The Global Cetane Improver Additives Market was worth USD 235.4 million in 2023 and is anticipated to reach a valuation of US$ 322.1 million by 2029 and is predicted to register a CAGR of 5.2% during 2024-2029.
Market Drivers:
The market is anticipated to grow more quickly due to the increase in demand for diesel fuels. However, there is a growing need for cetane improvers as an additive to guarantee better and more efficient fuel delivery and support the market's expansion during the projected period.
The main driver propelling the market's expansion over the projected period is the expanding need for increased oil recovery from various industries and nations. Chemicals known as cetane number improvers are used to raise the cetane content in diesel fuels, giving the user better ignition combustion and a longer delay period. The main functions of cetane number improvers, also known as additives, are to minimize emissions, give power per stroke, and improve fuel efficiency. Over the projected period, the market is expected to rise at a rate driven by all these technical advances and higher efficiencies.
In the future, the market is expected to grow at a significant rate due to the increasing environmental legislation and programs aimed at reducing carbon emissions and carbon footprints.
The population rise and the development of end-use industries will both accelerate the demand for cetane improver additives. In addition, market value growth will be fueled by the swift industrialization and urbanization of developing nations like China, India, and Southeast Asia.
Market Restraints:
The strict approval procedure is limiting the growth of the cetane improver additives market. The regulatory laws enforced by different governments require manufacturers to improve their production and manufacturing processes. Moreover, the market expansion for cetane improver additives is hampered by these strict regulations. Therefore, it also lengthens the approval process.
Market Opportunities:
The growing capital expenditures in the oil and gas industry are providing opportunities for the cetane improver additives market. One of the main factors generating substantial and profitable growth potential for the market over the projected period is the manufacturers' increasing investments in offshore areas. For example, the MENA area recorded a total gas investment of US$75 billion. The top three MENA nations, Saudi Arabia, Qatar, and Iraq, are seeing an increase in investments, which presents further growth prospects for the industry. These have influenced the massive oil extraction operations in the area as well as the laws about the cutting of carbon emissions.
Market Challenges:
The high raw material costs are derailing the cetane improver additives market growth. The growth of the market as a whole is directly hampered by the high pricing of raw materials. These changes will, therefore, present a significant obstacle to the market growth rate for cetane improver additives.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
5.2% |
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Segments Covered |
By Type, Diesel Type, Distribution Channel, Application, End Use and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Eurenco, Wonder Energy Chemical, Afton Chemical, BASF SE, The Lubrizol Corporation, Innospec, Chevron Corporation, Cestoil Chemical Inc., and Others. |
Market Segmentation:
The cetane improver additives market is dominated by the 2-Ethlyhexyl Nitrate (EHN) segment. The most popular diesel fuel addition to raise the Cetane number is 2-ethylhexyl nitrate. In addition to increasing diesel oil's cetane number and fuel oil's quality of combustion, EHN also enhances a vehicle's thermokinetics while conserving oil. 2-Ethylhexyl nitrate (EHN) is the most common cetane-enhancing additive on the market right now, having been employed for several years in the commercial sector. Because of its excellent reaction in a variety of fuels and inexpensive production costs, EHN has emerged as the most used ignition improver. Because of these reasons, it is used in a variety of end-user sectors where diesel is the fuel of choice.
The petroleum segment has the maximum portion of the cetane improver additives market. According to DNV GL, oil and gas will hold 44 % of the world's primary energy supply in 2050. It will play a significant role in the energy mix. Moreover, diesel fuel additives known as cetane improvers raise the mixture's cetane content when added in small amounts. During the projection period, the market for cetane improver additives will develop due to the increase in diesel use and demand.
The direct sales/B2B sales segment is leading under this category of the cetane improver additives market. Also, automation and monitoring innovations enable it to handle operations more effectively and make effective decisions about staffing, shipping, and storage. In addition, shipping is now more efficient due to technology. This will also help vendors to manage and evaluate data as the availability of cetane improvers expands. This is due to AI and machine learning. Further, the primary driver of the market growth is the rising B2B penetration in developed nations. Additionally, refineries are constantly searching for methods to reduce costs while conforming to ever-tightening fuel requirements. To meet these standards, cetane improvers are utilized to increase power and fuel economy.
