Chem Reports Predicts that Lubricant Viscosity Grade Improvers Market was valued at approximately USD 4.15 Billion in 2025 and is expected to reach USD 6.18 Billion by the year 2034, growing at a CAGR of 5.1% globally .

Note on Market Valuation: Market size estimates for lubricant viscosity grade improvers vary across different research firms due to differences in scope, methodology, and base years. Estimates for 2025 range from USD 1.7 billion to USD 4.15 billion . This report primarily utilizes figures from a comprehensive market research provider for internal consistency and a balanced outlook .

Global Lubricant Viscosity Grade Improvers Market Overview

The Global Lubricant Viscosity Grade Improvers Market Report 2025 provides an extensive industry analysis of development components, patterns, flows and sizes. The report also calculates present and past market values to forecast potential market management through the forecast period between 2026-2036. This research study of Lubricant Viscosity Grade Improvers involved the extensive usage of both primary and secondary data sources. This includes the study of various parameters affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry .

Viscosity index improvers (VIIs) are specialized polymer additives used in lubricating oils to enhance their viscosity-temperature performance. These additives help maintain optimal oil viscosity across a wide temperature range, ensuring efficient lubrication in both high- and low-temperature environments. Common VII types include polymethacrylates (PMA), olefin copolymers (OCP), polyisobutylene (PIB), and styrene-based polymers .

Impact of COVID-19 on Lubricant Viscosity Grade Improvers Market
Since the COVID-19 virus outbreak in December 2019, the disease spread to almost every country around the globe with the World Health Organization declaring it a public health emergency. The pandemic caused significant disruptions in the lubricant viscosity grade improvers market in 2020 due to supply chain interruptions, manufacturing slowdowns, and reduced automotive production and industrial activity. However, the market rebounded strongly as economic activity resumed, with demand driven by recovery in automotive production, increased industrial operations, and the ongoing need for high-performance lubricants across essential sectors .

Global Lubricant Viscosity Grade Improvers Market Segmentation

The market is segmented primarily by Product Type, Application, End-User Industry, and Viscosity Grade, catering to diverse needs across automotive and industrial sectors .

By Product Type:

• Olefin Co-Polymers (OCP): The leading segment due to their excellent performance across a wide range of temperatures and superior shear stability, making them particularly suitable for demanding engine oil applications. Their cost-effectiveness compared to some alternatives further strengthens their dominant market position .

• Polymethacrylates (PMA): A significant segment offering superior low-temperature fluidity and pour point depression, making them favored in specialized applications such as hydraulic fluids and high-quality automotive engine oils where cold-start performance is critical .

• Polyisobutylene (PIB): Noted for their use in multigrade engine oils and two-stroke engine lubricants, offering good thickening efficiency and shear stability .

• Styrene-Based Polymers: Including hydrogenated styrene-diene copolymers (HSD), these offer excellent shear stability and thermal resistance, used in high-performance synthetic lubricants .

• Others: Includes various copolymer technologies for specialized applications.

By Application:

• Passenger Car Motor Oils (PCMOs): The most significant application segment, driven by the vast global passenger vehicle fleet and stringent fuel economy and emission standards that necessitate high-performance lubricants. The demand for VIIs in this segment is propelled by the need for oils that maintain optimal viscosity across a wide operating temperature range .

• Heavy-Duty Motor Oils (HDMOs): A strong growth segment driven by the essential role of VIIs in ensuring engine protection and longevity in commercial trucks, construction machinery, and agricultural equipment operating under extreme conditions .

• Hydraulic Fluids: A critical industrial application where VIIs ensure consistent viscosity and equipment protection across varying temperatures and pressures, essential for manufacturing, construction, and mining machinery .

• Gear Oils: Used in automotive transmissions and industrial gearboxes, where VIIs maintain proper lubrication under high loads and temperature variations .

• Electric Vehicle (EV) Fluids: An emerging and fast-growing segment. EVs require specialized lubricants for transmission systems, reduction gears, and battery cooling applications with controlled thermal and rheological properties, creating demand for tailor-made VIIs compatible with low-viscosity fluids .

• Others: Includes compressor oils, turbine oils, and industrial lubricants for diverse applications .

By End-User Industry:

• Automotive Industry: The dominant end-user, consuming the largest volume of VIIs for the formulation of engine oils, transmission fluids, and gear oils. The continuous production of new vehicles and the extensive aftermarket for lubricant changes create sustained demand .

