The Global Fuel Additives Market report includes a global opportunity analysis and industry forecasts for the period 2023-2032. The global market was valued at USD 8.30 Billion in 2022, registering a CAGR of 3.9% from 2023 to 2032. The base year considered for the study is 2021, and the forecast has been provided for the period, 2023 to 2032.
Fuel additives are compounds that have been developed to improve the quality and effectiveness of fuel used in motor vehicles. They improve the octane rating of fuel or behave as inhibitors of corrosion or lubricants, thus enabling the use of higher compression ratios to boost effectiveness and energy. Fuel additives can assist in preventing issues like rough idling, weak acceleration, stumbling, and stalling. Any liquid added to the fuel supply of vehicles is classified as a fuel additive, either through the filler cap or other parts of the fuel system. Fuel additives enhance engine performance, which allows further travel on gas infused with additives than would be possible otherwise. Another prevalent advantage of fuel additives is engine maintenance. They prevent the buildup of sludge and other deposits in different areas of the engine, thereby effectively prolonging the life of the vehicle. It is also asserted that fuel additives improve the lubrication of operating parts. This specific advantage of the moving parts implies less wear and tear. Diesel fuel additives often give the advantage of functioning as an antioxidant that helps minimize engine corrosion as well as antiknock agents to relieve engine piston stress.
Optimizing the efficiency of fuel engines serves several benefits such as reduced costs, better running of vehicles and other machines, and increased life of the engine. Hence, the demand for fuel additives markets that can provide these fuel additives, enhancing the quality of them, are expected to escalate to unprecedented levels in the coming years. Fuel efficiency is one of the most major concerns of the automotive industry which is gradually becoming the largest demanding propeller of the fuel efficiency market. Deposits along fuel lines frequently choke the nozzle of the injector and decrease the engine efficiency. To prevent this, the government has implemented rigid laws on the automotive industry to avoid deposits along fuel lines from being formed. Hence, the fuel additives market is expected to reap tremendous demand over the coming years.
Based on the application, the gasoline segment is expected to dominate the fuel additives market during the forecast period. Gasoline engine technologies and fuels are constantly evolving and providing new challenges. The growth in the consumption of gasoline additive largely reflects the requirements of engine design and developments in refinery operations. Also, the additive cost is less than 0.3% of the average retail gasoline price. There are two areas of applications for fuel additives in gasoline engines, namely, refinery fuel distribution system, and vehicle system. The increasing popularity of new-age fuel delivery systems, like the gasoline direct injection (GDI) system, is likely to boost the demand in the fuel additives market. Global Bioenergies, a French-German company, have started manufacturing bio-based fuel additives, by using bio-based isobutene as raw material. Efforts are also being made by several research institutions to manufacture fuel additives, which prevent the premature ignition of the air-fuel mixture by increasing the knock resistance.
The Asia-Pacific fuel additives market is likely to witness a major growth during the forecast period, owing to the high demand from countries, like India and China. China is the largest fuel consumer in the Asia-Pacific region, and second in the world, after the United States. The country has the world's largest automobile industry and one of the biggest markets for civil aircraft sales. India also has a great potential future for fuel additives market opportunities. The automotive industry of the country is witnessing a steady growth, owing to an 8% increase in the production recorded in 2018, over the previous year. Additionally, according to the International Air Transport Association (IATA), India is one of the fastest-growing domestic markets, worldwide, with an anticipated count of 337 million domestic passengers and 84 million international passengers to travel, by 2030. Hence, the Asia-Pacific fuel additives market is likely to witness the highest growth rate, during the forecast period.
Key Factors Impacting the Growth of Fuel Additives Market:
- Assist in preventing issues like rough idling, weak acceleration, stumbling, and stalling
- Growing automotive industry worldwide
- Increasing air passenger traffic
- Increasing demand for Ultra-Low Sulfur Diesel (ULSD)
- The growing popularity of electric vehicles
- Stringent government regulations
- The rise in demand for alternative fuels
Key Developments in the Fuel Additives Market:
- In January 2019, Innospec Inc. (US), announced a series of investments aimed at further expanding the capacity of its Performance Chemicals company in research, growth and technical service.
- In January 2019, BASF SE’s (Germany) global business unit fuel and lubricant solutions are investing in Mexico and China to increase the production of antioxidants for lubricants. The capacity expansions address the growing demand for antioxidants from the increasing number of vehicles in Asia and the increasing global demand for long-life lubricant additives.
What Does This Report Provide?
This report provides a detailed understanding of the global fuel additives market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with a potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the fuel additives market.
Market Segmentation:
By Type:
- Deposit Control
- Cetane Improver
- Antioxidants
- Stability Improver
- Lubricity Improver
- Corrosion Inhibitors
- Cold Flow Improver
- Others
By Application:
- Diesel
- Gasoline
- Aviation Fuel
- Others
By Region:
- North America
- By Country (US, Canada, Mexico)
- By Type
- By Application
- Western Europe
- By Country (Germany, UK, France, Spain, Rest of Western Europe)
- By Type
- By Application
- Eastern Europe
- By Country (Russia, Turkey, Rest of Eastern Europe)
- By Type
- By Application
- Asia Pacific
- By Country (China, Japan, India, Rest of Asia Pacific)
- By Type
- By Application
- Middle East
- By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
- By Type
- By Application
- Rest of the World
- By Region (South America, Africa)
- By Type
- By Application
Companies Covered: Major Companies profiled in the report which are key players in the global fuel additives market Innospec Inc., Chevron Oronite Company Llc, The Lubrizol Corporation, Afton Chemical Corporation, Evonik Industries AG, BASF SE, Lanxess, DorfKetal Chemicals, Infineum International Limited, Cummins Inc., CerionLlc
Years Considered In The Study
|
Historic Year |
2019-2020 |
|
Base Year |
2021 |
|
Forecast Period |
2032 |
|
CAGR %(2023-2032) |
3.9% |
Reasons to Buy This Report:
- Market size estimation of the global fuel additives market on a regional and global basis.
- The unique research design for market size estimation and forecast.
- Profiling of major companies operating in the fuel additives market with key developments.
- Broad scope to cover all the possible segments helping every stakeholder in the fuel additives market.
Customization:
We provide customization of the study to meet specific requirements:
- By Segment
- By Sub-segment
- By Region/Country
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