Octane Improver Fuel Additives Market Trends

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