Global Fuel Additives Market: Demand for Transportation Fuel to Encourage Large-scale Production, finds TMR
The global market for fuel additives is highly concentrated with large companies accounting for the leading share, says Transparency Market Research (TMR) in a research report. The top five companies in the market – Innospec, Afton Chemical Corporation, The Lubrizol Corporation, BASF SE, and Evonik Industries AG – held a share of 42.1% in 2014 in the global fuel additives market.
In spite of intense competition, the multinational companies have been continuously leading the market. Players that strive to achieve economies of scale and operate efficiently across the value chain are likely to gain a competitive advantage over other players. Manufacturers are focusing on catering to specific requirements of end users and expand their consumer base. This is expected to intensify the competition in the market over the coming years.
The global fuel additives market is expected to rise at a CAGR of 8.3% from 2015 to 2023. The market is expected to rise from a valuation US$5.8 bn in 2015 to US$11.0 bn by the end of 2023.
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Gasoline to Emerge as Leading Application Segment
In terms of application, gasoline emerged dominant in 2014 and is expected to maintain its dominance until 2023 accounting for a share of 44.6% in the same year. Gasoline used with fuel additives contains octane boosters, emulsion preventives, dehazers, demulsifiers, markers and dyes, metal deactivators, conductivity improvers, antioxidants, corrosion inhibitors, friction modifiers, fluidizers, and deposit control additives. These additives make the gasoline more efficient. As a result of this, the demand for fuel additives in the gasoline segment is expected to rise over the coming years across several industries.
In the gasoline application segment, the fuel additives market is primarily driven by the mounting demand for gasoline in the automotive sector. Owing to the stringent environment regulations imposed by governments across the world and the growing requirement for efficient fuels, the global market for fuel additives in the gasoline segment is likely to experience a shot in the arm over the next couple of years.
Geographically, North America led the global fuel additives market in 2014, trailed by Asia Pacific. It is projected that North America will account for a share of approximately 35.0% in 2023. According to a TMR analyst, “The growth of the fuel additives market in North America can be attributed to the growing consumption of ultra-low sulfur diesel (ULSD) as its manufacturing requires a sizeable amount fuel additives.”
Rising Awareness among Consumers regarding Applications of Fuel Additives to Bode Well for Market Growth
Fuel additives have numerous benefits when employed efficiently. When added in the oil refining process, it helps lower the processing cost and the use of crude oil. It also has several fuel storage properties. The fuel performance benefits offered by fuel additives include improving ignition, complete combustion, lowering the exhaust pollutant level, enhanced fuel economy, and engine benefits. Other than this, fuel additives also enable consumers to reduce the cost of maintenance of automobiles and adhere to regulatory and original equipment manufacturers (OEM) specifications.
Furthermore, the rising demand for transportation fuel across the globe is expected to boost the demand for fuel additives. Owing to strict environmental regulations and the benefits these additives offer, they are being employed extensively in the production of transportation fuel.
However, factors such as the availability of substitutes, mounting prices of fuel additives, and the absence of proper policies and regulations in the developing economies of Asia Pacific, Africa, and Latin America are anticipated to act as roadblocks in the progress of the global fuel additives market.
This review is based on a Transparency Market Research report titled, “Fuel Additives Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015–2023.”
The global fuel additives market has been segmented into:
Fuel Additives Market – Product Analysis
Deposit control additives
Others (mixture of alkyl phenols and aromatic diamines)
Cold flow improvers
Others (Including dyes and markers, metal deactivators, fuel dehazers, etc.)
Fuel Additives Market – Application Analysis
Others (Including heating oils, etc.)
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