Octane Improver Fuel Additives Market Trends
Growth Drivers
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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.
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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.
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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.
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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.
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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
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
3.2% |
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Base Year Market Size (2024) |
USD 156.14 million |
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Forecast Year Market Size (2037) |
USD 235.15 million |
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Regional Scope |
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