"Increase use of specialty fuel additives and ban on use of plastic will spur the market revenue growth"
The global specialty fuel additives market accounted for US$ 7.54 Bn in 2021 and is anticipated to grow to US$ 11.84 Bn growing at a CAGR of 5.8% throughout the forecast period from 2023 to 2030.
The rising emphasis to produce clean energy and fuels without compromising the efficiency coupled with rising awareness about conservation of resources and sustainable development are some of the major factors driving the specialty fuel additives market growth. A combination of factors including growing automotive industry, degrading quality of crude oil, and stringent regulatory norms among other are factors proliferating the demand of the global market. The increasing toxin levels across the globe as a result of fuel used in vehicles adversely affects the environment which in turn is having a positive influence on the growth of specialty fuel additives market. Specialty fuel additives helps curb emission of harmful gases and helps in enhancing efficiency of other products such as gasoline, diesel, other fuels.
In addition, the rising trend in North America and Europe to achieve cold flow performance by blending biodiesel and additives is anticipated to drive the demand of specialty fuel additives market. For instance, the US Environmental Protection Act (EPA) has made it mandatory for all heavy vehicles to use cleaner diesel with less sulfur content which is possible by applying cold flow improvers. This in turn is driving the demand of specialty fuel additives market. Apart from this increasing consumption of ethanol is also likely to further boost the demand of specialty fuel additives market. The use of corrosion inhibitors for protecting fuel distribution and storage in automobiles are expected to bolster the market growth.
"Deposit control additives to dominate the market throughout the forecast period"
Based on product, the specialty fuel additives market is classified into cetane improvers, antioxidants, deposit control additives, lubricity improvers, cold flow improvers, and others (corrosion inhibitors). Deposit control additives segment dominated the market with a share of more than 20% and is expected to grow at a rapid pace. Owing to rising use of detergents as fuel supplements, prevention of deposit formation in the injector nozzle and rising demand for fuel efficient automobiles are factors fueling the demand of the segment.
In contrast, cold flow improvers segment anticipated to expand rapidly throughout the forecast period. Demand for cold flow improvers is mainly driven due to North America and Europe region as there is a high demand of ultra-low sulfur diesel which can be attained by using cold flow improvers.
"Diesel segment anticipated to dominate the market during the forecast period"
On the basis of application, the global specialty fuel additives market is further classified into aviation fuel, diesel, gasoline and others. In 2021, diesel segment dominated the specialty fuel additives market and accounted for the maximum share of overall market. The growth in the segment can be attributed to high consumption of diesel globally especially in the emerging economies such as India, China, and Indonesia among others. Diesel is more environmentally hazardous than other materials which in turn presents lucrative opportunities to specialty fuel additives market.
In contrast, increasing use of gasoline majorly in the US and China is anticipated to fuel the demand of gasoline segment in the years to come. However, increasing popularity of diesel over other fuels hampers the market growth of gasoline segment.
"North America appeared as the global leader in specialty fuel additives market"
In 2021, North America region led the global specialty fuel additives market and contributed more than 30% of revenue generated globally. This can be attributed to, product innovation in terms of quality, and stringent environmental regulations among others. The US accounted for a share of more than 75% of the North America revenue share. This is due to the market being highly regulated by the US Environmental Protection Agency which monitors and provides guidelines of fuel additive products.
In contrast, Asia Pacific region is projected to witness highest growth. Owing to the rapid industrialization and huge demand from various end use industries including construction, power generation and automotive among others. Apart from this implementation of stringent regulations for emission control in China, India and Japan among others are further bolstering the market growth in the region
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Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Specialty Fuel Additives market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
