Fuel Additives Market is predicted to reach USD 13.24 Billion at a CAGR of 6.1% during the forecast period

Pune, India, September 2023, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global Fuel Additives Market.

Fuel Additives

Market Synopsis

According to the MRFR analysis, the global Fuel Additives market size was valued at USD 15,193.30 million in 2020 and is expected to reach USD 13.24 Billion by the end of 2030 at a CAGR of 6.1%.

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.

The global fuel additive market is projected to register a significant growth rate during the review period. This growth is attributed to the globally expanding automotive industry. The prevalence of environmental regulations to reduce carbon footprint is also likely to drive the demand for fuel additives to enhance fuel efficiency. Growing demand for ultra-low sulfur diesel and expanding industrialization in the developing countries is likely to offer significant growth opportunities to the market players. However. the fluctuation in crude oil prices & high cost associated with the R&D activities are likely to pose a threat to the market growth. Also, the growing preference for alternate fuels and the rising adoption of electric vehicles is projected to hamper market growth during the review period..

Competitive Landscape

The global Fuel Additives market is highly fragmented and consists of many organized and unorganized industry players. Manufacturers focuses mainly on expansion of production capacities, continuous product launch, and collaborations with key stakeholders to gain a competitive advantage over other players. Key players 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).

Segmentation

By Type

• Deposit Control: This segment accounted for the largest market share in the global fuel additives market. Deposit control additives are used to reduce the deposit build-up within the engine inlet system and eliminate the potential emission problems caused by the build-up.


• Cetane & Octane Boosters: Cetane number improver additives are predominantly alkyl nitrates and are used to increase the cetane number of diesel fuels. Cetane quality of diesel fuel is defined by the ease with which the fuel ignites. Thus, a higher cetane number of the fuel results in reduced ignition delay.


• Lubricity Improvisers : Lubricity improver additives are surface-active compounds, consisting of an active polar head group and a hydrogen tail. Some of the lubricity improvers include fatty acids, esters, and amides.


• Cold Flow Improvers: Cold flow improver additives use vinyl ester copolymers, such as ethylene-vinyl acetate. Other compounds used are olefin-ester copolymers and dispersants, which are used in combination with ethylene-vinyl acetate.


• Stability Improvers: Stability improver additives are generally long-chain and cyclic amines. The use of stability improvers enhances fuel stability and inhibit its tendency to deteriorate in storage.


• Corrosion Inhibitors: Corrosion inhibitors prevent rust formation in storage facilities, pipelines, pumps, and in the vehicle and engine, which can form because of the hygroscopic nature of ethanol. Effective corrosion inhibitors include carboxylic acid, anhydrides, amines, and amine salts of carboxylic acid.


• Others: The other segment includes conductivity inhibitors, friction modifiers, metal deactivators, oxygenates, scavengers, among others.

By Fuel Type

• Diesel: This segment accounted for the largest market share in the global Fuel Additives market. Diesel fuel is the common term for the petroleum distillate fuel oil used in motor vehicles that use the compression ignition engine.


• Gasoline: Gasoline is a fuel made from crude oil and other petroleum liquids. It is mainly used as an engine fuel in vehicles. It is also used as a solvent for oils and fats.


• Aviation Fuel: Aviation fuel is a specialized type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications, such as heating or road transport. Rising aircraft passenger fleet worldwide due to the improving economic conditions is expected to fuel the demand for aviation fuel during the review period.


• Others: Other types of fuel include biodiesel, shale oil, coal tar, alcohol, and kerosene.

By Application

• Passenger Vehicles: Improving economic and middle-class conditions resulted in higher production and sale of passenger vehicles is driving the growth of the segment.


• Commercial Vehicle: This segment accounted for the largest market share in the global Fuel Additives market. increasing number of construction and e-commerce activities have resulted in high demand for material transportation, which results in high demand for commercial vehicles.


• Off-Highway Equipment: Rising investment in infrastructure, agriculture, mining, and others is expected to fuel the demand for fuel additives in off-highway equipment.


• Aircraft: Increasing aircraft fleet on account of increased tourism and business travel is projected to fuel the demand for aviation fuel, thereby driving the demand for fuel additives.


• Marine Vessels: Marine vessels are used for transporting goods for international trade and the global economy. Shifting trend toward using bio-based and clean energy for driving marine vessels is likely to decline the use of fuels in the marine industry.


• Industrial: Industrial uses of fuel include lighting up furnaces, producing steam for industrial uses and for generating electric energy. Industrial facilities generate electricity for use at their plants. Rising industrialization globally, especially in developing countries is boosting the growth of the segment.


• Others: Other applications of fuel include heating homes, cooking, oil & gas, and as rocket fuel.

By Region

• North America: Market growth is driven by the strict environmental regulations, presence of numerous players in this region and large scale automotive and aerospace industry. US account for largest market share in the region.


• Europe: The growth in the region is mainly driven by the high production and sale of automobiles in European countries, such as Germany, Russia, and France.


• Asia-Pacific: This is the largest and fastest-growing regional market owing 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.


• Latin America: The growing demand is due to the rise in industrialization and increasing government investments in major countries.


• Middle East & Africa: The presence of large-scale petroleum industries is fueling the demand for Fuel Additives in the region.