Global Fuel Additives Market 2023-2030

Global Fuel Additives Market 2023-2030

Global Fuel Additives Market Size, Share & Trends Analysis Report by Product Type (Deposit Control, Cetane Improvers, Lubricity Additives, Antioxidants, Anticorrosion, Cold Flow Improvers, Antiknock Agents, and Other Product Types), and by Application ( Diesel, Gasoline, Jet Fuel, and Other Applications) Forecast Period (2023-2030)

The global fuel additives market is anticipated to grow at a considerable CAGR of 4.5% during the forecast period. Fuel additives are widely used to improve the quality and performance of various fuels. The growing demand for fuel across the globe is a key factor driving the growth of the global fuel additives market. According to the US Energy Information Administration, the global liquid fuels consumption will increases by 1.6 million b/d in 2023 and by 1.7 million b/d in 2024, and most expected liquid fuels demand growth is in non-OECD Asia, led by China and India.

The demand growth will bring the global oil market into balance between the third quarter of 2023 (3Q23) and 1Q24 and push the Brent price from current levels back to between $75/b and $80/b. The increasing inclination towards electric vehicles across the globe may hamper the growth of the fuel additives market. The growing demand for ultra-low-sulfur diesel (ULSD) is likely to act as an opportunity for market growth.

Segmental Outlook

The global fuel additives market is segmented based on product type and application. Based on product type, the market is segmented into deposit control, cetane improvers, lubricity additives, antioxidants, anticorrosion, cold flow improvers, antiknock agents, and other product types. Based on application, the market is sub-segmented into diesel, gasoline, jet fuel, and other applications.

Gasoline Segment Holds a Prominent Market Share in the Global Fuel additives Market

The continuous evolution of gasoline engine technologies and fuels is a key factor contributing to the growth of this market segment. 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 for gasoline distribution systems include antioxidants, metal deactivators, antistatic agents, corrosion inhibitors, sediment reduction agents, dyes, and de-hazers.

The additives for gasoline vehicle system include deposit control additives, deposit modifiers, friction modifiers, and lubricity improvers. The 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.

A French-German company, Global Bioenergies is 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. Hence, such developments are likely to create new opportunities for the growth of this gasoline fuel additives market.

Regional Outlooks

The global fuel additives market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Asia-Pacific is anticipated to exhibit considerable growth in the global fuel additives market. The increasing demand for fuel from the developing countries such as China, India, and South Korea is a key factor driving the demand for fuel additives across the region. Expansion of automobile industry across Europe is contributing to the growth of the European fuel additives market.

Global Fuel Additives Market Growth, by Region 2023-2030

Source: OMR Analysis

North America Region held Considerable Share in the Global Fuel Additives Market

According to American Petroleum Institute, as of December 2022, cumulatively there are 145,000 fueling locations, with 1.5 million nozzles. Of the 145,000, 116,641 are convenience stores selling fuel, 14,826 are fueling kiosk locations, 6,494 are “big-box” locations such as grocery or mass-merchandise, and the remainder are traditional service stations and small-volume locations, including marinas. In 2021, Americans drove an estimated 3.2 trillion miles on its roads and highways. As per the same source, more than 40 diesel models are available today in the United States from 10 manufacturers and brands. The high demand for fuels along with availability of wide variety of fuels across the region is driving the demand for fuel additive market across the region.

Market Players Outlook

The major companies serving the global fuel additives market include Afton Chemical Corp., The Lubrizol Corp., Innospec Inc., BASF SE, and Chevron Corp. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2022, Hot Shot’s Secret introduced a new complimentary formulation developed specifically for use during cold weather. EDT+ Winter Defense provides all the benefits of EDT fuel additive including improved power, performance, and MPG, but also prevents gelling and icing when temperatures start to drop and has industry leading lubricity protection with the addition of LX4 Lubricity Extreme.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global fuel additives market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.