Fuel Antioxidants Market Overview
Fuel antioxidants market size is forecast to reach US$2.5 billion by 2027, after growing at a CAGR 6.3% during 2022-2027. Owing to its significant applications in diverse end-user industries, the fuel antioxidants market is set to grow considerably in the coming years. This market is also set to experience substantial growth due to constant demand for dedicated end-user applications in aerospace, automotive, energy, and others. Also, the rapidly rising demand for alkylated phenol and butylated hydroxytoluene in gasoline blending operation is estimated to boost the market growth. Furthermore, there are several benefits associated with the use of fuel antioxidants, especially in enhancing engine performance. Increasing usage of fuel antioxidants in jet fuel used majorly in the aerospace industry is anticipated to boost the market growth.
COVID – 19 Impact
The tragedy of COVID-19, which is declared a pandemic by the World Health Organization, has a noticeable impact on global economic growth. In 2020, the fuel antioxidants market was affected due to the COVID-19 pandemic, where most industrial activities were halted. Declining automotive sales is considered one of the major factors hindering the growth of the market. For instance, according to the blog shared by Wipro, the global passenger car sales dropped to 60.5 million units in 2020, down from a high of 79.6 million units in 2017. This, in turn, has affected the demand and supply chain, thereby limiting the growth in 2020. However, with the rising production and automotive sales, the market for fuel antioxidants is estimated to incline in the upcoming years.
Fuel Antioxidants Market Segment Analysis – Type
Phenolic antioxidants held the largest share in the fuel antioxidants market and is expected to continue their dominance over 2022-2027. Phenolic antioxidants are widely used in several end-use industries due to their better efficacy and workability in harsh conditions, high temperatures, and pressure. In addition, the increasing demand for butylated hydroxytoluene as fuel additive in turbine and gear oils, hydraulic fluids, and jet fuels is estimated to raise the demand for phenolic antioxidants. Furthermore, the increasing production of phenolic antioxidants will boost market growth. For instance, in 2018, BASF SE, a key player in the phenolic antioxidants market, announced the expansion of production capacity for phenolic antioxidants by 40% at its production plants in Jurong. Similarly, in 2018, Songwon Industrial Co. Ltd., in Panoli (Gujarat), India, started producing phenolic antioxidants at its plant. Such advances are projected to boost demand for phenolic antioxidants and propel the market for fuel antioxidants in the future years.
Fuel Antioxidants Market Segment Analysis – Application
Lubricant dominated the fuel antioxidants market in 2021 and is growing at a CAGR of 3% during 2022-2027. Lubricants are made by refining and processing various crude oils, or by creating synthetic lube oils. These additive-fortified base stock oils are utilized in aviation, automotive, marine, railway, and other industries. Antioxidants are one of the most effective additions for lubricant longevity. Furthermore, antioxidants reduce lubricant oil thickening and sludge formation due to oxidative deterioration. Also, antioxidants slow oxidation and extend drain intervals by reacting with the radicals created in the engine oil. Thus, due to the above-mentioned factors, the demand for fuel antioxidants in lubricants is estimated to rise over the forecast period.
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Fuel Antioxidants Market Segment Analysis – End-Use Industry
The automotive segment dominated the market for fuel antioxidants market in 2021. Lubricating oil, often known as lubricant or lube, is a type of oil that is used to reduce friction, heat, and wear between mechanical components. Motor oil and transmission fluid are two types of lubricating oil that are used in motorized vehicles. Consumer spending is currently driving up the sales of light and heavy-duty cars. Sales of automotive exhaust systems and their components are increasing since the automobile industry is forced to follow the government’s pollution requirements. Furthermore, rising automobile sales will result in increased usage of fuel antioxidants. For instance, according to OICA, in 2020, the total motor vehicle sales in South Korea and Taiwan were up by 6.2% and 10.9%, respectively, from the year 2019. Thus the rising demand for fuel antioxidants with the increasing automotive sales is estimated to drive the market growth.
