‘Strategic Analysis of the Global Fuel Additives Market’ from Frost & Sullivan has pointed out that growing demand for fuel across automotive and marine applications is giving a boost to the global fuel additives market. Increasing manufacturing activities and robust economic development in Asia-Pacific and the rest of the world (ROW)/emerging markets, along with higher fuel consumption and economic stabilisation in Europe and North America will guarantee a bright future for fuel additive suppliers. The report also finds that the market earned revenues of US$4.13 billion last year and estimates this to reach US$4.58 billion in 2017.
Governments around the world are implementing regulations mandating the desulphurisation of fuels in order to lower emissions. Since sulphur in diesel offers considerable lubricity to the fuel itself, efforts to reduce sulphur content in the fuel will necessitate the addition of lubricity improvers.
Soundarya Shankar, Frost & Sullivan Chemicals, Materials and Food Senior Research Analyst commented, “significant advancements in engine technology necessitate fuels that are effective at higher temperature and pressure conditions, leading to a surge in additive consumption. Further, challenges in terms of ensuring the cleanliness of fuel injectors in tier three and four diesel engines are accelerating innovation within the fuel additives space.”
On the one hand, Frost & Sullivan has said that demand for high performance, premium fuel additives is following an upward growth pattern, but on the other there are challenges holding the market back:
- Customer price sensitivity, especially in Asia Pacific and ROW.
- Lack of awareness among end users on the advantage that additives offer, such as engine cleanliness, fuel efficiency, long term cost advantages and environmental sustainability.
- The absence of regulations on fuel efficiency and sustainability in several Asia Pacific and ROW countries.
- The rising popularity of alternate fuel types such as biodiesel, ethanol, hydrogen, natural gas and propane.
Shankar concluded, “fuel additive manufacturers will increasingly look to establish strategic partnerships with distributors in order to reach out to smaller and regional customers. Offering sophisticated additive packages, products with optimum price performance index, and a robust consumer service model will propel fuel additive manufacturers to a position of strength in the global landscape.”
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/19052015/f-s-additives/