Automotive Aftermarket Fuel Additives Market size is projected to increase from USD 1.13 billion to USD 2.47 billion, reflecting a CAGR of over 6.3% during the forecast period, from 2025 to 2037. In the year 2025, the industry size of automotive aftermarket fuel additives is estimated at USD 1.19 billion.
The growth of the market can be attributed primarily to the rapidly expanding automotive industry. For instance, the Indian automotive industry is expected to generate 200 billion dollars by 2031, making it the world's third largest industry.
Automotive fuel additives are adopted to improve diesel fuel and gasoline performance. It helps to reduce maintenance charges, improves engine performance and others. Automotive fuel additives comprises of numerous lubricants such as gear oil, transmission fluid, power steering oil and others. Moreover, rising demand for fuel additives to improve fuel efficiency and increase engine performance, increasing purchasing power coupled with increase in personal disposable income is anticipated to drive global automotive aftermarket fuel additives market growth over the forecast period. According to the Bureau of Economic Analysis, personal income grew by USD 47.0 billion (0.2%) in July 2022, and disposable personal income (DPI) rose by USD 37.6 billion (0.2%).
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.3% |
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Base Year Market Size (2024) |
USD 1.13 billion |
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Forecast Year Market Size (2037) |
USD 2.47 billion |
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Regional Scope |
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Distribution Channel (E-Commerce, Big Stores, 4S Stores, Unauthorized Spare Parts, Service Centers, Gas Stations)
The e-commerce segment is anticipated to capture the largest share in the automotive aftermarket fuel additives market by 2037. As a result of the availability and accessibility to a wide range of products at competitive prices, e-commerce has a significant dominance over the market. Online platforms are appealing to both individual buyers and businesses owing to convenience, doorstep delivery, and product comparisons. This trend is reshaping the traditional supply chains by letting manufacturers reach a broader audience.
Application (Gasoline, Diesel)
Based on application, diesel holds a considerable share in the market due to its widespread use in commercial vehicles, heavy-duty trucks, and industrial machinery. Diesel engines often require fuel additives to improve combustion efficiency and prevent engine deposits, ensuring optimal performance. The durability and fuel economy associated with diesel vehicles will further drive the demand for these automotive aftermarket fuel additives.
Our in-depth analysis of the global automotive aftermarket fuel additives market includes the following segments:
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By Application |
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By Distribution Channel |
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By Type |
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North America Market Statistics
North America is projected to hold largest market share by the end of 2037, backed by environmental regulations aimed at reducing greenhouse gas emissions and protecting the environment, increased automobile production, and the increase in per capita income. Additionally, the higher acceptance of additive rates and increasing production of biofuels are anticipated to drive the regional market. With a large number of aging vehicles, the demand for fuel additives continues to rise in the region.
The U.S. automotive aftermarket fuel additives market is driven by a rise in consumer awareness in terms of vehicle maintenance, growing concerns about fuel quality, and the adoption of biofuels. In June 2023, the EPA announced a final rule to establish biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2023–2025. For instance, cellulosic biofuel requires 1.38 billion RINs as per volume targets, and biomass-based diesel requires 3.35 billion RINs. Stricter environmental regulations, supported by advancements in additive technologies are influencing the market growth further.
APAC Market Forecasts
Asia Pacific automotive aftermarket fuel additives market is projected to grow the fastest through 2037, owing to large and fast-growing population. Furthermore, factors such as rising disposable incomes, and urbanization are some of the most prominent driving factors in the region. The adoption of cleaner technologies is also boosting market expansion. For instance, in December 2021, Clean Edge Asia was launched to produce sustainable and secure energy markets. the total global increase in primary energy demand is projected to increase up to 60% by 2040, according to the International Energy Agency, requiring nearly USD 1 trillion in energy infrastructure investment annually for developing countries.
India automotive aftermarket fuel additives market is impelled by rising penetration of premium and high-performance vehicles, which require advanced fuel treatments for optimal performance. Leading companies are leveraging innovation to expand their product portfolios to meet the rising consumer demand in the country. Furthermore, focusing on optimizing fuel performance and reducing emissions are two of the most prominent trends witnessed in the country. Cummins Group in India showcased high-power, fuel-efficient technologies, the Legend L10 and M15, and its Hydrogen Internal Combustion Engine (H2ICE), at EXCON 2023, driving the demand for complementary fuel additives to maintain energy efficiency and compatibility with innovative systems.
Increasing production capacity is one of the major expansion strategies adopted by the companies in the automotive aftermarket fuel additives market. By doing this, businesses reduce lead times, optimize economies of scale, and cater to new markets. For instance, in August 2022, BASF inaugurated a new production plant for fuel performance additives in Shanghai, China, to address the growing demand for fuel performance additives in the region and bring better supply security and flexibility to customers in Asia.
Author Credits: Saima Khursheed
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