The global aftermarket fuel additives market is fairly consolidated with a few well-settled players mainly raking in most of the revenue, says Transparency Market Research in a new report. Most of the market players have significantly high technical expertise, which helps them manage innovations at a rapid pace. In this way, a stable position in the aftermarket fuel additives market is maintained. There are five key players who hold a dominant position in the industry: Evonik, Total S.A., Afton Chemical Corporation, Chevron Corporation, and Lubrizol Corporation. Having achieved maximum sales in this market for long, these companies have always been extending a strong influence.
But how much is the value of the global aftermarket fuel additives market? Well, according to the report published by TMR, the market is anticipated to rise at a CAGR of 7.2% between 2017 and 2025. It has also been prognosticated to collect revenue of about US$1167.9 mn by the end of the forecast period. Just for comparison’s sake, we have measured the valuation at US$628.64 mn in 2016, which further corroborates the growth.
Ability to Improve Engine Performance Makes Deposit Control Leading Product Segment
With respect to the product type, the aftermarket fuel additives market can be divided into cetane improver, antioxidants, deposit controls, biocide, octane booster, and a plethora of other segments. Amongst all these, the deposit control category holds a leading position, mainly as it effectively removes unwanted deposits formed in the injector nozzles, which could negatively affect engine performance.
Geographically, the global aftermarket for fuel additives spans Asia Pacific, the Middle East and Africa, North America, Latin America, and Europe. As North America has stringent vehicular regulations in place, permissible limits have to be maintained, according to one of our analysts. Thus, North America holds the apex spot on the leaderboard for complying with the regulations, makes it one of the frontrunners in using the fuel additives to decrease carbon emissions.
Strict Regulations in Developed Regions Promote Market Growth
With a fast deteriorating environment, a rising demand for alternatives to help reduce vehicular emissions is being observed all over the globe. This is one of the most important factors that has provided a significant tailwind to the global aftermarket fuel additives market. Countries in North America and Europe have started to adhere to strict regulations pertaining to vehicular emissions, which has contributed to the overall market’s growth. For example, the Environmental Protection Agency in the U.S. has enforced use of quality fuels that cause less vehicular pollution. But such fuels also need special additives. This reason, coupled with several top market players from developed regions carrying out extensive research and development to manufacture better additives, is pushing up growth in the aftermarket for fuel additives.
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On the downside, there are several restraints having a negative effect on the global aftermarket fuel additives market. A primary one is less awareness about these additives in some areas, which has led to the continued use old additives that do not substantially curb the emissions In the near future, however, the market will overcome such challenges with higher sales growth on account of the launch of improved products.
The information presented here is based on the findings of a report by Transparency Market Research, titled “Aftermarket Fuel Additives Market (Product Type – Octane Booster, Cetane Improver, Corrosion Inhibitor, Antioxidants, Deposit Control, Cold Flow Improver, Combustion Improver, Anti-icing, Dehazer/Demulsifier, and Biocide; Fuel Type – Gasoline and Diesel; End-user – Automotive (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles) and Oil & Gas) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 – 2025.