Biofuel Additives Market Share

Global Biofuel Additives Market Overview

The Biofuel Additives Market Size was valued at USD 13.2 billion in 2021. The Biofuel Additives industry is projected to grow to USD 27.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.90% during the forecast period (2022 - 2030). According to the market report, rising demand for biofuel additives in various end-user applications is driving biofuel additives market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Biofuel Additives Market Trends

• GROWING DEMAND FOR BIOFUELS IN THE AUTOMOTIVE INDUSTRY.

In the automobile sector, the most prevalent biodiesel mix is B20, which contains 6% to 20% biodiesel combined with petroleum fuel. B5, on the other hand, is a biodiesel mix of 5% biodiesel and 95% diesel that is often used in fleet cars. Many diesel cars may run on B20 and lower-level blends without requiring engine modifications. Biodiesel help to improve fuel lubricity and increase the cetane number of gasoline. The major benefit of biodiesel is that it may increase gasoline lubricity at mix levels as low as 1%. Additives serve a critical role in satisfying international fuel requirements and solving real-world challenges linked with biodiesel. Biofuels are particularly essential in decarbonizing transportation because they provide a low-carbon option for current technologies such as light-duty automobiles in the short term and heavy-duty trucks, ships, and aeroplanes with limited alternatives in the long run. South American automotive output increased by ~35% in 2021, according to the European Automobile Manufacturer Association, while Asia commercial market accounted for 50.86% of the market and the global production of commercial vehicles increased by 4% in 2021.

Rising disposable income levels in both emerging and developed nations, as well as continuous infrastructural development, are expected to support market expansion. The growing demand for ecologically friendly transportation solutions has prompted commercial vehicle manufacturers to create cars with lower carbon footprints. Manufacturers are attempting to improve vehicle design by decreasing load factors and size, as well as modifying cars to meet weight limits. Furthermore, as a result of e-commerce, the need for small, medium, and heavy commercial vehicles has risen for logistics and transportation purposes. The logistics industry has evolved from just providing services to providing customer-centric solutions. As a result, the need for commercial vehicles for transportation has skyrocketed. Thus, the growing demand for biofuel will eventually expand the biofuel additives market size during the forecast period.

Government incentives and supportive regulatory frameworks have increased demand for commercial vehicles. Bus and heavy-duty vehicle registrations have increased in North America, Europe, and the Asia Pacific regions. The transportation business is an important economic sector that deals with the movement of people and goods. These include airplanes, railways, shipping, trucking, and logistics companies, as well as those that offer transportation infrastructure. Shipping commodities is an important aspect of each country's economy. According to transportation industry estimates, truck transportation contributed more than $150 billion to the US economy's GDP in 2021 Thus, the growing demand for commercial vehicles and low emissions regulations will boost the demand for biofuels in the forecast period. Which in turn will bolster the demand in the biofuel additives market.

However, there have been significant advances in biofuel additives demand across end-use industries. The rise in demand for biofuel additives is likely to anticipate the growth of biofuel additives market revenue during the forecast period.

November 2023

The Global Biofuels Alliance (GBA) was officially inaugurated on Saturday evening by Prime Minister Narendra Modi in the presence of leaders of a number of partner nations in New Delhi, India. The event took place on the margins of the G20 Summit. A significant effort and a top goal during India's leadership of the G20, the Global Business Agenda (GBA) has been in the works for some time now. The objective of the alliance is to facilitate worldwide collaboration and to increase the use of sustainable biofuels. Additionally, the alliance intends to facilitate global commerce in biofuels and to provide technical assistance for national biofuel programs.

India, the United States of America, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates are the nine founding members of the Global Business Alliance (GBA), which has been created with nine initial members. Canada and Singapore are observer nations. The Initiative for the GBA was sponsored by India, the United States of America, and Brazil. A total of 19 nations and 12 international organizations have already indicated their willingness to become members of the GBA.

Out of the 19 nations, seven are members of the G20, four are among the countries that have been invited to participate in the G20, and eight are neither members of the G20 nor invitees. Among the organizations that have agreed to become members of the alliance are the World Bank, the Asian Development Bank, the World Economic Forum, the International Energy Agency, the International Energy Forum, the International Renewable Energy Agency, and the International Civil Aviation Organization. The GBA was launched by Modi in the presence of heads of state from the United States of America, Brazil, the United Arab Emirates, Singapore, Italy, Argentina, Bangladesh, and Mauritius.

Biofuel Additives Market Segment Insights

Product Type Insights

The biofuel additives market segmentation, based on product, includes antioxidants, corrosion inhibitors, cold flow improvers, detergents, octane and cetane improvers, dyes and markers, others. The antioxidants held the majority share in 2021, concerning the Biofuel Additives Market revenue. This is primarily owing to the surge in demand for biodiesels globally will eventually raise the demand for corrosion inhibitors, thereby expanding the biofuel additives industry. Antioxidants are compounds can prevent or slow down oxidative damage to biofuels. In biofuels antioxidants are added as stabilizer to improve their storage and transportation properties, and to prevent the formation of harmafull byproducts that can reduce fuels efficiency and performance. For example, global biodiesel production will be around 45.712 billion liters in 2021 and is expected to increase to 11,288 billion liters in 2027, estimated by International Energy Agency (IEA). Thus the growing demand for biofuels owing to increasing the demand for biofuel additives market during the foreseen period.

