Specialty Fuel Additives Market

Specialty Fuel Additives Market Size (2022-2027):

The Global Specialty Fuel Additives Market was worth US$ 8.14 billion in 2021 and is anticipated to reach a valuation of US$ 11.87 billion by 2027 and is predicted to register a CAGR of 5.9% during 2022-2027.

Chemical substances known as specialty fuel additives are created to enhance the quality and performance of the fuel. Specialty fuel additives aid in knocking and the continued burning of the fuel inside the cylinder after combustion. Because of the impact resistance of specific fuel additives, the engine runs smoothly. The most popular specialty fuel additives in a variety of end-use industries include antifreeze treatment chemicals, cold flow additives, and fuel antioxidants. The global specialty fuel additive market is growing as a result of the rising popularity of the biofuel sector and the intense focus on enhancing fuel economy, particularly in terms of efficiency and emissions.

The automotive industry has been severely impacted by the COVID-19 epidemic. Manufacturing facilities have been shut down as a result, and sales volume has decreased. Additionally, in 2020 there was a fall in the demand for both commercial and passenger automobiles. The epidemic has also caused the supply chain to be disrupted and the price of oil to drop. The market for fuel additives has struggled to expand due to all of these problems. The likelihood of a smaller budget for R&D is detrimental to the market for specialty fuel additive innovation. Companies are, however, taking safety precautions to combat the outbreak's negative effects.

Market Growth:

The ecosystem has been negatively impacted by the rising amounts of hazardous emissions brought on by the gasoline used in vehicles. Specialty additives are now being used more frequently all over the world, which helps reduce dangerous gas emissions from vehicle.

Market Drivers:

More people are becoming aware of the detrimental effects that hazardous fuel deposits on engines have on overall automobile performance, which is driving manufacturers to work harder to improve the quality of fuels, especially those used in the automotive industry. The automotive industry is projected to continue to see significant demand for specialty gasoline additives that make it easier to unclog blocked injectors, reduce dual deposits in injector nozzles, remove knocking, and provide additional aspects of fuel safety and quality.

Aiming to provide specialty fuel additives that not only improve and safeguard the quality and efficiency of fuels but also maintain a temperature balance when fuels are subjected to severe temperatures, leading companies in the worldwide specialty fuel additives market. It is certain that in the near future, increasing the adaptability of specialty gasoline additives will become a key competitive advantage.

Market Restraints:

Manufacturers of specialized gasoline additives are concentrating on creating solutions that will assist in preserving and enhancing fuel quality in storage facilities, throughout distribution, and during transportation in order to maintain their position as market leaders. The consumption of biofuels has significantly increased in recent years. The largest obstacle to employing biofuels, however, is their high production costs. To lower manufacturing costs, manufacturers are employing successful methods like the utilization of catalysts, affordable raw materials, and cutting-edge technology. The efficient production of biofuels depends on the use of multifunctional additives. Multifunctional additives offer numerous advantages in a single additive package. It aids in lowering maintenance costs and enhancing fuel efficiency.

SPECIALTY FUEL ADDITIVES MARKET REPORT COVERAGE:

Market Segmentation: 

Specialty Fuel Additives Market - By Product:

• Deposit Control Additives
• Cetane Improvers
• Antioxidants
• Corrosion Inhibitors
• Lubricity Improvers
• Cold Flow Improvers

With a CAGR of more than 6%, consumption in the deposit control market is anticipated to approach 3,800 kilo tonnes. In order to prevent damage to the engine of the vehicle and to diminish performance, deposits like soot and sludge are controlled and removed using them in gasoline and diesel engines.

Diesel engines employ cetane improvers to shorten engine ignition delays. Additionally, they raise the cetane number, which enhances the vehicle's performance. This market sector is anticipated to grow in popularity as people become more interested in fuel-efficient practices. Due to rising ULSD use, the global cetane improvers industry will surpass $970 million. With a volume share of roughly 7.5 percent, the cold flow improvers segment is predicted to have growth of over 8%.

Specialty Fuel Additives Market - By Application:

• Gasoline
• Diesel
• Aviation Turbine Fuel
• Others

Diesel fuel is more harmful to the environment than other types of gasoline, hence it requires more specialized fuel additives to maximize a vehicle's fuel efficiency. In terms of volume, the diesel segment is anticipated to hold the greatest share of 46 percent in 2021 while expanding at the highest CAGR.

The U.S. and China's rising gasoline consumption is predicted to continue to be a major factor in the demand for specialty fuel additives in gasoline applications. However, the demand for gasoline has stagnated in other parts of the world as a result of the growing popularity of diesel. From 2022 to 2027, the aviation turbine market is anticipated to expand at a CAGR of 5.4 percent.

The existing IC engine vehicles and consequently the fuel supplements are likely to be threatened by the movement the trend toward electric vehicles in industrialized as well as most developing countries. In order to facilitate the swift adoption of electric vehicles in the nation, the Indian government has revealed its plans to change the Indian mobility sector.

Market Regional Analysis: 

The Global Specialty Fuel Additives Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America now controls the market and is anticipated to continue doing so during the anticipated time frame. Expanding petroleum exploration operations and rising fuel demand from numerous end-user industries, including transportation and power generation, may promote market growth. Regional prosperity will be fueled by the fast-expanding aerospace and defense industries as well as various U.S. government initiatives.

Europe is probably going to grow greatly in terms of volume. The market is probably being pushed by the expanding demand for passenger cars and the well-established automotive manufacturing industry. Growth will also be impacted by the existence of groups like the Additive Technical Committee (ATC), which promotes the development of the additive sector.

The Asia Pacific is one of the most prosperous regions in terms of development and modernization. The market is anticipated to be significantly driven by the fuel additive industry due to increased demand from nations like China and India.

Due to their strong industrial sectors, Brazil, Mexico, Argentina, Columbia, and Chile are the main market growth countries. The need for fuels is being driven by expanding mining operations in Brazil and other Latin American countries, encouraging the market's expansion.

As they press forward with plans to encourage tourism in advance of the Expo 2021 and FIFA World Cup 2022, the UAE and Qatar are anticipated to be lucrative nations for the gasoline additive business.

Market Key Players:

1. BASF
2. Chevron Oronite
3. Chemtura
4. Evonik Industries
5. Clariant
6. Dorf Ketal
7. Eurenco
8. Dow Chemical Company
9. Infineum

Recent Developments in the Global Specialty Fuel Additives Market:

• Dorf Ketal, a manufacturer of specialized chemicals, has announced the acquisition of Khyati Chemicals, a company situated in Ahmedabad, as part of its diversification plan. The companies have a legally binding agreement in place to provide Dorf Ketal a 100 percent ownership position in Khyati Chemicals.
• Due to valuation issues, Reliance Industries and Saudi Aramco have canceled an agreement for the state oil company to purchase a stake in the Indian conglomerate's oil-to-chemicals operation.