Specialty Fuel Additives Market Analysis

Specialty Fuel Additives Market Analysis

Deposit control segment consumption is expected to surpass 3,800 kilo tons with CAGR exceeding 6% through 2023. They are used in gasoline and diesel to control and remove deposits such as soot and sludge which cause harm to the vehicle engine and reduce performance. Increasing global motor vehicle production (more than 90 million units in 2015 from 80 million units in 2011) will positively impact specialty fuel additives market share.

Cetane improvers are used in diesel to reduce ignition delays in the engine. They also improve cetane number leading to better performance of the vehicle. Increasing preference towards fuel economic measures is expected to drive this segment in the global market. The global cetane improvers segment will exceed $970 million by 2023 owing to increased ULSD consumption. Cold flow improvers segment is anticipated to witness gains over 8% with volume share of approximately 7.5% in 2023.

Gasoline application segment is expected to exceed 1,100 kilo tons in terms of volume consumption by 2023. Top Tier Detergent Gasoline (TTDG) formation in the United States is expected to drive the specialty fuel additives market growth. TTDG is performance specification designed, supported and followed by key automobile manufacturers. These additives contain more effective detergency, and free from deposit forming metallic additives.

Diesel application will be driven by the APAC region with estimated gains over 6.5% through 2023 owing to substantial usage of diesel in Asia, particularly India, China, Indonesia and Thailand. Diesel is a more polluting fuel as compared to gasoline, which makes additives critical to increase the economy of the vehicle.

North America will be driven by U.S. which is major market for gasoline and diesel. U.S consumption of gasoline and diesel was around 8,750 thousand barrels per day in 2010 and exceeded 8840 thousand barrels per day in 2013. Corresponding to the growing fuel consumption, by 2023, the U.S specialty fuel additives market will surpass $2.5 billion.

Europe led by UK and Germany was worth over USD 1.5 billion in 2015 and will witness 5.5% growth rate during forecast timeframe. Asia Pacific was driven by India and China, and together accounted for over 40% of total volume consumption in 2015. APAC is expected to grow at CAGR exceeding 6% during the next 8 years. This can mainly be attributed to growing demand for automobiles in India due to increase in disposable income.