Fuel Additives Market | Contrive Datum Insights

The Global Fuel Additives Market Size Was USD 8.14 Billion In 2021. The Market Is Projected To Grow From USD 8.62 Billion In 2022 To USD 12.87 Billion In 2030 at a CAGR Of 5.9% During The 2022-2029 Period.

Fuel Additives Market Overview:

The effects of COVID-19 on the world have been unprecedented and shocking. For example, demand for fuel additives is lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market was 0.2% smaller in 2020 than it was in 2019.

The world market is expected to grow a lot because more and more advanced and better goods are being used in cars and other places. Another big thing that is expected to make the global market grow is that governments will put strict rules on businesses. Also, the market will benefit from good government rules and a greater awareness of the need to cut carbon emissions.

Market Dynamics:

Latest Trends:

Using Ultra Low Sulfur Diesel more and doing more research on it to open up new opportunities

Sulfur in Very Small Amounts Sulfur-free diesel is diesel that has very little sulphur in it. This is an example of how high-tech, low-emission technologies might be able to reduce the amount of harmful gases released when diesel is burned. The European government made rules that said the amount of sulphur in diesel had to go down and that the current ULSD criteria had to be used. But the ULSD needs lubricity improvers to keep working the way it should. Rising demand for low-sulfur fuel is one of the things that is expected to make this market grow faster.

Driving Factors:

A good regulatory environment will help the fuel additives market grow.

The market for fuel additives is likely to grow quickly because of the growing need for fuel in many industries. There is a lot of research and development that goes into the fuel additives business. Many different products have been made to meet the needs of companies that turn hydrocarbon fuels into heat energy for things like transportation, making electricity, and other uses. According to data from the ATC, performance additives are added to 95 percent of on-road retail fuel, which is about half of the volume. The other half goes to refineries and other terminals. This makes sure that the product meets the standards set by the European government. Increased research and development in the Ultra-Low Sulfur Diesel business will also help the market grow.

More strict controls on pollution from cars and refineries will help the market grow. Concerns about air pollution from the incomplete and complete burning of hydrocarbons are one of the things that is driving growth and development in the fuel additives market. For example, the Clean Air Act says that detergents and "deposit control" additives must be used to cut down on carbon monoxide emissions. Also, having a variety of goods for different types of fuel makes the fuel work better. There are a lot of problems with engines and machines that have to do with fuel, like low fuel efficiency, but they can be fixed with additives. They are often found in refineries, distribution systems, and even storage tanks for different types of vehicles and transportation systems.

Crude oil's getting worse will drive the market.

Petroleum oils break down quickly because marine microorganisms use them as a source of carbon. This process is called photooxidation and biodegradation. This happens mostly where oil and water meet. It makes a wide range of compounds that lower the quality of the oil that is made. Under certain conditions, these two things work together to speed up the oxidation process. Carbon deposits on the walls of combustion chambers can be cleaned off by adding fuel additives. Also, the ongoing mining of crude oil reservoirs to get petroleum oil and natural gas is one of the things that is lowering the quality of crude oils. The market will move forward because more people will want to use these additives to keep the quality high and meet government standards.

Restraining Factors:

If people want more alternative fuels, it could slow down demand.

In the past few years, many different types of clean energy sources have been made. Because of worries about carbon emissions and air pollution, the need for sustainable energy sources has grown by a huge amount. One of the newest ways to live in a more sustainable way is to use batteries in cars and other vehicles. Transportation companies, businesses, and governments prefer Electric Vehicles (EVs) because they are more sustainable and help promote the use of clean and green energy sources.

Segmentation Analysis:

By Type Analysis:

Based on the type, the market is divided into deposit control, cetane improvers, lubricity improvers, cold-flow improvers, stability improvers, octane improvers, and corrosion inhibitors. A fuel's ability to start a fire is measured by how close its cetane number is to the standard cetane number. Diesel fuel often has cetane improvers added to it. It broke down in a way that released heat, which caused fuel reactions that started a fire at a lower temperature.

Octane boosters are the biggest part of the market. The better a fuel works, the higher its octane number. The demand for octane improvers will go up because refineries are using them more and more because they are cheap and help them meet the octane number requirements. Because crude oil and petroleum oils are getting worse, there is a need for deposit control additives and stability improvers.

By Application Analysis:

In terms of how they are used, the market is split into gasoline, diesel, and aviation fuel. The majority of the market was made up of gasoline. One of the main things driving the market is the growing demand for gasoline fuel, which is supported by the growing production of cars. The growth of the market is likely to be driven by factors like the growing demand for aviation fuel for commercial use and the rise in tourism.

Regional Insights:

By 2021, the North American fuel additives market was expected to be worth USD 2.70 billion. North America is the biggest market right now, and it is expected to stay that way for the next few years. Market growth could be driven by more oil exploration and more demand for fuel from industries that use it, such as transportation and power production. The aerospace and defense industry is growing quickly, and many U.S. government projects will also help the area do well.

Europe is likely to grow by a lot in terms of volume. The market is likely to be driven by the well-established automotive manufacturing sector and the growing demand for passenger cars. Also, the growth of the additive industry will be affected by the presence of groups like the Additive Technical Committee (ATC), which helps the industry grow.

Asia-Pacific is one of the most developed and industrialized parts of the world. Fuel additives are expected to be a big market driver because countries like China and India are making more use of them. Tata, Bajaj, Ashok Leyland, and other car companies would boost demand if they worked harder to make better cars.

Because of how strong their manufacturing sectors are, Brazil, Mexico, Argentina, Columbia, and Chile are the main growth countries for the market. More mining is being done in Brazil and other parts of Latin America, which is driving up the need for fuels and helping the market grow.

The fuel industry is growing because there are more people and more tourists because of mega-events. The growth of the market will be helped by more people travelling and using transportation. As the UAE and Qatar move forward with plans to boost tourism before Expo 2021 and the FIFA World Cup 2022, the fuel additive business is likely to do well there.

Scope Analysis

Recent Development:

• January 2021 - BASF Enzymes LLC and Innospec Fuel Specialties LLC entered into a distribution agreement to increase overall value to consumers and demonstrate their commitment to the ethanol yield business. As part of this agreement, BASF will distribute DCI-11 Plus ClearTrak, a concentrated corrosion inhibitor, to ethanol producers in the United States.
• December 2021 – BASF launches a new multi-purpose diesel additive under the brand name KEROPUR-D in South Korea. A high-performance, multi-purpose diesel fuel additive that removes deposits from the engine and prevents the formation of new deposits.
• November 2021 – Evonik announces the establishment of a new Oil Additive Performance Testing Laboratory in the Asia Pacific region. This new state-of-the-art in-house laboratory facility and additive testing service aims to serve customers in Asia.

Market Segmentation

By Type:

• Deposit Control
• Cetane Improvers
• Lubricity improvers
• Cold Flow improvers
• Stability improvers
• Octane Improvers
• Corrosion inhibitors
• Others

By Application:

• Gasoline
• Diesel
• Aviation Fuel
• Others

By Companies:

• BASF SA (Germany)
• Dow Inc. (U.S.)
• Lubrizol Corporation (U.S.)
• Evonik Industries AG (Germany)
• TotalEnergies (France)
• Clariant (Switzerland)
• Chemtura (U.S.)
• Dorf Ketal Chemicals (India)
• Innospec Inc. (U.S.)
• Others