The global market for specialty fuel additives is expected to reach $8.5 billion by 2020, according to a new report, titled, “Specialty Fuel Additives Market Analysis and Segment Forecasts to 2020,” by Grand View Research Inc. Cold flow improvers are expected to be the fastest growing product segment, the report finds, with an estimated compound annual growth rate (CAGR) of 7.9 percent from 2014 to 2020.

“Positive outlook on biodiesel demand, especially in regional markets of North America and Europe, is expected to boost cold flow improver sales over the next six years,” Grand View Research states. “The global demand for cetane improvers is projected to reach 209.6 kilotons by 2020, at an estimated CAGR of 5.7 percent from 2014 to 2020.”

Other key findings of the study suggest:

• The global market for specialty fuel additives was 1,383.4 kilotons in 2013 and is expected to reach 2,066.4 kilotons by 2020, growing at a CAGR of 46 percent from 2014 to 2020.

• Gasoline dominated the global application market for specialty fuel additives, accounting for 46.2 percent of total market volume in 2013. High gasoline demand, mainly in the U.S., is expected to drive the demand for specialty fuel additives used in gasoline. Owing to surging demand for ultra-low sulfur diesel (ULSD), however, diesel is expected to surpass gasoline to emerge as the leading application market for specialty fuel additives by 2020. On the aforementioned factors, diesel is also expected to be the fastest growing application market for specialty fuel additives at an estimated CAGR of 6.5 percent from 2014 to 2020.

• North America dominated the global market for specialty fuel additives and accounted for 27.8 percent of total market volume in 2013. The clean fuel program initiated by the U.S. EPA is expected to drive the regional demand for specialty fuel additives. Rapid strides in fuel consumption by countries such as India and China are expected to turn to Asia Pacific as the most attractive market, however, which is projected to grow at an estimated CAGR of 7 percent from 2014 to 2020. In addition, Asia Pacific is expected to surpass North America to become the largest market for specialty fuel additives by 2020.

• Global market for specialty fuel additives is moderately concentrated with top four companies including NewMarket, Innospec, BASF and Infineum accounting for 48.5 percent of total market in 2013. Other companies operating in the global specialty fuel additives market include Lubrizol, Baker Hughes, Chevron Oronite, Albemarle, Chemtura, Clariant, Dow Chemical Co., Evonik Industries, Eurenco, Total Additives & Special Fuels, Dorf Ketal and NALCO Champion among others.