Automotive Additive Market Size, Share, Growth, Trends, and Global Industry Analysis: By Plastic (Polypropylene (PP), Polyurethane (PUR), Poly-Vinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS)), By Plastic Additive (Plasticizers, Anti-Scratch, Stabilizers, Antioxidant, Others) By Vehicle (Passenger Cars and Commercial Vehicles), By Application (Exterior, Interior, Under the Hood, Electronic & Electrical), and Region Forecast 2020-2031

Automotive Additive Market size was valued at US$ 7.1 billion in 2024 and is expected to reach US$ 10.5 billion by 2031, growing at a significant CAGR of 5.8% from 2025-2031. Automotive additives are substances that are used in vehicles to enhance various aspects of performance, efficiency, and maintenance. These additives are often mixed with fuels, lubricants, and other automotive fluids to improve certain characteristics of the vehicle's engine, transmission, fuel system, and more. Automotive additives serve a variety of purposes, including improving fuel economy, reducing emissions, preventing engine deposits, protecting components from wear and tear, and maintaining optimal engine performance. They can be formulated to address specific challenges and requirements in different vehicle systems.

Stringent emission regulations play a pivotal role in driving the revenues of the market. As governments worldwide implement increasingly stringent emissions standards to address environmental concerns and reduce air pollution, automotive manufacturers are compelled to develop vehicles that meet these regulations. Automotive additives become essential tools in achieving compliance.

Moreover, the surge in rising vehicle ownership is a compelling driver behind the increased sales of automotive additives. As the global population grows and urbanization continues, the demand for personal and commercial vehicles is on the rise. As the number of vehicles on the roads continues to grow, vehicle owners and fleet managers are showing a heightened interest in maximizing the longevity and effectiveness of their vehicles. Automotive additives have emerged as a cost-efficient solution for tackling maintenance concerns, optimizing engine operation, and improving fuel efficiency.

However, some additives might have environmental implications, such as residues or byproducts that could potentially harm ecosystems. This environmental concern posed as a potential restraint to the growth of the automotive additives market.  Meanwhile, the rise of electric and hybrid vehicles offers new opportunities for specialized additives that cater to the unique lubrication, cooling, and performance needs of these vehicles' drivetrains and components. Key manufacturers are developing various innovative solutions to cater to the automotive industries. For instance, in June 2020, Vestige Marketing launched the Mach-Drive Nanoenergizer, an engine oil additive that enhances the longevity of the engine, and reduces engine drag, friction, and noise.

 Key Developments:       

• In August 2022, BASF opened a new production plant for fuel performance additives in Shanghai, China.
• In October 2022, Clariant launched a new anti-scratch additive for PP & TPO formulations to boost the reuse potential of plastics used in consumer applications.
• In April 2023, Cortec launched a new oil additive, M-535 HV, to prevent rust in gearboxes.