Global Fuel Additives Market - 2020-2027
Global fuel additive market size was worth US$ XX billion in 2019 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX% during the forecast period.
An increase in pollution and greenhouse gases has increased the demand for low emission and highly efficient vehicles, which will boost the fuel additive market growth during the forecast period. These additives act as the lubricant and prevents the build-up of trace deposits. Moreover, refineries includes fuel additives like antioxidants, cold-flow and conductivity improvers, debasers, H2S and mercaptan scavengers, octane and cetane improvers, lubricity improvers, metal deactivators, diesel stabilizers and corrosion inhibitors.
The growth of the automobile market has increased the consumption of fuel since in recent years over 90% of new vehicle deals depend on the internal combustion engine as the central player. Moreover, the increase in the production of vehicles with lower cost and low emission will increase the vehicle market that directly increases fuel consumption there by fuel additives. According ExxonMobil, diesel is an appealing fuel and is relied upon to stretch around 50 million oil-equal barrels every day by 2040.
The development and innovation in the fuel additives like boron-based nanoparticle and octane boosting will boost the market further during the forecast period. The boron-based nano-added substance is integrated utilizing a notable superconductor, magnesium diboride (MgB2). The basic technique includes heavy shedding to frame precisely actuated (MA)- MgB2 nanosheets. In controlled investigations, you are adding only one wt. % of these nanosheets improves the energy discharge/fuel energy by almost 80% and decreases the fuel decay temperature by around 73°C, which outperforms both regular and other nano-added substances.
Additionally, the octane-boosting added substances are the most pursued as they permit the vehicle to go further on a similar gas volume by better controlling how the motor consumes the fuel. Octane boosters are used extensively; there is currently no complete understanding of their molecular mechanism of action. Innovation in this space tends to be identified by blind trial and error rather than systematic scientific study.
However, growing interest towards electric vehicles over ICE vehicles is hindering the fuel additives market growth. The emissions from ICE engines are being one of the significant ozone harming substance outflows. This discharge has been interminably influencing the world's population, as the WHO records about 4.2 million passing's consistent because of air contamination in 2020.
In addition, the expanding significance of sustainable power like wind, sunlight based, geothermal and bioenergy other than hydroelectricity expands more than 10 times in both rapid and net zero. Moreover, this sustainable energy will be growing from 5% in 2018 to over 40% by 2050 in rapid and 60% in net-zero. Although the sustainable energy development is low in BAU but it is expected around 90% expansion in the coming 30 years.
By type, the market segmented into cetane number improvers, lead anti-knock additive, dyes/markers, antioxidants, metal deactivators, corrosion inhibitors, anti-icing additives, cold flow improvers, hydrogen sulphide scavengers, and others. Among all, the hydrogen sulphide scavengers are expected to grow at a faster rate as compare to other type of fuel additives owing to new emission technologies.
By application, a fuel additive is segmented into gasoline, diesel, and others. Diesel and Gasoline hold a majority of share in 2018 due to increased sales of passenger and commercial vehicle sales across the world. Fuel additives are highly preferred in gasoline and diesel vehicles due to its properties to clean & protect engine, restore optimal combustion and maximize engine performance, increase the power and acceleration, and improved fuel economy.
Diesel is mostly consumed in myriad applications, including passenger cars, light trucks, heavy trucks, buses, off-highway equipment, stationary power generation sets, and marine vessels. Therefore, it is the most consumed fuel globally. Gasoline consumption is the same as diesel and is used in most of the world's passenger cars, motorcycles, mopeds and other equipment like motor skis, snowblowers, and so on. Other fuels, such as heavy fuel oil (HFO), jet fuel, kerosene and aviation Gasoline, account for a much smaller share of global fuel consumption. Typical additives range from simple dyes to distinguish different types of fuels, antioxidants to prevent degradation, and octane boosters to make them more efficient.
Worldwide fuel utilization was assessed to be about 66mn b/d in 2016. Diesel and gas together record for practically 80% of global fuel utilization and are the world's two most consumed powers.
Asia and North America are the two biggest fuel-consuming areas globally, representing around 66% of worldwide fuel utilization. With its huge population, Asia is the world's biggest fuel-burning-through region, trailed by North America, which has the most elevated per capita fuel utilization in the world. It is followed by Africa, the Middle East and Europe. South America and other regions represent just a small portion of generally speaking worldwide fuel utilization.
GPA (Gasoline Performance Additive) has a lot higher offer than DPA (Diesel Performance Additive) in the general utilization of fuel added substances because of guidelines and shoppers' readiness to utilize treated power. For instance, in the US, the Environmental Protection Agency (EPA) commands the utilization of GPA in all fuel sold in the nation. Therefore, North America represents over 80% of the world's GPA utilization. Europe and North America are the two biggest business sectors for the reseller's exchange fragment as shoppers in creating districts, such as Asia and South America, are cost-sensitive and reluctant to purchase added substances that will expand by a large fuel cost. Subsequently, Europe represents over 40% of DPA utilization universally, the most elevated planet.
The Fuel Additive Market is a moderated fragmented with the presence of global and regional players. The competitive edge lies with the increase in the regional company and growing investment in upstream application. Evonik Industries, Innospec, Lubrizol, Croda, Afton Chemical, Total SE, Arkema, BASF, Dorf Ketal, Dow Chemical are the major players. Manufacturers are actively involved in R&D for the betterment of the quality of emission to reduce greenhouse gases. The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the growth of the fuel additive market globally. The major players are developing world leading automotive performance additives for diesel, gasoline or alternative fuels to help you meet your business goals, such as competitive products for market share growth or premium products for developing stronger brands.