The fuel additives market size was valued at 1,767.83 kiloton in 2020 and the market size is projected to register a considerable CAGR of more than 5% during the forecast period, 2021-2028. The growth of market is attributed to the introduction of strict environmental rules relating to greenhouse gas emissions.
Fuel additives are chemical components that are added to gasoline to improve its performance. These chemicals' principal functions include corrosion inhibitors, anti-foaming, friction reducers, and antioxidation. Many problems with the fuel distribution system can be prevented by using gasoline additives. They help to increase the efficiency and quality of car fuels.
To increase the quality and performance of various fuels, fuel additives are frequently employed. With the outbreak of Covid-19 and suspension of international air travel and economic activity throughout the world has had a significant impact on the market for gasoline additives. The United States is the world's second-largest car market in terms of both sales & manufacturing. Automobile sales fell by roughly 1.8 percent in 2019. Automakers, on the other hand, have been attempting to revitalize the sector by withdrawing their earlier models from domestic market. The Covid-19 epidemic has also had an effect on the automobile sector.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing fuel usage and rising environmental concerns, are projected to drive the market.
- Rising demand for ultra-low-sulfur diesel (ULSD) is expected to propel the market.
- Diesel fuel is used in tanks & vehicles by the military because it is less flammable & explosive than other fuels, which is projected to boost the market.
- Rising demand for battery electric vehicles (BEVs) in nations, is estimated to hamper the market.
Scope of the Report
The report on the fuel additives market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Fuel Additives Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Product Type (Deposit Control, Cetane Improvers, Lubricity Additives, Antioxidants, Anti-corrosion, Cold Flow Improvers, Antiknock Agents, and Others), Application (Diesel, Gasoline, Jet Fuel, and Others)
Asia-Pacific, North America, Europe, Latin America, and Middle-East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Afton Chemical.; The Lubrizol Corporation.; Innospec Inc.; BASE SE.; Chevron corporation
Market Segment Insights
The deposit control segment is expected to grow at a rapid pace
Based on products, the fuel additives market is divided into deposit control, cetane improvers, lubricity additives, antioxidants, anti-corrosion, cold flow improvers, antiknock agents, and others. The deposit control segment is expected to grow at a rapid pace during the forecast period due to increasing demand from a variety of applications.
The gasoline segment is projected to expand at a considerable CAGR
On the basis of applications, the market is segregated into diesel, gasoline, jet fuel, and others. The gasoline segment is projected to expand at a considerable CAGR during the forecast period due to increasing gasoline additive usage due to engine design requirements & refinery operating changes. The cost of addition is less than 0.3 percent of the average retail price of gasoline. Gasoline engine technology and fuels, such as diesel, are continually developing and posing new obstacles.
Fuel additives that have found usage in gasoline engines are utilized in either the refinery fuel distribution system or the vehicle system.
North America is anticipated to constitute a key market share
In terms of regions, the fuel additives market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period due to increased use of gasoline. The US economy is one of the major and most powerful in the world. Due to the Covid-19 epidemic, the market in the country increased at a pace of 3.1 percent in 2021, compared to -4.3 percent in 2020.
The transportation industry in the United States consumed roughly 1.1 billion barrels of distillate fuel (basically diesel fuel) in 2019. This amount accounted for 15% of overall petroleum consumption in the country and around 23% of total energy consumption by the transportation sector on an energy content basis. The majority of agriculture & construction equipment in the country runs on diesel fuel.
Segments Covered in the Report
The fuel additives market has been segmented on the basis of
- Deposit Control
- Cetane Improvers
- Lubricity Additives
- Cold Flow Improvers
- Antiknock Agents
- Jet Fuel
- North America,
- Latin America
- Middle-East & Africa
- Afton Chemical
- The Lubrizol Corporation
- Innospec Inc.
- BASE SE.
- Chevron corporation
Key players competing in the fuel additives market include Afton Chemical.; The Lubrizol Corporation.; Innospec Inc.; BASE SE.; Chevron corporation. Some of these players are adopting various strategies, such as partnerships, acquisitions, and product launches, to gain a larger share in the market. The fuel additives market is fairly consolidated, with the top players controlling majority of the market share.