by Automotive aftermarket fuel additives are chemicals added to vehicle fuels such as gasoline and diesel to enhance their performance and efficacy. Fuel additives help in improving fuel efficiency, reducing emissions, inhibiting corrosion, and enhancing fuel storage stability. Growing vehicle fleet size, stringent emission norms, and rising fuel quality issues have boosted the demand for automotive aftermarket fuel additives globally.
The Global Automotive aftermarket fuel additives Market is estimated to be valued at US$ 2.27 billion in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Automotive Aftermarket Fuel Additives Market Growth are Hyosung Corporation, Afton Chemical Corporation, Lubrizol Corporation, Chevron Oronite Company, and BASF SE.
The growing demand for high-performance vehicles and increasing stringency of emission regulations present significant growth opportunities for automotive aftermarket fuel additive manufacturers.
Leading automotive aftermarket fuel additive companies are expanding their global footprint by entering into partnerships with local players and strengthening distribution networks across emerging markets to capitalize on the rising demand.
Market drivers
The rising vehicle parc globally has increased vehicular emissions manifolds necessitating the use of automotive aftermarket fuel additives for emission control. Stringent environmental norms by regulatory bodies are compelling vehicle owners to use high-performance fuel additives meeting stringent emission standards, thereby driving the automotive aftermarket fuel additives market.
PEST Analysis:
Political: Regulations around vehicle emission standards have a significant impact on automotive aftermarket fuel additives. Stricter emission norms increase the demand for fuel additives that helps in reducing vehicle emissions.
Economic: Economic cycles influence consumer spending which impacts the demand for vehicles and aftermarket products like fuel additives. Rapid growth in emerging economies provides growth opportunities.
Social: Increasing household incomes and buying power coupled with rising environmental concerns are positively impacting demand. Additionally, increasing vehicle usage and miles driven increases the need for fuel additives.
Technological: Advancements in additive formulations help improve fuel efficiency, reduce emissions and extend engine life. Digitalization is aiding distribution and online sales. Continuous product innovation happens to meet evolving emission norms and changing consumer needs.
Geographical Regions with High Concentration:
North America and Europe currently account for over 60% of the global market value due to stringent emission norms, high vehicle usage, and presence of major automakers. The U.S. is the largest market owing to a large automobile parc and frequent demand for services like engine tune-ups. Germany and the U.K. are other major European markets.
Fastest Growing Region:
The Asia Pacific region except Japan is projected to be the fastest growing market during the forecast period attributed to a rising middle class, increasing vehicle ownership and miles traveled. Rapid urbanization and industrialization in developing nations like China and India are driving the aftermarket. Additionally, these countries are emerging as manufacturing hubs for automobiles increasing the need for additives.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
