Market Trends of Asia-Pacific Fuel Additives Industry
This section covers the major market trends shaping the APAC Fuel Additives Market according to our research experts:
Gasoline to Dominate the Market
- Gasoline is the major application of fuel additives in terms of market share.
- Gasoline engine technologies and fuels are constantly evolving and providing new challenges. The growth in the consumption of gasoline additive largely reflects the requirements of engine design and developments in refinery operations. Also, the additive cost is less than 0.3% of the average retail gasoline price.
- The increasing popularity of new age fuel delivery systems, like gasoline direct injection (GDI) system, is likely to boost the demand for fuel additives.
- Port injection fuel delivery systems used to be the norm. However, new gasoline direct injection or GDI technology is becoming standard equipment on many new cars, especially in high-performance vehicles. In this innovative fuel delivery system, the injector is placed inside the combustion chamber yielding improved combustion to produce better performance, improved gas mileage, and fewer emissions. Deposits in GDI systems are extremely hard to remove and require more fuel additives.
- The market penetration of gasoline direct injection (GDI) engines is growing rapidly, which is quite instrumental in propelling the market demand for gasoline fuel additives, in significant amount.
- Hence, owing to the above-mentioned reasons, the gasoline-related applications of fuel additives are likely to account for the highest market share, during the forecast period.
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China to Dominate the Market
- China is the largest fuel consumer in the Asia-Pacific region, and second in the world, after the United States.
- The Chinese aircraft industry depicted significant growth over the years. According to Boeing, China is estimated to require around 7,600 new commercial aircraft, valued at USD 1.2 trillion, over the next two decades.
- Foreign investment in China has also been extended into the aviation sector, which is projected to register a CAGR of 6%, owing to China's geographical location, which provides easy access to the industrial goods markets in the neighboring countries, as well as, other countries globally, making it a major access point for manufacturers and suppliers.
- China is the largest manufacturer of automobiles in the world. The country's automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products, in order to ensure fuel economy, and to minimize emissions (owing to the growing environmental concerns due to mounting pollution in the country).
- The production is expected to reach 30 million units by 2020, owing to the 'Made in China 2025' initiative support in upgrading the existing low-cost mass production to higher value-added advanced manufacturing. 'Automobile Mid and Long Term Development Plan', was released in 2017, with an objective to make China a strong auto power in the next ten years.
- Due to all such factors, the market for fuel additives in the country is expected to have a steady growth during the forecast period.
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