Fuel Additives Market by Type, Application, and Geography - Forecast and Analysis 2021-2025

The fuel additives market share is expected to increase by USD 1.64 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.33%.

This fuel additives market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers fuel additives market segmentation by type (deposit control additives, cetane improvers, antioxidants, cold flow improvers, and others), application (diesel fuel additives, gasoline fuel additives, aviation fuel additives, and others), and geography (APAC, Europe, North America, MEA, and South America). The fuel additives market report also offers information on several market vendors, including Clariant International Ltd., Croda International Plc, Dorf Ketal Chemicals (I) Pvt. Ltd., Eurenco, Evonik Industries AG, Exxon Mobil Corp., Functional Products Inc., Infineum International Ltd., Innospec Inc., and Qatar Fuel Additives Co. Ltd. among others.

What will the Fuel Additives Market Size be During the Forecast Period?

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Fuel Additives Market: Key Drivers, Trends, and Challenges

The rising demand for ULSD is notably driving the fuel additives market growth, although factors such as may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the fuel additives industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Fuel Additives Market Driver

The rising demand for ULSD is a major factor driving the global fuel additives market share growth during the forecast period. The use of ULSD decreases harmful emissions from diesel combustion. Also, in conjunction with emission control devices in both on-road and off-road vehicles, the adoption of ULSD can reduce the emission of exhaust gases of particulate matter and ozone precursors to near-zero levels. The improved cetane numbers of ULSD fuel types can reduce fuel consumption, noise and vast smoke exhaust, and emissions. The use of ULSD helps improve combustion efficiency and the quick start of the engine in cold weather conditions. The adoption of cetane, cold flow, and octane improvers are expected to increase due to the rise in the use of ULSD fuel types. Fuel additives to inhibit corrosion and increase lubricity are also added to ULSD to prevent unacceptable engine wear and increase the performance of vehicles. ULSD fuel type is available as diesel fuel in countries such as the US, France, Canada, Germany, the UK, and others. In the US, the EPA has mandated the use of this fuel type since 2010. Therefore, stringent regulations and policies regarding fuel consumption are expected to foster the demand for fuel additives.

Key Fuel Additives Market Trend

The growing demand for multifunctional additives is another factor supporting the global fuel additives market share growth. The growing demand for multifunctional additives in gasoline, diesel, and other fuels is expected to foster the market growth of fuel additives in the near future. These additives provide an efficient and cost-effective way of delivering multiple benefits in a single additive package. Multifunctional diesel additives are more complex and may combine deposit control additive with corrosion inhibitor, cetane number improver, and antifoam additive, among others. The growing interest from consumers, which include end-users of fuels in environment-friendly and sustainable products, has created a substantial demand for multifunctional additives. In recent years, the use of biodiesel is increasing because it is renewable and clean, reduces the level of pollution, and provides cost benefits. On the other hand, the adoption of biodiesel is hampered by the cost of production. Thus, manufacturers are trying to adopt strategies such as the use of efficient catalysts, cheap raw materials, and advanced technologies. Multifunctional additives will play a major role in the production of biofuels in terms of cost reduction, efficiency improvement, and carbon emission reduction. This will drive the growth of the market in a positive direction.

Key Fuel Additives Market Challenge

The rising need for renewable clean fuel is another factor supporting the global fuel additives market share growth during the forecast period. The increasing focus on alternative fuels can be attributed to global energy insecurity, volatile fuel cost, and rising emission levels. The steady depletion of fossil fuel reserves has increased the use of renewable energy resources such as wind, geothermal, and solar for power generation. R&D activities across the world aim at promoting the use of renewable sources of energy and focus on the large-scale production of energy from such sources. The growth of renewable power generation across the world will be mostly favored by the rapid decline in the cost of installing power plants as well as government policies that favor reverse bidding mechanisms. The declining cost of solar technologies, as well as the anticipation of a carbon-constrained future, will drive the use of renewable resources. Also, many energy industry participants are focusing on M&A activities to increase their offerings in the market. Therefore, these energy resources are becoming popular among end-users and will restrict the growth of the global fuel additives market during the forecast period.

This fuel additives market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global fuel additives market as a part of the global specialty chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the fuel additives market during the forecast period.

Who are the Major Fuel Additives Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Clariant International Ltd.
• Croda International Plc
• Dorf Ketal Chemicals (I) Pvt. Ltd.
• Eurenco
• Evonik Industries AG
• Exxon Mobil Corp.
• Functional Products Inc.
• Infineum International Ltd.
• Innospec Inc.
• Qatar Fuel Additives Co. Ltd.

 

This statistical study of the fuel additives market encompasses successful business strategies deployed by the key vendors. The fuel additives market is fragmented and the vendors are deploying growth strategies such as investing in R&D to gain a competitive advantage to compete in the market.

Product Insights and News

• Clariant International Ltd. - The company offers fuel additives with lubricity improvers, cetane improvers, antistatic additives, and cloud point depressants.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The fuel additives market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Fuel Additives Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the fuel additives market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of global specialty chemicals market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for Fuel Additives Market?

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44% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for the fuel additives market in APAC. Market growth in this region will be faster than the growth of the market in all other regions.

The increasing use of fuel additives for applications such as diesel, gasoline, and aviation will facilitate the fuel additives market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Type Segments in the Fuel Additives Market?

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The fuel additives market share growth in the deposit control additives segment will be significant during the forecast period. The increased use of deposit control additives in various applications of fuel additives, including diesel, gasoline, aviation, and heating fuels will drive the growth of this segment.

This report provides an accurate prediction of the contribution of all the segments to the growth of the fuel additives market size and actionable market insights on post COVID-19 impact on each segment.

 

Fuel Additives Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 4.33%
Market growth 2021-2025	$ 1.64 billion
Market structure	Fragmented
YoY growth (%)	3.53
Regional analysis	APAC, Europe, North America, MEA, and South America
Performing market contribution	APAC at 44%
Key consumer countries	US, China, India, Saudi Arabia, and Russian Federation
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Clariant International Ltd., Croda International Plc, Dorf Ketal Chemicals (I) Pvt. Ltd., Eurenco, Evonik Industries AG, Exxon Mobil Corp., Functional Products Inc., Infineum International Ltd., Innospec Inc., and Qatar Fuel Additives Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Fuel Additives Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive fuel additives market growth during the next five years
• Precise estimation of the fuel additives market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the fuel additives industry across APAC, Europe, North America, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of fuel additives market vendors

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