According to a new market research report by MarketsandMarkets, ‘Fuel additives market by application and types – Global trends and forecast to 2019’, the fuel additives market will grow by US$ 8100 million by 2019.
According to the report, the growing trend of improving fuel efficiency and stringent environmental regulations, amid accelerating fuel consumption along with escalating fuel prices has significantly contributed to the growth of fuel additives.
The factors that are providing hindrance to growth in the fuel additives market are rise in demand of alternative fuels, stagnant demand for high end gasoline, and huge investment in research and development for fuel additives.
Additives, when added to any fuel, provide economies of scale in the long run, but in the short run these escalate the overall cost of the products, that are gasoline, diesel, and others. In price sensitive markets such as India and other developing economies, where fuel price is a more vital issue than product quality, there is less market opportunity for premium fuels. Therefore, in these markets, adding the fuel additives to the fuel only adds to the burden on the seller and the buyer, and both parties tend to lose.
North America currently leads the fuel additives market. However, by 2019 Asia-Pacific is expected to move ahead of North America in terms of consumption. One of the key factors contributing to growth is increased use of fuel additives in the emerging Asia-Pacific economies. The South American market is expected to grow at a high rate, partly due to low base effect, and also due to the growing economies of Brazil and Argentina. The Middle East and African region is likely to register sound growth due to the abundance of oil producing nations in the region.
The majority of fuel additives are consumed in diesel fuel applications. The diesel fuel additive market has been driven by the increasing ultra low sulfur diesel (ULSD) and bio based diesel demand.
Innospec, Inc., BASF SE, and The Lubrizol Corporation are the most active companies in the fuel additives market. The top five companies together comprise nearly 40% of the market share.
Edited from various sources by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/23062014/fuel_additives_market_in_2019/