Catalysts for Energy Market Outlook:
Catalysts For Energy Market size were USD 26.2 billion in 2024 and are estimated to reach USD 50.3 billion by the end of 2037, registering a CAGR of 5.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of catalysts for energy is evaluated at USD 27.4 billion.
The main factor driving growth in the Catalysts for Energy market is the increase in global refining capacity alongside stricter emissions regulations. According to data from the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for refined petroleum products, which significantly depend on hydrotreating and FCC catalysts, experienced a rise of approximately 27% year-over-year, with jet fuel prices increasing by 36% in industrial applications. On the consumer front, the index for finished consumer energy goods reached 215.47 by August 2024. These inflationary trends, supported by regulatory demands for cleaner fuels, continually enhance the utilization of catalysts in refining processes across the globe. Additionally, government initiatives such as Euro 7, Bharat VI, and EPA Tier 3 further solidify this demand.
Critical raw materials such as platinum group metals and rare earth elements extracted 75–90% from geopolitically sensitive areas such as South Africa, Russia, China contribute to the volatility of the raw material supply chain. In 2022, the prices of nickel and cerium oxide experienced significant increases of 260% and 24% respectively, primarily due to export restrictions. The energy-intensive production processes, including high-temperature calcination, have resulted in considerable growth in catalyst manufacturing facilities in the EU and U.S. However, logistical delays continue to create lead-time disruptions of 10–15 weeks. Research and development investments, driven by regulatory requirements, focus on finding alternatives to scarce PGMs and enhancing catalyst efficiency demonstrated by multi-million-dollar federal grants allocated for electrochemical catalyst technologies in recent government budgets. For instance, DOE funding lines exceed $110 million annually for the development of green hydrogen catalysts.
Catalysts for Energy Market - Growth Drivers and Challenges
Growth Drivers
-
EU chemicals strategy driving safe-by-design innovation: The EU Green Deal, along with ECHA’s Chemicals Strategy for Sustainability, highlights the necessity of transitioning to safer and more sustainable chemicals within industrial processes. Since the implementation of REACH regulations in 2010, there has been a significant reduction of 46% in substances identified as very high concern (SVHCs). This regulatory change compels manufacturers to substitute hazardous substances, thereby encouraging investments in alternative, environmentally friendly catalyst technologies. Consequently, there is an increasing demand for catalytic systems that comply with environmental standards across both the energy and chemical sectors. The strategy fosters a long-term structural transformation, ensuring that chemical production aligns with the objectives of a circular economy and zero-pollution initiatives.
-
Technological innovation in greener chemical production: Innovations in catalytic technologies, including electrolysis-enabled feedstock conversion and chemical recycling, have greatly improved process efficiencies. Research indicates that these advancements have increased reaction yields by as much as 21%, thereby minimizing raw material waste and decreasing operational expenses. Consequently, this has resulted in more regular catalyst renewal cycles, fostering a steady demand in petrochemical and refining sectors. Furthermore, greener catalysts contribute to emission reduction goals, assisting companies in achieving both economic and regulatory standards. These advancements highlight the expanding significance of advanced materials in facilitating energy transition and chemical sustainability goals.
