Surge in Fraudulent Activities and Focus on Improving Fuel Quality to Aid Market Growth

Petroleum dyes are increasingly being used as a fuel marker due to which, the demand for petroleum dyes of different colors and concentration is on the rise. In addition, petroleum dyes are also used to segregate fuel on the basis of taxes applicable to each fuel type. Within the petroleum dyes market in Europe, a host of analytical techniques have emerged in the European Union wherein multiple blends of markers and dyes are used. In recent times, participants operating in the current petroleum dyes market in Europe and Asia Pacific are exploring the potential of different analytical techniques, including spectrophotometric, electrochemical, HPLC, and chromatography, among others.

Within Europe and Asia Pacific, the number of fuel fraud cases have witnessed a considerable surge wherein dilution of expensive and high-taxed fuels are replaced with low-taxed substitutes. As these types of frauds continue to burden the governments across Europe and Asia Pacific, the demand for petroleum dyes is expected to witness consistent growth during the forecast period. The demand for petroleum dyes in off-road fuel is also projected to boost the growth of the petroleum dyes market in Europe and Asia Pacific in the coming years. Regulatory guidelines and evolving regulations will continue to influence the growth trajectory of the market – a trend that is set to continue during the forecast period. At the back of these factors, the petroleum dyes market in Europe and Asia Pacific is expected to reach of ~US$ 218 Mn by the end of 2027.

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Companies Aim to Improve Quality of Monitoring Fuel with Color Detection Techniques

In recent times, the emphasis on improving the quality of automotive fuels, including ethanol, biofuel, biodiesel, and gasoline coupled with efforts to combat adulteration has triggered the demand for petroleum dyes in Europe and Asia Pacific. Companies operating in the current petroleum dyes market in Europe and Asia Pacific are expected to focus on improving monitoring quality and adulteration detection techniques. The growing prevalence of the illegal practice of fuel adulteration has also played a major role in increasing environmental contamination due to high emission rates. Fuel adulteration inflicts a huge amount of loss for governments due to lost tax revenues, which, in turn, dents the growth of the economy of these nations. Petroleum dyes are increasingly being used to prevent fraudulent activities across nations in the European Union and Asia Pacific.

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High Applicability of Petroleum Dyes in Petroleum Products to Augment Petroleum Dyes Market in Europe and Asia Pacific

An array of petroleum products are being colored using petroleum dyes for efficient identification and improving the aesthetics of different fuel types, including diesel, kerosene, and lubrication oil. Several companies in the petroleum dyes market in Europe and Asia Pacific are increasingly using petroleum dyes to differentiate their products from the products manufactured by other players in the market to gain an edge. Test kits that are deployed to determine the quality and identify different fuels are also increasingly using petroleum dyes– a factor that is expected to boost the market growth in the coming years. Several nations in the Asia Pacific region, including China and India are opening their doors for foreign investments in the petroleum refining sector. Foreign investments are on the rise in China that are largely focusing on upstream petrochemical production.

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Analysts’ Viewpoint

The petroleum dyes market in Europe and Asia Pacific is expected to grow at a moderate CAGR of ~3% during the forecast period. The market growth can be largely attributed to a host of factors, including soaring demand from petroleum companies, increase in fraudulent activities, and economic burden on government bodies in these regions. Companies operating in the petroleum dyes market in Europe and Asia Pacific landscape should focus on fulfilling the demand for petroleum dyes from different fuel companies.

Petroleum Dyes Market in Europe and Asia Pacific: Overview

  • In terms of value, the petroleum dyes market in Europe and Asia Pacific is expected to reach ~US$ 218 Mn by 2027
  • Rapid increase in demand for petroleum dyes owing to its exceptional properties is expected to boost the demand for petroleum dyes in Europe and Asia Pacific during the forecast period
  • According to the Asian Development Bank (ADB), the Philippines suffered a loss of US$ 750 Mn in tax revenue due to fuel smuggling in 2015. Countries in Asia that subsidize fuel, such as Bangladesh, Indonesia, and Malaysia, are vulnerable to losses when their low-priced fuels are smuggled to countries that charge international market prices. Such cases have driven the demand for petroleum dyes, particularly in Europe and Asia Pacific.

 Petroleum Dyes Market in Europe and Asia Pacific: Key Drivers and Restraints

  • Increase in demand for petroleum dyes in off-road fuels is anticipated to propel the demand for petroleum dyes during the forecast period. Off-road fuels are dyed in red color and are primarily used in operation of heavy machinery in industries such as construction, waste management, and mining. They are also used in off-road vehicles such as tractors, forklifts, and cranes. According to Her Majesty's Revenue and Customs (HMRC), the consumption of red diesel in the U.K. stood at 15% of the overall diesel consumption in 2017.
  • Fuel cannot be easily identified once dyes are removed. Dyes are easily removed by passing the fuel through absorbents, such as activated carbon, or by washing it with an acid or caustic soda. However, it is hard to remove the color in the case of molecular fuel marking, as it binds itself to fuel molecules. Therefore, demand for petroleum dyes is estimated to decline with the emergence of molecular fuel marking. This is anticipated to hamper the petroleum dyes market during the forecast period.

 Petroleum Dyes Market in Europe and Asia Pacific: Key Products

  • Based on form, the petroleum dyes market in Europe and Asia Pacific has been broadly segregated into liquid and powder
  • Liquid dyes are used more than powdered dyes. Companies that manufacture powdered and liquid petroleum dyes include The Dow Chemical Company, Innospec Inc., Dayglo Color Corporation, John Hogg Technical Solutions, and Retort Chemicals Private Limited

Petroleum Dyes Market in Europe and Asia Pacific: Key Applications

  • Based on application, the petroleum dyes market in Europe and Asia Pacific has been classified into gasoline, diesel fuel, aviation fuel, lubricating oils & greases, and others
  • Diesel fuel is projected to remain a high-value application of the petroleum dyes market in Europe and Asia Pacific during the forecast period. Red diesel cannot be used for the propulsion of road vehicles, but it can be used in exempted vehicles. This includes vehicles used exclusively on private properties such as construction and airport vehicles. Red diesel can also be used for other categories of vehicles that run on public roads, provided they meet certain design and/or usage criteria.
  • Aviation fuel is also expected to be a highly lucrative segment of petroleum dyes market in Europe and Asia Pacific during the forecast period
  • Growth of the others segment in the petroleum dyes market in Europe and Asia Pacific is likely to remain moderate during the forecast period

Europe to be Highly Lucrative Region

  • Various countries in Europe have been grappling with an increase in cases of fuel fraud. Her Majesty's Revenue and Customs’ (HMRC) road fuel testing units seized more than 2,600 liters of fuel in 2016–2017 from its work tackling fuel fraud. In order to prevent such illicit activities, the U.K. Government has deployed a range of petroleum dyes that are designed to differentiate between subsidized and non-subsidized types of fuels. This, in turn, is anticipated to propel the petroleum dyes market during the forecast period.
  • The petroleum dyes market in Italy is anticipated to expand at a fast-paced CAGR during the forecast period. On the other hand, the petroleum dyes market in Portugal is likely to expand at a medium pace during the forecast period.

Petroleum Dyes Market in Europe and Asia Pacific: Competition Landscape

  • Major players operating in the petroleum dyes market in Europe and Asia Pacific include The 
    • Dow Chemical Company
    • Innospec
    • Dayglo Color Corporation
    • Spectronics Corporation
    • Anchor Color and Chemical

Europe and Asia Pacific Petroleum Dyes Market? – Scope of the Report

A new study on the petroleum dyes market in Europe and Asia Pacific published by Transparency Market Research (TMR) presents a wealth of information on key market dynamics, including drivers, market trends, and challenges, as well as structure of the petroleum dyes market. TMR’s study offers valuable information on the petroleum dyes market in Europe and Asia Pacific to illustrate how growth would discern during the forecast period of 2019 to 2027.

Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR), have been elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret quantitative growth aspects of the petroleum dyes market in Europe and Asia Pacific during the forecast period.

An extensive analysis of leading market players’ business strategies is also featured in TMR’s study on the petroleum dyes market in Europe and Asia Pacific. This can help readers understand principal factors to foresee growth of the petroleum dyes market in Europe and Asia Pacific. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the petroleum dyes market in Europe and Asia Pacific, which would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study on Petroleum Dyes Market in Europe and Asia Pacific

  • What would be the Y-o-Y growth rate of the petroleum dyes market in Europe and Asia Pacific between 2019 and 2027?
  • What is the influence of changing trends in technologies on the petroleum dyes market in Europe and Asia Pacific?
  • Would Europe continue to remain the most profitable market for manufacturers of petroleum dyes in the near future?
  • Which factors would impede the growth of the petroleum dyes market in Europe and Asia Pacific during the forecast period?
  • Which are leading companies in the petroleum dyes market in Europe and Asia Pacific?

Research Methodology

A unique research methodology has been utilized by TMR to conduct comprehensive research on the petroleum dyes market in Europe and Asia Pacific and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary resources referred to by analysts during production of the report on the petroleum dyes market in Europe and Asia Pacific include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the petroleum dyes market in Europe and Asia Pacific as a primary resource.

These primary and secondary resources provided exclusive information during interviews, which served as a validation from leading players operating in the petroleum dyes market in Europe and Asia Pacific. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the petroleum dyes market in Europe and Asia Pacific with accuracy. The study also uses a top-down approach to assess numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on prospects of the petroleum dyes market in in Europe and Asia Pacific more reliable and accurate.

Petroleum Dyes Market in Europe and Asia Pacific – Segmentation

TMR’s study on the petroleum dyes market in Europe and Asia Pacific segments the market based on form, product type, application, and region. Changing market trends and other crucial market dynamics associated with these segments of the petroleum dyes market in Europe and Asia Pacific have been discussed in detail.

Form

  • Liquid
  • Solid

Product Type

  • Red
  • Blue
  • Yellow
  • Others (including Orange and Green)

 

Application

  • Gasoline
  • Diesel Fuel
  • Aviation Fuel
  • Lubricating Oils & Greases
  • Others (including Candle Wax, Wood Stains, and Aerobatic Smokes)

Country and Sub-region

  • Europe
    • Italy
    • Spain
    • Portugal
    • Bosnia
    • Serbia
    • Rest of Europe
  • Asia Pacific
    • South Korea
    • Philippines
    • Rest of Asia Pacific

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Europe Asia Pacific Petroleum Dyes Market

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