Fuel additives are used to lower the level of emissions, control engine deposits, improve the octane and cetane numbers, and enhance the flow of the fuel. Some of the additives are also used as corrosion inhibitors, decrease the friction between the walls of the engine and fuel molecules, and prevent the freezing of the fuel in cold countries. Owing to the advantageous features of such chemicals, they are being increasingly added to gasoline, diesel, marine fuels, and aviation fuels.
Essentially, the burgeoning need for cleaner fuels, owing to the rising enforcement of stringent environmental laws to reduce the concentration of greenhouse gases (GHGs), will help the fuel additives market progress at a CAGR of 4.9% during 2021–2030. The market revenue stood at $5,032.7 million in 2020, and it is projected to reach $7,990.6 million by 2030. For instance, the United Nations Environmental Protection Agency (EPA) mandates the registration of all diesel- and gasoline-powered motor vehicle fuel additives, under the 40CFR 79 regulations.
In recent years, fuel additive manufacturers have focused on acquisitions and partnerships to expand their clientele. For instance, in May 2020, The Lubrizol Corporation joined the 'Getting to Zero Coalition', a group endorsed by 14 governments, to offer low- or zero-carbon fuels. Furthermore, in July 2020, Clariant International Ltd. entered into a partnership with Ineratec GmbH, an energy solution and equipment manufacturer, to offer renewable chemicals and fuels. With this partnership, the former also aims to enhance its operations.
According to P&S Intelligence, the Asia-Pacific (APAC) region led the fuel additives market in the preceding years, and it is expected to retain its dominance in the upcoming years. This can be primarily ascribed to the expanding petrochemical industry in the region. Among APAC nations, China consumes the highest volume of fuel additives due to the flourishing automotive industry and rising research and development (R&D) in such products in the country.
Thus, the booming demand for cleaner fuels on account of the implementation of emission norms will amplify the usage of fuel additives globally.
