Global Friction Modifiers Market, By Type (Organic (Fatty acids, Esters & Amides and Functional polymers) and Inorganic (Molybdenum Compounds and Nanoparticles)), By Application (Transportation Lubricants (Commercial Vehicle, Passenger Vehicle, Aviation, Marine) and Industrial Lubricants), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.23 Million
CAGR (2026-2031)	5.75%
Fastest Growing Segment	Esters & Amides
Largest Market	Asia Pacific
Market Size (2031)	USD 1.72 Million

Market Overview

The Global Friction Modifiers Market will grow from USD 1.23 Million in 2025 to USD 1.72 Million by 2031 at a 5.75% CAGR. Friction modifiers are chemical additives incorporated into lubricants to reduce the coefficient of friction between moving surfaces, effectively minimizing wear and enhancing fuel efficiency. The market is primarily supported by stringent global regulations regarding emissions and fuel economy which necessitate superior lubricant formulations to meet statutory targets. Furthermore, the industrial sector increasingly demands extended machinery lifecycles, thereby sustaining consumption levels for high-performance fluids. According to the European Automobile Manufacturers' Association, in 2024, global car manufacturing totalled 75.5 million units, underscoring the continued robust baseline for automotive fluids that utilize these essential additives.

However, a significant challenge impeding potential expansion is the accelerating global transition toward electric vehicles. This structural shift threatens to reduce the total volume of internal combustion engines in operation, which are currently the largest consumers of friction reducing additives. Consequently, the industry faces the difficulty of adapting to a rapidly changing landscape where the aggregate demand for traditional engine oils may decline significantly over the coming years.

Key Market Drivers

The implementation of stringent government regulations on vehicle emissions serves as a primary catalyst for the Global Friction Modifiers Market, compelling automotive manufacturers to adopt advanced additive technologies. As regulatory bodies enforce aggressively lower limits on greenhouse gases, OEMs are forced to utilize superior lubricant formulations that minimize energy loss through boundary friction reduction. These chemical additives are essential for improving fuel economy in internal combustion engines without necessitating cost-prohibitive mechanical overhauls. According to the US Environmental Protection Agency, March 2024, in the 'Final Rule: Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles', the new standards project an industry-wide average target of 85 grams/mile of CO2 for the light-duty fleet by 2032, representing a nearly 50% reduction compared to existing 2026 standards. This regulatory pressure directly correlates with increased demand for low-viscosity engine oils fortified with high-efficacy friction modifiers to ensure statutory compliance.

Simultaneously, the expansion of industrial manufacturing and heavy machinery sectors provides a crucial growth avenue independent of the automotive industry's electrification challenges. Industrial operators, particularly in developing regions, are intensifying production activities, which sustains the consumption of hydraulic fluids, gear oils, and greases that require robust additive packages to withstand extreme pressures. This segment relies on friction modifiers to enhance load-carrying capacity and extend the operational lifespan of critical equipment. According to the United Nations Industrial Development Organization, June 2024, in the 'World Manufacturing Production - Quarterly Report (Q1 2024)', industrializing economies achieved a quarter-over-quarter output growth of 1.4%, highlighting the resilience of manufacturing activities that depend on lubricated machinery. This continued industrial activity underpins the volume of additives required globally. Underscoring the scale of this lubricant distribution network, according to Shell plc, in 2024, the company maintained its leading position in the global finished lubricants market with a share of 11.6%, demonstrating the massive baseline of fluid volume into which these modifiers are blended.

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Key Market Challenges

The accelerating global transition toward electric vehicles represents a primary restraint on the friction modifiers market. These additives are predominantly utilized in internal combustion engines to reduce mechanical friction between pistons, liners, and bearings to improve fuel efficiency. As automotive manufacturers and consumers shift their focus to battery-electric powertrains, which do not require traditional crankcase engine oils, the volume of lubricants consumed by the automotive sector is projected to contract. This structural change directly lowers the aggregate consumption of lubricant additives designed specifically for piston engines, creating a long-term volume risk for suppliers heavily dependent on conventional automotive applications.

The impact of this transition is evident in recent sales trajectories which favor non-combustion technologies, effectively reducing the addressable market for standard friction reduction chemistries. According to the International Energy Agency, in 2024, electric car sales are projected to reach approximately 17 million units globally. This substantial increase in electric mobility reduces the relative market share of new vehicles requiring standard engine lubricants. Consequently, the demand for friction modifiers faces downward pressure as the global fleet mix progressively evolves away from fossil-fuel-dependent technologies.

Key Market Trends

The development of specialized friction modifiers for Electric Vehicle (EV) E-fluids represents a fundamental shift in additive technology, moving beyond the combustion-centric requirements of traditional engine oils. Unlike internal combustion engines, electric powertrains demand fluids that provide superior thermal management to cool battery packs and motors while maintaining electrical compatibility to prevent short circuits. This has necessitated the formulation of advanced additives that offer dielectric properties and protection against copper corrosion, alongside substantial heat transfer capabilities. Underscoring this technological evolution, according to Shell Lubricants, September 2025, in the press release 'Shell EV Thermal Fluid Development Paves Way for Sub-10-Minute Charging with enhanced safety', the company demonstrated a new thermal management fluid formulation capable of enabling a battery pack to charge from 10% to 80% capacity in under 10 minutes, highlighting the critical role of specialized fluids in overcoming electrification barriers.

