Fuel Additives Market To Generate Revenue Worth $7,990.6 Million in 2030

The stringent emission-control regulations of governments around the world and diverse uses of fuel additives are the major factors driving their consumption. Due to the above-mentioned factors, the global fuel additives industry is projected to generate $7,990.6 million revenue globally in 2030, growing at a CAGR of 4.9% during the forecast period (2021–2030).

Due to COVID-19, the supply chain of fuel products was disrupted, which had a detrimental influence on the demand for fuel additives in 2020. The delivery of fuel additives was severely hampered as a result of the lockdown in numerous countries, which resulted in the closing of the production plants. In 2020, activities of the automotive, aviation, and marine sectors were suspended or limited to prevent the disease from spreading. The economic downturn led to a huge drop in the demand for fuels, as well as the temporary closure of oil refineries, which resulted in a reduction in the production of and demand for fuel additives.

The fuel additives market is further classified into deposit control, cetane improver, lubricity additive, cold flow improver, icing inhibitor, antioxidant, and others, on the basis of type. Among these, the deposit control category registered the higher sales volume in 2020. Besides, the market in this category is projected to continue leading the market during the forecast period. This is because these additives have multiple uses, which is why they are generally produced in high volumes. Furthermore, these products are ideal for gasoline and diesel both, which is why their consumption will continue being the highest among all types of fuel additives in the years to come.

The market is classified into diesel, gasoline, aviation fuel, marine fuel, and others, on the basis of application. Among these, the diesel category accounted for the largest market share, in terms of value, in 2020, and it is set to grow at a healthy rate throughout the forecast period. This will due be to people's strong preference for diesel vehicles over gasoline-powered ones. Moreover, diesel is used extensively in generators and marine vessels.

APAC dominated the global market in 2020, and it is set to be the largest market during the forecast period as well, due to the expansion of the region's petrochemical sector. Furthermore, with the ongoing research and development (R&D) in such products and a developing automobile industry, China has the greatest share of the regional market.

Product Launch Is Most-Effective Strategic Measure Taken by Market Players

Key Players in the global fuel additives market have been involved in launching a number of products in order to gain a significant competitive advantage. For instance, in December 2020, BASF SE launched a multifunctional diesel fuel system cleaner, Keropur D, in South Korea, which improves the combustion process, reduces fuel consumption, and provides a longer engine life. The product launch was part of BASF SE’s strategy to provide sustainable fuel additives in South Korea in order to improve its business operations in the APAC region.

Similarly, in April 2020, Champion Lubricants launched Power Plus with Cetane and Diesel Flo with Cetane diesel fuel additives, which is an ultra-high-performance multifunctional diesel fuel additive for high-pressure common-rail injector systems. This advanced fuel additive reduces solvent load and decreases the fuel treatment cost.

The key players operating in the fuel additives market are BASF SE, Clariant International Ltd., Evonik Industries AG, Total S.A., Exxon Mobil Corporation, Croda International Plc, Chevron Corporation, The Lubrizol Corporation, Afton Chemical Corporation, Innospec Inc., Lanxess AG, Infineum International Limited, Mitsubishi Gas Chemical Company Inc., Thermax Limited, and Songwon Industrial Group.