The global specialty fuel additives market size was valued at USD 9.76 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2023 to 2030. Growing demand for low-emission and efficient energy sources from 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 have 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 vehicles. They help enhance the efficiency of gasoline, distillates, diesel, and other fuels. It reduces combustion and burn rates 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 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 specialty fuel supplements to reduce exhaust emissions and improve mileage is expected to augment future growth. The introduction of new engine technology and the 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 the removal and cleaning of harmful deposits is likely to propel the growth of the market. The removal of deposits provides better acceleration and power for the engine.
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 more than 46%, in terms of revenue, in 2022, 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 9.2% from 2023 to 2030.
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.
Based on product, the market is segmented into deposit control additives, 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 the largest share of more than 36%, in terms of revenue, in 2022.
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 which comprises dyes & markers and metal deactivators accounted for more than 29.0% of the supplements market in 2022. Rising demand for fuel-economic automobiles is anticipated to drive 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 2023 to 2030 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 European and Asian countries are also expected to spur the growth of the specialty additives market over the forecast period.
Asia Pacific dominated the market and accounted for more than 28.0% share of the global revenue in 2022. 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 regulations in China, India, and Japan.
Rapidly growing automotive industry in the Asia Pacific will certainly impact the fuel supplements demand positively over the forecast period. North America is expected to hold the second-largest share followed by Europe and the Middle East. The European 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.
Key manufacturers operating in the specialty fuel additives market are engaged in expanding the range of specialty fuel additives as well as their applications. As the technologies are rapidly advancing, the manufacturers of specialty fuel additives are also focusing on streamlining the pre and postproduction process.
In June 2020, Altivia Oxide Chemical LLC acquired KMCO, LLC, one of the leading suppliers of superior specialty chemical manufacturing and toll processing services with an investment cost of USD 25 million. Some prominent players in the global specialty fuel additives market include:
Infineum International Limited
Baker Hughes Inc.
Dow Chemical Company
Chevron Oronite Company
Dorf Ketal Chemicals LLC
Market size value in 2023
USD 10.45 billion
Revenue forecast in 2030
USD 19.91 billion
CAGR of 9.6% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Volume in tons, revenue in USD million and CAGR from 2023 to 2030
Volume & revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Germany; U.K.; France; China; India; Japan; Brazil; Saudi Arabia
Key companies profiled
Albemarle; Baker Hughes; Chemtura; Dow Chemical Company; Chevron Oronite; Lubrizol; Total Additives and Special Fuels; Evonik Industries; Dorf Ketal; Eurenco; NALCO Champion; Clariant; among others
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This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global specialty fuel additives market report based on product, application, and region:
Product Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)
Cold Flow Improvers
Application Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)
Aviation Turbine Fuel
Regional Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)
Central & South America
Middle East & Africa
b. The global specialty fuel additives market size was estimated at USD 9.76 billion in 2022 and is expected to reach USD 10.45 billion in 2023.
b. The global specialty fuel additives market is expected to witness a compound annual growth rate of 9.6% from 2023 to 2030 to reach USD 19.91 billion by 2030.
b. Deposit control accounted for the largest product segment in 2022 and is expected to grow at a CAGR of about 10.0% over the forecast period.
b. NewMarket Corporation, Innospec Inc., BASF SE, Albemarle Corp., Baker Hughes Inc., Chemtura Corporation are some of the key companies operating in the specialty fuel additives market.
b. 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 over the forecast period.
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