Growing demand for fuel across automotive and marine applications is giving a boost to the global fuel additives market. Increasing manufacturing activities along with robust economic development in Asia Pacific and rest of the world (ROW)/emerging markets as well as higher fuel consumption with economic stabilisation in Europe and North America will guarantee a bright future for fuel additive suppliers.
New analysis from Frost & Sullivan, Strategic Analysis of the Global Fuel Additives Market, finds that the market earned revenues of US$4.13 billion in 2014 and estimates this to reach US$4.58 billion in 2017. The study covers North America, Europe, Asia Pacific and rest of the world (ROW).
Governments across the world are implementing regulations mandating the desulfurisation of fuels in order to lower emissions. Since sulfur in diesel offers considerable lubricity to the fuel itself, efforts to reduce sulfur content in the fuel will necessitate the addition of lubricity improvers.
"Significant advancements in engine technology necessitate fuels that are effective at higher temperature and pressure conditions, leading to a surge in additive consumption," said Frost & Sullivan Chemicals, Materials and Food Senior Research Analyst Soundarya Shankar. "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."
While on the one hand demand for high performance, premium fuel additives is following an upward growth pattern, several challenges are holding the market back:
- Customer price sensitivity, especially in Asia Pacific and ROW.
- Lack of awareness among end users on the advantages 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.
"Fuel additive manufacturers will increasingly look to establish strategic partnerships with distributors in order to reach out to smaller and regional customers," observed Shankar. "Offering sophisticated additive packages, products with optimum price performance index, and a robust customer service model will propel fuel additive manufacturers to a position of strength in the global landscape."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/26052015/global-fuel-additives-market-update-837/