Fuel Additives Market to Witness Rise in Revenues During the Period 2023 – 2029
As the chemical industry moves into 2022, strong demand for both commodity and specialty chemicals should keep prices robust throughout the year. However, the industry could face margin pressures amid raw material cost inflation, which will likely remain high through the first half of 2022.
The global fuel additives market size was USD 8.14 billion in 2021. The market is projected to grow from USD 8.62 billion in 2022 to USD 12.87 billion in 2029 at a CAGR of 5.9% during the 2022-2029 period. Fortune Business Insights™ shares this information in its report.
Fuel additives help vehicles perform better, reduce carbon emissions, and increase fuel efficiency. Governments across the world are implementing emission norms for the automotive industry to reduce the carbon footprint from vehicles. For instance, the government of India has introduced a new Bharat Stage (BS) 6 norm for all the carmakers operating in the country. Such norms are projected to propel the adoption of these additives.
The market is categorized on the basis of type, application, and geography. In terms of type, the market is divided into deposit control, cetane improvers, lubricity improvers, cold flow improvers, stability improvers, octane improvers, and corrosion inhibitors. Based on application, it is fragmented into gasoline, diesel, and aviation fuel. On the basis of geography, it is segmented into North America, Europe, South America, Asia Pacific, and the Middle East & Africa.
What Does the Report Offer?
The report provides tangible insights into the current & upcoming market trends and highlights prominent industry developments. Apart from this, it contains a detailed analysis of the key market aspects, namely, the dominant companies, end-users, and leading product types. In addition to these factors, the report supplies a holistic understanding of the main drivers, restraints, and segments that are contributing to the growth of the market.
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Drivers and Restraints
Increasing Demand for Retail Fuel to Drive Market Growth
Fuel additives have high application in retail fuel i.e. petrol and diesel as it aids in several problems related with fuel delivery system in the vehicle. According to the Additive Technical Committee (ATC), the technical committee of petroleum additive manufacturers in Europe, more than 50% share of additives is utilized in retail fuel. The increasing demand for petrol and diesel backed by an increased rate of production and sales of vehicles worldwide is estimated to drive the market. In addition, fuel additives help engines emit less carbon by reducing carbon deposits from cylinder heads, valves, and pistons. Therefore, stringent regulations by governments across the world regarding reducing carbon emissions from automobiles and refineries are anticipated to strengthen the demand for the product.
However, the increasing demand for clean energy and the high inclination of industries toward the use of renewable resources for fuel purposes is anticipated to reduce the utilization of petrol and diesel. In addition, an increase in the sales of Electric vehicles is predicted to further cut down the consumption of fossil fuels. Such factors are estimated to hinder the market growth.
Increasing Petroleum Exploration in the U.S. and Canada to Propel Demand in North America
North America is anticipated to dominate the fuel additives market share during the forecast period. One of the leading factors driving the market in the region is the increasing rate of petroleum exploration activities from various oil-producing countries including the U.S. and Canada. In addition, the increasing demand for fuel from various end-user industries including power generation, logistics, and others is projected to further propel the adoption.
The market in Europe is predicted to hold a significant market share. The region is home to major automotive manufacturers including Volkswagen, Renault, Peugeot, and Mercedes. The high usage due to the well-established manufacturing industry is forecast to drive the market growth in the region.
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Product Launches in Key Markets to Help Key Players Establish Internationally
Prominent enterprises operating in the global fuel additives market are focusing on tapping key markets by introducing their products in the international markets. For instance, in December 2020, BASF SA introduced Keroper D, a multi-purpose, high-performance fuel additive for diesel, in South Korea. With this launch, the product is now available in the bricks-and-mortar market as up until now, it was only available through Coupang, an e-commerce company.
In February 2021, Lubrizol Corporation, a specialty chemicals provider, announced its full compliance to the new generation of Dexos 1 car motor oil specification by General motors. The upgrade was attained to provide the engines efficient and reliable protection from constant wear and tear.
List of Key Companies Covered in the Market Report:
- BASF SA (Ludwigshafen, Germany)
- Dow Inc. (Michigan, U.S.)
- Lubrizol Corporation (U.S)
- Evonik Industries AG (Germany)
- Total Additives and Special Fuels (U.S.)
- Clariant (Switzerland)
- Chemtura (U.S.)
- Dorf Ketal Chemicals (India)
- Innospec Inc. (US)
- Other Key Players
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