Heating Oil Additives Market Trends

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

• Presence of the Alternative Fuels
• Higher Production of Electric and Hybrid Vehicles

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.

• Requirement for a Large Amount of Money as an Initial Investment