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Tightening Regulatory Environment and the Declining Quality of Crude Oil Drive the Fuel Additives Market in India Finds Frost & Sullivan - Growing automotive regulations draw focus to additives that lower emissions and enhance combustion efficiency - Chemicals.Frost.com
Tightening Regulatory Environment and the Declining Quality of Crude Oil Drive the Fuel Additives Market in India Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mumbai, India, 2014/04/17 - Growing automotive regulations draw focus to additives that lower emissions and enhance combustion efficiency - Chemicals.Frost.com.

   
 
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The enforcement of stringent emission standards and the methods to increase fuel economy will be instrumental in driving the use of fuel additives in India. Additives that reduce emission, boost combustion efficiency, and help adhere to various standards will become popular.

New analysis from Frost & Sullivan, Strategic Analysis of the Indian Fuel Additive Market, finds that the market earned revenues of US $49.2 million in 2013 and estimates this to reach $62.4 million in 2017. This is against a global market of US $3.5 billion in 2012 indicating a market of low maturity where about 90 percent of additives are added at the refinery level. With the mandate to follow Bharat Stage emission standards, the use of fuel additives will become increasingly imperative. Additives for petrol will witness a slightly faster growth than diesel due to the marginally higher demand for petrol vehicles and also the fact that a major portion of diesel vehicles are used for commercial applications where lessening costs are more important than marginal improvement in the vehicle efficiency.

"Escalating crude oil prices and availability issues due to political unrest in the Middle East are forcing refiners to process heavier and sour crude," said Frost & Sullivan’s Chemicals, Materials & Foods Research Analyst. "This is increasing the demand for additives to enable conforming to fuel regulatory standards."

While it offers many benefits such as cleaner engines, lower pollution, improved engine ignition, prevents gumming and icing, higher fuel efficiency etc., the additional cost fuel additives attract over normal fuel is a deterrent in the cost-sensitive Indian market. Cheaper fuel options such as liquefied petroleum gas (LPG) and compressed natural gas (CNG) also limit the adoption of fuel additives. Awareness about fuel additives is quite low in India as evident by the fact that only oil companies use it and its non-availability as a retail product unlike in the developed countries. "Communicating the need for and the long-term advantages of fuel additives will go a long way in supporting the uptake of fuel additives," noted the analyst. "Customers with higher spending power and environmental consciousness will be open to spend a little more once they are aware of what they get in return."

There are various types of fuel additives, and some of the commonly used ones are Deposit Control additives (to prevent and remove deposit build-up in fuel injection systems), Cetane improvers (to reduce ignition delays, allowing complete combustion and reducing emissions), Antioxidants (to prevent gum formation and to maintain fuel stability) and Lubricity Improvers (to aid in reducing the wear and tear of the fuel injection system and improve the engine’s life). Currently, the Indian fuel additives market is dominated by four participants with few small, niche players. Since innovation is vital to differentiate products in this highly competitive market, joint ventures as well as mergers and acquisitions can be expected in the forecast period.

If you are interested in a virtual brochure, which provides a brief synopsis of the study and a table of contents, then send an email to Ravinder Kaur/Priya George, Corporate Communications, at ravinder.kaur[.]frost.com/ priyag[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Strategic Analysis of the Indian Fuel Additive Market is part of the Chemicals & Materials (chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Strategic Analysis of the Global Lubricant Market and the Impact of Bio-based Feedstock, US Automotive Fuel Additives Markets, CEO 360 Degree View of Chemicals used in Transportation, CEO 360 Green Fuels and Chemicals. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation

Strategic Analysis of the Indian Fuel Additive Market / P554-39

Media contact: Nimisha Iyer, Corporate Communications South Asia, Middle East, and North Africa
M: +91 98200 50519 / P: +91 22 6607 2007 - E: niyer[.]frost.com.

 
 
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Tightening Regulatory Environment and the Declining Quality of Crude Oil Drive the Fuel Additives Market in India Finds Frost & Sullivan

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