by The automotive aftermarket fuel additives market includes products such as anti-geling, corrosion inhibitors, octane boosters, cost-improvers, and lubricity improvers that are added to fuel to improve fuel efficiency, reduce exhaust emissions, and enhance engine performance. Fuel additives minimize the degradation of fuel quality during storage, improve combustion, provide more power, and extend the life of engines. These additives protect engines from deposits and wear & tear, clean injectors, and neutralize corrosive materials in fuels. Deteriorating engine performance due to poor-quality fuels, rising vehicle usage, mileage accumulation, and older vehicles in operation have increased the demand for automotive aftermarket fuel additives.
The global automotive aftermarket fuel additives market is estimated to be valued at US$ 1.97 billion in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Global Automotive Aftermarket Fuel Additives Market Size is the development of eco-friendly products. Stringent government regulations towards limiting vehicle emissions have boosted R&D of green fuel additives. Major players are investing in biodiesel-compatible and renewable fuel additive packages that are non-toxic and biodegradable. Researchers are also working on additives extracted from plant and food sources that purify exhaust and optimize fuel consumption. Another trend is the growing popularity of multi-functional additives that serve dual or triple purposes of improving performance, extending engine life, and reducing emissions in one product. Customers prefer cost-effective comprehensive solutions, driving manufacturers to engineer innovative combination additives.
Porter’s Analysis
Threat of new entrants: Low capital requirement but high expertise requirement makes threat of new entrants low. Strict regulations and standards for fuel additives pose entry barriers.
Bargaining power of buyers: Large automakers have significant bargaining power. Switching costs for buyers are low.
Bargaining power of suppliers: Few globally operating players like Chevron, BASF dominate supply. Suppliers differentiate products to reduce dependence.
Threat of new substitutes: Alternate powertrain technologies like electric vehicles pose threat but ICE vehicles will dominate in medium term. No close substitutes for specialty fuel additives currently exist.
Competitive rivalry: Global players compete on innovations, brands and expansion in developing regions. Regional players compete on cost and tailored solutions.
Key Takeaways
The global Automotive Aftermarket Fuel Additives Market is expected to witness high growth. The market size is projected to reach US$ 2.76 Bn by 2023 growing at a CAGR of 8.3% during the forecast period.
Regional analysis comprises- North America holds the largest share currently due to large vehicle fleet and increasing focus on automotive ecosystem. Asia Pacific is expected to witness the fastest growth driven by increasing disposable incomes, high vehicle sales and rising fuel additive awareness.
Key players operating in the Automotive Aftermarket Fuel Additives Market are Chevron Corporation, BASF SE, Afton Chemical Corporation, Infineum International Limited, The Lubrizol Corporation, TotalEnergies Additives & Special Fuels, Innospec Inc., Clariant AG.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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