• Industrial Manufacturing: Another critical end-user, relying on VII-enhanced hydraulic fluids and industrial gear oils to ensure smooth and efficient operation of heavy machinery, where equipment reliability and minimizing downtime are paramount for productivity .

• Marine Industry: Requires specialized lubricants for marine engines and equipment operating in harsh environments, utilizing VIIs for viscosity stability .

• Aviation: Demands high-performance lubricants for aircraft engines and hydraulic systems, requiring advanced VII formulations for extreme temperature ranges .

• Others: Includes mining, power generation, and construction sectors .

By Viscosity Grade:

• Multigrade Oils: The unequivocal leader in this segment, as VIIs are fundamentally essential for their formulation. The primary function of a VII is to reduce the rate of viscosity change with temperature, which is the defining characteristic of a multigrade oil. The demand for multigrade oils is universal across automotive and industrial applications due to their ability to provide protection across a wide range of operating conditions .

• Monograde Oils: Represent a smaller segment with more limited and specialized uses, typically in certain industrial applications or older equipment where multigrade oils are not required .

Regional Analysis

The global market is geographically diverse, with distinct growth drivers in each region .

• Asia-Pacific (China, India, Japan, South Korea, Southeast Asia, Australia): The largest and fastest-growing regional market. This dominance is driven by expanding automotive production and sales, rapid industrialization, and growing lubricant consumption in manufacturing and construction sectors. China and India are the primary growth engines, with Japan and South Korea contributing advanced technology and high-performance applications.

• North America (U.S., Canada, Mexico): A mature and significant market with strong demand from the automotive industry (including a large manufacturing base in Mexico), heavy-duty transportation, and industrial sectors. Stringent environmental regulations (EPA) and fuel efficiency standards drive demand for high-performance VII formulations.

• Europe (Germany, U.K., France, Italy, Spain, Russia): A well-established market characterized by stringent emissions and fuel efficiency standards (Euro 7) that stimulate demand for high-performance VIIs optimized for synthetic base oils. Germany leads in automotive engineering and industrial applications.

• Middle East & Africa (Saudi Arabia, UAE, South Africa, Turkey): A developing market with growing demand from the oil & gas sector, construction, and infrastructure development. The energy sector creates specialized needs for high-temperature and high-load applications.

• South & Central America (Brazil, Argentina, Colombia): An emerging market with growth potential from the expanding automotive industry and agricultural sector, though economic volatility can impact growth.

Top Key Players Covered in Lubricant Viscosity Grade Improvers Market

The market is consolidated, with a few dominant multinational corporations holding significant market share through extensive R&D capabilities, global supply chains, and long-standing customer relationships .

• The Lubrizol Corporation (USA)

• Infineum International Limited (UK)

• Chevron Oronite Company LLC (USA)

• Afton Chemical Corporation (USA)

• Evonik Industries AG (Germany)

• BASF SE (Germany)

• LANXESS AG (Germany)

• Sanyo Chemical Industries, Ltd. (Japan)

• Croda International Plc (UK)

• NewMarket Corporation (USA)

• Mitsui Chemicals, Inc. (Japan)

• Shenyang Great Wall Lubricating Oil Manufacturing Co., Ltd. (China)

• Jinzhou Kangtai Lubricant Additives Co., Ltd. (China)

• Nanjing Runyou Chemical Industry Additive Co., Ltd. (China)

• BRB International BV (A Petronas Company) (Netherlands)

• ENI S.p.A. (Italy)

• Sika AG (Switzerland)

• Akzo Nobel N.V. (Netherlands)

• Petronas (Malaysia)

• Para Lubricants Ltd. (India)

• Amtecol (USA)

• Midcontinental Chemical (USA)

Segments Analysis

• By Product Type: Olefin Co-Polymers (OCP) are the leading segment due to their excellent shear stability and cost-effectiveness, making them the workhorse VII for most engine oil applications . Polymethacrylates (PMA) are a high-value segment for applications requiring superior low-temperature performance, such as hydraulic fluids and premium synthetic engine oils .

• By Application: Passenger Car Motor Oils (PCMOs) represent the largest application segment, driven by the sheer volume of vehicles and stringent fuel economy standards . Heavy-Duty Motor Oils (HDMOs) are a strong and stable segment, critical for commercial transportation and off-highway machinery . Electric Vehicle (EV) Fluids is the fastest-growing application segment, creating new opportunities as the automotive industry transitions .