The Direct market segment is the dominant category of the cetane improver additive market. The oil refineries that use the majority of cetane improvers are in the direct market segment. These are divided into four main categories according to their characteristics: heavy fuel oils, which include various grades of fuel oils, diesel, kerosene, petroleum, naphtha, and many more; light distillates, which are extremely light oils; medium distillates, which are light oils; and medium oils. Crude oil benchmarks used in oil prices around the world are West Texas Intermediate, Brent Crude, OPEC Basket, and Russian Export Blend. WTI is also known as Texas light sweet oil because of its characteristics, which include low sulfur content, sweetness, and relatively low density. Compared to Brent, Dubai, and Oman crude, WTI is a premium crude oil that is sweeter and lighter.
The transportation sector holds the largest share of the cetane improver additives market. The automobile industry is changing because of new R&D initiatives and technological advancements. Also, the market is expanding due to the utilization of cetane improvers, which facilitate faster gasoline ignition and boost power per stroke, making it easier to transport heavy items. The International Maritime Organisation (IMO) 2020 regulation forbids ships from using fuels with a sulfur content above 0.5 %, which was formerly allowed to be as high as 3.5 %. So, it is anticipated to present significant growth prospects for cetane improvers. Throughout the projection period, the transportation industry's market is growing due to all of these causes.
Market Regional Analysis:
Asia Pacific region holds a significant share of the cetane improver additives market. This is due to its growing transportation industry. Also, the stricter environmental rules and an increase in passenger traffic are the main factors propelling the industry. The aviation sector is also growing. In the upcoming years, rising demand and the adoption rate of battery electric vehicles (BEVs) are expected to impede industry expansion. Ultra-low-sulfur diesel (ULSD) demand is expected to grow, which will likely present chances for the market in the future. China held the greatest market share and is anticipated to maintain its lead throughout the projection period.
The North American Cetane Improver Additives Market is expected to exhibit steady growth in the coming years. The market is challenged by the growing cost of the chemical compounds used in cetane improver additives, but demand for these additives to meet regulatory requirements and improve diesel fuel efficiency will keep the market expanding. In North America, the transportation sector, specifically the automotive industry, is a noteworthy final user of cetane improver additives.
Europe is experiencing robust growth and is expected to see continued expansion in the forecast period. Due to the rising need for the usage of diesel fuel, especially in power generation and other applications, the market is anticipated to expand. The market is expanding due to the rise of environmental legislation that aims to reduce carbon emissions, as cetane improver additions aid in achieving complete combustion characteristics.
Latin America is anticipated to experience huge growth opportunities. The region is attributed to the rising demand for diesel fuel in power generation and other applications. Cetane improver additives are critically needed to boost engine efficiency and lower emissions, as indicated by the market dynamics. This is also the case for the market's expansion. Furthermore, the mean for 2021, derived from data spanning 11 nations, was 80.05 thousand barrels per day. Also, Argentina had the highest value, 254.42 thousand barrels per day, while Suriname had the lowest, 7.46 thousand barrels per day.
The economic growth was impacted by the introduction of COVID-19, which the World Health Organisation has classified as a pandemic. The International Monetary Fund projects a 3% drop in the world GDP in 2020. The epidemic has affected the gasoline additives business overall by upsetting global supply networks and lowering oil costs. Despite these difficulties, the need for diesel fuel with higher cetane numbers to improve engine performance and lower emissions is predicted to generate a large growth in demand for cetane improver additives for the projection period.
Market Key Players:
Market Key Developments:
Frequently Asked Questions
The Global Cetane Improver Additives Market is expected to grow with a CAGR of 5.2% between 2024-2029.
The Global Cetane Improver Additives Market size is expected to reach a revised size of US$ 322.1 billion by 2029.
BASF SE, The Lubrizol Corporation, and Innospec are the three Cetane Improver Additives Market key players.
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