The expansion of marine industry with the advent of new products having different fuel requirements is anticipated to drive the market growth. The increasing demands of bio fuels in various applications is anticipated to increase the product demand. Additionally, the fuels available to cater the demand of marine industry with their wide range of application is anticipated to drive the market growth. The stringent government rules and international fuel standards, for instance, ISO specifications are expected to improve the consumption of marine fuel additive. The increase in industrialization and urbanization during the forecast period is anticipated to result in economic growth, increase resource demand and increase in consumption levels, thereby leading to the requirement for better solutions for exports and imports and e-commerce sector.
The global marine fuel additives market is anticipated to record a significant CAGR over the forecast period, i.e., 2019-2027 owing to ability of these additives to improve the fuel consumption and engine life coupled with reduction in operational cost. The stringent government rules and regulation to curb the sulphur emission is anticipated to improve the market growth. The various fuel related problems, for instance, corrosion, low lubricity, contamination and waxing leads to reduced fuel performance and damaged engine. The additives result in better fuel stability, phase separation and provide better corrosion and rust resistant properties to the fuel.
The market is segmented by additive type, by fuel, by application and by region. The additive type segment is further segmented into pre-combustion, post combustion and combustion, out of which, the pre-combustion segment is anticipated to retain leading shares on account of the fact that additives added at the time of fuel storage result in reduced stratification and sludge formation. At the time of storage, water contamination results in emulsification which are difficult to break. To avoid this situation, marine fuel dispersants are added which result in lesser maintenance requirement of the fuel. The post combustion is further anticipated to observe significant market growth owing to the ability of ash inhibitors and combustion catalysts to prevent the formation of ash deposit by raising their melting point. On the basis of fuel, the market is segmented into diesel, gasoline and others, out of which, the gasoline segment is anticipated to hold leading shares in market owing to increased use of gasoline fuel in the marine products.
Get more information on this report: Download Sample PDF
The high cost of using fuel additives in the marine industry coupled with availability of better engine manufacturing techniques are anticipated to hinder the market growth. The technological advancements in the engine manufacturing has resulted in production of engines that require less fuel intake and advancements in fuel technology which provides fuels that perform better even without the application of additives. Additionally, the disadvantages attached with the usage of additives, for instance, loss in mileage, water attraction and absorption coupled with problems such as phase separation, microbe production and corrosion are anticipated to act as restraints for the growth of global marine fuel additives market.
Our-in depth analysis of the marine fuel additive market includes the following segments:
On the basis of regional analysis, the marine fuel additive market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America and Europe are anticipated to have leading shares during the forecast period owing to strict rules and regulations regarding the emission of fuels and environment safety. The regions have large industries that manufacture additives and chemicals coupled with large government initiatives and investments owing to which they are anticipated to witness high growth of the industry. The market in Asia-Pacific region is anticipated to witness a significant growth owing to increase in new developments and expansion of existing industries in the region.
The marine fuel additive market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel