Global Specialty Fuel Additives Market Size, Share & Trend Analysis Report By Product (Deposit Control Additives, Cetane Improvers), By Application, By Region, And Segment Forecasts, 2016 - 2024

Industry Insights

The global specialty fuel additives market size was valued at USD 6.15 billion in 2015 and is expected to grow at a CAGR of 7.1% from 2016 to 2024. Growing demand for low emission and efficient energy sources from the manufacturing, aviation, and automobiles along with stringent environmental regulations is projected to boost the market growth.

The increasing levels of toxic emissions as a result of fuel used in vehicles has led to an adverse impact on the environment. This has led to increased use of specialty additives across the world, which helps curb harmful gas emissions from the vehicle. They help enhance the efficiency of gasoline, distillates, diesel, and other fuels. It reduces combustion and burn rate in high temperatures and avoids dreadful emissions of pollutants.

The growing trend of additives in biodiesel blends in the North American and European regions to achieve efficient cold flow performance is expected to drive the product demand. Continuous price inflation due to increasing pressure on raw materials is expected to impact industry growth adversely over the coming years.

The constant focus on new product development and innovation in the specialty fuel supplements to reduce exhaust emissions and improve mileage is expected to augment future growth. The introduction of new engine technology and demand for higher efficiency is leading to the growth of the product. The U.S., China, and India are estimated to dominate the additives market.

Specialty fuel additives enhance fuel functioning and protect the fuel system. In engines, the need for removal and cleaning of harmful deposits is likely to propel the growth of the specialty fuel additives market. The removal of deposits provides better acceleration and power of the engine.

Application Insights

Major applications of these additives include gasoline, diesel, and aviation fuels. Diesel is more environmentally hazardous fuel, which increases the use of specialty fuel additives to improve the fuel economy of a vehicle. The diesel segment is estimated to account for the largest share of 46%, in terms of volume, in 2024, growing at the highest CAGR over the forecast period.

Diesel segment is majorly driven by developing countries such as India, Indonesia, Thailand, and China. In North America and Europe, increasing use for ULSD, which requires a large number of fuel additives is expected to drive the demand for specialty fuel additives over the coming years.

Increasing gasoline intake majorly in the U.S. and China is expected to remain a key driving factor for specialty fuel additives in gasoline applications. However, due to rising diesel popularity demand for gasoline has become stagnant in other parts of the world. The aviation turbine segment is estimated to grow at a CAGR of 5.4% from 2016 to 2024.

The shift in trend towards electric vehicles in developed, as well as most of the developing countries, will probably pose a threat to the existing IC engine vehicles and thus the fuel supplements. The Indian government has recently announced its plans to transform the Indian mobility industry for the rapid adoption of electric vehicles in the country.

Product Insights

Based on product, the market is segmented into deposit control additive, cetane improvers, lubricity improvers, antioxidants, corrosions inhibitors, cold flow improvers, and other products such as dyes & markers and metal deactivators. Deposit control supplements emerged as the dominant segment accounting for USD 607 kiloton of the total volume, in 2015.

The deposit control segment is expected to grow at a high CAGR as a result of the rising use of detergents as fuel supplements. The others segment that comprises dyes & markers and metal deactivators accounted for approximately 30% of the supplements market in 2015. Rising demand for fuel economic automobiles is anticipated to drive the product consumption over the forecast period.

Rapid industrialization coupled with a growing focus on emission control is projected to increase the demand for the segment. Cold- flow improvers are projected to grow at the highest CAGR from 2016 to 2024 in North America and Europe.

Growing preference for biofuel in North America and Europe is expected to boost the demand for the product over the coming years. Emission control regulations implemented in the European and Asian countries are also expected to spur the growth of the specialty additives market over the forecast period.

Regional Insights

Asia-Pacific is anticipated to dominate the specialty fuel additives market in 2024. Asia-Pacific is projected to grow at the highest CAGR on account of rapid industrialization, demand for increasing efficiency, and implementation of stringent emission control regulation in China, India, and Japan.

Rapidly growing automotive industry in Asia Pacific will certainly impact the fuel supplements demand positively over the forecast period. Asia Pacific automotive sales have witnessed a growth of over 7% from 2010 to 2016, with South East Asian countries possessing most of the potential.

North America is expected to hold the second-largest share followed by Europe and the Middle East. The European specialty fuel additives market is expected to on account of rising environmental regulations coupled with increasing demand for biofuels that are anticipated to drive the market in this region.

Global Specialty Fuel Additives Market Share Insights

The leading companies operating in the industry are engaged in research and development activities to achieve product innovation and gain a competitive edge. Some of the major companies include NewMarket, BASF, Innospec, and Infineum.

Other companies engaged in the manufacture and distribution of the product include Albemarle, Baker Hughes, Chemtura, Dow Chemical Company, Chevron Oronite, Lubrizol, Total Additives and Special Fuels, Evonik Industries, Dorf Ketal, Eurenco, NALCO Champion and Clariant among others.

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