HYDERABAD, India, June 26, 2019 /PRNewswire/ -- Ongoing focus on new product developments and innovations in specialty fuel supplements is the key trend in the fuel additives sector. This is due to high demand to reduce exhaust emissions and increase mileage. Furthermore, governments around the world are focusing on boosting the fuel economy in accordance with the standards of the Corporate Average Fuel Economy which will enhance the importance of fuel additives.
Fuel additives market is expected to reach $7 billion by 2023, growing at a CAGR of 5%. The increasing penetration of additives in biodiesel blends in the North America and European regions to achieve efficient cold flow performance will have a positive impact on the consumption of fuel additives in the near future. Also, with the rise in the consumption of Ultra-Low-Sulfur Diesel (ULSD), fuel additives market is witnessing an increase in the demand as ULSD requires higher concentration of additives.
The growing trend to include multifunctional additives in gasoline, diesel and other fuels is favoring the fuel additives industrial growth. Multifunctional additives assist fuels to comply with safety standards and perform smoothly by reducing the required quantity of additives. The increasing interest in sustainable and environmentally friendly products from end-users and customers will lead in enhanced demand for multifunctional additives. Growing R&D investments in new engine technologies will boost the market for fuel additives in the coming years. Direct injection of petrol technology has become common in recent days and accounts for about 38% of new light-duty car sales. Another instance is low-temperature combustion modes such as homogeneous charge compression ignition combustion which is in R&D stage. All these new engine techniques require high-performance fuels where fuel additives are crucial.
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Key Insights on Fuel Additives Market
- Growing demand for low-emission and effective energy sources in the manufacturing, aviation and automotive sectors, coupled with growing use of low-sulfur fuels will increase the development of new emission control techniques, including the addition of fuel additives that would significantly reduce engine particulate emissions.
- Gasoline segment holds the largest share in the fuel additives market in 2018. Increasing gasoline consumption in the U.S. and China is anticipated as main driving factor for fuel additives in gasoline applications. However, demand for gasoline has stagnated in other areas of the globe owing to increasing diesel popularity.
- Asia-Pacific (APAC) dominated the fuel additives market by holding a share of more than 30% followed by North America and Europe. APAC's economy is largely influenced by the dynamics of countries like China and India, however, the scenario is changing with increasing investments in South East Asia. South East Asian countries are witnessing high growth in the aviation and automotive industry. APAC automotive sales has witnessed a growth of over 6.52% during 2012-2018, with South East Asian countries possessing most of the potential.
- The constant price fluctuations in fuel additives owing to rising pressure on raw materials will negatively impact the market growth during the forecast period. Furthermore, the shift in trend towards electric vehicles in developed as well as most of the developing countries like China, India will possibly pose a threat to the existing IC engine vehicles and thus the fuel additives market.
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In order to achieve product innovation and gain a competitive edge, the leading companies operating in the industry engage in R&D activities, partnerships and strategic alliances. The key companies involved in the market include Chevron Corporation, Lubrizol Corporation, BASF SE, Lanxess AG, Innospec Inc. Lanxess acquired Chemtura Corporation, one of the leading supplier of fuel additives in 2017. The acquisition considerably expand company's additives portfolio and makes Lanxess one of the world's leading players in this market. With various product launches, mergers, acquisitions, collaborations and other strategies, the top companies are obtaining fuel additives market shares in the industry.
Growing aviation and automotive industry will escalate the fuel additives market. China is APAC's largest fuel consumer, and world's second largest consumer after the U.S. The nation has largest automotive industry in the world and one of the largest civilian aircraft sales markets. India also has excellent potential for possibilities for the future market. The country's automotive industry is experiencing steady growth due to manufacturing rise of 8% in 2018 compared to the past year.
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