• By End-User Industry: The Automotive Industry is the dominant end-user, consuming the largest volume of VIIs globally. The Industrial Manufacturing sector is another critical end-user, relying on VII-enhanced lubricants for equipment reliability and productivity .

Regional Analysis

• Asia-Pacific (APAC): The dominant and fastest-growing region, accounting for the largest share of global consumption. Its leadership is underpinned by China's massive automotive production and India's rapid industrialization, making it the primary growth engine for the global market .

• North America: A mature, high-value market characterized by stringent environmental regulations and a strong focus on fuel efficiency. The region's robust heavy-duty transportation sector and advanced industrial base drive demand for high-performance VII formulations .

• Europe: A technologically advanced market leading in synthetic lubricants and emissions-reducing technologies. Strict Euro 7 standards push formulators toward advanced VII solutions that enable fuel economy and extended drain intervals .

Porter's Five Forces Analysis

• Threat of New Entrants (Low to Medium): Barriers include the need for specialized polymer chemistry expertise, significant R&D investment, established relationships with major lubricant blenders, and intellectual property protection. However, regional players can emerge in local markets .

• Bargaining Power of Buyers (High): Large lubricant manufacturers purchase in high volumes and can negotiate on price. However, for specialized, high-performance VIIs that enable differentiated formulations, suppliers retain some leverage .

• Bargaining Power of Suppliers (Medium): Suppliers of raw materials (petrochemical derivatives) are often large chemical companies with some pricing power. However, VII manufacturers with diverse sourcing strategies can mitigate this .

• Threat of Substitutes (Medium): Development of synthetic base stocks with inherent high viscosity index properties could reduce VII requirements in some premium applications. However, the performance and cost-effectiveness of VIIs maintain their essential role .

• Intensity of Rivalry (High): The market is highly competitive with intense rivalry among global players (Lubrizol, Infineum, Chevron Oronite, Afton) and specialized manufacturers. Competition is based on product performance, shear stability, thermal resistance, cost, and ability to co-develop solutions for evolving OEM specifications .

SWOT Analysis

• Strengths:

  • Essential additive for formulating multigrade lubricants, enabling consistent viscosity across temperature ranges

  • Well-established technology with continuous innovation in polymer chemistry

  • Critical for meeting fuel economy standards and extending oil drain intervals

  • Strong intellectual property portfolios among leading players

  • Deep customer relationships with major lubricant blenders

• Weaknesses:

  • High production costs due to complex chemical processes and specialized raw materials

  • Vulnerability to petrochemical feedstock price volatility

  • Performance can diminish under ultra-high temperature conditions (>150°C)

  • Technical limitations in extreme operating environments 

• Opportunities:

  • Electric Vehicle Fluids: Development of specialized VIIs for EV transmission systems and battery cooling applications 

  • Bio-Based VII Development: Growing demand for sustainable, biodegradable additives aligned with environmental trends 

  • High-Performance Synthetic Lubricants: Increasing adoption of synthetic and semi-synthetic oils requiring advanced VII formulations 

  • Emerging Market Growth: Rapid industrialization and vehicle fleet expansion in Asia-Pacific and other regions

• Threats:

  • Raw Material Price Volatility: Fluctuations in petrochemical feedstock prices create cost uncertainty 

  • Stringent Environmental Regulations: Compliance with varying regional regulations increases complexity and costs 

  • Alternative Technologies: Development of synthetic base stocks with inherent high VI properties could reduce VII demand

  • Supply Chain Disruptions: Geopolitical tensions and trade restrictions affect raw material availability 

Trend Analysis

1. Shift Toward Low-Viscosity Engine Oils: Stringent fuel economy regulations are driving consumer demand for lower viscosity grades (0W-16, 0W-20), requiring advanced VII formulations with superior shear stability and low-temperature performance .

2. Electric Vehicle Fluids Emergence: The rapid growth of electric vehicles creates new demand for VIIs in EV transmission systems, reduction gears, and thermal management fluids, requiring formulations optimized for low-viscosity base oils and electric motor compatibility .

3. Bio-Based and Sustainable VII Development: Growing environmental consciousness is driving research into plant-derived and biodegradable VII alternatives, offering competitive advantage in markets with stringent eco-regulations .

