Limited standardization for food grade lubricants and high maintenance cost of ester lubricants are the major obstacles in the growth of the global polyol ester market
High maintenance cost
Ester lubricants such as phosphate esters, complex esters, and silicate esters deliver excellent lubricating and safety properties; however, various turbine such as Electro-Hydraulic-Control (EHC) users, and food processing equipment users struggle with the maintenance of ester lubricants. Ester lubricant maintenance require expensive tools and equipment. Outdated or incorrect EHC fluid maintenance equipment used in industrial and aviation applications, costs hundreds of millions of dollars, which restrains manufacturers of synthetic lubricants to produce ester lubricants in bulk.
Limited standardization for food grade lubricants
Food grade lubricants conform to NSF International’s requirements of H-1 for finished lubricants and HX-1 for additives used in food grade and industrial application formulations. The HX-1 standard is not specific to any application, and hence, all lubricants designed for application -food grade or industrial - are included in the same category. These applications range from high viscosity gear oils to lower viscosity compressor oils. Also, the food grade lubricants industry is facing various restrictions on the amount of additives allowed to be used in combination with other chemistries.
Availability of alternatives at lower price points
Cheaper substitutes of friction modifier additives such as dispersant additives, detergent additives, extreme-pressure, oxidation and corrosion inhibitor anti-wear agents and oiliness agents are easily available for different lubricant applications. Maintenance of laboratories with raw materials such as fatty acids, MoDTC, molebdenum disulphide, boron and other mechanical equipment used to test and evaluate friction modifier additives and lubricant performance require significant investment and are relatively costlier as compared to laboratories handling other types of raw materials. Also, decline in oil prices since second half of 2014, is anticipated to have a negative impact on prices of base oil and friction modifier additives.
Decline in automotive lubricant additives
Automotive applications account for around 75% of all lubricant additives sold in the U.S. Hence, lubricant additive manufacturers are closely tied to the future of automotive lubricants as compared to lubricant suppliers. The lubricants industry had registered a 30% decline in consumption in 2015, as a result of the use of fuel cells brought on by rapidly advancing fuel cell technology. This can be a major restraint to the friction modifier additives market, as engine oil accounts for approximately 85% of the lubricants currently used in automotive applications, and automobiles powered by fuel cells do not require engine oil.
New fuels posing challenges for lubricants additives
The growing usage of Ashfree Neutralizing Molecules (ANM) as an alternative to calcium sulphur, or boron-based lubricant additives is inhibiting the demand for friction modifier additives in industrial and aviation applications. Due to their perfect solubility in all kinds of base oils, ANMs are stable and compatible when mixed with other cylinder lubricants. ANMs react much faster with acids than conventionally used calcium carbonate or disulphides, and provide better fuel efficiency. They can match performance requirements of different fuels, including second-generation single-cylinder oils for engine and cylinder lubricants dedicated to dual fuel 2-stroke engines.
APAC Polyol Ester Market: Trends
Persistence Market Research in its newly published report, “Polyol Ester Market: Global Industry Analysis (2012-2016) and Forecast (2017–2027),” provides forecast and analysis of the market on the global and regional levels. Through an extensive research, our analysts have studied how the different market dynamics are likely to impact the current and future scenario of the global polyol ester market, thereby providing useful insights to market players to plan their differentiating strategies, capable of evolving with the changing market landscape. We have analysed the key trends, drivers, restraints and opportunities while studying this report. Impact analysis of key growth drivers and restraints based on the weighted average model are included in the report to better equip and arm clients with crystal-clear and decision-making insights.
To understand and assess market opportunities and trends, the global polyol ester market report is categorically split into different sections based on product, application end-use industries, and regions. The report starts with the market overview and provides market definition and taxonomy along with value chain, region wise pricing analysis, drivers, restraints, and trends in the market. All the above mentioned segments evaluate the market on the basis of various factors affecting the market. Each section discusses the qualitative and quantitative aspects of the global pest control services market. In the final section of the report, we have provided a detailed competition landscape with company market share and performance, in order to provide report audiences with a dashboard view of key players operating in the global polyol ester market along with their business strategies. This would enable clients to assess strategies deployed by market leaders and help them develop effective strategies accordingly.
In order to provide a comprehensive view of the market, a detailed competitiveness analysis and key players’ information along with their unique selling propositions is mentioned in the report. The dashboard provides a detailed comparison of polyol ester manufacturers on parameters such as operating margins, unique selling propositions, collective market share and geographic concentration. The study encompasses market attractiveness analysis of various segments of the global polyol ester market.
The report highlights revenue generated from the sales of polyol ester such instrument oils and chain oils across various regions and important countries within these regions. Apart from this, the global polyol ester market value chain analysis, profitability margins, cost influencing factors, pricing trends and factors influencing the sales of polyol ester are also included in the report. Macroeconomic indicators such as GDP, per capita income, per capita manufacturing expenditure, and the industry growth have been considered.
A number of primary and secondary sources have been consulted during the course of this study. Secondary sources include World Bank, Factiva, Bloomberg, Morning Star, Global Organization of EPA and DHA, Marine Stewardship Council and Food and Drug Administration. Companies’ annual reports_bk_01_01_2020 and publications have also been examined while drafting this report. Market size and forecast for each market segment have been provided in the context of global and regional markets. The global polyol esters market has been analyzed based on anticipated demand in the market. Prices considered for the calculation of revenue include average regional prices obtained through primary quotes from numerous regional polyol esters manufacturers, suppliers, and distributors.
All key end users have been considered and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Regional demand patterns have been considered while estimating the market for various end users of polyol esters in different regions. Top-down approach has been used to assess market numbers for each product category, while, bottom-up approach has been used to counter validate the market estimations. The company-level market share has been derived on the basis of revenues reported by key manufacturers. The market has been forecast based on constant currency rates.
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