Biofuel Additives Application Insights

The biofuel additives market segmentation, based on application, is segmented into diesel fuel additives, heavy fuel oil additives, aviation fuel additives, gasoline fuel additives, and others. The diesel fuel additives segment dominated the biofuel additives industry in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Diesel fuels can be exceedingly volatile when used for extended periods of time; these additions help to stabilize the fuel. They improve lubrication within the engine. The higher the cetane number, the more efficient the fuel. Cetane boosters reduce fuel usage while simultaneously increasing engine ignition speed. Diesel is sprayed inside the engines by fuel injector detergents. When these valves become blocked over time, the engine struggles to start. To ensure maximum efficiency, these detergents can cleanse the nozzle.

The increasing demand of diesel fuel in the transportation sector accelerating the market growth. For instance, According to the IEA, the consption of biofuels such as biodiesel & ethanol are are increased by 6% in 2020 compared to 2019, due to the strict regulations & policies. Hence the growing demand of the for bidiesel are positively driving the segment growth in the coming years.

Figure 2: Biofuel Additives Market, by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Biofuel Additives Regional Insights

By region, the study provides biofuel additives market insights into North America, Europe, Asia Pacific, and the Rest of the World. North America is expected to dominate the Biofuel Additives Market owing to high demand for automotive fuels, electric vehicle sales, and presence of established players. In 2019, distillate (mainly diesel) consumption into the US transportation sector is approximately 1. 1 billion barrels. This amount constitutes 15% of the country's total oil consumption in terms of energy and approximately 23% of all energy consumption in transportation. The military uses gasoline in tanks and trucks because it is less flammable and explosive than other fuels. According to the Energy Information Administration (EIA), the country consumed about 3.39 billion barrels of crude oil in 2019, averaging about 9.27 million barrels per day. According to the Federal Aviation Administration (FAA), the total number of general aviation airlines is expected to increase from 212,875 aircraft in 2018 to 211,575 aircraft in 2039 due to growth in air cargo.

Asia Pacific is the fastest growing regions owing to high growth of vehicle populations across emerging economies of the region including China, India, and Japan.  China produced 6.24 million vehicles, down 25.1 percent year on year. This will boost the petroleum products demand growth in the coming years leading to market expansion of biofuel additives. However, the government is promoting the use and launch of electric vehicles through projects. This is expected to dampen the use of electric vehicles and affects fuel consumption. According to electric vehicle sales, there are approximately 328,000 plug-in vehicles in 2020, an increase of 4% compared to 2019. Inspite, increased demand for biofuel additives across various industry verticals is expected to drive the market growth in the forecasted period.

Furthermore, the major countries studies are The U.S, Canada, Germany, France, the U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Biofuel Additives Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Biofuel Additives Key Market Players & Competitive Insights

Major market players growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players are focusing on expanding the production capacity to meet the demand and enhance their services. The Lubrizol Corporation, BASF SE, Fuel Quality Services, Inc., Chemiphase International Ltd, Clariant AG, Afton Chemical, E-ZOIL, Eastman Chemical Company, Evonik Industries AG, Total Energies SE, Chevron corporation, Biofuel Systems Group Limited, and CHIMEC are the major companies in the market at the present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of biofuel additives. Although the international players dominate the market, regional and local players with small market shares also have a moderate presence. The international players with a global presence, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

In October 2020, BASF opened a new production plant for fuel performance additives in Shanghai, China. The new facility meets the rising regional demand for fuel performance additives and offers customers in Asia more supply security and supply flexibility. The facility has recently been incorporated into BASF's global network, enhancing its regional manufacturing presence in Asia. This strategic expansion shows the company’s continuous commitment to the fast-growing markets in Asia, this will help eventually to boost biofuel additives market drowth.

Key Companies in the Biofuel Additives market includes

• LUBRIZOL


• BASF SE


• Fuel Quality Services


• Chemiphase Ltd.


• Clariant


• Afton Chemical


• E-ZOIL


• Eastman


• Evonik


• TotalEnergies


• Chevron


• Biofuel Systems


• NALCO among others

Biofuel Additives Industry Developments

In January 2022 BASF and Innospec collaborated to bring increased value to ethanol producers. As a result of this collaboration, BASF supplies concentrated corrosion inhibitor DCI-11 Plus ClearTrak to ethanol plants in the United States.

Biofuel Additives Market Segmentation

Biofuel Additives Product Type Outlook

• Antioxidants


• Corrosion Inhibitors


• Cold Flow Improvers


• Detergents


• Octane and Cetane Improvers


• Dyes and Markers


• Others

Biofuel Additives Application Outlook

• Diesel Fuel Additives


• Heavy Fuel Oil Additives


• Aviation Fuel Additives


• Gasoline Fuel Additives


• Others

Biofuel Additives Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America