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Fuel Additives Market Size, Trend, Growth, Manufacturers and 2028

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Kunal Aditya
Fuel Additives Market Size, Trend, Growth, Manufacturers and 2028

The global fuel additives market size is projected to reach USD 12,117.8 million by 2028 owing to the increasing government regulations on the automotive industry regarding carbon emissions, states Fortune Business Insights™ in its report, titled “Fuel Additives Market, 2021-2028”. The report further states that the global market value was USD 7,701.0 million in 2020 and the market is expected to register a CAGR of 5.8% from 2021 to 2028.

COVID-19 Impact

The demand for fuels has taken a substantial dip amid the COVID-19 pandemic. Firstly because of nationwide lockdowns bringing down vehicle moment to almost zero. Secondly because of travel bans across the world. In addition, this impact has lasted for a longer period of time due to the complete shutdown of production worldwide. The impact had been so intense that in April 2020, the crude oil futures dropped to less than zero for the first time in history. This has had a huge impact on the fuel additives market growth. The year-on-year growth of the market has witnessed a substantial fall in 2020.

Innospec Inc. Expands Production Capacity; Focus on Finding New applications for DRA

In August 2020, Innospec Inc., an international specialty chemicals company, announced the expansion of its Pleasanton plant’s production capacity. The facility focuses on the company’s Drag Reducing Agents (DRA) technology. DRAs provide various applications to pipeline operators including reducing the energy required for pumping and enhancing the durability of valuable assets. The expansion has been made to meet the increasing demand for DRAs. The technology has been developed for application in various pipelines including gasoline, diesel, and other fuels.

Stringent Government Regulations to Drive Market Growth

Vehicles are one of the primary factors contributing to the global carbon footprint. According to the United States Environmental Protection Agency, an average passenger vehicle can emit nearly 4.6 metric tons of carbon dioxide every year. This has compelled governments worldwide to enforce stringent regulations on automotive manufacturers. These regulations are estimated to drive the growth of the market. In addition, increasing research and development activities from industry leaders regarding new ultra-low sulfur diesel engine, that requires fuel additives for operations, are projected to further bolster the demand.

Information Source: https://www.fortunebusinessinsights.com/fuel-additives-market-102913

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Kunal Aditya
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