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Cold Flow Improver Market By Product Type (Polyacrylate, Ethylene Vinyl Acetate, Polyalkyl Methacrylates, Others) By End-Use (Industrial, Aerospace, Automotive) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global Cold Flow Improver Market report explores the critical analysis of the global cold flow improver industry using key parameters. The report consists of investment strategies, the need for investments in the cold flow improver industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the cold flow improver industry's global technical regulations and how economic and non-economic barriers are helping the market grow. Furthermore, the report examines historical and projected global, regional, and country market sizes. The report also examines key investment propositions, the demand and supply gap, SRC analysis, competitor positioning, STAR analysis, and Tornado analysis. Key technological advancements and other analyses, including Porter's Five Forces, Value Chain, PESTEL, etc.

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Key Highlights of the report

How are the major segments performing in the Global Cold Flow Improver Market?

The polyalkyl methacrylates segment led the market in product type in 2021 and is expected to continue throughout the projection period. Polyalkyl methacrylate is widely used in the lubricating oil and finished fuel industries since it inhibits wax deposition at low temperatures, preventing the deposition and formation of wax crystals in light and heavy vehicle engines. The adaptability of polyalkyl methacrylate enables their blending with fuels such as diesel and aviation fuel. As a result, the demand for polyalkyl methacrylate is expected to increase.

The automotive end-use segment dominated the market in 2021 due to increasing demand for diesel automobiles in regions including Europe and North America, combined with cold climatic conditions. The rise in automotive sales has directly influenced the demand for cold flow improvers, which assist lubricant additives in meeting low-temperature requirements for diesel fuels, which could lead to significant growth in the cold flow improvers industry.

Which region dominated the Global Cold Flow Improver Market?

Due to increased oil refining capacity, Asia Pacific held a dominant position in the global cold flow improver market in 2021. Besides, technological advancements being developed throughout the region will boost the growth of this market. China and India are major exporters of cold flow improvers. Moreover, robust economic growth has uplifted this region's cold flow improvers market. According to the International Trade Administration, China continues to be the world's largest automobile market. The Chinese government anticipates that car production will reach 30 million units by 2020 and 35 million by 2025. Moreover, the India Brand Equity Foundation (IBEF) reports that two-wheelers and passenger vehicles dominate the domestic Indian auto market. These attributes are expected to increase demand for cold flow improvers during the forecast period.

What is the competitive environment of the Global Cold Flow Improver Market?

Leading manufacturers of cold flow improvers have been working to strengthen their retailer and distribution networks, increase the number of their manufacturing facilities worldwide, and look for opportunities in emerging markets. Players in the global cold flow improver market use key strategies, including technology launches, partnerships, acquisitions, and R&D activities. For instance, in May 2019, the German association for biodiesel quality management (AGQM) launched a new no-harm test for cold flow improvers for using biodiesel as a mixed component in fuel. AGQM developed a test procedure in collaboration with the petroleum oil and additive industries to ensure that diesel fuel, blended biodiesel, and cold flow improvers do not interact negatively. Similarly, the Lubrizol Corporation announced a partnership with Corbion Biotech in June 2019 to bring high stability, high oleic algae oil to the cosmetics and personal care market. Corbion is a pioneer in innovative bio-based solutions, and Lubrizol is a company that provides a wide range of products to consumers.

Executive Summary

What are technical developments being developed in the Global Cold Flow Improver Market?

