Global specialty fuel additives market generated volumes of 1.56 million tons in 2015. Its revenues are projected to reach USD 10.5 billion by 2024. This can be attributed to rising penetration of alternative fuels and higher focus on sustainable practices.
Regions like the EU, China, and U.S. are highly conscious of protecting our environment. They have introduced regulations that encourage the adoption of sustainable resources. This trend is expected to spread to others geographies as well, having a favorable impact on demand for specialty fuel additives.
The market is segmented on the basis of products, applications, and regions. Products encompass deposit control additives, antioxidants, cetane improvers, cold flow improvers, lubricity improvers, corrosion inhibitors, and others. Deposit control additives led the market in 2013, accounting for 40% volume share. Cetane improvers, with 11% of the volumes, stood second.
Rising use of detergents as fuel additives is an important driver of the dominance of deposit control additives. Cold flow improvers could grow at the fastest rate (CAGR of 8%) from 2016 to 2024 (forecast period). This could be credited to expanding demand for biofuel in Europe and North America.
Applications are split into gasoline, aviation turbine fuel (ATF), diesel, and other. eign supreme by 2024.
Regional market segments are North America, Asia Pacific, Europe, Latin America, and MEA (Middle East & Africa). North America garnered maximum revenues in 2013. Asia Pacific was not far behind. It occupied over 27% of the global volumes that year. It is projected to grow at the fastest rate till 2024, owing to increasing consumption of diesel in India and China.
The global specialty fuel additives market is moderately concentrated. Key vendors comprise BASF SE, Infineum, NewMarket, Afton Chemical Corporation, Angus Chemical Company, Evonik Industries AG, and Clariant International Ltd. High costs associated with research and development, technology, and manpower are the primary challenges for market entry.