Enforcement of Environmental Legislations Drives Growth in the Automotive and Marine Performance Fuel Additives Markets

London, U.K. - 26th July 2006 Across Europe, the Middle East and Africa, fuel additives are being increasingly used in automotive fuels such as gasoline and diesel, as well as marine fuels (bunker fuels) to enhance fuel and engine performance. Fuel additives are also emerging as an important feature in global fuel formulation, due to their ability to improve fuel productivity, reduce costs and address fuel specifications as required by environmental legislations.

Frost & Sullivan (http://www.chemicals.frost.com) finds that the EMEA automotive and marine performance fuel additives markets earned revenues of €446.0 million in 2005 and estimates this to reach €590.0 million in 2012.

"Since 1996, the implementation of environmental legislations has imposed stringent control over sulphur emissions, thereby contributing to accelerated market growth" notes Frost & Sullivan Industry Analyst Mr. Robert Outram. "While 500 ppm was permitted in 1996 in accordance with Directive 94/12/EC (Euro I legislation), this was reduced to 350ppm in 2000 (Euro III) and subsequently to 50 ppm in 2005 (Euro IV) under Directive 98/69/EC. In the future, implementation of the specifications of Directive 2003/17/EC (Euro V) will result in an additional reduction in the emission permissible limit"

Adherence to emerging environmental legislations will result in greater adoption of fuel additives by vehicle original equipment manufacturers (OEMs) as well as fuel producers to meet emission and fuels standards. As reduced sulphur levels require more lubricants and conductivity improvers, demand for fuel additives will gain further momentum. Moreover, as a result of limited crude oil availability, fuel producers will exhibit greater dependence on the use of additives in low-grade fuel in order to fulfil necessary fuel specifications and meet growing customer demand.

Besides emission restrictions, the diesel fuel segment is likely to experience continued growth, as diesel fuel offers improved fuel economy in comparison to gasoline-powered vehicles. Meanwhile, various additives such as octane improvers, antioxidants additives, anticorrosion additives, deposit control additives among others, are also being used in gasoline to offer enhanced fuel performance. Within the bunker fuel additives segment, the enforcement of a specified regional limit in the Baltic Sea Sulphur Emission Control Area (SECA) is expected to result in the increased use of lubricants and conductivity improvers/static dissipators.

Given the maturity of the market, the gasoline additives segment is unlikely to demonstrate significant growth. However, diesel additives and other niche markets such as biofuels and premium fuels additives, which constitute a small percentage of the transport fuel additives market, will continue to exhibit developments.

"However, due to slow market growth, several classes of additives are becoming commoditised, thereby losing their importance as specialty chemicals" notes Mr. Outram. "Further, the developing trend of additives and precursors for synthesis being traded or auctioned over the Internet is anticipated to adversely affect revenues"

To prevent this decline in revenues, market participants will need to implement novel product launches and create new ranges of additives that are compatible with the latest vehicle technological developments. In addition, due to intensifying competition and the emergence of large global participants, additive manufacturers and formulators would do well to ensure a global presence and an extensive portfolio of additive products to remain competitive.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the EMEA Automotive and Marine Performance Fuel Additives Markets (B800), send an e-mail to Janina Hillgrub, Corporate Communications, at janina.hillgrub@frost.com with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information through e-mail upon receipt of the above information.

EMEA Automotive and Marine Performance Fuel Additives Markets is part of the Chemicals and Materials Subscription, which also includes research in the following markets: diesel additives, gasoline additives and bunker fuel additives. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Title: EMEA Automotive and Marine Performance Fuel Additives Markets
Code: B800

Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com

Frost & Sullivan Chemicals and Food Group is the strategic market consultant delivering insight and understanding to support business growth internationally. We identify and analyse the critical market challenges companies must address to become successful competitors in their industry. Our work is focused on these challenges in order to provide our clients with market strategies that enable them to increase revenues, market share and profitability.

The Group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customised consulting.

Our team of expert analysts is structured around four key areas:
Food
Speciality Chemicals
Fine Chemicals
Performance Materials

# # #

List of key industry participants: Aderco, Afton Chemical, Albemarle, Anticor Chemie, Associated Octel (now Innospec Inc), Baker Petrolite, BASF, Bycosin AB, Ceca, Chemtura, Chevron Oronite, Clariant, Dorf Ketal, Drew Marine (part of Ashland Speciality Chemicals Inc), Exchem Plc, ExxonMobil, Infineum, Lubrizol Corporation, Lukoil Oil Company, Nalco, Nalfleet Marine (part of Nalco), Octel Marine (part of Innospec Inc), Oxeno, Premier Marine Fuels, Renergi AB, RohMax Additives GmbH (part of Degussa), SBZ Corporation, SNPE, Uniqema, Unitor

List of keywords in this press release: automotive fuel additives, marine fuel additives, gasoline additives, diesel additives, bunker fuel additives, Europe, the Middle East, Africa, environmental legislations, marine fuels, fuel formulation, sulphur emissions, Directive 94/12/EC, Directive 98/69/EC, Directive 2003/17/EC, original equipment manufacturers, OEMs, fuel producers, lubricant, conductivity improver, static dissipators, crude oil, low-grade fuel, octane improvers, antioxidants additives, anticorrosion additives, deposit control additives, Baltic Sea Sulphur Emission Control Area, Sulphur Emission Control Area, SECA, specialty chemicals, additive manufacturers, formulators.

Contact Information

Trisha Bradley

Corporate Communications

Frost & Sullivan

Contact via E-mail