Octane Improver Fuel Additives Market Size & Share, by Type (Ethanol, Methyl Tertiary Butyl Ether [MTBE], Methylcyclopentadienyl Manganese Tricarbonyl [MMT], Ethyl Tertiary Butyl Ether [ETBE]); Application (Automotive, Industrial, Aviation) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4112
  • Published Date: Apr 13, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Octane Improver Fuel Additives Market size is expected to cross USD 204 Million by the end of 2035, growing at a CAGR of 3% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of octane improver fuel additives was over USD 150 Million. The growth of the market can be attributed to increasing environmental concerns. The demand for clean-burning fuels with lower emissions has increased as air pollution and greenhouse gas emissions have grown across the globe. This has caused researchers to concentrate more on creating gasoline additives that can aid in lowering dangerous pollutant emissions from car engines, as a result, is expected to add to the market growth. According to the World Health Organization (WHO), around seven million people die from air pollution globally each year.

In addition to these, factors that are believed to fuel the market growth of octane improver fuel additives include the rising awareness about the benefits of octane improver fuel additives. For instance, octane improver gasoline additives are now more widely used and adopted in the automobile industry as a result of growing public knowledge of their advantages. The purpose of octane improver fuel additives is to raise the octane rating of the fuel to improve the performance and efficiency of gasoline-powered engines. Further, improved engine performance is one of the main advantages of utilizing gasoline additives with octane improvers.


Octane Improver Fuel Additives Market
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Octane Improver Fuel Additives Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Diesel Fuel – On account of the increasing energy consumption, the market is expected to expand more in the upcoming years. For instance, around 47 billion gallons of distillate fuel, which is essentially diesel fuel, was consumed by the U.S. transportation industry in 2021.

  • Rising Demand for High-Performance Fuels – The increasing industrial activities across the globe are driving the energy demand, which as a result is estimated to drive market growth. By 2050, more than 25% of the world's energy consumption will come from liquid fuel.

  • Increasing Demand for Cleaner Fuels– The rising need for cleaner burning fuels owing to growing concerns about air pollution and climate change, is anticipated to drive the market growth.  Further, octane-improver gasoline additives help in lowering pollutants and improving fuel combustion, which makes them a desirable alternative for both consumers and producers. According to the World Health Organization (WHO), an additional 250 000 fatalities per year are anticipated as a result of starvation, malaria, diarrhea, and heat stress owing to climate change between 2030 and 2050.

  • Surging Automotive Industry – It is expected that an increase in the personal disposable income of people across the globe is anticipated to drive market growth. It was discovered that in 2023, auto sales in China increased by more than 13% from a year earlier to close to over 2 million vehicles.

  • Rising Demand for Flex-Fuel Vehicles– Flex-fuel engines emit fewer greenhouse emissions and are therefore more environmentally friendly since ethanol is used in the mixture it burns cleaner and emits fewer harmful gases and carbon particles, which as a result is anticipated to drive the market growth. The number of flex-fuel vehicles (FFVs) in the US over 26 million in 2021.

Challenges

  • Surging Number of Electric and Hybrid Vehicles - The increasing demand for electric and hybrid vehicles across the globe is one of the major factors predicted to slow down the market growth. For instance, octane improver fuel additives are mostly used for gasoline and diesel fuel, which are not needed for electric vehicles.  Further, as electric vehicles do not use gasoline, the demand for these additives is likely to hamper the market growth.
  • Varying Prices of Raw Materials

Octane Improver Fuel Additives Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~3%

Base Year Market Size (2022)

~ USD 150 Million

Forecast Year Market Size (2035)

~ USD 204 Million

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Octane Improver Fuel Additives Segmentation

Application (Automotive, Industrial, Aviation)

The global octane improver fuel additives market is segmented and analyzed for demand and supply by application into automotive, industrial, aviation, and others. Out of the four types, the automotive segment is estimated to gain the largest market share of about ~55%[SD1]  in the year 2035. The growth of the segment can be attributed to the increasing demand for automobiles across the globe. This as a result has increased the use of octane improver fuel additives. Octane boosters are gasoline additives that are added to the fuel tank to raise the fuel's octane rating.  For instance, octane improver gasoline additives can boost an engine's performance, improve efficiency, and reduce the environmental impact of automobile engines. As per estimates, within the next two years, the global sales of connected vehicles will reach over 77 million units.

