Technavio’s fuels market analysis predicts that the global fuel market will grow at a sluggish CAGR of around 2% by 2020. At present, the market is witnessing the development of high-performance additives. High-performance fuel additives reduce maintenance costs, choking issues, and provide optimum performance. The use of such fuel additives will be a beneficial factor in improving the health and safety for maintenance people as these additives reduce the application of incompatible additive solutions in the fuel system. Some of the other advantages that these high-performance additives offer include cost-effectiveness, maintaining efficiency, environmental friendliness, reduced maintenance, improved thermal stability, and improved performance.
North America was the largest revenue contributing region in the market during 2015 and accounted for more than 35% of the overall fuel market share. Nearly two-thirds of the fuel consumed in North America is gasoline. However, with the growing preference for renewable fuel and more efficient engines, the consumption of gasoline, diesel, and jet fuel during the forecast period is anticipated to decline. Moreover, factors like the implementation of regulatory restrictions on marine fuel and the high availability of natural gas are also diminishing the use of heavy oil fuel in the region.
What's your takeaway?
Technavio's industry research report on the global fuels market 2016-2020 help you-
Identify latent opportunities and explorative solutions in the global fuels market: research report
Identify your key competition, and what's making them tick?
Help you build a comprehensive marketing plan, applicable across 50+ countries
At present, the market is dominated by well-established vendors who compete on the basis of technology proprietorship, R&D capabilities, and economies of scale. The market is also witnessing consolidation as the major players are constantly acquiring smaller entities; thus, resulting in intense competition. Also, with the influx of private labels, the level of competition in the market will intensify during the forecast period.
Leading vendors in the market are -
Other prominent vendors in the fuel market include Cerion Energy, Chemtura, Energenics Europe, Evonik, Innospec, and Fuel Performance Solutions.
Segmentation by product types and analysis of the fuel market
Heavy fuel oil
Jet fuel and kerosene
The gasoline segment will continue to dominate the fuel market during the forecast period and is expected to occupy more than 41% of the total market revenue by 2020. Gasoline is the chief product refined from crude oil and one of the primary fuel consumed. It is mostly used in light sport vehicles, especially sport utility vehicles, cars, and small trucks, boats, small aircraft, farm, construction, and landscaping equipment. With the declining prices of crude oil, the demand for gasoline is expected to grow over the next four years.
Segmentation by fuel additive consumption category and analysis of the fuel market
Blending, shipping, and storage additives
Gasoline fuel additives
Diesel fuel additives
Heavy fuel oil additives
The blending, shipping, and storage additives segment dominated the fuel market and accounted for around 69% of the total market share in 2015. Blending, shipping, and storage additives are chemicals that are added to gasoline, diesel, and jet fuel in the blend refinery plant and across the supply chain. These chemicals are added so that the fuel meets the required specifications while reducing the blending cost. Such additives are also used wherever products are refined, stored, and shipped to customers.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global fuel market?
What are the key market trends impacting the growth of the global fuel market?
What are the challenges to market growth?
Who are the key vendors in the global fuel market?
What are the market opportunities and threats faced by the vendors in the global fuel market?
Trending factors influencing the market shares of APAC, EMEA, North America, and South America.
What are the key outcomes of the five forces analysis of the global fuel market?
Technavio also offers customization on reports based on specific client requirement.