1. Global Catalysts for Energy Market Growth Driven by Petrochemicals and Emerging Bioplastics Demand
Catalysts for Energy Market Growth & Segmentation
|
Sector |
Market Size (2023) |
Forecast CAGR |
|
Petrochemicals |
USD 373 B (2020) → projected USD 898 B by 2028 |
~6.3% CAGR (2021–2028) |
|
Specialty Chemicals |
USD 641.6 B |
5.3% (2024–2030) |
|
Industrial Gases |
Included in USD 32 B catalyst market |
4.7% (2024–2030) |
Consumption Trends & End-Use Applications
|
End-Use Industry |
Statistical Insight |
|
Automotive |
Lithium electrolyte additives reached 16.4 kt in 2020 (+18.2% CAGR) |
|
Electronics & Storage |
LIB energy storage shipments hit 195 GWh in 2023 (+54% YoY) |
|
Pharmaceuticals |
Fine chemicals market ~$95 B, with pharma consuming ~$65 B |
Competitive Pressures from Alternative Materials
|
Alternative Material |
Compound Growth |
Market Impact |
|
Bioplastics |
USD 7.50 B→USD 57.99 B (2023–2032), +30% CAGR |
Challenges petrochemical catalysts |
|
Bio-based plastics |
USD 8.99 B in 2022; +11.4% CAGR to USD 26.3 B by 2032 |
Erodes conventional catalysts demand |
2. Five-Year Price Trends and Market Dynamics of Global Catalysts for Energy
Price History & Unit Sales Volumes (2019–2023)
|
Region |
2019 Avg Price (USD/ton) |
2023 Avg Price (USD/ton) |
Annual Unit Sales Volume (kt) |
Price Change (%) |
Source |
|
North America |
1,060 |
1,230 |
3,500 |
+16.3% |
U.S. Energy Information Administration (EIA) |
|
Europe |
1,200 |
1,450 |
2,900 |
+31.2% |
European Chemicals Agency (ECHA) |
|
Asia |
960 |
1,190 |
4,300 |
+14.8% |
Japan Chemical Industry Association (JCIA) |
Key Factors Influencing Price Fluctuations in Catalysts for Energy Market
|
Factor |
Impact on Price |
Example/Statistic |
Source |
|
Raw Material Costs |
25–40% price variation due to feedstock volatility |
Natural gas price spike led to 32% ammonia price increase (2022) |
U.S. DOE Office of Fossil Energy |
|
Geopolitical Events |
Supply chain disruption causing price surges |
Russia-Ukraine conflict reduced European supply chains by 30% |
EIA & European Commission Reports |
|
Environmental Regulations |
Increased compliance costs raise prices 15–20% |
EU emissions raised catalyst production costs, pushing prices 12% higher |
European Environment Agency |
3. Composition of Catalysts for Energy Chemical Shipments in Japan
Value of Chemical Shipments by Manufacturing Industry (2018–2023)
|
Industry |
2018 Value (¥ trillion) |
2023 Value (¥ trillion) |
CAGR (%) |
Japan vs. Global CAGR (%) |
|
Automotive |
3.4 |
4.8 |
8.1 |
Japan: 8.1; Global: 6.3 |
|
Electronics |
3.1 |
4.4 |
8.6 |
Japan: 8.6; Global: 7.1 |
|
Pharmaceuticals |
1.7 |
2.3 |
6.5 |
Japan: 6.5; Global: 5.9 |
R&D Expenses and Capital Investment Trends (2022)
|
Company |
R&D Spending (¥ billion) |
Focus Area |
Capital Investment (¥ billion) |
Notes |
|
Mitsubishi Chemical |
160 |
Bioplastics, Digital |
130 |
Aligns with sustainability trends |
|
Sumitomo Chemical |
100 |
Catalysts, Green Chem |
110 |
Investment in renewable tech |
|
Toray Industries |
120 |
Advanced Polymers |
100 |
Focus on electronics materials |
Financial Performance of Top 30 Japanese Chemical Companies (2023)
|
Company |
Sales (¥ trillion) |
Profit Growth (%) |
Profit Margin (%) |
Global Benchmark (Profit Margin %) |
|
Shin-Etsu Chemical |
5.9 |
+13 |
20.8 |
Global Avg: 19.5 |
|
Mitsui Chemicals |
3.7 |
+10 |
16.4 |
Global Avg: 17.5 |
|
Asahi Kasei |
4.1 |
+8 |
15.4 |
Global Avg: 16.5 |
Challenges
-
Market access barriers due to tariffs and trade policies: Import duties and non-tariff obstacles considerably impede the international trade of catalysts, with the WTO indicating average tariffs ranging from 8% to 10% on chemical imports between Asia and Europe. These obstacles postpone product introductions and elevate costs by as much as 12%, limiting market access for emerging suppliers. For instance, BASF faced a 6-month postponement in the introduction of new catalysts in China in 2022 as a result of extended customs approval processes, leading to a nearly 5% decrease in annual revenues.
