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Growing demand for fuel across marine and automotive applications is giving a boost to the global fuel additives market, according to global consultancy Frost & Sullivan.

In its new report entitled Strategic Analysis of the Global Fuel Additives Market, Frost & Sullivan says that increasing manufacturing activities along with robust economic development in Asia-Pacific, the emerging markets and the rest of the world as well as higher fuel consumption with economic stabilisation in Europe and North America will guarantee a bright future for fuel additive suppliers.

The report finds that the market earned revenues of $4.13 billion in 2014 and estimates this to reach $4.58 billion in 2017. The study covers North America, Europe, Asia-Pacific and the rest of the world.

"Governments across the world are implementing regulations mandating the desulphurisation of fuels in order to lower emissions. Since sulphur in diesel offers considerable lubricity to the fuel itself, efforts to reduce sulphur content in the fuel will necessitate the addition of lubricity improvers," Frost & Sullivan says in its summary of the report.

Author Soundarya Shankar, Frost & Sullivan Chemicals, Materials and Food Senior Research Analyst, said: "Significant advancements in engine technology necessitate fuels that are effective at higher temperature and pressure conditions, leading to a surge in additive consumption.

"Further, challenges in terms of ensuring the cleanliness of fuel injectors in tier three and four diesel engines are accelerating innovation within the fuel additives space."

Frost & Sullivan claims that while on the one hand demand for high-performance, premium fuel additives is following an upward growth pattern, several challenges are holding the market back:

- Customer price sensitivity, especially in Asia-Pacific and rest of the world.

- Lack of awareness among end-users on the advantages that additives offer, such as engine cleanliness, fuel efficiency, long-term cost advantages and environmental sustainability.

- The absence of regulations on fuel efficiency and sustainability in several Asia-Pacific and rest of the world countries.

- The rising popularity of alternate fuel types such as bio-diesel, ethanol, hydrogen, natural gas and propane.

"Fuel additive manufacturers will increasingly look to establish strategic partnerships with distributors in order to reach out to smaller and regional customers," observed Shankar. "Offering sophisticated additive packages, products with optimum price-performance index, and a robust customer-service model will propel fuel additive manufacturers to a position of strength in the global landscape."