ID: MRFR/CnM/8653-CR | July 2020 | Region: Global | 338 pages
Global Fuel Additives Market is projected to register a healthy CAGR of over 3.66% to reach USD 10,294.37 Million by the end of 2025.
Fuel additives are compounds formulated to enhance the quality and efficiency of fuels used in motor vehicles. They increase a fuel's octane rating or act as corrosion inhibitor or lubricant, thus allowing the use of higher compression ratios for greater efficiency and power. Fuel additives help avoid problems, such as rough idling, weak acceleration, stumbling, and stalling. These additives are used as they remove sludge, control soot, improve combustion, and act as a biocide.
Global Fuel Additives Market is projected to register a significant growth rate during the review period. This growth of the fuel additives market is attributed to the globally expanding automotive industry. The global automotive industry expanded by 40% between 2009 and 2019, largely due to significant demand from India, the UK, Italy, China, Indonesia, Malaysia, Thailand, among other developing nations. Growing demand for light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs) worldwide is another important factor driving the market growth. For instance, the total production of lightweight vehicles in North America increased by 4.8% and by 10.2% in Asia. The prevalence of environmental regulations set by regulatory bodies, including the European Union (EU) and the US Environmental Protection Agency (EPA), to reduce carbon footprint is also likely to drive the demand for fuel additives to enhance fuel efficiency. Additionally, variation in refining process parameters and quality of crude oil results in variation in the fuel standards required by original equipment manufacturers. This is fueling the demand for fuel additives to comply with the fuel standards of OEMs.
The growing demand for ultra-low sulfur diesel owing to emission standards set by the regulatory authorities, such as the EU and US EPA, to reduce harmful emissions and expanding industrialization in the developing countries are also likely to offer significant growth opportunities to the market players.
However, the fluctuation in crude oil prices and the high cost associated with the R&D activities are likely to pose a threat to the market growth.
The growing preference for alternate fuels and the rising adoption of electric vehicles are also projected to hamper market growth during the review period.
Moreover, the COVID-19 outbreak has caused a significant impact on fuel demand owing to restrictions on trade and regional & local movement, which prevents transmission of goods and people. The restriction on the movement of people has led to a huge disruption in industrial production, trade, and shipping. The countries across the globe are expanding quarantine measures and lockdown with increasing cases, which is expected to result in declining demand for gasoline and diesel, and thus, fuel additives. Additionally, the requirement for jet fuel has dropped dramatically, which is likely to affect market growth.
Global Fuel Additive Market Revenue, by Application, 2018 (USD Million)
Sources: MRFR Analysis
Global Fuel Additive has been segmented based on Type, Fuel Type, and Application.
By Type, the market has been categorized into three segments, namely, deposit control, cetane & octane boosters, lubricity improvers, cold flow improvers, stability improvers, corrosion inhibitors, and others. The deposit control segment was valued at USD 3,816.69 in 2018.
By Fuel Type, the fuel additives market has been classified into diesel, gasoline, aviation fuel, and others. The diesel segment is expected to register a higher CAGR of 3.94% during the review period owing to its high consumption in end-use industries. The gasoline segment accounted for the second-largest share in 2018.
By Application, the global fuel additives market has been categorized into passenger vehicles, commercial vehicles, off-highway equipment, aircraft, marine vessels, industrial, and others. The commercial vehicle application segment accounted for 43.8% of the market share in 2018. It is projected to reach a value of USD 4,629.57 million by the end of the forecast period.
Global Fuel Additive Market Share, by Region, 2018 (%)
Sources: MRFR Analysis
Global Fuel Additive Market has been studied across five regions, namely, Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. The regional market of Asia-Pacific held the largest market share of 43% in 2018, with a market value of around USD 3,453.83 million. The regional market is projected to register the highest CAGR of around 4.32% during the forecast period owing to the expanding industrialization in the emerging economies of Asia-Pacific.
Europe and North America are the other key regional markets for fuel additives and accounted for second-largest and third-largest market shares, respectively, of the global market in 2018. The growth of the Middle East and Latin America markets is likely to be driven on account of the growing automotive industry.
The Key Players in the Global Fuel Additive Market are Innospec (US), The Lubrizol Corporation (US), Afton Chemical (US), BASF SE (Germany), Chevron Corporation (US), LANXESS (Germany), Clariant (US), Infineum International Limited (UK), BARDAHL Manufacturing Corporation (US), and Wynn's (Belgium).
Some of the key strategies followed by the players operating in the global fuel additives market are expansion and product development.
Global Fuel Additives Market, by Type
Global Fuel Additives Market, by Fuel Type
Global Fuel Additives Market, by Application
Global Fuel Additives Market, by Region
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Frequently Asked Questions (FAQ) :
The fuel additives market can expand at 3.66% CAGR by 2025.
By 2025, the fuel additives market can touch USD 10,294.37Mn.
Afton Chemical (US), Chevron Corporation (US), BASF SE (Germany), and LANXESS (Germany) are some reputed names in the fuel additives market.
The increase in need for commercial vehicles promote fuel additives market.
High cost can restrain the fuel additives market.