The global Fuel Additives market size is expected to reach close to USD 10,294.37 million by 2029 with an annualized growth rate of 3.66% through the projected period.
Fuel additives are an essential part of industrial, aerospace, and automotive applications. Addition of fuel additives controls the emission of particulate matter from diesel type engines. This feature has helped the growth of global fuel additives market. Some other factors influencing the market growth are, stringent rules and regulations by government with respect to fuel emissions and growing demand for better combustion and fuel efficiency from vehicles. Furthermore, public health issues and environmental concerns have resulted in US environmental Protection Agency (EPA) to create acts that focus on making the use of fuel additives as mandatory, for gasoline and diesel engines.
Global fuel additives market size is dominated by increased emphasis on enhancing fuel efficiency. When optimized fuel engines have several benefits like less operating costs, enhanced working of vehicles by increasing the life of engine. Deposits present in the fuel, often choke nozzles causing reduction of the vehicle performance. Specialty fuel additives market is growing as it is chemical formulations which along with fuel, increase the required characteristics of the fuel or suppress the objectionable characteristics of the fuel.
In the global fuel additives market segment, use of ultra-low sulfur diesel (ULTD) is increasingly becoming popular among the automotive industry owing to the fact that it is very clean diesel fuel. ULTD is predicted to contain 97% lower sulfur then other diesel types. As, ULTD needs lots of fuel additives to function properly, high market growth is predicted in global fuel additives market during the forecast period. But, inadequate demand for high-end gasoline and lack of awareness in users are factors that might hamper the market growth. Furthermore, the cost involved in research and development is also high, which also can affect the market growth.
Segmentation of the global fuel additives market is done on the basis of application and types. Segmentation on the basis of type is done as gasoline, diesel and aviation fuel. Based on types the diesel segment contributes to the maximum market share. Segmentation on the basis of application is done as antioxidant, deposit control, corrosion inhibitor, stability improvers, and lubricity and cetane improvers.
Segmentation on the basis of region is done as Asia-Pacific, North America, Africa, the Middle-East, Europe, and Latin America. North America is leading contributor in global fuel additives market size. This is due to the growing government regulation with respect to emissions and increased investments being done in research and development for finding new and alternative additives. Also, fuel ethanol as a popular fuel additive used in the US.
Key players of the global fuel additives market are Afton Chemical Corporation, BASF SE, Evonik Industries, Total, Chevron Corporation, Lanxess, and many others.
Key segments of the global Fuel Additives market
By Fuel Type 2018-2025 (USD Million)
• Aviation Fuel
Regional Overview, 2018-2025 (USD Million)
• North America
o Rest of Europe
o Southeast Asia
o Rest of Asia-Pacific
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
• Central & South America
o Rest of South America