Fuel Antioxidants Market Segment Analysis – Geography
Asia Pacific region dominated the fuel antioxidants market with a share of 44% in the year 2021. As fuel antioxidants directly relate to the oil demand, it is estimated to encounter a colossal need in the coming years in APAC. Also, low oil prices in China are intended to increase the overall demand for fuel antioxidants. The demand for fuel antioxidants market has benefited significantly from the growth of the aerospace, automotive, marine, energy, refinery & pipeline, welding & metal fabrication, and other sectors in the Asia-Pacific region. For instance, according to the International Trade Administration, the research conducted by the China Association of Auto Manufacturers, motorcycle production and sales of domestically manufactured motorcycles increased by 11.5% and 10%, respectively, in 2019, compared to 2018. In addition, several new refinery and petrochemical projects and refinery expansion projects are planned for the next five years, as India aims to double its refining capacity from 5 million barrels per day to 10 million barrels per day by 2030. Thus, with the inclining growth of end-use industries in several countries of the APAC region, the market for fuel antioxidants is also estimated to rise over the forecast period.
Fuel Antioxidants Market Drivers
Increasing Demand for Fuel Antioxidants in the Aerospace Industry
Fuel antioxidants products are commonly used in the aerospace industry due to their excellent efficiency and lower environmental impact in challenging circumstances. These solutions also improve efficiency by reducing part loss, which is critical in the aircraft sector. The fuel antioxidants used in the aircraft boost the service life of the components and have high resistance at high altitudes to vapor losses. The aerospace sector has been steadily growing due to the increased passenger demand and military investment. In 2019, in aerospace exports, the United States contributed around US$ 136 billion. Also, due to the expansion in air cargo, the total active general aviation fleet is predicted to increase from 212,875 aircraft in 2018 to 211,575 aircraft by 2039, according to the Federal Aviation Administration (FAA). In addition, the number of for-hire air carriers is predicted to increase to 7,550 in 2020, up from 7,475 in 2018. This is anticipated to boost the country’s use of jet fuel. Increased commercial aerospace demand and the requirement for successful aircraft design to better overall performance are expected to propel the industry forward in the next five years.
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Fuel Antioxidants Market Challenges
Use Of Alternative Energy Sources In Automobiles
Any source of energy that is alternative to fossil fuel is alternative energy. Rising usage of alternative energy in vehicles is a relatively new trend that is gaining traction. The rise in gas prices has led to a stable movement towards developing alternative fuel vehicles for consumers. Electronic vehicles (EV’s) lessen dependence on petroleum and knock into a source of electricity that is often inland and comparatively economical. Moreover, it can enhance innovation and generate novel advanced industries that boost employment and improve economic prosperity. Thus, the rising use of alternative energy sources in the automobile industry hinders the market’s growth.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Fuel Antioxidants Market. Major players in the fuel antioxidants market are:
2. BASF SE
3. Oxiris Chemicals S. A.
4. Sumitomo Chemical Company
5. Chitec Technology Co., Ltd.
6. Mayzo Inc.
7. SI Group, Inc.
8. Double Bond Chemical Ind. Co. Ltd.
9. Kumho Petrochemical Co., Ltd.
10. merald Performance Materials LLC., and others.
In May 2019, SI Group, Inc. introduced ETHANOX® 4737R, a novel fuel antioxidant mix with low-temperature fluidity, batch and injection blending, and use in various weather situations. For gasoline and aviation fuel stability, this product provides several military and ASTM approvals.
APAC region dominated the fuel antioxidants market owing to the increasing growth of the end-use industries such as automotive, aerospace, marine, and others. For instance, according to Invest India by 2026, the US$ 118 billion automobile sector is estimated to be worth US$ 300 billion.
Increasing demand for phenolic antioxidants such as butylated hydroxytoluene as fuel additives due to its exceptional features is estimated to drive the growth of the market over the forecast period.
Rising growth of electric vehicles is one of the primary factors hampering the market growth. For instance, as per the International Energy Agency in 2019 the worldwide electric car market share reached a new hight of 2.6%, up from 2.4% in 2018 and 1% in 2017.
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