"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global fuel additives market size was USD 8.14 billion in 2021 and is projected to grow from USD 8.62 billion in 2022 to USD 12.87 billion in 2029 at a CAGR of 5.9% during the 2022-2029 period. The global impact of COVID-19 has been unprecedented and staggering, with fuel additives experiencing a lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 0.2% in 2020 as compared to 2019.
Due to the rising demand for advanced and improved goods from the car and other end-use sectors, the worldwide market is expected to rise significantly. Stringent restrictions implemented by government businesses are another major factor that is predicted to boost the global market. Furthermore, favorable government regulations and increased awareness about carbon emission reduction will benefit the market.
Falling Fuel Demand due to Transportation Restrictions to Impact Market Development
The impact of the pandemic on various end-use industries has been thoroughly studied. The automobile industry has seen a decline in demand because of the shutdown of operating activity. European vehicle manufacturers were forced to close their factories due of the COVID-19 pandemic. Certain corporations had to decrease output at European operations to deal with the coronavirus outbreak and falling demand. Renault, for example, has halted production at 12 of its plants in France, affecting over 18,000 workers. The demand for gasoline has been greatly reduced because of the strict rules and code of conduct enforced by governments to prevent the spread of infection. Due to the strict lockdown and curfew, demand for fuel and its additives has decreased.
In the coming years, the middle class and young people will contribute even more to the demand for these additives. During the COVID-19 epidemic, there was a minor impact on the supply of Types for the gasoline additive business. The pandemic and the ensuing lockdown wreaked havoc on the fuel additive industry's whole production and supply chain.
Request a Free sample to learn more about this report.
Increasing Research and Usage of Ultra Low Sulfur Diesel to Create New Opportunities
Sulfur at an Extremely Low Level Sulfur-free diesel is diesel with a low sulfur content. This is an example of how sophisticated low-emission technologies can potentially reduce harmful gas emissions from diesel combustion. The European government enacted regulations that required the reduction of diesel sulfur content and the implementation of current ULSD criteria. However, in order to retain its performance, the ULSD requires lubricity improvers. One of the trends that is predicted to boost the growth rate of this market is the rising demand for low-sulfur fuel.
Favorable Regulatory Scenario to Propel Fuel Additives Market Growth
Due to the increased demand for fuel from various industries, the market for fuel additives is likely to rise rapidly. The industry of fuel additives is one that requires a lot of research and development. To address the demand from companies that convert hydrocarbon n fuels to heat energy for diverse applications such as transportation, electricity production, and others, a wide range of products has been produced. According to ATC data, 95 percent of on-road retail fuel is treated with performance additives, accounting for about half of the volume, with the rest going to refineries and other terminals. This assures that the output meets the European government's criteria. Additionally, market expansion will be fueled by increased research and development in the Ultra-Low Sulfur Diesel business.
The market development will be aided by stricter emissions control from autos and refineries. One of the factors promoting growth and development in the product portfolio of fuel additives is growing concerns about air pollution caused by incomplete and complete combustion of hydrocarbons. The Clean Air Act, for example, specifies the use of detergents and deposit control additives to reduce carbon monoxide emissions. Furthermore, a diverse assortment of goods for various types of fuels improves the fuel's performance. Fuel-related difficulties in engines and machinery including fuel efficiency are common, but they can be solved with the application of additives. They are commonly found in refineries, distribution systems, and even storage tanks for various transportation systems and vehicles.
Degrading Quality of Crude Oil to Drive Market
Petroleum oils are quickly photo-oxidized and biodegraded because of the presence of marine microorganisms that utilize it as a carbon source. This occurs mostly at the oil-water interface, producing a wide range of compounds that decrease the quality of the petroleum oil produced. Both of these factors work together to speed up the oxidation process under specific conditions. Fuel additives remove carbonaceous deposits on the walls of combustion chambers. Furthermore, one of the factors diminishing the quality of crude oils is the ongoing mining of crude oil reservoirs to obtain petroleum oil and natural gas. Increasing demand for these additives to preserve quality and meet government standards will drive the market forward.
Rise in Demand for Alternative Fuels May Hamper Demand
Over the last few years, various forms of clean energy sources have been produced. Concerns about carbon emissions and air pollution have increased the need for sustainable energy sources dramatically. One of the most recent technologies produced for sustainable living is the use of batteries in vehicles and automobiles. Organizations, enterprises, and governments that provide transportation prefer Electric Vehicles (EVs) to practice sustainability and support the use of clean and green energy sources.
