Axiom MRC has updated all it's market research reports with the Economic Impact Analysis of COVID19 Pandemic on the market. Our team of analyst are following Comprehensive Three Dimensional (3D) Research Methodology along with large number primary interviews with key industry participants to bring insightful market reports to meet the current market requirements.
Specialty fuel additives are one of the most prolific innovations of liquid engineering as well as material science, giving natural fuel sources additional properties. While fuel additives are mainly associated with additives to gasoline and oil-based fuels, the revolution around additives has a broader impact of being able to change, alter or boost specific attributes of fuel whether liquid, solid, or gas. Specialty additives are developed to increase combustion rates, as anti-oxidants, to affect burn rates, to enable fuels to work under harsh temperatures, to reduce harmful emissions, and more. Over the years, numerous hybrid compounds and blends have been engineered to create better fuels for industries and commercial use. The global specialty fuel additives market has gained sustainable growth owing to the increasing demand for clean & efficient fuel. Furthermore, the overall market is also being propelled by the swiftly increasing demand generated by emerging countries. Stringent environmental regulations and the growth of the automotive industry are some of the major factors responsible for this growth. The market is further boosted by technological advancements in specialty fuel additives by various vendors across the globe. Some of the prominent trend witnessed by the market includes an increase in demand for ultra-low-sulfur diesel (ULSD) in specialty fuel additives. However, the global specialty fuel additives market is hampered by stagnant demand for high-end gasoline and the availability of alternate fuels. Moreover, huge investments in research & development and technology are also creating an aversion among vendors regarding certain specialty fuel additives.
The primary cause which drives the market is an increase in demand from the chemicals sector along with increased awareness of the advantages of specialty additive fuel including high efficiency, fewer emissions, and equipment corrosion avoidance. Rising industrialization and the rise of several end-user verticals, particularly in developing nations boost the market for specialty fuel additives. The market will expand as a result of rising demand for automotive applications, increased attention on biofuel usage, and a surge in demand for ultra-low sulfur diesel. Growing concerned about the damaging impacts of greenhouse gas (GHG) emissions, governments all over the world are enforcing strict environmental restrictions. Governmental organizations are concentrating on using clean and effective fuels. The US Environmental Protection Agency (EPA) periodically updates and enforces several standards for lowering vehicle emissions and raising the caliber and effectiveness of fuels. European Union (EU) has imposed stringent rules that should be followed by every refiner and marketer of fuels. Emphasis on the promotion of Clean and Energy Efficient Road Transport Vehicles (EU) strives to introduce environmentally friendly vehicles and fuels which also drives the market of specialty fuel additives. For instance, In the United States, 1,255.5 million gallons of ultra-low sulfur diesel (ULSD) containing 0-15 ppm (parts per million) were consumed in 2012.
Manufacturers in the market for specialty fuel additives are concentrating on expanding their product portfolio due to the shift of the automobile industry towards these fuels. Customers are becoming more aware of the ecological impact of their commercial and industrial activities which is triggering market players to launch specialized fuel additives with considerable environmental advantages. Additionally, evolving automotive designs reflect consumer preferences for different parts of vehicles, including their interiors and exteriors, powertrains, electronics, and other components. This is further creating opportunities for producers and suppliers of specialty fuel additives to modify the features of their products to suit end-user demand for automotive designs and comfort. The growing usage of fuels with low sulfur content will accelerate the development of more advanced emissions control techniques, such as the addition of fuel additives. Diesel engine particulate matter emissions are significantly reduced by the addition of fuel additives which also provide lucrative opportunities for the key player in this market.
Hybrid vehicles have an electric motor as well as a small Internal Combustion Engine (ICE) for optimum power usage and the lowest emission. Fuel demand will decline as hybrid vehicles become more prevalent. Moreover increasing battery parity will also impact the volume of the global fuel additives market. Electric vehicle batteries are very expensive, but due to advancements in technology, their cost is reducing and the driving rate per charge is increasing. These elements significantly affect fuel usage, especially with decreasing battery costs. It is anticipated that the demand for electric vehicles will increase, resulting in a reduction in overall fuel consumption and will hamper the specialty fuel additives market.
A major challenge for the market’s expansion is the lack of raw materials owing to the lockdown and increasing use of compressed natural gas and liquefied petroleum gas. Variations in raw material prices and increased focus on the adoption of electric vehicles are also a challenge for the key players in the market.
The report provides an in-depth analysis of the Global Specialty Fuel Additives Market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. Stringent governmental regulations to address growing concerns about the harmful effects of greenhouse gas (GHG) emissions are attributed to market growth.
Based on application, the specialty fuel additives market is divided into gasoline, diesel, aviation turbine fuel, and others. The diesel segment is projected to account for the largest share in 2024, growing at the highest CAGR over the estimated period on account of rising demand for ultra-low-sulfur diesel. Moreover, cumulative gasoline intake majorly in the United States and China is expected to remain a significant driving factor for specialty fuel additives in gasoline applications. By geography, the specialty fuel additives market is studied across the countries of key regions such as North America, Europe, Asia Pacific, and the rest of the world regions which includes Latin America, and Middle East & Africa. North America is estimated to account for the largest share, followed by Asia-Pacific and Europe. Factors such as rising environmental regulations coupled with increasing demand for biofuels are fuelling the growth in North America. In addition to this, the demand for specialty fuel additives is increasing in emerging markets such as China and India due to rising disposable income and reforms in foreign policies. The Asia-Pacific region is expected to grow at the highest CAGR during the forecast period. This high growth can be attributed to rapid industrialization, demand for increasing efficiency, and implementation of stringent emission control regulations. Furthermore, China is projected to grow at a lucrative growth rate over the estimated period.
| Market Sizing for Year: | 2019-2028 |
| Base Year: | 2021 |
| Forecast Period: | 2022-2028 |
| Value: | USD
Million |
| Market Segment studied: | Product Application |
| Market Players and its Competitors: | Albemarle Corp Baker Hughes Inc. BASF SE Chemtura Corporation Chevron Oronite Company LLC Clariant Corporation Evonik Industries AG Infineum International Ltd. Innospec Inc. The Dow Chemical Company The Lubrizol Corporation |
FREQUENTLY ASKED QUESTIONS
What are the drivers for Specialty Fuel Additives Market?
The key driving factors of the market are increasing demand for clean & efficient fuel.
Which are the leading application for Specialty Fuel Additives Market?
The diesel segment is projected to account for the largest share in 2024, growing at the highest CAGR over the estimated period on account of rising demand for ultra-low-sulfur diesel.
Which region is gaining a majority of market share during the forecast period (2022-2028)?
North America is expected to dominate the Specialty Fuel Additives Market during the forecast period (2022-2028).
