Fuel Additives Market - Growth, Trends, and Forecast (2019 - 2024)
The market for fuel additives is expected to grow at a CAGR of 4.92% during the forecast period of 2019-2024. One of the major factors driving the market studied is the enactment of stringent environmental regulations. However, Increasing demand and penetration of battery electric vehicles (BEVs) is likely to restrain the market growth during the forecast period.
Rising global passenger traffic contributing to the growth of the aviation market is also likely to boost the demand for fuel additives.
Accelerating demand for ultra-low-sulfur diesel (ULSD) is likely to act as an opportunity for the market growth in future.
In 2018, North America dominated the global fuel additives market owing to the high demand from end-user industries.
Key Market Trends
Gasoline to Dominate the Market
In 2018, gasoline was the major application of fuel additives in terms of market share.
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: refinery fuel distribution system or vehicle system.
The increasing popularity of new age fuel delivery systems like gasoline direct injection (GDI) system is likely to boost the demand for fuel additives.
Global Bioenergies, a French-German company has strted mnufcaturing bio-based fuel additives using bio-based isobutene as raw material. Efforts are also being made by several research instituions to manufcature fuel additives which prevent the premature ignition of the air-fuel mixture by increasing the knock resistance.
Hence, owing to the above mentioned reasons, the gasoline related applications of fuel additives is likely to account for the highest market share during the forecast period.
Asia-Pacific to Witness the Highest Growth Rate
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 market for civil aircraft sales.
India also has a great potential for future market opportunities. The automotive industry of the country is witnessing a steady growth owing to a 8% increase in the production 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, Asia-Pacific is likely to witness the highest growth rate during the forecast period.
The market for fuel additives is fairly consolidated, with the top five players accounting for a major chunk of the market. Afton Chemical Corporation is the market leader, with an extensive product portfolio of fuel additives, such as gasoline fuel additive packages and diesel fuel additive packages. It is followed by the Lubrizol Corporation, Innospec, Lanxess, and BASF SE in terms of market share.
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