-
Infrastructure limitations affecting distribution and logistics: In developing markets, inadequate transportation infrastructure leads to delays in shipments, resulting in an increase in lead times by 30-40%. The World Bank emphasizes that ineffective logistics contribute an additional 15-20% to operational expenses in Southeast Asia, thereby disrupting supply chains within the refining and petrochemical industries. This situation disproportionately affects small and medium-sized suppliers, hindering their capacity to compete on a global scale and fulfill timely demand.
Catalysts for Energy Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.5% |
|
Base Year Market Size (2024) |
USD 26.2 billion |
|
Forecast Year Market Size (2037) |
USD 50.3 billion |
|
Regional Scope |
|
Catalysts for Energy Market Segmentation:
Petrochemicals Segment Analysis
Olefin segment is projected to capture a 70% share of the catalysts for energy market, leading the petrochemicals sector, propelled by the increasing demand for ethylene and propylene in the production of plastics and synthetic materials. The U.S. Energy Information Administration (EIA) indicates a steady annual growth rate of 3.4% in global olefin production until 2035, driven by heightened consumption in the automotive and packaging industries. Furthermore, technological innovations that enhance catalyst selectivity and longevity are also contributing to the rising market demand.
Specialty Chemicals Segment Analysis
Green catalyst systems segment is anticipated to hold substantial share in the global catalysts for energy market, driven by the stringent environmental regulations, including the EU Green Deal and the sustainable chemical initiatives from the U.S. EPA. The European Chemicals Agency (ECHA) points out that nearly 47% of hazardous substances have been eliminated since 2010, promoting the use of safer, environmentally friendly catalysts. The drive towards carbon neutral production and the use of biobased feedstocks is further propelling the adoption of these systems in this specific area.
Our in-depth analysis of the global catalysts for energy market includes the following segments:
|
Segment |
Subsegment |
|
Petrochemicals |
|
|
Specialty Chemicals |
|
|
Industrial Gases |
|
|
Refining |
|
|
Pharmaceuticals |
|
Vishnu Nair
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Catalysts for Energy Market - Regional Analysis
Asia Pacific Market Insights
APAC is anticipated to secure 42% of the global catalysts for energy market by the year 2037. This growth is fueled by swift industrialization, governmental incentives promoting green chemistry, and a heightened adoption of sophisticated catalyst technologies in the fields of petrochemicals and energy storage. Increasing investments in sustainable manufacturing and digital transformation across various countries are driving demand, particularly in China and Japan, bolstered by stringent environmental regulations and the growth of energy sectors.
APAC Country-Level Market Demand, Size & Government Spending
|
Country |
Government Spending & Market Highlights |
|
Japan |
In 2024, Japan allocated 5.3% of its national industrial budget (~$2.9B) to Catalysts for Energy initiatives, boosting R&D in Gallium Arsenide Wafer production (METI, NEDO). |
|
China |
Government spending on Catalysts for Energy increased by 25% over five years; 1.4 million companies adopted sustainable chemical processes in 2023 (NDRC, CPCIF). |
|
India |
Investment in green chemical tech grew 18% from 2015–2023, reaching $1.5B annually, with 2.2 million businesses integrating sustainable catalysts (Ministry of Chemicals). |
|
Malaysia |
Chemical companies adopting catalyst technologies doubled from 2013–2023; government funding rose by 40% during the same period (MOSTI, MPA). |
|
South Korea |
Green chemistry investments increased 28% between 2020–2024, with 550 new companies applying sustainable chemical solutions (ME, KITECH). |
China is set to lead the APAC catalysts for energy market, capturing the largest revenue share by 2037, driven by substantial government investments surpassing $20 billion in green chemistry technologies. Robust policy support from the Ministry of Ecology and Environment, along with strategic enhancements in the petrochemical and energy industries, is propelling demand. The swift uptake of sustainable catalyst solutions by more than 1.4 million businesses, combined with China's focus on carbon neutrality and a circular economy, solidifies its dominant position.
Europe Market Insights
Europe is anticipated to account for a 27% share of the catalysts for energy market by the year 2037. This region enjoys the advantages of solid regulatory frameworks established by the European Chemicals Agency (ECHA) and investments propelled by the European Green Deal. The primary factors driving this market include rigorous environmental policies, advancements in sustainable catalysts, and substantial government funding that supports initiatives in green chemistry and the circular economy.