The global cold flow improver market is expected to grow at an attractive rate during the forecast period, owing to technological advancements and application-specific developments. Market participants in the cold flow improvers market are aligning their operating models to the new normal by shifting toward digitalizing operations and adapting to emerging robotic automation and artificial intelligence technologies. Mergers and acquisitions to acquire new technologies, strengthen portfolios, and leverage capabilities will remain key strategies for industry leaders during the forecast period. For instance, Purify Fuel and Solvay announced in June 2019 that they had developed a nanotechnology fuel additive blend to boost power, improve fuel efficiency, regulate emissions, and reduce harmful emissions in current diesel-powered engines. Solvay EOLYS Fuel Additives, a critical component of Purify Fuel's fuel additive formulations, have been installed in over 16 million new engines with identical nanotech combustion catalysts (nanO2). Purify Fuel's nanO2 Fuel Additive Blends leverage Solvay's nanotechnology expertise to create diesel fuel additive blends that reduce hazardous emissions while increasing fuel efficiency. The nanO2 Fuel Additive Blends have the potential to reduce harmful emissions by up to 35-55%.

Which are the key investments by the players in the Global Cold Flow Improver Market?

The significant FDI investment in the automotive industry to introduce eco-friendly and advanced cold flow improvers propels the market forward. Increased disposable income among the general public has compelled investors to invest significantly in the automotive industry. Automobile manufacturers have increased production output to accommodate the ever-increasing demand for automobiles. The government's substantial investment and significant exportation of several high-tech products for aerospace, civil, and defense programs passively assist the growth of the cold flow improvers market. For instance, according to the India Brand Equity Foundation (IBEF), the aviation industry in India is expected to receive Rs 35,000 crore (USD 4.99 billion) in investment over the next four years.

Some of the major players in the market are BASF SE, Chevron Corporation, Ecolab, Bell Performance Inc, Baker Hughes Inc, Evonik Industries AG, Infineum International Ltd, The Lubrizol Corporation, Afton Chemical, Clariant AG, AkzoNobel N.V., Aicello Chemical Co. Ltd, ADCO Global Inc, ACE Geosynthetics Enterprise Co. Ltd, International Fuel Technology Inc, Cerion Energy Inc, and Chemtura Corporation.

What are the Major Driving Factors for the Global Cold Flow Improver Market?

One of the major factors driving the global cold flow to improve market growth is the increasing demand for products from various end-use industries. The product's ability to prevent fuel component intermixing increases its use in end-use industries. Increased awareness of the scarcity of fossil fuel resources and environmental concerns has aided in developing viable and environmentally sustainable fuels such as biodiesel, fueling market expansion. The government's favorable regulations and massive FDI investment in the automotive sector also contribute to the market share.

What are the Major Risks for the Global Cold Flow Improver Market?

The increased demand for electric vehicles and the growing incentive to use electric vehicles are expected to create barriers to developing the cold flow improvers market during the forecast period. The growing demand for alternative products and concerns about filter plugging temperatures higher than the cloud point (CP) and pour point (PP) also limit global market growth.

Which is the key End-Use in the Global Cold Flow Improver Market?

In 2021, the automotive sector dominated the market in terms of end-use due to rising finished fuel demand and more stringent environmental regulations. The automotive industry is one of the world's fastest-growing industries, with one of the most exported products. Developing countries are investing aggressively in the global cold flow improvers and automotive markets. The automotive industry is a major user of Cold Flow Improvers. The primary reason is that these products improve vehicle fuel economy by reducing friction between engine parts. Moreover, they contribute to the reduction of vehicle emissions. As a result, the use of cold flow improvers in the automotive sector is expected to increase significantly over the forecast period.

How is the Global Cold Flow Improver Market performing in regions?

The Asia Pacific dominated the global cold flow improver market in 2021 and is expected to continue this dominant position over the forecast period. The rising refining capacity of finished fuel drives demands for cold flow improvers in the Asia Pacific market. Moreover, robust economic growth has boosted this region's cold flow improvers market. Growth in end-use industries like automotive and, aerospace & defense, as well as rising use of polyalkyl methacrylate as cold flow improvers, are the main drivers of demand in the region. Over the forecast period, it is anticipated that rising demand for automobiles in developing nations like Japan, India, China, and South Korea will propel the market growth.

