In 2021, the market for fuel additives is projected to reach US$9.784 billion, increasing from US$6.394 billion, growing at a CAGR of 7.35% during the forecast period.Asia Pacific region is projected to witness high growth over the forecast period due to favorable regulatory environment and to stricter climate change control measures. High growth in the automobile industry will strengthen further growth. North America is also expected to witness considerable market growth during the forecasted period attributable to high demand for gasoline and rising penetration of ultra-low-Sulphur diesel (ULSD).
The research study is based on the Knowledge Sourcing Intelligence’s proprietary research model. The process involves sourcing of information from various industry experts, key professionals, decision makers and various other stakeholders along with the validation of the responses received from the vast in-house database and premium paid databases. Government sources were also taken into consideration for the final market estimates and forecast of this detailed study of Fuel Additives Market.
Cost and price Concern
One of the major challenges to the fuel additives market is that even though they have been increasingly used to enhance fuel properties, concerns regarding their costs and related benefits have been rife. Emerging economies like China and India in particular have been slow in adopting fuel additives; primarily due to the cost considerations amid consumers with relatively lower average per capita income level. Also, historical usage of these additives in the North American and European markets has been associated with health concerns and carcinogenic effects.
In addition to this, small market players who are in large numbers in such emerging economies enjoy cost competitiveness by playing on quantity rather than quality and so market growth has been limited. However a push for collective climate change responsibility at the global level in recent years is expected to diminish this restraint.
Increasing Automobile Production in India
The Indian automobile market has witnessed persistent growth in the last five years, given the rising demand attributable to higher purchasing power and disposable income in the economy. In 2015-2016 total vehicle production which includes passenger vehicles, commercial vehicles, three wheelers and two wheelers , reached 23.960 million, a significant rise from 2010-2011 when it totaled 17.892 million. Given the recent easing of FDI norms, implementation of goods and services tax, efforts at improving ease of doing business and push for its make in India campaign, great opportunities lie for fuel additive manufactures in the Indian market. we have covered all segments in market research and analysis report.
Global Fuel Additives Market Forecast by Type (us$ billion)
By Type, fuel additives market has been segmented as deposit control additives, cetane improvers, antioxidants, dyes, lubricity additives, corrosion inhibitors, and others. Deposit control additives accounted for the largest share of global fuel additives market in 2015 and will continue its dominance throughout the forecast period by growing at the highest CAGR of X.XX% between 2015 and 2021. This growth in the market for deposit control additives is anticipated due to increasing focus on cleaner engines to meet fuel economy and emissions requirements. Demand for other fuel additives like antioxidants and cetane improver is also expected to witness significant growth over the forecast period. Antioxidants that enhances stability of gasoline and inhibits its tendency to deteriorate in storage, is expected to witness high market growth particularly in North Americas where demand for gasoline has persistently been on a rise. Cetane improvers on the other hand, are expected to witness considerable market growth in the Asia Pacific region as they provide cost effective increase in diesel cetane quality by providing reduced ignition delay.
Deposit Control Additives
Deposit Control Additives had the largest market size equal to US$XX.XXX billion in 2015 and will continue its dominance throughout the forecast period with the market size of US$XX.XXX billion by 2021. High growth in the market for deposit control additives is anticipated due to rising focus on cleaner engines to meet fuel economy and emissions requirements. By reducing the rate of deposits formed along the fuel lines of vehicles, deposit control additives are considered one of the most efficient ways to curb over consumption of fuel, thus maintain optimal engine performance. Also, rising use of bio fuels such as ethanol has led to higher chances of deposit formation, increasing demand for higher additive levels.
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