Type (Ethanol, Methyl Tertiary Butyl Ether [MTBE], Methylcyclopentadienyl Manganese Tricarbonyl [MMT], Ethyl Tertiary Butyl Ether [ETBE])

The global octane improver fuel additives market is also segmented and analyzed for demand and supply by type into ethanol, methyl tertiary butyl ether [MTBE], and methylcyclopentadienyl manganese tricarbonyl [MMT]. Amongst these three segments, the ethanol segment is expected to garner a significant share in the year 2035. When combined with gasoline, the high-octane fuel ethanol raises the fuel's total octane rating, which makes it appropriate for use in traditional gasoline-powered engines. Since it has a greater octane rating than gasoline, ethanol works well as an octane booster. Moreover, it may aid in lessening engine knock, which may boost engine output and fuel economy. Besides this, utilizing ethanol as a gasoline additive can help minimize dangerous emissions of pollutants from the engine. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.[SD2] 

Our in-depth analysis of the global market includes the following segments:

           By Type

  • Ethanol
  • Methyl Tertiary Butyl Ether (MTBE)
  • Methylcyclopentadienyl Manganese Tricarbonyl (MMT)
  • Ethyl Tertiary Butyl Ether (ETBE)
  • Others

        By Application

  • Automotive
  • Industrial
  • Aviation
  • Others

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Octane Improver Fuel Additives Industry - Regional Synopsis

APAC Market Statistics

The market share of octane improver fuel additives in Asia Pacific, amongst the market in all the other regions, is projected to hold the largest share by the end of 2035[SD1] . The growth of the market can be attributed majorly to the increasing pollution in the region. For instance, there is a growing need for clean-burning fuels, such as those with higher octane ratings, owing to the rise in air pollution in the region. In addition, to address the escalating pollution issue, governments in the Asia-Pacific area may enact harsher rules on car emissions. This may boost the need for higher-quality fuels, which might increase the demand for octane-improver fuel additives. Further, the high preference for petrol (gasoline)-based vehicles in India, is also anticipated to contribute to the market growth in the region. As of 2019, pollution caused more than 2 million premature deaths in India.

North American Market Forecast

The North American octane improver fuel additives market is estimated to hold the second-largest, share by the end of 2035. The growth of the market can be attributed majorly to the rising aviation sector. The aviation sector in the area is expanding as a result of the widespread presence of various OEMs (original equipment manufacturers) for airplanes, which as a result has raised the demand for octane improver fuel additives in the industry. For instance, to enhance the quality of aviation gasoline, octane improver fuel additives are utilized in the aviation sector. Some octane improver fuel additives can increase the stability and purity of aviation fuel in addition to raising the fuel's octane rating. As a result, there is a lower chance of engine damage and the buildup of deposits in the fuel system. Further, the rising government initiatives to improve fuel economy, and growing awareness among consumers regarding the benefits of octane improvers, are also anticipated to contribute to the market growth in the region. In addition, a strict government regulatory framework to reduce greenhouse gases emission in the region is also anticipated to boost the market growth during the forecast period.[SD2] 

Latin America Forecasts

Further, the market in Latin America, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for fuel additives from countries including Brazil and Argentina. Octane improvers are a particular kind of fuel additive that is added to gasoline to raise its octane rating. Further, the demand for octane improver fuel additives may rise along with the demand for gasoline and other fuels in the region since these additives are required to meet the high octane requirements of modern engines.

Research Nester
Octane Improver Fuel Additives Market Size
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Companies Dominating the Octane Improver Fuel Additives Landscape

top-features-companies
    • Innospec
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Dorf Ketal
    • TotalEnergies
    • Afton Chemicals
    • LyondellBasell Industries Holdings B.V.
    • Cestoil Chemical Inc.
    • KENNOL Performance Oil
    • Chevron Corporation
    • The Lubrizol Corporation
    • Infineum International Ltd
    • BASF SE

In the News

  • BASF SE opened a new production plant for fuel performance additives in Asia. Further, the new facility meets the rising regional demand for gasoline performance additives and offers more supply security, and supply flexibility.

  • Cestoil Chemical Inc. launched Polysynaid 8060, a next-generation PE additive for a Safer and Greener World. Further, the new product has very little water and very low quantities of benzene, toluene, and xylene (BTX) chemicals, and it also addresses worries about the negative effects of PE additives on the environment.

 

 

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 4112
  • Published Date: Apr 13, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing demand for diesel fuel, and surging automotive industry are the major factors driving the market growth.

The market size of octane improver fuel additives market is anticipated to attain a CAGR of ~3% over the forecast period, i.e., 2023-2035.

Surging number of electric and hybrid vehicles, and varying prices of raw materials are estimated to be the growth hindering factors for the market expansion.

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.

The major players in the market are TotalEnergies, Afton Chemicals, LyondellBasell Industries Holdings B.V., Cestoil Chemical Inc., KENNOL Performance Oil, Chevron Corporation, The Lubrizol Corporation, Infineum International Ltd, BASF SE, and others.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, application, and by region.

The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Octane Improver Fuel Additives Market Report Scope
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