Why will Demand for Pour Point Depressants Soar in Asia-Pacific in Coming Years?

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.

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.

Crude oil includes wax that has the tendency to solidify within the temperature range of 5–10 oC. High content of n-aliphatic hydrocarbon chains in the crude oil leads to the crystallization of n-paraffin crystals that amplify with reduction in temperature. Formation of paraffin, thereby, reduces the fluidity of oil. To boost the flow of crude oil, lubricant manufacturers use flow improvisers or pour point depressants (PPDs) as chemical additives while transporting such oils at temperatures below which wax starts to appear.

The automobile, lubricant, and oil & gas industries are increasing their focus on research and development (R&D), on account of the advancements in technologies, to innovate novel process for utilization of PPDs to enhance the quality of lubricants and crude oils. Moreover, the rising investments by these sectors for the development of polymethacrylate and styrene ester-based PPDs will improve the characteristics of depressants. Hence, the expansion of these end-use industries will lead to the development of enhanced PPDs, across the globe, in the coming years.

Owing to the increasing usage of PPDs in the automotive and lubricants industries, companies such as Clariant AG, ALTANA AG, Akzo Nobel N.V., Evonik Industries AG, The Lubrizol Corporation, and Chevron Corporation have been acquiring other players to boost the production of PPDs. For example, ALTANA AG acquired Addcomp Holland BV, a Dutch developer and producer of unique polymer additive solutions, in July 2019. The Dutch enterprise will be integrated into the plastic additives business line of BYK Additives & Instruments, the largest division of ATLANTA AG.

In recent years, there has been a largescale adoption of poly alkyl methacrylate in the production of lubricants, especially for the automobile industry. The poly alkyl methacrylate copolymer consists of approximately 4–40% by weight of C18-C30 alkyl methacrylate and around 60–96% by weight of C12-C16 alkyl methacrylate, which help in enhancing the viscosity of lubricants. In addition, PPD manufacturers also use poly alpha olefin, ethylene co-vinyl-acetate, and phthalic acid ester in the manufacturing of lubricants.

According to P&S Intelligence, the Asia-Pacific (APAC) pour point depressant market will demonstrate the fastest growth in the foreseeable future, globally. This will be primarily due to the growth in end-use industries in emerging economies of the region. Moreover, the increasing production of automobiles in regional countries, such as India, China, Indonesia, and Thailand, will boost the consumption of PPDs in the coming years. Additionally, the rapid urbanization and the robust development in the infrastructure sector in APAC will boost the utilization of these depressants in the future.

Thus, with the rising production of vehicles and the expanding oil & gas sector, the application and demand for PPDs will rise in the foreseeable future.

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.