Concurrently, the rising adoption of bio-based and renewable friction modifiers is reshaping the raw material supply chain as the industry prioritizes sustainability and reduced carbon footprints. Manufacturers are increasingly substituting petroleum-derived additives with plant-based esters and oleochemicals, which offer high biodegradability and lower toxicity without compromising lubricity or film strength. This transition is driven by the need to decouple additive production from fossil fuel feedstocks and meet circular economy goals, independent of fuel economy regulations. Reflecting this material shift, according to Croda International Plc, March 2025, in the 'Sustainability Impact Report 2024', the company reported that 56% of its organic raw material volume utilized in 2024 was derived from bio-based origins, illustrating the significant scale at which renewable chemistries are being integrated into the industrial value chain.

Segmental Insights

The Esters & Amides segment is establishing itself as the fastest-growing category in the Global Friction Modifiers Market, driven by the intensifying demand for environmentally sustainable and high-performance lubricant additives. This surge is primarily underpinned by stringent regulatory frameworks, such as the Corporate Average Fuel Economy (CAFE) standards, which compel automotive manufacturers to adopt superior friction-reducing solutions to enhance fuel efficiency and minimize carbon emissions. Unlike traditional inorganic options, esters and amides offer exceptional biodegradability and thermal stability, making them indispensable for modern, low-viscosity engine formulations designed to meet rigorous environmental compliance targets.

Regional Insights

Asia Pacific maintains a dominant position in the Global Friction Modifiers Market, primarily due to the region’s extensive automotive manufacturing and industrial sectors. High vehicle production rates in China, India, and Japan drive significant demand for lubricants designed to enhance fuel economy and durability. Stringent emission standards further compel the adoption of friction modifiers to minimize energy loss in internal combustion engines. Additionally, rapid infrastructure development supports a growing commercial vehicle fleet, ensuring steady consumption of these additives. This alignment of industrial scale and regulatory compliance underscores the region’s market leadership.

Recent Developments

• In October 2025, Lanxess AG released a new ISCC PLUS-certified version of its widely used lubricant additive, Additin RC 2515. This additive serves as a vital component for reducing friction and wear in extreme pressure applications, such as metalworking fluids and greases. The newly launched variant is produced using sustainable raw materials, resulting in a substantial reduction in the product's carbon footprint while maintaining its high-performance characteristics. This development highlights the company's dedication to advancing the sustainability profile of the global friction modifiers market by offering eco-friendly alternatives for industrial lubrication.
• In September 2025, Afton Chemical Corporation launched HiTEC 12582, positioning it as the first commercially available dedicated lubricant additive for hydrogen heavy-duty internal combustion engines. This innovative solution was designed to overcome the specific friction and wear challenges associated with hydrogen fuel, such as increased moisture levels and corrosion risks. By providing a tailored additive package that ensures robust engine protection and efficiency, the company addresses a critical gap in the transition to sustainable transport. The product underscores the evolving role of friction management technologies in supporting alternative fuel powertrains.
• In April 2025, Chevron Oronite announced a strategic partnership with ICONIC Base Oil Solutions to serve as its official distributor in Brazil. This agreement facilitates the expanded supply of OLOA lubricant additives, a product line known for incorporating effective friction modifiers to optimize vehicle performance. By leveraging ICONIC's extensive logistics and commercial infrastructure, the collaboration aims to enhance the availability of high-quality additive packages across the growing Latin American market. This move allows the company to better support local customers in formulating lubricants that deliver improved fuel economy and equipment durability.
• In December 2024, The Lubrizol Corporation showcased its breakthrough sustainable innovations, specifically highlighting the introduction of Lubrizol PV1710. This advanced additive technology was developed to meet the upcoming ILSAC GF-7 standards for passenger car engine oils, which demand superior fuel economy and wear protection. To achieve these performance targets, the formulation utilizes sophisticated friction modifier systems that reduce energy losses within the engine. This product launch reflects the company's strategic focus on enabling higher efficiency and meeting stricter environmental regulations through next-generation lubricant chemistry.

Key Market Players

• Afton Chemical Corporation
• The Lubrizol Corporation
• BASF SE
• Croda International PLC
• Chevron Corporation
• Infineum International Limited
• LANXESS AG
• Vanderbilt Chemicals, LLC
• ADEKA Corporation
• BRB International B.V.

By Type	By Application	By Region
Organic (Fatty acids, Esters & Amides and Functional polymers) and Inorganic (Molybdenum Compounds and Nanoparticles)	Transportation Lubricants (Commercial Vehicle, Passenger Vehicle, Aviation, Marine) and Industrial Lubricants	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Friction Modifiers Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Friction Modifiers Market, By Type:

• Organic (Fatty acids, Esters & Amides and Functional polymers) and Inorganic (Molybdenum Compounds and Nanoparticles)

• Friction Modifiers Market, By Application:

• Transportation Lubricants (Commercial Vehicle, Passenger Vehicle, Aviation, Marine) and Industrial Lubricants

• Friction Modifiers Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE