Fuel Additives Market is projected to be worth USD 13.0 Billion by 2030, registering a CAGR of 6% during the forecast period (2022 - 2030).
The Fuel Additives market size is projected to be worth USD 10,294.37 million by 2025, registering a CAGR of 3.66% during the forecast period (2020–2025). The market was valued at USD 8,064.05 million in 2020.
Fuel additives are compounds that have been developed to improve the quality and efficiency of the fuels used in automobiles. They raise the octane rating of fuel or act as a corrosion inhibitor or lubricant, allowing higher compression ratios to be used for greater efficiency and power. Fuel additives aid in the prevention of issues such as rough idling, slow acceleration, stumbling, and stalling. They are used because they remove sludge, control soot, improve combustion, and act as a biocide.
COVID-19 Impact on the Fuel Additives Market:
The COVID-19 outbreak has resulted in a regional lockdown, border restrictions, and the breakdown of transportation networks. This is expected to have a significant impact on global chemical and material supply chains, international trade, and manufacturing operations. As a result of lockdown across geographies, the production facilities have faced major disruptions. Additionally, closures of borders and export bans have led to a fluctuation in raw material prices and supplies. This has severely affected the production of fuel additives. Some market players, such as BASF SE and Infineum International Limited, build stocks of raw materials as part of their extensive business continuity planning measures to avoid the disruptions in production. However, with the extension of lockdown and trade restriction measures, the demand for the product continues to plummet and, thus, affect the revenue of the players operating in the fuel additive market.
Additionally, the requirement for jet fuel has dropped dramatically. The automotive industry is the major consumer of fuel additives. With the continuous spread of the novel coronavirus worldwide, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. Moreover, to prevent the spread of disease, various ports and shipping companies implemented preventive measures, this has caused severe disruptions in the industry. Furthermore, factories and industrial plant shutdown amid the outbreak has also resulted in a significant impact on product demand.
Fuel additives are used in automobiles to enhance fuel efficiency by reducing exhaust pollutant levels. Fuel additives are primarily added with the engine oil. The expanding automotive production in developing countries is likely to increase the demand for fuel additives. Some of the available aftermarket fuel additives include diesel performance additives, multifunctional diesel additives, and cold flow improvers.
The depleting fossil fuel reserves; environmental regulations; and increasing emissions of carbon dioxide, carbon monoxide, particulate matter, and sulfur dioxide have resulted in increased demand for alternative fuels over conventional crude oil-based fuels.
The expanding industrialization in Asia-Pacific, including China, India, and Southeast Asian countries, coupled with rising per capita disposable income of the consumers is likely to create significant opportunities for the market players. The growth of the major end-use industries, such as aviation, power generation, and marine, is likely to drive the demand for diesel and, thus, fuel additives at a substantial rate in the coming years.
The change in price of crude oil is likely to affect the fuel products markets and thus fuel additives market. Crude oil prices are constantly fluctuating for the last five years. According to Crude Oil Investing, there have been large swings in crude oil prices from USD 140 per barrel in 2008 to as low as USD 62.09 per barrel in 2019.
By Fuel Type
Asia-Pacific accounted for the largest market share and is projected to witness the fastest growth in the market. The high growth of the regional market is attributed to the increasing production and sale of automobiles, especially in China, Japan, India, and South Korea. The growth of the aviation industry in the region is also contributing to the regional market growth. Europe accounted for the second-largest share in the global market owing to the the high production and sale of automobiles in European countries, such as Germany, Russia, and France. Europe is followed by North America. North America recorded stagnant growth in the global market owing to large scale automotive and aerospace industry. On the other hand, the Middle East & Africa is expected to witness below average growth owing to the presence of large-scale petroleum industries. The Latin American market is likely to create notable opportunities due to the rise in industrialization and increasing government investments in major countries.
The global Fuel Additives market is highly fragmented and consists of many organized and unorganized industry players. The key players operating in the global market have large production bases and advanced manufacturing facilities at the domestic and international levels. Many of the key players are major suppliers in mining regions, such as Australia and North America. Some of the prominent players in the global Fuel Additives market include 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 developments include:
The Fuel Additives market is segmented by type, fuel type, application, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Fuel Additives emerging and fast-growing segments, regions, and countries.
Objectives of the Study
|Market Size||2025: USD 10,294.37 Million|
|CAGR||3.66% CAGR (2020-2025)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Fuel Type, and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa|
|Key Vendors||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).|
|Key Market Opportunities||• Increasing demand for ultra-low sulfur diesel (ULSD) • Expanding industrialization in developing countries • Growing automotive industry in latin america and the middle east|
|Key Market Drivers||• Growing automotive industry • Increasing environmental regulations • Degrading quality of crude oil|
The global Fuel Additives market would register a growth of 3.66%.
The automotive industry will play a prominent role in taking the market forward.
Increasing adoption of electric vehicles and preference for alternative fuel could restrain the market.
Asia-Pacific would enjoy the upper hand in the Fuel Additives market.
China, as the largest consumer, would set the trend.