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Emission and Fuel-related Regulations Strengthen in Emerging Economies, Fuel Additives Consumption Spurred, reports TMR

Posted on Mar 18, 2016

The global market for fuel additives shows a medium level of consolidation. The top three players – Innospec, Afton Chemical Corporation, and The Lubrizol Corporation – collectively took up 28.5% of the global market value in 2014. 

As stated in a research report released by Transparency Market Research, one of the key reasons for the consolidation of the global fuel additives market is the intensive amount of research and development required by the companies to stay ahead of the curve.

Regulatory pressure is very high on manufacturers of fuel additives and can keep new players from entering this market. At the same time, research and development efforts can be highly capital intensive, further restricting players from proliferating in the market.

The global market for fuel additives is expected to expand at a CAGR of 8.3% in terms of revenue, within a forecast period from 2015 to 2023. This revenue is expected to reach US$1.62 bn by the end of 2016 and US$2.64 bn by the end of 2023.

Deposit control fuel additives have consistently enjoyed high priority by the automotive industry, owing to the excessive amount of overconsumption that occurs due to the formation of deposits on injector nozzles. By the end of 2023, deposit control fuel additives are expected to reach US$4.26 bn in revenue.

North America Dominates Fuel Additives Consumption

North America has consistently been the leading consumer of fuel additives over the past few years. It is expected to remain the dominant region till 2023, owing to very strict regulations and emission standards being followed by the auto industry. By the end of 2023, North America is expected to generate US$1.52 bn in revenue for fuel additives manufacturers.

This region is also showing a very optimistic growth rate in its demand for fuel additives due to the growing consumption of ultra-low-sulfur diesel variants, which require a high amount of fuel additives.

Asia Pacific on the other hand, is showing a higher growth rate in its demand for fuel additives. Between 2015 and 2023, Asia Pacific is expected to display a CAGR of 9.2% in terms of revenue.

High Awareness is Key to Greater Consumption of Fuel Additives

“Two of the key reasons why the consumption of fuel additives is exceptionally high in North America and Europe are awareness and regulatory pressure. Consumers in both regions are more aware of the presence of various types of fuel additives due to the varied nature of fuel type requirements,” states a TMR analyst.

Both regions are also subject to very high regulatory pressure in terms of emission rates and pollution control. The rising amount of greenhouse gases in the atmosphere is pressuring governments to come up with stricter regulations pertaining to emissions and usage rates of nonrenewable fuels.

Presence of Alternatives Hampers Growth of Fuel Additives

The high rate of research and development in eco-friendly fuel alternatives are expected to act as a barrier to the growth in consumption of fuel additives over the coming years. Fossil fuel alternatives such as biodiesel, propane, natural gas, hydrogen cells, and even ethanol are being seriously considered at feasible options to be used in automobiles. The complication is that these alternative fuels do not require much in terms of additives to improve efficiency or lower emission rates.

“This could change in the future, as the growing scope of applications of bio-based chemicals can be extended to fuel additives as well. Bio-based fuel additives are in fact, expected to pose a serious threat to synthetic fuel additives over the coming years,” adds the analyst.

The information presented in 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.”

Key Takeaways:

  • Deposit control fuel additives expected to generate US$4.26 bn in revenue by 2023.
  • Application of fuel additives in gasoline expected to reach US$4.91 bn in revenue by 2023.
  • North America expected to consume US$3.93 bn worth of fuel additives by 2023.

Key segments of the Global Fuel Additives Market

Global Fuel Additives Market, by Product

  • Deposit control additives
  • Cetane improvers
  • Antioxidants
    • Amines
    • Hindered phenols
    • Others (mixture of alkyl phenols and aromatic diamines)
  • Stability improvers
  • Lubricity improvers
  • Corrosion inhibitors
  • Cold flow improvers
  • Others (Including dyes and markers, metal deactivators, fuel dehazers, etc.)

Global Fuel Additives Market, by Application

  • Gasoline
  • Diesel
  • Aviation fuel
  • Others (Including heating oils, etc.)

Global Fuel Additives Market, by Region

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

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