Fuel Additives Market is Set to Garner Staggering Revenues by 2026
The global fuel additives market exhibits a moderately consolidated competitive landscape wherein the top three companies held 28.50% of the total market share in 2014. Afton Chemical Corporation, Innospec, and The Lubrizol Corporation are these top three players, and they have established commendable reckon across the market. Other players who have established themselves in the market include BASF, Chevron Oronite, Nalco, Clariant, and Infineum. Amongst these, BASF has been the primary resort for customers who want to improve the fuel performance because the company offers additives that are supremely better than the products of other companies.
Furthermore, Afton Chemical Corporation has specialized in providing products for lubrication, cold flow improvement, diesel fuel, and gasoline performance. Since the market is closely aligned with the fuel industry, the market players have to be wary of the requirements of petroleum and gas manufacturers. Moreover, in order to maintain a continuous flow of demand, the vendors shall have a high level of penetration into the fuel industry to captivate the buyers. The voluminous investment required to start a new venture has restricted the entry of new players.
A report published by TMR foretells key figures with regards to the growth of the global market for fuel additives over the coming years. It is estimated that the market’s CAGR for the period between 2015 and 2023 would settle at a robust figure of 8.30%. The market value is projected to escalate from US$1.62 bn in 2016 to US$2.64 bn by the end of 2023. The market in North America has attained supremacy over other regional segments primarily due to the high awareness levels of the masses about the benefits of fuel additives.
Need for Fuel Efficiency to Expand Market
Optimizing the efficiency of fuel engines serves several benefits such as reduced costs, better running of vehicles and other machines, and increased life of the engine. Hence, the demand for fuel additives that can enhance the quality of the fuel is expected to escalate to unprecedented levels in the coming years. Fuel efficiency is one of the most major concerns of the automotive industry which is gradually becoming the largest propeller of market demand. The deposits along fuel lines often choke the injector nozzle and reduce the efficiency of the engine. To curb this, the government has imposed strict regulations on the automotive industry to prevent the formation of deposits along fuel lines. Hence, the market for fuel additives is expected to reap tremendous demand over the coming years.
Use of Ultra-Low Sulfate Diesel Escalates Demand
Ultra-low sulfur diesel has become very popular across the automotive industry, thus, increasing its usage by the consumers. ULTD is an extremely clean diesel fuel that is estimated to have 97% lower sulfur than the previous low-sulfur diesel (LSD) type. Since ULTD requires fuel additives in abundance to function properly, the market is expected to expand at a robust rate over the coming years. However, low demand for high-end gasoline and lack of awareness amongst customers is expected to hamper market growth. Furthermore, the heavy cost of research and development for fuel additives also poses a threat to market growth.