Besides, North America is expected to be the fastest-growing regional market during the forecast period. Biodiesels are becoming more popular in North American countries due to their high blending properties with diesel. It is also more environmentally friendly due to lower carbon and sulfur emissions and helps reduce carbon footprint. Besides, a significant and growing trend in the North American market is the production of lighter, fungible diesel fuel to fulfill diesel pipeline specifications based on pour point and cloud point. The United States is North America's largest market for cold flow improvers. The country is a significant producer and consumer of petroleum products. Moreover, it has strict environmental regulations requiring fuel additives, such as cold flow improvers, to reduce vehicle emissions. As a result, demand for these products in the region will rise significantly throughout the forecast period.

What is the regulatory landscape for the Global Cold Flow Improver Market?

The government's favorable policies for the automotive sector are driving up demand for cold flow improvers. Moreover, due to growing environmental concerns, the increased emphasis on vegetable or bio-based oils as raw materials has increased lubricant demand. Thus, the cold flow improver market is receiving more attention from manufacturers. The increasing use of bio-based lubricants propels the cold flow improver market forward. Growing consumer demand has prompted manufacturers to increase the production of cold flow improvers. However, rising demand for electric vehicles is a major factor limiting the market growth. Certain governments and market participants are focusing on promoting electric vehicle adoption by providing subsidies to support the consumption and production of hybrid and electric vehicles.

What is the Market Size of the Global Cold Flow Improver regarding value?

The global cold flow improver market is anticipated to grow at a substantial CAGR of 5.7% in the upcoming years. The global cold flow improver industry was estimated to be worth USD 682.4 million in 2021 and was expected to be worth USD 951.67 million by 2028.

What are the major players planning for the future of the Global Cold Flow Improver Market?

Identifying emerging application areas, investing in innovation, and developing strong business models to generate long-term growth are winning strategies in the future global cold flow improvers market. Lubricant manufacturers have recently begun to use raw materials such as vegetable or bio-based oils to reduce their environmental footprint significantly. This has resulted in lower performance penalties at a lower cost, encouraging industrial lubricant manufacturers to expand production capacity to meet rising customer demand. This factor will drive the growth of the cold flow improver market over the forecast period. Furthermore, this factor has reduced reliance on petroleum-based raw materials, which are highly susceptible to fluctuations in oil prices. Major players are also investing in R&D and technology to improve product lines, which will be a major growth driver in the cold flow improvers market in short to medium term, despite the current challenging circumstances.

Segmentation of Global Cold Flow Improver Market -

Global Cold Flow Improver Market – By Product Type

  • Polyacrylate
  • Ethylene Vinyl Acetate
  • Polyalkyl Methacrylates
  • Others

Global Cold Flow Improver Market – By End-Use

  • Industrial
  • Aerospace
  • Automotive

Global Cold Flow Improver Market – By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Cold Flow Improver Market

The global cold flow improver market also suffered from the COVID-19 pandemic, which resulted in a decline of over 2.6% in revenue generated in 2020.

Asia Pacific region accounted for the highest share in the global cold flow improver market regarding value and volume.

The increasing use of polyalkyl methacrylate as cold flow improvers, the growing automobile and aviation industries, increased awareness of the scarcity of fossil fuel resources, rapid industrialization, favorable government policies, massive FDI investment in the automotive sector, growing demand for environment-friendly products, and rising capacity for finished fuel are the major drivers of the market growth.

The polyalkyl methacrylates segment had a major share in 2021, with more than 42% of the market revenue. Besides, ethylene vinyl acetate is projected to witness the fastest growth.

The automotive sector had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period.

Cold Flow Improver Market Scope

Report Attribute Details
Market Value in 2021 USD 682.4 million
Market Value in 2028 USD 951.67 million
CAGR 5.7%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Sep 2022
Category:  Chemicals
Report ID:   60684
Report Format:   PDF
Pages:   120
Rating:    4.6 (50)
Delivery Time: 24 Hours to 48 Hours   
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