4. Advanced Polymer Technologies: Continuous innovation in polymer chemistry, including hybrid systems and nanotechnology-enhanced additives, is enabling incremental gains in shear stability, thermal resistance, and molecular-level control .

5. Consolidation and Strategic Partnerships: Leading players are forming closer technical partnerships with OEMs and major oil companies to co-develop solutions meeting next-generation engine requirements and sustainability goals .

6. Supply Chain Localization: Tariff measures and trade uncertainties are incentivizing regional production and diversified sourcing strategies to enhance supply chain resilience .

Drivers & Challenges

• Drivers:

  • Expanding Automotive Industry: Global vehicle production and growing vehicle parc drive sustained demand for engine oils containing VIIs 

  • Stringent Emission Regulations: Euro 7 and similar standards mandate fuel-efficient lubricants, accelerating VII adoption 

  • Industrial Sector Modernization: Industry 4.0 and expanding manufacturing create demand for high-performance industrial lubricants 

  • Synthetic Lubricant Adoption: Growing preference for synthetic and semi-synthetic oils requires advanced VII formulations 

• Challenges:

  • Raw Material Price Volatility: Fluctuations in petrochemical feedstock prices create cost uncertainty 

  • Technical Performance Boundaries: VII effectiveness diminishes under extreme high-temperature conditions (>150°C) 

  • Regulatory Complexity: Varying regional regulations complicate product development and distribution 

  • Supply Chain Disruptions: Geopolitical tensions affect raw material availability and trade flows 

Value Chain Analysis

1. Upstream - Raw Material Suppliers: Petrochemical companies producing base monomers (ethylene, propylene, methacrylates, styrene) and other chemical intermediates .

2. Midstream - VII Manufacturers: Specialty chemical companies (Lubrizol, Infineum, Evonik) that polymerize monomers to produce viscosity index improvers with precise molecular architectures and performance characteristics .

3. Downstream - Lubricant Blenders: Companies that formulate finished lubricants by combining base oils with additive packages containing VIIs, detergents, dispersants, and other performance additives .

4. End-Users:

   • Automotive Sector: Vehicle manufacturers (OEMs) specifying lubricant requirements and consumers using engine oils

   • Industrial Sector: Manufacturing plants, construction companies, mining operations using industrial lubricants

5. Distributors: Chemical distributors and lubricant marketers that supply VIIs and finished lubricants to various markets.

Quick Recommendations for Stakeholders

• For VII Manufacturers:

  • Invest in EV-Specific Formulations: Develop specialized VIIs optimized for EV transmission fluids and thermal management applications to capture the fastest-growing market segment .

  • Pursue Bio-Based Technologies: Invest in R&D for sustainable, biodegradable VII alternatives to align with environmental trends and gain competitive advantage in regulated markets .

  • Strengthen OEM Partnerships: Collaborate closely with automotive manufacturers and major lubricant blenders to co-develop solutions meeting next-generation engine requirements .

  • Diversify Supply Chains: Implement dual-sourcing strategies and consider regional production to mitigate tariff and trade-related risks .

• For Investors:

  • Target Leaders in Advanced Polymer Chemistry: Invest in companies with strong R&D capabilities and established relationships with OEMs and lubricant blenders .

  • Monitor EV Transition: Companies successfully developing VIIs for EV applications are positioned for long-term growth .

  • Focus on Asia-Pacific Growth: Look for investment opportunities in the rapidly expanding Asian market, particularly in China and India .

• For Lubricant Blenders and End-Users:

  • Collaborate on Custom Formulations: Partner with VII suppliers early in product development to optimize formulations for specific viscosity grades and performance requirements .

  • Qualify Multiple Suppliers: Mitigate supply chain risk by qualifying multiple VII suppliers across different regions .

  • Explore Sustainable Options: Evaluate bio-based VII alternatives to meet sustainability goals and regulatory requirements .

• For Policymakers:

  • Promote Fuel Efficiency Standards: Implement and enforce regulations that encourage adoption of high-performance, fuel-efficient lubricants .

  • Support Sustainable Chemistry: Fund research and development for bio-based and biodegradable additive technologies .

  • Harmonize Regional Regulations: Work toward greater regulatory alignment to reduce compliance complexity and foster innovation .