Segmentation by Type (Biocide, Water Controller, Heating Oil Stabilizer, and Oil Gun Cleaner); by Fuel Type (Bio-Diesel, Diesel, LPG, and Petrol); and by End-User (Industrial, Residential, and Commercial)– Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global heating oil additives market is estimated to garner a revenue of ~ USD 13 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~ USD 6 Billion in the year 2022. The growth of the market can be attributed to the growing tendency of government authorities towards promoting eco-friendly fuel ignition and mode of transportation, low cost, better fuel effectiveness, and increasing attention to carbon emission and greenhouse gas. Additionally, the prices of fuels are rising exponentially worldwide and this factor is estimated to propel the growth of the heating oil additives market during the forecast period. For instance, in 2022, the average global price of gasoline was evaluated as about USD 1.35 per liter.
In addition to these, global heating oil additives market trends such as growth in the government initiatives towards taking significant actions to reduce carbon emissions and harmful greenhouse gas since heating oil additives burn down the fuel oil thoroughly are expected to influence the market growth positively over the forecast period. Owing to these factors, a rise in the utilization of heating oil can be observed across the globe. In a report published by IEA in 2021, the global CO2 emission from oil was estimated to be over 650 Mt. Additionally, people utilize heating oil additives to avoid heavy maintenance of the engine or incidences of a vehicle’s boiler breaking down. Therefore, all these factors are also anticipated to propel the growth of the market during the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 6 Billion |
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Forecast Year Market Size (2035) |
~ USD 13 Billion |
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Regional Scope |
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Growth Drivers
Growing Incidents of Engine Failure – the main task of heating oil additives is to keep the tank, engines, and boilers clean so there is less possibility of engine failure. It can be quite expensive to get the engines fixed again and it is also projected to cause severe incidents. For instance, a single failure of a jet engine is noticed to cause a loss of approximately 300,000 flight hours. Additionally, nearly 200 cases of engine failure are observed every year across the globe.
Rising Production of Diesel Across the Globe – diesel is a specific type of fuel that requires heating oil additives for better fuel efficiency. Diesel is also one of the most preferred fuels over other alternative products. For instance, in 2021, more than 45 billion gallons of diesel were consumed in the United States while in a similar year, approximately 1 billion barrels of diesel were produced in the USA.
Increasing Concern for Vehicular Co2 Emission – vehicles are observed to emit heavy amounts of carbon die oxide which harms the environment. Most of the harmful gases are caused by the malfunction in the engine of these vehicles. For instance, in 2020, nearly 40% of the CO2 emission was caused by passenger cars while around 20% of the emission was caused by medium and heavy trucks.
Growing Manufacturing of Automobiles to Boost the Market Growth – automobiles except for electric vehicles, has the highest demand for fuel. A surge in the production and sales of automobiles can be observed which is expected to drive the market growth over the forecast period. For instance, approximately 75 million motor vehicles were estimated to be produced across the globe in 2021.
Challenges
As the production volume of electric vehicles is growing, this factor is also becoming robust to limit the market growth over the forecast period. Electric vehicles are completely powered by electricity, they are mainly manufactured to eliminate the demand for fuel. For instance, it was anticipated that by the year 2030, more than 120 million electric vehicles will be sold out across the globe that includes cars, heavy trucks, buses, and others.
The global heating oil additives market is segmented and analyzed for demand and supply by end-user into industrial, residential, and commercial. Out of the three types of end-users, the commercial segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the growing sales of fuel additives worldwide. The sales of fuel additives are noticed to grow on the back of escalating demand in the aerospace and automotive industry and degradation in the quality of crude oil. Additionally, a significant rise has been noticed in the global price of fuels in recent decades. For instance, the global automotive industry was projected to grow on the back of total sales of around 65 million automobiles in 2021. Additionally, the surge in government initiatives to support the supply chain and enhance fuel efficiency is further expected to spike the segment growth over the forecast period.
The global heating oil additives market is also segmented and analyzed for demand and supply by fuel type into bio-diesel, diesel, LPG, and petrol. Amongst these segments, the diesel segment is expected to garner a significant share in the year 2035. The growth of the segment can be accounted to the surge in the consumption of diesel and which requires high dosages of additives to be mixed in diesel to offer more power and efficiency. Another major factor to propel the growth of the segment is that engines that are powered by diesel are preferred over engines that are powered by gasoline since they are observed to emit less carbon dioxide making them suitable for the environment. For instance, a passenger is noticed to emit approximately 4 metric tons of carbon dioxide annually each year.
Our in-depth analysis of the global heating oil additives market includes the following segments:
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By Type |
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By Fuel Type |
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By End-User |
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The Asia Pacific heating oil additives market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the constantly increasing demand for oil in the automobile industry owing to the large portion of the population purchasing 2 and 3-wheelers. China and India are estimated to be the largest shareholders by manufacturing a higher number of passenger cars and passenger car accessories. Additionally, as of 2020, about 30 million passenger cars were manufactured and sold in the Asia Pacific region. Hence, such growth in the automobile industry is projected to hike the market growth in the region over the forecast period. On the other hand, rapid growth in the manufacturing sector of the region backed by large investment is also anticipated to enlarge the market size over the forecast period. The industrial production rate in the region is set to grow exponentially which needs proper transportation which is projected to boost the demand for higher consumption of fuel which is expected to be one of the major growth factors of the market during the forecast period.
The European heating oil additives market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the fact that Europe is the leading marketplace for fuel additives whereas Russia, Germany, and France are anticipated to be the countries that hold the largest share of the market. In this region, the use of heating oil additives is visibly regulated by the European Union regulation’s REACH which stands for registration, evaluation, authorization, and restriction of chemicals. The growth of the market in this region is also anticipated by the growing awareness of the population and government towards environmental change owing to the higher emission of carbon dioxide from fuels. It was observed that in Europe, about 30% of CO2 is emitted by road transportation. Hence, all these factors are projected to flourish the market growth over the forecast period.
HomeFuels Direct Ltd becomes part of Certas Energy UK Limited. HomeFuels have been a leading company for online heating oil consumers in the United Kingdom.
Afton Chemical Corporation completed its phase 3 expansion in the lubricant and fuel additives sector in the APAC region, to incorporate GPA blending capabilities in a Chemical Additive Manufacturing Facility located in Singapore.
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.
Ans: Rising demand for eco-friendly ignition of fuels and government initiatives to decrease carbon emission and greenhouse gas are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: Increasing demand for alternative fuels are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Emissions-Reduzierungs-Concepte GmbH, Yorkshire Oils Ltd, Estuary Oils Depot, HomeFuels Direct Ltd, Bell Performance, Inc., Afton Chemical Corporation, BASF SE, Lubrizol Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, fuel type, end-user, and by region.
Ans: The commercial segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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