ID: MRFR/CnM/9145-HCR | July 2021 | Region: Global | 180 pages
Biofuel Additives Market Overview
Biofuel Additives Market is projected to register a CAGR of around 14.2% to reach USD 27,520.28 million by the end of 2028.
Biofuel additives are specialty chemicals thatare used to increase engine performance, trim down the brake specific fuel consumption (BSFC) and improve the biofuel properties. They are synthesized from the conventional feedstock or lignocellulosic feedstock and play an important role in engaging the international fuel standards. Biofuel additives including methanol, diethyl ether, ethanol, and n-butanol are generally used as biodiesel additives owing to theirhigh oxygen content. Biofuel additives in biodiesel blends help to improve combustion stability and characteristics. The reduction of NOX emissions is owed to the addition of antioxidant additives.
The prominent factor favoring the growth of the Biofuel Additives Market is the demand for clean & efficient fuel, diminishing quality of crude oil, and the growing automotive industry,which is opting for cleaner and greener fuel source owing to the stringent regulations on emission, especially from Europe and China. The main sources of greenhouse gases are methane (CH4), carbon dioxide (CO2), fluorinated gases (perfluorocarbons, hydrofluorocarbons, nitrogen trifluoride, and sulfur hexafluoride), and nitrous oxide (N2O). The transportation sector additionally contributes to the emission of CO2, owing to the burning of fossil fuels, including natural gas, oil, and coal.
The European Union enforcednumerous regulations in its directives including 98/69/E.C., 91/441/EEC,94/12/E.C., and 2006/120/E.C.among others,to reduce the emissions of GHGs. Similarly, the California Air Resources Board and the US EPA have employedits own regulations towards the GHG emissions throughout the California Air Resources Board (CARB) states, that includes Delaware, Connecticut, Maryland, Maine, New Jersey, Massachusetts, New York, New Mexico, Pennsylvania, Oregon, Vermont, Rhode Island, Washington DC, and Washington state. The EPA adopted the Californian emissions standards in the 2016 model as a national standard also collaborating with the California Air Resources Board forstringent national emissions standards. Moreover, several programs are conducted in partnerships with manufacturing companies and countries with an intent to reduce the emissions of GHGs. For instance, the US EPA had introduced voluntary partnership programs in 2000, which in 2017 saved over USD 35 billion and reduced carbon dioxide emissions of 433 million tons. This program consisted of 40% of the Fortune 500 companies. These regulations towards eco-friendly fuel and awareness towards environmental pollution areexpected to gain traction for the biofuel additives market in the coming years.Additionally, the production and sales increase of passenger cars,especially of thesmall passenger cars such as subcompacts, microcars, and superminis, are significantly highand account for over 33% of total vehicles sold 2019. According to the Center for Automotive Research, the demand is expected to reach over 32 million vehicles by the end of 2021.
However, the increasing demand for e-vehicles in the market is a major restraining factor for the Biofuel Additives Market. On the other hand, factors such as technology development, product innovation, and the expansion of the automotive industry in emerging economic regions such as the Middle East and Africa and Latin America are estimated to create new demands and growth opportunities for the manufacturers in the Biofuel Additives Market.
COVID-19 Impact Analysis
The global covid–19 pandemic has issued a tight supply of the products majorlyowing to the reduction in operating capacities in themanufacturingfacilities across Asia-Pacific, Europe, and North America. Moreover, the manufacturers are facing serious headwinds due to interruption in the supply of raw material and the variation in prices. The shutting or halt of manufacturing facilities by producerscoupled with the decline in demand from automotive manufacturers has affected the Biofuel Additives Market. Furthermore, the companies are working aggressively toward safeguarding the health and wellbeing of their employees while also supporting government goals of maintaining critical business activities in power generation, food production, and healthcare.
According to the United Nations, the global economy is expected to decline by about 3% or more instead of recording a 2.5% growth which is projected by the World Economic Situation and Prospects report 2020. There are various monetary and fiscal policies that are imposed by governments across the globe to mitigate the impact of COVID-19 on the industrial sector whileacting to cause a relief to the itsconsumers.
Supply Chain Analysis
The supply chain analysis is the process of evaluating every stage and step taken by stakeholders involved throughout the production and distribution of biofuel additives. The supply chain includes raw materials and suppliers, biofuel additives producers, distribution channels, and endusers.
The key raw materials used in the production of biofuel additives include ethanol, butanol, methanol, and others. Some of the key suppliers are ADM, Valero, Gevo inc.,Cathay Industrial Biotech, Celanese Corporation among many others.
The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants.
The Biofuel Additives Market has been segmented on the basis of Product Type, Application, and Region.
By Product Type, the Biofuel Additives Market has been segmented into antioxidants, detergents, lubricity improvers, corrosion inhibitors, octane, cetane & cold flow improvers, dyes & markers, and others. The antioxidant segment accounted for the largest market share in 2020 due to its wide use in gasoline additives. It is aimed to reduce harmful emissions for engines.
Based on the Application, the Biofuel Additives Market has been categorized into diesel fuel additives, heavy fuel oil additives, shipping fuel additives, gasoline fuel additives, and others.Among these, the diesel fuel additives segment emerged as the fastest-growing segment during the review period.
Biofuel Additives Market Revenue, by Product Type, 2020 (USD Million)
Sources: MRFR Analysis
According to the product type segment the market is expected to gain major traction from the antioxidants segment. However, the corrosion inhibitor segment is expected to be the fastest growing segment due to its application heavy machinery and in the marine industry.
Global Biofuel Additives Market Share, by Region, 2020 (%)
Sources: MRFR Analysis
The Biofuel Additives Market has been studied across Asia-Pacific, North America, Europe, Latin America, the Middle East & Africa, and the Benelux. Asia-Pacific accounted for more than 35% of the Biofuel Additives Market Share in 2020. The players majorly operating in the Asia-Pacific region are embracingnumerous business strategies including R&D, expansions, new product launches, joint ventures, acquisitions, and agreementsto fortify its presence in the market. For instance, in December 2018, BASF announced an investment at the new mobile emissions catalysts production facility in Shanghai, China, which is expected to increase the market demand within the Chinese market.
The market growth in the European region can be attributed owing to the stringent emission control regulations in the western Europe and additionally increasing automotive and transportation production in the region.
The UShas one of the largest automotive markets. According to the US Department of Commerce, International Trade Administration (ITA), in 2019, the light vehicle sales were over 20 million units 2019. This results in energy conservation and climate change, thereby imposing various laws and regulations for environmental safety, increasing the demand for biofuel additives.
Key players operating in the Biofuel Additives Market include BASF SE (Germany), Eastman Chemical Company (US), Chevron Oronite Company LLC (US), The Lubrizol Corporation (US), Infineum (UK), Afton Chemical (US), Chemiphase Ltd. (UK), Biofuel Systems Group Ltd. (UK), Evonik Industries AG. (Germany), NALCO (India), Fuel Quality Services, Inc. (FQS) (US), and Clariant AG (Switzerland).
BASF SE, Eastman Chemical Company, Clariant, Chevron Oronite, and The Lubrizol Corporation are the prominent players operating in the Biofuel Additives Market. These players account for a major share of the global market due to their industry experience, global revenue base, wide product portfolio, and distribution network worldwide.
Global Biofuel Additives Market, by Product Type
Global Biofuel Additives Market, by Application
Global Biofuel Additives Market, by Region
Available Additional Customizations
|Market Size||2028: USD 27,520.28 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Application, and Region|
|Geographies Covered||North America, South America, Europe, Asia-Pacific, Middle-East, and Africa|
|Key Vendors||BASF SE (Germany), Eastman Chemical Company (US), Chevron Oronite Company LLC (US), The Lubrizol Corporation (US), Infineum (UK), Afton Chemical (US), Chemiphase Ltd. (UK), Biofuel Systems Group Ltd. (UK), Evonik Industries AG. (Germany), NALCO (India), Fuel Quality Services, Inc. (FQS) (US), and Clariant AG (Switzerland)|
|Key Market Opportunities||Increasing demand in automotive industry|
|Key Market Drivers||