European Legislation Drives Growth of Diesel Fuel Additives Market

    SAN ANTONIO--Aug. 22, 2001--European legislation reducing the pollution from diesel cars across Europe will be a significant driver in the growth of the European diesel fuel additives market.
    New research by international market analysts Frost & Sullivan forecasts the market, valued today at $260 million, will grow with a compound annual growth rate of 5% to reach $367 million by 2008.
    EC directive 98/70/EC states that from 2005, sulphur content should not exceed 50 parts-per-million in diesel fuels sold around Europe. This reduction is due to the harmful effects of sulphur compounds on human health and their negative impact on some catalytic convertors.
    However, when sulphur is removed from fuel some of the fuel's natural lubricating properties are also removed. Lubricity improver additives are used to counteract this effect and the legislation will herald a growth period for them.
    Increased pressure across Europe to reduce emissions and improve fuel economy means cetane improvers, which aid ignition, improve combustion and reduce emissions, will also enjoy a growth period. Eventually, refineries may meet these requirements by modification of production processes.
    Frost & Sullivan analyst Philippe Roguedas says, "Another driver for the diesel fuel additive market is the penetration of diesel cars in Europe. Diesel engines are more efficient than their gasoline counterparts, lower priced and enjoy reduced fuel taxation in some countries, so there has been a higher penetration of diesel vehicles in Europe. This has compensated for their improved fuel economy and so consumption of diesel fuel in Europe is forecast to increase by over 2% per year to 2008."
    But continued consolidation of the oil industry means fewer customers with increased buying power. Moreover, the harmonization of specifications within the EU will lead to an easier pan European purchasing strategy, which could push prices down and make it more difficult to increase market share.
    The report looks at the diesel and gasoline fuel additives market in Europe and looks at each additive type, competitive analysis, and pricing and volume trends.