Octane Improver Fuel Additives Market - Growth, Trends, and Forecast (2020 - 2025)
The market for octane improver fuel additives is expected to grow at a CAGR greater than 3% globally during the forecast period. Growing demand for ethanolblended fuels along with increasing demand for highperformance fuels are driving the market. On the flip side, stringent environmental regulations coupled with unfavorable conditions arising due to the COVID19 outbreak are hindering the market growth.
The octane improver fuel additives market is expected to grow during the forecast period owing to the growing demand for ethanolblended fuels.
AsiaPacific region to dominate the market across the globe with the largest growth from countries such as China and India.
Key Market Trends
Growing Demand for EthanolBlended Fuels
Among all octane improver fuel additives, ethanol occupies a major share and is expected to grow rapidly during the forecast period.
Ethanol has an octane rating of about 108 and is added to fuel to increase the overall octane rating of the fuel. The use of ethanolblended fuel reduces the emission of NOX, CO, and particulate matter. Due to the lower carbon to hydrogen ratio, the use of ethanol reduces carbondioxide emissions and increases fuel efficiency. The use of ethanol produced from biobased instead of petroleumbased is expected to reduce pollution and drive the market during the forecast period.
It is found that there is a significant drop in the production of flexible fuel vehicles in 201920 in some parts of the United States which can run on E15, E40, and E85. However, there is a rise in demand for E15 vehicles and for the first time BMW models were approved for use of E15 and it is expecting to launch E25 by the end of 2020.
However, due to unprecedented conditions arisen due to the COVID19 outbreak the consumption of oil & gas is down by at least 5 million barrels per day due to lockdown in various countries resulting in the complete shutdown of travel, tourism, and ecommerce are likely to affect the consumption in 2020 and is expected to reach to normal by early 2021.
The growing urbanization and increasing need for reducing greenhouse gas emissions are expected to drive the market for the octane improver fuel additives during the forecast period.
AsiaPacific Region to Dominate the Market
The AsiaPacific region is expected to dominate the market for octane improver fuel additive during the forecast period due to an increase in demand from countries like China, and India
To reduce the pollution and particulate matter (PM 2.5) emissions, the Chinese government proposed guideline for the mandate adaptation of 10% ethanolblended gasoline by the end of 2020 and by encouraging corn production, China is expecting to reach it’s ethanol demand through biobased production thereby reducing the impact on the environment.
In early 2010, diesel was available at a discount price of about INR 25 to petrol, but now the difference is in single digits. As the price differential is reducing, the preference for petrol(gasoline)based vehicles is expected to grow in the future.
The Indian diesel cars sales accounted for about 19% in FYI 2019 compared to more than 50% in the year 2012, and the mandate of BSVI engine vehicles from April2020 made it much more difficult. India’s largest automaker announced that it will discontinue the majority of its diesel car models production. While other manufacturers are expected to follow a strategic approach and will produce only highend and heavy model diesel cars. The growing demand for petrolbased vehicles is expected to drive the market for gasoline octane improvers during the forecast period.
The aforementioned factors, coupled with government support, are contributing to the increasing demand for octane improver fuel additives market in the AsiaPacific during the forecast period.
The global octane improver fuel additives market is partially fragmented with players accounting for a marginal share of the market. Few companies include Innospec, Dorf Ketal, Total, Afton Chemical, and LyondellBasell Industries Holdings B.V.
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