by Automotive aftermarket fuel additives play an important role in enhancing engine performance, improving fuel economy, and reducing emissions. Fuel additives are specialty chemicals added to gasoline and diesel fuels to prevent or reduce engine deposits, provide extra lubrication, or improve fuel economy. They help optimize fuel properties, clean injectors and intake valves, and prevent corrosion in the fuel system. With growing concerns regarding rising fuel costs and strict emission norms, there is a growing need among vehicle owners for additives that boost fuel efficiency.
The global Automotive Aftermarket Fuel Additives Market is estimated to be valued at US$ 1.97 Bn in 2024 and is expected to exhibit a CAGR of 9.0% 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 automotive aftermarket fuel additives market is the rising demand for multifunctional additives. Earlier, fuel additives were developed to serve a single purpose, such as cleaning injectors, reducing emissions, or improving fuel economy. However, with evolving emission standards and the need for better fuel efficiency, manufacturers are developing multifunctional additive packages that can provide multiple benefits simultaneously. These additive packagesClean intake valves and fuel injectors, reduce harmful emissions, enhance fuel economy, inhibit corrosion, and improve fuel storage stability. They help simplify the aftermarket by delivering value-added benefits through a single product. This multifunctional and performance-driven approach is expected to gain traction going forward.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the automotive aftermarket fuel additives market is moderate. Existing players hold substantial market share and it requires significant capital investments to establish manufacturing facilities and distribution networks.
Bargaining power of buyers: The bargaining power of buyers in the automotive aftermarket fuel additives market is high. Buyers can select products from various companies at competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers in the automotive aftermarket fuel additives market is low. There are many raw material suppliers and establishing long term supply contracts can reduce supply risk.
Threat of new substitutes: The threat of new substitutes in the automotive aftermarket fuel additives market is low. Fuel additives have distinctive performance benefits over other automotive aftermarket products.
Competitive rivalry: The competitive rivalry in the automotive aftermarket fuel additives market is high. Key players focus on new product development, marketing initiatives and geographic expansion to gain higher market share.
Key Takeaways
The global Automotive Aftermarket Fuel Additives Market Share is expected to witness high growth. North America is currently the largest market for automotive aftermarket fuel additives due to the rising vehicle fleet and increasing average age of vehicles. Growing passenger vehicle fleet, increasing average age of vehicles, and demand for fuel efficiency are driving the automotive aftermarket fuel additives market in Asia Pacific.
Regional analysis: North America dominated the global automotive aftermarket fuel additives market in 2023 with a share of over 35%, followed by Europe and Asia Pacific. Stringent emission regulations in the US and Canada are driving the demand for fuel additives.
Key players operating in the automotive aftermarket fuel additives market are Hyosung Corporation. Hyosung offers a wide range of fuel additives such as antirust, antioxidants, upper cylinder lubricants, friction modifiers and others.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
