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Fuel Additives: Find Statistics and Market Data

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Global Fuel Additive Industry

Fuel additives are special chemicals used to make fuels necessary for motor vehicle function more efficient, and can either be added to gasoline or sold separately. The benefits of fuel additives include superior engine performance and increased power, both of which allow drivers to travel further than they could travel on basic gasoline.

Fuel additives are also used to limit or prevent the build-up of deposits in the engine, which in turns lengthens the life of a vehicle, letting car owners delay replacement or repair.

In the US, the fuel additive industry is expected to exceed the $1.5 billion mark by 2016, according to research from Freedonia. Industry performance will be fuelled by recovery in the petroleum fuel sector, with demand rising in tandem with economic growth. Higher additive rates, driven by increasing biofuel consumption under government regulations, will also have a beneficial impact on the global fuel additive industry.

Fuel Additive Industry Trends

The diesel additive market segment is among the most affected by the US Renewable Fuel Standard 2 (RFS2) regulations, reports Freedonia. With increased use of biodiesel, the cold flow improvers segment is set to record the highest rate of growth compared with other fuel additives. Diesel additive demand is set to rise over the next decade as demand for diesel fuel rises due to economic recovery, increased goods shipping and a greater number of diesel fuel-efficient passenger vehicles in the market.

Growing use of biofuels will drive demand for gasoline additives. Corrosion inhibitors are set to record above-average growth as ethanol is used more and more in gasoline supply. Deposit control agents will continue to represent the leading market segment, but will record modest yearly growth. Following the Environmental Protection Agency’s attempts to control gasoline detergent levels, demand dropped, leading to deposit-related engine issues. This, in turn, led to the implementation of the 2004 Top Tier Detergent Gasoline standard. The majority of leading gasoline brands adopted the standard and deposit control demand recovered. Modest growth in this market segment through 2016 will be motivated by industry player efforts to set their products apart, appealing to consumers through the promotion of the high-detergent content of their gasoline.

Blender and terminal additives demand is expected to continue rising over the coming years, reports Freedonia. Market growth will be driven by smaller fuel retailers increasing rising use of detergent levels to appeal to consumers. Meanwhile, increasing biodiesel consumption will lead to increased use of cold flow improver at the blender and terminal level. Aftermarket demand will witness the highest rate of growth, fuelled by customer efforts to cut down on fuel costs by taking better care of their engines.

Market Outlook

Government regulations will be involved in shaping the specialty fuel additives market, reports Freedonia. To comply with the Renewable Fuel Standard 2 (RFS2), the Environmental Protection Agency will increase the amount of biodiesel and ethanol usage in the fuel supply. This will drive demand for specialty fuel additives.

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Parent industry: Specialty Chemical
Related industries: Cleaning Compound, Industrial Gases, Paint and Coating, Printing Inks, Plastic

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