Specialty fuels additives are chemical constitutions which when mixed with fuels enhance the properties of the fuel or restrain the undesirable properties of fuels. To impart the characteristics of the fuel additives are used. The additives are added to a large number of functions such as to reduce the consumption of fuel, reduce the emissions, to improve the power output and to prevent corrosion. Additives have low treat rate which does not alter the physical properties of the fuel such as volatility, viscosity, and density.
Growing consumption of fuels and concern to meet the strict environment-related norms is expected to drive the global specialty fuel additives market. Fuel additives demand will be high worldwide owing to the environmental regulations implemented on greenhouse gas emissions during combustion of fuel which led market participants to employ clean and high-quality fuel.
Product wise the specialty fuel market can be segmented into Cold flow improvers, deposit control additives, corrosion inhibitors, Cetane improvers, lubricity improvers, and antioxidants, etc. In 2013 global market deposit control additives turn out as primary product segment. They find application in all sorts of fuels and are used to control deposit formation on injectors. Global demand will show significant growth in future owing to the introduction of new technology injector systems and engines. To enhance the performance and improve the cetane number, cetane improvers mixed to fuels. To minimize the delay of ignition in diesel engines, optimal cetane number must be kept.
Based on the application the market is segmented further into ATF, Diesel, and Gasoline. Gasoline additives increase the octane rating in gasoline or act as lubricants thereby allow use of higher compression ratios for power and greater efficiency. Diesel additives improve the characteristics of the fuel which are added at the refinery, at the distribution channel or by the end user. These, when mixed with diesel, has the capability to improve cetane number and ignition quality of the fuel.
Asia has the maximum demand of diesel especially India, China, Pakistan, Thailand and Indonesia resulting in significant market growth in future owing to the growing number of vehicles run on diesel and manufacturing plants run by diesel. It is heavier than gasoline and emits more harmful gasses into the atmosphere which makes additive composition critical to overall performance. Specialty fuel additives of different grades are manufactured for aerospace, industrial, commercial and automotive sectors.
North America is in the topmost position regarding specialty fuel additive market currently. Also, APAC is expected to be the global leader in future. The rising automobile, manufacturing and construction industries in this region with few regulations on emission control and fuel utilization is expected to boost the market. As the region is price sensitive, there is a huge demand for moderate quality fuel additives. The growth of various industries in Asia Pacific is owing to the cheap labor and readily available feedstock thereby making this region a manufacturing hub. Additionally, MTBE ban in the country should open up prospective avenues for industry participants in the U.S.
Europe and North America have strict regulations on environmental and emission regulations. These regulations have significantly improved the demand for cleaner fuel and use of alternate fuels such as CNG, biofuels and LPG. There are already numerous fuel additives which meet the standards of the regulatory agency, and this drives the fuel additives in Europe and North America.
The growth of the fuel additive market is restraining due to growing demand for Alternate Fuel Vehicles. These offers substitute for gasoline vehicles and account to a significant share of the automobile market in future. Additionally, high R&D cost regarding materials, man hours and technology is considered as restraining factor. Not everyone has the access to capital, technology, and human expertise to manufacture environment-friendly additive at a competitive price and is constrained primarily with top four leading companies such as Infineum, NewMarket, BASF SE, and Innospec. Other players in the market include NALCO Champion, Lubrizol, Chevron Oronite, Dow Chemical Company, Total Additives & Special Fuels, Evonik Industries and Dorf Ketal
Research Support Specialist, USA