Cold Flow Improver Market By Type (Polyacrylates, Polyalkyl methacrylate, Ethylene vinyl acetate, Fluorocarbon vinyl acetate) By Application (Automobile, Aerospace & defense, Others (mining, oil refinery, and domestic) and Region - Global Forecast to 2026
10 May 2018
The global cold flow improver market is estimated to value US$ 331.6 Mn in 2017, and is projected to register a CAGR of 5.7% in terms of value during the forecast period 2017–2026. The report offers in-depth insights, revenue details, and other vital information regarding the global cold flow improver market, and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report includes PEST analysis, Porter’s Five Forces analysis, and opportunity map analysis for in-depth understanding of the market. The report offers insightful and detailed information regarding the various key players operating in the global cold flow improver market, their financials, technological innovations, key developments, apart from future strategies, SWOT analysis, acquisitions & mergers, and market footprint. The global cold flow improver market is segmented on the basis of type, application, and region.
Cold flow improver prevents the gelling/crystallization of diesel fuel and biodiesel during cold weather and temperatures.
Global Cold Flow Improver Market Dynamics:
Advantages offered by cold flow improver over other additives at low temperature are expected to drive the global market in the future. Cold flow improver (CFI) can be used instead of other fuel additives to avoid gelling or crystallization of diesel fuel due to easy application, it lowers cold filter-plugging point (CFPP) by up to 40°F. In addition, it also enhances engine reliability in cold temperatures, improves low-temperature start ability, prevents wax settling during storage, inhibits fuel-filter icing, reduces downtime and maintenance costs and is alcohol-free.
Report Coverage and Deliverables
Increasing demand of diesel fuel owing to dependency on diesel fuel is relatively robust in the construction and mining sectors, and also requirement of this fuel is significantly high among municipalities, freight and commercial transportation companies. Diesel is also widely used in back-up generators in residential and commercial sectors during power outages. In addition, the military uses diesel fuel in tanks and trucks because diesel fuel is less flammable and less explosive than other fuels. Diesel engines are also less likely to stall when compared to gasoline fuelled engines.
Awareness about depletion of fossil fuel resources and environment-related issues, has resulted in exploration of more viable and sustainable fuel resources. Biodiesel has become a more attractive option in recent years as an alternative to conventional fuels. Cold flow improver restricts biodiesel-based fuels from crystallization and/or freezing in refinery applications as well as in vehicles. Increasing adoption owing to necessity in cold regions is expected to drive growth of the market over the forecast period.
However, increasing demand for electric vehicles is a key factor restraining market growth over a period of time. Governments of certain countries, along with various players in the market, are focusing on promoting adoption of electric vehicles by offering subsidies in order to support production and consumption of electric and hybrid cars.
Market Analysis by Cold Flow Improver Type:
Among all type segments, ethylene vinyl acetate type segment in the global cold flow improver market is expected to register a CAGR of over 6% over the forecast period, owing to its properties such as wax dispersant, at cold temperatures inhibits the formation and deposition of wax on the walls of the pipeline and in diesel engines of heavy and light vehicles.
The fluorocarbon vinyl acetate segment in the global cold flow improver market is expected to register a CAGR of over 4 % owing to increasing fuel flow property because it decreases surface and interfacial tension in fluids.
Analysis by Application:
Among all the application segments, automobile segment is projected to register highest CAGR of over 6 % owing to rising demand for diesel automobiles in the regions such as Europe and North America, coupled with cold climatic conditions are major factors expected to demand for cold flow improver over the forecast period.
Revenue year-on-year growth of aerospace & defense segment in the global cold flow improver market is expected to increase moderately during the forecast period. This is owing to wide application of diesel in heavy-duty applications including ships, tankers etc. and cold flow improvers provide efficient operational flexibility.
Other cold flow improver application segment includes mining, oil refinery, and domestic use. Cold flow improvers are widely used in residential and industrial applications. In residential application, it is used to power generators for emergency electricity backup. In industrial applications such as refineries and mining machineries, cold flow improver helps to meet cold filter plugging point and enables mining machineries to run smoothly in order to improve functionality.
Analysis by Region:
Europe market is anticipated to grow at a steady growth rate, while demand for cold flow improver in North America region is foreseen to expand at moderate pace in near future. The market in developing countries in Africa and Asia Pacific is witnessing moderate growth for cold flow improver market.
Europe market is expected to dominate the global cold flow improver market and revenue year on year growth of the Europe market is expected to remain stable over the forecast period, as compared to that of markets in other regions. Dominance by Europe market is expected to continue over the forecast period, owing to high demand of biodiesel. European Biodiesel Board, also known as EBB, promotes the use of biodiesel in Europe as a cleaner alternative to diesel fuel in order to reduce pollution levels. Biodiesel contains fatty acids as the main component, and at low temperatures this component forms crystal or freezes, which effects performance of vehicles in winter. In addition, companies in Europe are also catering to the marine sector and offering marine fuel additives and cold flow improvers. For Instance, Clearwinner Innovation Ltd., which is a UK–based company is engaged in developing, manufacturing, and sale of fuel additive technology, catering to agriculture, marine, transportation sectors.
The market in North America accounted for revenue share of over 30% in the global cold flow improver market in 2016. Adoption of biodiesel in countries in North America is increasing due to high blending property with diesel and is more environment friendly owing to lower emission of carbon and sulphur, and it also helps to reduce carbon footprint. In addition, a major and rising trend in the North America market is that refiners are producing a lighter, fungible diesel fuel to meet diesel pipeline specifications, which are based on cloud point and pour point. This is another factor expected to boost demand for cold flow improver from domestic players and drive market growth in the coming years.
Moreover, markets Middle East & Africa are also projected to witness moderate growth over the forecast period. With refinery expansion and modernization projects is resulting in steady growth in the oil refinery sector in the region, and production of middle distillates is expected to increase in future to meet growing global demand. The Middle East region is largely focused on production of low and ultra-low sulphur diesel fuels, and most of the additional capacity is destined for European, African, Latin American, and Asian markets, with specification requirements of their final destination markets.
Market Segmentation of Global Cold Flow Improver Market:
Segmentation by type:
- Polyalkyl methacrylate
- Ethylene vinyl acetate
- Fluorocarbon vinyl acetate
Segmentation by application:
- Aerospace & defense
- Others (mining, oil refinery, and domestic use)
Segmentation by region:
- North America
- South America
- Middle East & Africa
- Rest of the World
- Afton Chemical Corporation
- BASF S.E.
- Evonik Industries AG
- Huntsman International LLC.
- AkzoNobel N.V
- Baker Hughes Incorporated
- Chemtura Corporation
- Innospec Inc.
- 1.0 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Type
- 2.2.2 Market Snapshot, By Application
- 2.2.3 Market Snapshot, By Region
- 2.2.4 Prudour Opportunity Map Analysis
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