&D) projects aimed at developing various types of PPDs. For example, many organizations operating in various industries such as automotive and oil & gas are conducting R&D activities for developing poly alpha olefins (PAO) which are then used for producing PPDs, on account of their ability to improve the low-temperature viscosity and modify the crystallization behavior. These kinds of projects are generating lucrative growth opportunities for the players operating in the pour point depressant market.
Due to the above-mentioned factors, the revenue of the market is expected to rise from $1,487.2 million in 2016 to $1,902.3 million by 2023. The market is also predicted to progress at a CAGR of 3.7% from 2017 to 2023 (forecast period). Oil & gas and lubricant industries are the major end users of these polymers. Between these, the usage of these polymers was found to be higher in the lubricant industry in 2016. Moreover, the use of PPDs in the lubricant industry is expected to rise rapidly in the coming years as well.
This is credited to the fact that PPDs can prevent the formation of wax crystal at low temperatures during the production of lubricants. Industrial, automotive, marine, exploration, aviation, refining, and production are the major application areas of PPDs. Out of these, the usage of these materials was the highest in automotive applications in the past years and this trend is predicted to continue in the forthcoming years as well. This will be because of the large-scale use of PPDs in the automotive industry for fuel transportation.
Across the globe, the demand for PPDs was observed to be the highest in the Asia-Pacific (APAC) region during the last few years. Furthermore, the pour point depressant market will exhibit rapid expansion in the APAC region in the upcoming years as well, as per the estimates of P&S Intelligence, a market research company based in India. This is attributed to various factors such as the rising urbanization rate, improving living standards of people, and launch of several infrastructural development projects, especially in the developing countries of APAC such as China and India.
Thus, the demand for pour point depressants will surge sharply across the world in the upcoming years, mainly because of their growing requirement in the lubricant, automotive, and oil & gas industries and the huge investments being made in the development of advanced variants.
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