Automotive Nitrous Refills Market Size, Share, Competitive Landscape and Trend Analysis Report, by System Type, by Application, by Sales Channel : Global Opportunity Analysis and Industry Forecast, 2023-2032

The global automotive nitrous refills market growth is driven by several factors, such as growth in demand from motorsports, increase in inclination toward performance enhancement, and expansion of the automotive industry. However, strengthening regulatory environment and growth in safety concerns restrain the development of the market. In Addition, growth in demand from the e-commerce segment and rise in demand for performance upgrades are expected to provide automotive nitrous refills market opportunity during the forecast period.

The growth in recreational activities, such as growth in motorsports, increase in demand for vehicle tuning and modification and increase in drag race culture is driving the demand for automotive nitrous systems. The engine modification and tuning culture is tuning is growing among the younger generation. In recent years, advancements in nitrous system technology have led to the development of more efficient and reliable systems. Modern nitrous oxide kits incorporate features such as progressive controllers, bottle heaters, and safety mechanisms, making them more appealing to motorsport teams and enthusiasts.

However, Nitrous Oxide itself is not a controlled substance; also, in most parts of the world, nitrous oxide is not illegal to store and transport, but in most parts of the world, it is illegal to use it as an inhalant or as a recreational drug. Similarly, automotive-grade nitrous can become more hazardous because of the added sulfur. For instance, some states in the U.S, such as California, have stringent state laws regarding vehicle modifications and aftermarket parts. For example, it is illegal to have a nitrous system without CARB certification. The use of nitrous oxide as a drug and other illegal activities have made many government organizations around the world implement stringent regulations to regulate it, which is hindering the automotive nitrous refills industry.

Regulatory Analysis

Specialty Equipment Market Association (SEMA)

In May 2024, the U.S. Representative Norma Torres introduced a bill by the U.S. Environmental Protection Agency (EPA) on regulatory requirements of nitrous oxide manufacturing and sale for use in automotive applications. According to Norma Torres, automotive-grade nitrous oxide contains at least 100 ppm of sulfur dioxide and can be used as an unauthorized, illegal substance that can be inhaled. According to the bill the additive substance does not affect performance or significantly increases the manufacturing cost of nitrous-oxide products, but can cause intoxication, euphoria or other dulling of the senses or nervous system when consumed.

On November 8, 2023, the UK government announced Nitrous oxide ban and is now controlled as a Class C drug under the Misuse of Drugs Act 1971 and placed in Schedule 5 to the Misuse of Drugs Regulations 2001. According to the government, heavy nitrous oxide use can result in serious health harms such as neurological damage and even death due to the risk of falling unconscious and/or suffocating from the lack of oxygen.

Market Segmentation

The automotive nitrogen refills market is segmented into system type, application, sales channel, and region. On the basis of system type, the global market is segregated into wet nitrous system and dry nitrous system. By application, the global market has been analyzed in terms of performance enhancement, racing applications, and recreational use. By sales channel, the market is fragmented into online and offline. Region-wise, the market is analyzed in North America, Europe, Asia-Pacific, and LAMEA.

Regional/Country Market Outlook

The Asia-Pacific region is a well-developed market for automotive nitrous refills due to the growing trend of motorsports, drag and street racing culture in countries such as China, Japan, South Korea, and Indonesia among others. Furthermore, the adoption of nitrous oxide is anticipated to increase, with the rise of expenditure in recreational and vehicle enhancement activities in developing countries. Racing drivers have been utilizing nitrous oxide for greater performance since the hot rod period in the early 1950s, and the usage of nitrous oxide systems in racing competitions remains a trend. Furthermore, racing, particularly drag racing, is a key driving factor in the automotive nitrous refills market.

Competitive Landscape

The major players operating in the automotive nitrous refills market size include Nitrous Express, ZEX Nitrous, NOS (Nitrous Oxide Systems), Snow Performance, Nitrous Outlet, Venom High Performance, Speedtech Nitrous, Hooley Performance Products, Edelbrock and Sardo Automotive.

Other players in the automotive nitrous refills market include Summit Racing Equipment, Speedway Motors, Harris Speed Works, Jegs High Performance, VP Racing Fuels, Schrader Performance and so on.

Growth in Sales Through Online Platform

In recent years, there has been growing demand for automotive nitrous oxide systems through online sales channels due to the convenience and accessibility of e-commerce platforms, allowing consumers to easily browse, compare, and purchase these systems. However, there have been growing concerns regarding their regulations and there has been growth in unethical use of automotive nitrous oxide. For instance, in November 2019 lawsuits were filed on Amazon Inc., and Ebay for selling of Nitrous Oxide as Nitrous oxide was the second most commonly used recreational drug in England and Wales, after cannabis. According to the UK government Home Office Statistics, an estimated 763, 000 people aged between 16 and 59 years have used nitrous oxide over the past year.

Growth in Demand for Performance Enhancement

There has been a rise in the use of nitrous oxide systems among automotive enthusiasts, particularly for racing and high-performance vehicles, to boost engine power and torque. Manufacturers are continuously innovating and investing in research and development to meet consumer demands, leading to advancements in nitrous oxide system technology and a wider range of performance enhancement options.

Parent Market Analysis

The global automotive industry is witnessing strong growth in terms of vehicle production and sales. The major factor contributing to the growth of the automotive industry is due to the growing preference of consumers towards EV and hybrid vehicles especially in Europe and North America region. Moreover, the rising income levels and growth in disposable income in Asia-Pacific and African regions have further escalated the demand of automobiles, especially for the passenger car segment. According to data published by the International Energy Agency (IEA) , by 2030 almost 1 in 3 cars on the roads in China is set to be electric, and almost 1 in 5 in both the U.S. and the European Union. The agency also forecasted that global electric car sales will reach around 17 million units by the end of 2024 and will continue to witness strong growth till 2030. 

The below graph depicts the sales of the global passenger vehicle segment from 2019 to 2023. The sales greatly decreased in 2020 due to the COVID-19 pandemic. However, the sales are anticipated to continue to witness a positive growth rate till 2030.  

Global Sales of Passenger Vehicles 2019-2023