Octane, used as a short form for octane rating was originally determined by mixing a gasoline made entirely of heptane and 2,2,4-trimethylpentane. Octane became popular in the well-known American culture in the mid- and late 1960s, when gasoline companies boasted of “high octane” levels in their gasoline advertisements. Octane rating is used to measure fuels ability to defy knock. Various compounds are added to gasoline for increasing octane number that include ethanol, MTBE, ETBE and methanol. Among them, ethanol accounted for the largest share and is also expected to dominate the global market in the near future. Ethanol can sprint at much larger exhaust gas recirculation rate with higher compression ratios. It has a superior octane rating as compared to petrol which created very fine particulates. The superior the octane rating of fuel the more it is defiant to knocking. Therefore, high demand is reported for ethanol in the market. Increasing demand for octane from the petroleum industry is expected to enhance high growth of global octane market. The global octane market is expected to grow at a CAGR between 5.0 to 6.0% from 2019 to 2024.
The key factor driving growth of global octane market is the rising demand for octane from the petroleum industry. High demand for environmental friendly fuel is the foremost factor contributing to the growth of global octane market worldwide. On the contrary, rising demand for diesel fuel and electric vehicles may significantly hamper the growth of octane market in the coming years.
The global octane market is segmented based on components, application, and geography. Based on components, the global octane market is segmented into Ethanol, Methyl Tertiary-Butyl Ether (MTBE), Ethyl Tertiary-Butyl Ether (ETBE) and Methanol. Based on applications, the global octane market is segmented into fuel and fuel additives and other applications. Among various applications, fuel and fuel additives accounted for major share in the global octane market in 2017 and this segment is further expected to remain dominant in the near future expanding at a CAGR between 5.5 to 6.5% from 2019 to 2024. Other application segments are also expected to showcase significant growth thereby boost the demand for octane over the forecast period from 2018 to 2024.
Based on geography, the global octane market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America comprises U.S., Canada, and Mexico whereas Europe would primarily cover Germany, France, UK, Italy, and Rest of Europe. The key countries included under Asia Pacific are China, Japan, India, Australia, and Rest of Asia Pacific. In Latin America, Brazil, Argentina, and Rest of Latin America are the key segments whereas in Middle East & Africa, South Africa and Rest of MEA are the key segments covered in the report. Asia Pacific accounted for the largest share in the global octane market; it is further projected to dominate the global market by 2024. Other applications of octane such as solvents, paints & coatings and intermediates are also expected to boost market growth of octane. Gasoline is used for wide range of applications in the end-user industries. It is primarily used as fuel and has very high solvency properties.
The global octane market led by manufacturers such as Afton Chemical Corporation having strong hold on the global market. Some of the key manufacturers of octanes in the global market include Chevron Phillips Chemical LLC, Afton Chemical Corporation, Haltermann Carless GmbH, Honeywell International Inc., SIGMA-ALDRICH Corporation, Innospec Speciality Chemicals, and Keyera Corp, among others.