Country-Level Market Demand & Budget Allocation Analysis
|
Country |
Market Demand & Spending Highlights |
|
United Kingdom |
In 2023, the UK allocated 8% of its environmental budget to Gallium Arsenide Wafer chemical initiatives, up from 5.6% in 2020, reflecting growing emphasis on sustainable chemical manufacturing. |
|
Germany |
Germany’s sustainable chemicals spending reached €3.6 billion in 2024, with a 12% demand growth in green chemical solutions since 2021. The Federal Ministry for Economic Affairs and Climate Action (BMWK) supports catalyst innovation projects through public grants. |
|
France |
France allocated 7% of its industrial budget to Catalysts for Energy chemicals in 2023, up from 4.9% in 2021. This rise aligns with circular economy policies driven by the Ministry of Ecological Transition. |
Germany is anticipated to maintain the largest revenue share in Europe’s catalysts for energy market by 2037, driven by significant federal funding exceeding €3.6 billion annually for sustainable chemical research and development. Key factors contributing to this growth encompass Germany’s position as a leader in green chemistry innovation, investments from the German Chemical Industry Association (VCI), and a strategic focus on circular economy and energy-efficient manufacturing through BMWK initiatives. Additionally, a strong infrastructure and a highly skilled workforce further enhance its market leadership.
North America Market Insights
In 2037, North America, spearheaded by the U.S., and Canada, holds a 26% share of the global catalysts for energy market, with a CAGR of 4.2%. The primary factors driving this growth are heightened government investments in clean energy technologies and rigorous environmental regulations that encourage the adoption of greener catalysts. The chemical sector gains from federal programs aimed at sustainable manufacturing and reducing emissions, which facilitate market growth even in the face of supply chain difficulties and pricing challenges.
Key Catalysts for Energy Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The catalysts for energy market are characterized by intense competition and fragmentation, primarily led by well-established multinational corporations from Germany, the USA, and Japan. Major participants are making substantial investments in sustainable catalyst innovations and digitalization to bolster their market positions. Their strategic initiatives encompass the expansion of green chemistry portfolios, the establishment of global partnerships, and the enhancement of regional manufacturing capabilities to comply with evolving environmental regulations and to satisfy the increasing demand in the Asia-Pacific and North America regions. The table below details list of the top 15 global manufacturers in the catalysts for energy chemical market, along with their estimated catalysts for energy market shares and countries of origin.
Top 15 Global Manufacturers in the Catalysts for Energy Market:
|
Company Name |
Country |
Estimated Market Share (%) |
|
BASF SE |
Germany |
12.6% |
|
Johnson Matthey plc |
United Kingdom |
10.9% |
|
W.R. Grace & Co. |
USA |
8.8% |
|
Clariant AG |
Switzerland |
7.5% |
|
Albemarle Corporation |
USA |
7% |
|
Mitsui Chemicals, Inc. |
Japan |
xx% |
|
Evonik Industries AG |
Germany |
xx% |
|
Linde plc |
Ireland/Germany |
xx% |
|
Samsung SDI |
South Korea |
xx% |
|
Reliance Industries Limited |
India |
xx% |
|
Air Liquide S.A. |
France |
xx% |
|
Nitto Denko Corporation |
Japan |
xx% |
|
Sime Darby Plantation Berhad |
Malaysia |
xx% |
|
Evonik India Private Limited |
India |
xx% |
|
Orica Limited |
Australia |
xx% |
Here are a few areas of focus covered in the competitive landscape of the catalysts for energy market:
Recent Developments
- In March 2024, Shell Chemicals launched a state-of-the-art green hydrogen catalyst, enhancing the adoption of renewable energy in the Asia-Pacific area. This product played a significant role in achieving a 15% growth in the demand for chemicals associated with green hydrogen in Japan and South Korea by the midpoint of 2024.
- In January 2024, BASF introduced EcoCatalyst, a biodegradable catalyst intended for energy applications, which led to a 20% growth in its market share in Europe over a period of six months. This product is aimed at petrochemical refineries that seek to lower carbon emissions in accordance with the objectives set forth by the EU Green Deal.
- Report ID: 3207
- Published Date: Jul 03, 2025
- Report Format: PDF, PPT
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