The Growth of the Transportation Sector is the Key Determinant Propelling the Octane Booster Market Growth

The growth of the Octane Booster Market is primarily dependent on the growth of the transportation sector. An octane booster is a liquid additive utilized to increase the octane rating of an automobile in addition to its fuel intake system, by enhancing the performance of gasoline and jet fuel engines. The surging developments associated with the transportation sector across the world have led to considerable growth in the octane booster market. The octane booster market size is projected to grow at a CAGR of 6.5% during the forecast period (2022-2027) and reach US$2.4 billion by 2027.

On the basis of the end-use industry, the Octane Booster Market can be segmented into transportation, power generation, industrial and others. The transportation sector is evaluated to be the leading segment in the octane booster market in 2021. During the forecast period 2022-2027, the transportation sector is expected to grow with a CAGR of 6.1%. This can be attributed to various reasons such as the utilization of octane boosters in the fuel intake system to improve fuel combustion and the performance of gasoline and jet fuel engines. The transportation industry is growing, for instance, according to the United Nations Conference on Trade and Development (UNCTD), China had 4,504 merchant ships in 2019, which reached about 4,603 merchant ships in 2020, with a growth rate of about 2.2%. Moreover, in 2021, the Government of Quebec and the Government of Canada, funded US$2 billion in the aerospace industry to drive the recovery of the sector. With such increasing production of automobiles and the growing marine and aerospace sector, it is estimated that in the upcoming years, the requirement for octane boosters in the transportation industry will rise, thereby boosting the growth of the market.

On the basis of geography, the Octane Booster Market can be segmented into North America, South America, Europe, APAC and RoW. According to IndustryARC’s analysis, Asia-Pacific has emerged as the most dominant region in the market. In 2021, the Asia-Pacific region held around 39% share of the total revenue earned by the market globally. Asia-Pacific countries including China, Japan and India are comparatively ahead in terms of the growth of the transportation sector. The transportation sector is growing, for instance, according to the Indian Brand Equity Foundation (IBEF), domestic air travel demand continued an upward trend in October 2020, with a 33% increase to 52 lakh passengers. In June 2020, the Ministry of Civil Aviation approved a capacity increase of 45% from one-third and it further increased to 60% in September 2020. The octane booster market will also witness significant growth in the North American region. USA and Canada are emerging as competitive countries in the octane booster market.

Key companies holding major shares in the Octane Booster Market are Afton Chemical Limited, The Dow Chemical Company, Chevron Corporation, Exxon Mobil Corporation, The Lubrizol Corporation, Innospec Inc., JX Holdings, Inc., Cestoil Chemical Inc., Total S.A. and Armored AutoGroup, Inc.