Market Research Future (MRFR) expects the fuel additives market to capture a moderate growth rate of more than 3.66% from 2023 to 2027. The market size is also likely to touch USD 10,294.37 Million by 2027-end.
Growth Drivers and Restraints
Soaring demand for efficient low emission energy sources in the manufacturing, automobiles, and aviation industries in view of the strict environmental policies can foster market growth in the ensuing years. Mounting levels of carbon emissions generated by the fuel in vehicles has left toxic effects on the environment. As a result, industries are looking for fuel additives that restrict these harmful emissions and also elevate the efficiency of diesel, distillates, gasoline, and various other fuels. Fuel additives help cut down combustion as well as the burn rate in extreme temperatures while curbing toxic emissions by the pollutants.
On the competitive front, several players in the industry are indulging in exhaustive research and development activities for product innovation to bolster their market positions. Other strategies followed by the firms include geographical expansion and mergers, to name a few.
Fuel additive market can be segmented with respect to type, fuel type and application.
Major types of fuel additive are cetane & octane boosters, deposit control, cold flow improvers, lubricity improvers, corrosion inhibitors, stability improvers, and others. The deposit control type is the leading segment and was worth USD 3,816.69 in 2018, as a result of the escalating demand for detergents to be used as fuel supplements.
Fuel types studied in the MRFR report are aviation fuel, gasoline, diesel, and others. The diesel segment shall attain the highest growth rate of 3.94% in the years ahead, since its consumption across several industries has been growing rapidly and will remain steady in the coming years as well. On the other hand, gasoline segment grabbed the second highest share in the global market in the year 2018.
With respect to application, the fuel additives market caters to commercial vehicles, aircraft, off-highway equipment, industrial, marine vessels, passenger vehicles, and others. With the highest share of 43.8%, the commercial vehicle application stands as the top segment in the global industry. Its value by 2027-end is estimated to be USD 4,629.57 million.
Fuel additive industry has been extensively analyzed with respect to five major regions, namely North America, Asia Pacific or APAC, Latin America, MEA or Middle East & Africa and Europe.
The Asia Pacific market share was estimated to be 43% in the year 2018, while its value was close to USD 3,453.83 million. In addition to this, the APAC market can also procure the fastest growth rate of around 4.32% between 2020 and 2027, thanks to the surging industrialization rate and the thriving aviation sector. China is the top market for fuels in the region while it stands at the second position in the world, right behind the United States. The aircraft sector in the country is witnessing strong growth. Reports confirm that China will require roughly 7,600 commercial aircraft worth USD 1.2 trillion in the coming two decades. Foreign investments in the aviation sector in the country has increased substantially and can mean optimistic growth prospects for the market. China’s location is easily accessible for the industrial goods industry in surrounding countries, and several other nations worldwide, making it a prime hub for suppliers as well as manufacturers.
Europe has taken the second lead in the global market, backed by the emerging trend of additives in biodiesel blends for high quality performance of cold flow, which has fostered the product demand. Rising focus on product innovation to bring down the overall exhaust emissions and also enhance the mileage can augment market growth in the region. Other than this, the launch of the latest engine technology along with the soaring demand for better fuel efficiency can further enhance the market share in Europe.
Eminent companies in the market for fuel additives are BARDAHL Manufacturing Corporation (US), BASF SE (Germany), Chevron Corporation (US), LANXESS (Germany), Afton Chemical (US), Infineum International Limited (UK), Innospec (US), The Lubrizol Corporation (US), Wynn’s (Belgium), Clariant (US), to mention a few.
LanzaJet, a start-up with expertise in renewable jet fuel has teamed up with British Airways to form an agreement wherein the former will supply nearly 7,500 tons of sustainable fuel additive per year to the aviation firm. LanzaJet will be setting up a new production facility in the US, which converts ethanol to jet fuel additives with the use of a chemical process. The final fuel additive will help bring down the total greenhouse emission by a whopping 70% compared to conventional jet fuel.
Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. MRFR’s approach combines the proprietary information with various data sources to give an extensive understanding to the client about the latest key developments, expected events and also about what action to take based on these aspects.
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