The Cold Flow Improvers Market is expected to promise high growth owing to the growing demand for ultra-low-sulfur diesel in recent years. Increasing demand from applications including automobile, aerospace & defense, and others are expected to drive the growth of the market.
Diesel fuel users face the problem of clogged fuel filters during winters due to the paraffin wax content of the fuel. In winters, the fuel cools down to its cloud point temperature due to which, the wax content of the fuel starts to spill out of the suspension and clog the fuel filter leading the engine to shut down. Hence, cold flow improvers are used to avoid this problem. Cold flow improvers are diesel fuel treatments used to restrain the diesel fuel from gelling up.
Rising concerns related to the environment and carbon footprint have been driving oil makers to utilize bio-based oils or vegetable oils as crude materials. This has led to a decline in the performance penalty at a moderate cost, which has enabled producers to increase their production to meet the demand of consumers. They have additionally brought down the reliance upon petroleum-based crude materials, which is expected to create an opportunity for key manufacturers of cold flow improvers.
Due to wax deposition in cold temperatures inhibiting the formation of wax on the walls of diesel engines and pipelines of different types of vehicles, the ethylene-vinyl acetate type segment of the market is expected to grow at a steady rate during the forecast period.
Key Factors Impacting Market Growth:
- Growing demand for ultra-low-sulfur diesel
- Increasing demand and sales of automotive
- Stringent specifications to add additives to fuels
- Rising demand for alternative fuels
- In March 2016, Infineum International Limited started the production of lubricant additives at its new blending plant at Zhangjiagang, China. This expansion was a result of the rising demand for lubricant additives in the APAC region, specifically China and India.
- In January 2017, Infineum International Limited (UK) announced the establishment of its first fully-owned enterprise, Infineum India Additives Private Limited, in Mumbai, India.
- In March 2016, Lubrizol Corporation (US) and Indian Oil Corporation entered into a 50-50 joint venture named Lubrizol India Private Limited (LIPL). At LIPL, they produce as well as market additive systems for industrial, automotive lubricants.
On the basis of the region, the cold flow improvers market has been segmented by North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, & Rest of the World. North America and Western Europe are some of the major markets that are also traditional suppliers of chemicals such as specialty chemicals, bulk chemicals, and so on. Major companies in this market are headquartered in North America and Western Europe. This region has been witnessing the number of transitions in terms of productions of chemicals and respective applications by end-use industries. The preference towards bio-based feedstock has been instrumental in the development of the green alternatives in these regions. Moreover, regulatory authorities have imposed strict guidelines with regard to environmental concerns and potential health hazards due to exposures. This has been more instrumental in the Western Europe region competitively. Some of the major economies in these regions include the US, Germany, UK, France, Canada, Italy, Spain, and so on.
The Asia Pacific and the Middle East are expected to register substantial growth in the cold flow improvers market during the forecast period. This demand is with regard to the growth of major end-use industries/Applications such as ABS, EDE, AHDHE (Check with End-Use Industry/Applications). Major countries in the Asia Pacific region include China, South Korea, Japan, India, Australia, and so on. Middle East includes the UAE, Saudi Arabia, Iran, Israel, Egypt, and so on. Eastern Europe has been largely dominated by Russia and Turkey with operations of major chemical giants in the region. Rest the World that includes South America and Africa has a strong potential for the cold flow improvers market. There has been an increasing number of investments by global companies in these regions to strengthen their presence and tap the potential market. Major economies in these regions for the cold flow improvers market include Brazil, South Africa, Nigeria, Argentina, Colombia, and others.