Cetane Improvers Segment to Generate High Revenue Due to High Demand from Key End-Use Industries
Based on type, the market is segmented into deposit control, cetane improvers, lubricity improver, cold-flow improver, stability improver, octane improver, and corrosion inhibitors. Cetane number is the parameter used to indicate the ignition properties of a fuel relative to the standard cetane number. Cetane improvers are highly employed in diesel fuel. Its exothermic decomposition lead to fuel reactions which results in the start of combustion at lower temperature.
Octane improvers is the major segment. Higher octane number of a fuel indicates higher performance. Increasing demand for octane improvers from refineries due to its cost-effectiveness in order to meet the octane number specifications shall boost its demand. Deposit control additive and stability improvers are in demand attributed to the decreasing quality of crude oil and petroleum oils.
To know how our report can help streamline your business, Speak to Analyst
Gasoline Segment to Hold a Significant Share Due to Growth in Automotive Sector
The market is segmented into gasoline, diesel, and aviation fuel in terms of application. The gasoline segment constituted the primary market share. Growing demand for gasoline fuel supported by the increasing automotive production is one of the prime reason driving the market. Besides increasing demand for aviation fuel for commercial application owing to the increasing tourism is expected to drive the market's growth.
North America Fuel Additives Market Size, 2018-2029 (USD 2.70 Billion)
To get more information on the regional analysis of this market, Request a Free sample
The fuel additives market share in North America was estimated to be worth USD 2.70 billion by 2021. North America currently dominates the market and is expected to do so during the projected period. Increasing petroleum exploration operations and increasing demand for fuel from a variety of end-user industries, such as transportation and power production, could propel market expansion. The rapidly increasing aerospace and defense sector, as well as numerous U.S. government projects will fuel regional prosperity.
In terms of volume, Europe is likely to rise significantly. The market is likely to be driven by the well-established automotive manufacturing sector and rising demand for passenger automobiles. Furthermore, the presence of organizations such as the Additive Technical Committee (ATC), which supports the expansion of the additive industry, will have an impact on growth.
In terms of development and industrialization, Asia Pacific is one of the most prosperous regions. Due to rising demand from countries such as China and India, the fuel additive sector is expected to be a significant driver for the market. Increased efforts by automakers such as Tata, Bajaj, Ashok Leyland, and others to build better automobiles would fuel demand.
Brazil, Mexico, Argentina, Columbia and Chile are the major growth countries for the market due to their robust manufacturing sector. Increasing mining activities in Brazil and other Latin American region is driving the demand for fuels further supporting the market growth.
To know how our report can help streamline your business, Speak to Analyst
Population growth and growing tourism due to the hosting of mega-events are key growth factors for the fuel industry. Increasing tourism and transportation is shall positively impact market growth. The UAE and Qatar are expected to lucrative countries for the fuel additive industry as they move on with initiatives to support tourism ahead of the Expo 2021 and FIFA World Cup 2022.
Key Companies to Adopt Strategies and Widen their Market Presence
The global market is consolidated in nature, having few key players governing major market share. BASF SE, Evonik Industries, Lubrizol Corporation, TotalEnergies, and Dow Inc. are some of the market's key players.
Key manufacturers mainly operate based on the product's pricing strategy. To gain a competitive edge and enhance their market share, several key players are engaged in several strategic partnerships to encourage brand and sales. For instance, in South Korea, BASF SA launched a new diesel additive, which is available through Coupang, an e-commerce company.
An Infographic Representation of Fuel Additives Market
To get information on various segments, share your queries with us
The global fuel additives market research report offers an in-depth analysis of the market and discusses on key aspects including major companies, and products. In addition, the report provides insights on market trends and evaluates key industry developments. In addition to this, the report encompasses various factors that have contributed to the market's growth in recent years.
This report includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities.
Value (USD Billion) and Volume (Tons)
Type; Application; and By Region
Fortune Business Insights says that the global market size was USD 8.14 billion in 2021 and is projected to reach USD 12.87 billion by 2029.
In 2021, the North America market size stood at USD 2.70 billion.
Growing at a CAGR of 5.9%, the additives market will exhibit steady growth during the forecast period (2022-2029).
The gasoline segment is expected to be the leading segment in this market during the forecast period.
Stringent regulations imposed by Government regarding Carbon emissions.
BASF SA, Evonik, Lubrizol Corporation, TotalEnergies, and Dow Inc. are major players in the global market.
North America dominated the market share in 2021.
Degradation in the quality of crude oil.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry