Market Overview

The market for fuel additives is expected to register a CAGR of around 5.5%, during the forecast period. One of the major factors driving the market studied is the enactment of stringent environmental regulations. However, Increasing demand and penetration of battery electric vehicles (BEVs) are likely to restrain the market growth, during the forecast period.

  • Rising global passenger traffic contributing to the growth of the aviation market may also boost the demand for fuel additives.
  • Accelerating demand for ultra-low-sulfur diesel (ULSD) is likely to act as an opportunity for market growth, in the future.
  • In 2018, North America dominated the fuel additives market, owing to the high demand from end-user industries.



Key Market Trends

Gasoline to Dominate the Market Studied

  • Gasoline is the major application of fuel additives in terms of market share.
  • Gasoline engine technologies and fuels are constantly evolving and providing new challenges. The growth in the consumption of gasoline additive largely reflects the requirements of engine design and developments in refinery operations. Also, the additive cost is less than 0.3% of the average retail gasoline price.
  • There are two areas of applications for fuel additives in gasoline engines, namely, refinery fuel distribution system and vehicle system.
  • The increasing popularity of new age fuel delivery systems, like gasoline direct injection (GDI) system, is likely to boost the demand for fuel additives.
  • Global Bioenergies, a French-German company, has started manufacturing bio-based fuel additives, by using bio-based isobutene as raw material. Efforts are also being made by several research instituions to manufacture fuel additives, which prevent the premature ignition of air-fuel mixture by increasing the knock resistance.
  • Hence, owing to the above-mentioned reasons, the gasoline-related applications of fuel additives are likely to account for the highest market share, during the forecast period.



North America to Dominate the Market

  • The North America fuel additives market is likely to dominate the market during the forecast period, owing to the high demand from the United States.
  • The United States is the largest fuel additive consumer in the region (with more than 90% of the market share) and in the world. The country is one of the mature markets for fuel additives.
  • Diesel accounts for about 20% of total US petroleum consumption and about 22% of total petroleum consumption by the transportation sector.
  • Diesel fuel powers most of the farm and construction equipment in the country. The military uses diesel fuel in tanks and trucks because diesel fuel is less flammable and less explosive than other fuels. Diesel fuel is also used in diesel engine generators to generate electricity, as most of the remote villages in Alaska use diesel generators as the primary source of electricity.
  • Similarly, Canadian fleets have few advantages over their US counterparts, but Canada has a better quality of diesel fuel than they do on an overall note, and it is chemically more consistent across the country. The cold-weather performance of the fuel is a major problem in Canada, which is sorted out often by adding fuel additives.
  • Owing to such factors North America is likely to dominate the market studied.



Competitive Landscape

The global fuel additives market is fragmented in nature, with the top five players accounting for around 30% of the market share. Afton Chemical is the market leader, with an extensive product portfolio of fuel additives, such as gasoline fuel additive packages and diesel fuel additive packages. It is followed by The Lubrizol Corporation, Innospec Inc., Afton Chemical, and BASF SE, in terms of the market share.
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