Increase use of specialty fuel additives and ban on the use of plastic will spur the market revenue growth.
The global specialty fuel additives market accounted for US$ 7.13 Bn in 2018 and is anticipated to grow to US$ 11.20 Bn at a CAGR of 5.8% throughout the forecast period from 2019 to 2027.
The rising emphasis on producing clean energy and fuels without compromising efficiency, coupled with rising awareness about the conservation of resources and sustainable development, are some of the major factors driving the specialty fuel additives market growth. A combination of factors, including the growing automotive industry, degrading quality of crude oil, and stringent regulatory norms, among others, are factors proliferating the demand of the global market. The increasing toxin levels across the globe as a result of fuel used in vehicles adversely affect the environment, which positively influences the growth of the specialty fuel additives market. Specialty fuel additives help curb the emission of harmful gases and help in enhancing the efficiency of other products such as gasoline, diesel, and other fuels.
In addition, the rising trend in North America and Europe to achieve cold flow performance by blending biodiesel and additives is anticipated to drive the demand for specialty fuel additives. For instance, the U.S. Environmental Protection Act (EPA) has made it mandatory for all heavy vehicles to use cleaner diesel with less sulfur content which is possible by applying cold flow improvers. This, in turn, is driving the demand in the specialty fuel additives market. Apart from this, increasing ethanol consumption is also likely to boost the demand for specialty fuel additives further. In addition, corrosion inhibitors' use to protect fuel distribution and storage in automobiles is expected to bolster market growth.
Market Synopsis
Product Analysis
Deposit control additives to dominate the market throughout the forecast period.
Based on product, the specialty fuel additives market is classified into cetane improvers, antioxidants, deposit control additives, lubricity improvers, cold flow improvers, and others (corrosion inhibitors). The deposit control additives segment dominated the market with a share of more than 20% and is expected to grow at a rapid pace. Owing to the rising use of detergents as fuel supplements, prevention of deposit formation in the injector nozzle, and rising demand for fuel-efficient automobiles are factors fueling the segment's demand.
In contrast, the cold flow improvers segment is anticipated to expand rapidly throughout the forecast period. Demand for cold flow improvers is mainly driven due to North America and Europe as there is a high demand for ultra-low sulfur diesel, which can be attained by using cold flow improvers.
Diesel segment anticipated to dominate the market during the forecast period.
On the basis of application, the global specialty fuel additives market is further classified into aviation fuel, diesel, gasoline, and others. In 2018, the diesel segment dominated the specialty fuel additives market and accounted for the maximum share of the overall market. The growth in the segment can be attributed to the high consumption of diesel globally, especially in emerging economies such as India, China, and Indonesia, among others. In addition, diesel is more environmentally hazardous than other materials, which in turn presents lucrative opportunities to the specialty fuel additives market.
In contrast, the increasing use of gasoline in the U.S. and China is anticipated to fuel the demand for gasoline in the coming years. However, the increasing popularity of diesel over other fuels hampers the market growth of the gasoline segment.
Regional Analysis
North America appeared as the global leader in specialty fuel additives market.
In 2018, the North American region led the global specialty fuel additives market and contributed more than 30% of global revenue. This can be attributed to product innovation in terms of quality, and stringent environmental regulations, among others. The U.S. accounted for more than 75% of the North American revenue share. This is because the market is highly regulated by the U.S. Environmental Protection Agency, which monitors and provides guidelines for fuel additive products.
In contrast, the Asia Pacific region is projected to witness the highest growth. Owing to the rapid industrialization and huge demand from various end-use industries, including construction, power generation, and automotive, among others. Apart from this implementation of stringent regulations for emission control in China, India, and Japan, among others, further bolstered the region's market growth.
List of Companies Covered:
Innospec Inc.
Afton Chemical Corporation
Evonik Industries AG
Cummins Inc.
Dorf Ketal Chemicals Limited
BASF SE
Lubrizol Corporation
Chevron Oronite
Dow Chemical Company
Baker Hughes
Chemtura
Key Industry Development:
In September 2018, Dorf Ketal Chemical Limited announced the launch of its new manufacturing plant to produce mph and mix detergents. These are brands launched by Dorf Ketal of performance fuel additives. This has helped the company expand its product portfolio and market penetration.
Historical & Forecast Period
This study report represents an analysis of each segment from 2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027 Segmentation.
Product Type Segment (2017–2027; US$ Bn)
Cetane Improvers
Antioxidants
Deposit Control Additives
Lubricity Improvers
Cold Flow Improvers
Others (Corrosion Inhibitors)
Application Segment (2017–2027; US$ Bn)
Aviation Turbine Fuel
Gasoline
Diesel
Geography Segment (2017–2027; US$ Bn)
North America (U.S. and the Rest of North America)
Europe (U.K., Germany, Russia, and the Rest of Europe)
Asia Pacific (Japan, China, India, and the Rest of Asia Pacific)
Rest of the World (Middle East & Africa (MEA), Latin America)
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities that better understand the overall Specialty Fuel Additives market. In addition, the global report also comprises a graphical representation of the competitive landscape based on their market initiatives and strategies, product portfolio, and business strengths.
Frequently Asked Question:
The market for Specialty Fuel Additives Market is expected to reach USD$ 11.20 Bn in 2027.
The Specialty Fuel Additives Market is expected to see significant CAGR growth over the coming years, at 5.8%.
The report is forecasted from 2019 -2027.
The base year of this report is 2018.
Innospec Inc.,Afton Chemical Corporation,Evonik Industries AG,Cummins Inc.,Dorf Ketal Chemicals Limited,BASF SE,LubrizolCorporation,Chevron Oronite,Dow Chemical Company. are some of the major players in the global market.
