1. Market Research
  2. > Chemical Market Trends
Fuel Additives Market - Growth, Trends, and Forecast (2020 - 2025)

Fuel Additives Market - Growth, Trends, and Forecast (2020 - 2025)

  • August 2020
  • 191 pages
  • ID: 5821504
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The market for fuel additives is expected to register a CAGR of around 5.5%, during the forecast period. Owing to the enactment of stringent environmental regulations across the world, the formulations of different petroleum fuels are changing gradually. This factor has been driving the demand for fuel additives, in the recent scenario.

- However, there is an increasing demand for battery electric vehicles (BEVs) in countries, such as the United States, China, and Germany. This, along with high R&D costs of fuel additives and the impact of the COVID-19 pandemic, may hamper the growth of the market studied during the forecast period.
- Accelerating demand for ultra-low-sulfur diesel (ULSD) is likely to act as an opportunity for market growth, in the future.
- North America dominated the fuel additives market, owing to the high demand from various applications.

Key Market Trends
Gasoline to Dominate the Market Studied

- As with diesel, gasoline engine technologies and fuels are constantly evolving and providing new challenges. The growth in the consumption of gasoline additive largely reflects the requirements of engine design and developments in refinery operations. The additive cost is less than 0.3% of the average retail gasoline price.
- The fuel additives, which have found application in gasoline engines, are either used in the refinery fuel distribution system or in the vehicle system:
- Additives for Gasoline Distribution Systems: Antioxidants, metal deactivators, antistatic agents, corrosion inhibitors, sediment reduction agents, dyes, and dehazers.
- Additives for Gasoline Vehicle System: Antiknock additive (was tetra-ethyl lead, which is now phased out), anti-valve seat recession additive (also phased out, due to metallurgy change in the engines), carburetor detergents (phased out, due to the introduction of injectors), deposit control additives, deposit modifiers, friction modifiers, and lubricity improvers.
- Port injection fuel delivery systems used to be the norm. However, new gasoline direct injection or GDI technology is becoming standard equipment in many new cars, especially in high-performance vehicles. In this innovative fuel delivery system, the injector is placed inside the combustion chamber, yielding improved combustion to produce better performance, improved gas mileage, and fewer emissions. Deposits in GDI systems are extremely hard to remove and require more fuel additives.
- Fuel additives, such as isooctane, have so far been produced from mineral oil. However, a French-German company, Global Bioenergies, started producing bio-based additives for gasoline. The raw material used for bio-based fuel additives is bio-based isobutene, a hydrocarbon, from which plastics and elastomers can also be synthesized.
- In order to prevent air-fuel mixture in the gasoline engine from self-igniting prematurely, additives are included with fuel to increase the knock resistance. In a project funded by the German Federal Ministry of Education and Research (BMBF), the French-German company, Global Bioenergies, aimed to produce two such additives, namely, isooctane and ETBE (ethyl-tert-butyl ether), for the first time from purely renewable resources. Hence, such developments are highly likely to create new opportunities for the gasoline fuel additives market.

North America to Dominate the Market

- The United States is the world’s largest and most powerful economy, and it had a per capita income of USD 59,610 in 2018. Furthermore, in 2019, the economy grew by an annualized 1.9% in the third quarter of 2019. There were signs that the economy maintained a moderate pace of expansion as the year ended, supported by a strong labor market. The economy grew at a 2.0% pace during the April-June 2019 period. The drastic outbreak of COVID-19 in the country has led to a downfall in the economic growth, owing to a fall in consumer spending and business shutdowns.?
- In 2019, distillate fuel (essentially diesel fuel) consumption by the United States transportation sector was about 1.1 billion barrels. This amount accounted for 15% of total petroleum consumption in the country and, on an energy content basis, for about 23% of total energy consumption by the transportation sector.?
- Diesel fuel powers most of the farm and construction equipment in the country. The military uses diesel fuel in tanks and trucks because diesel fuel is less flammable and less explosive than other fuels. Diesel fuel is also used in diesel engine generators to generate electricity, as most of the remote villages in Alaska use diesel generators as the primary source of electricity.?
- The diesel fuel slate has changed significantly in the last decade. Most of the diesel fuel in the United States is manufactured and delivered to the market with typical CN of between 43 and 46. ?
- More than 40 diesel models are available today in the United States from 10 manufacturers and brands.?
- According to the U.S. Energy Information Administration (EIA), In 2019, about 3.39 billion barrels of finished motor gasoline was consumed in the country, an average of about 9.27 million barrels per day.?
- Most of the gasoline sold in the United States contains some ethanol and are segmented into three general categories of ethanol-gasoline blends i.e., E10, E15, and E85 (E10 and E15 are the most common).?
- The United States is the second-largest market for vehicle sales and production globally. In 2019, the automotive sales witnessed contraction of about 1.8%. However, the automakers have been trying to revive automotive industry through removing their previous automotive models from the domestic market. Moreover, the COVID-19 outbreak has also impacted the automotive industry.?
- The market for automobiles has been struggling in 2020 due to the rapid rise in the number of new cases across the country. In June 2020, 1.14 million units were estimated to be sold witnessing a decline by 25% ending the half year with a decline of 23.1%. This, in turn, is expected to reduce the growth in the demand for fuel in the coming years as the number of new vehicles operating sees a slow growth.?
- Additionally, the government is actively involved in promoting the usage of electric vehicles through programs and initiatives. This, has significantly boosted the usage of electric vehicles, and affected the consumption of fuel.?
- The credit for plug-in electric vehicles is a federal tax incentive for electric vehicles, where the credit ranges from USD 2,500 to USD 7,500 per vehicle, depending on the vehicle’s battery capacity. This type of credit is available after the sale of 200,000 qualifying vehicles in United States.?
- According to EV-volumes, around 236,700 plug-in vehicles were delivered in the first 3 quarters of 2019 witnessing a rise by 2 % compared to the same period in 2018. ?
- The United States has the largest aerospace industry in the world. According to the Federal Aviation Administration (FAA), the total active general aviation fleet is expected to increase from 212,875 in 2018 to 211,575 aircraft by 2039, owing to the growth in air cargo. Also, the for-hire air carriers are expected to reach 7,550 in 2020 from 7,475 units in 2018. This is likely to increase the usage of jet fuel in the country.?
- All these mentioned factors, in turn, have an impact on the consumption of fuel additives during the forecast period.?

Competitive Landscape
The global fuel additives market is fragmented in nature, with the top five players accounting for around 30% of the market share. Afton Chemical is the market leader, with an extensive product portfolio of fuel additives, such as gasoline fuel additive packages and diesel fuel additive packages. It is followed by The Lubrizol Corporation, Innospec Inc., Chevron Corporation, and BASF SE, in terms of the market share.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Fuel Additives Market by Type, Application - Global Forecast to 2025

  • $ 4950
  • July 2020
  • 248 pages

Stringent governmental regulations are expected to drive the fuel additives market. The fuel additives market is projected to reach USD 6.8 billion by 2025, at a CAGR of 3.2% between 2020 and 2025. The ...

  • World
  • North America
  • Fuel Additive
  • Industry analysis
  • Crude Oil Production
  • Fuel Demand

ref:plp2020

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on