Analysis by Chemical Type (Surfactants, Ethylene Oxide, Polyamines, Polyols, Epoxy Resins, and Others); by Product Type (Water and Oil Soluble); and by Application (Crude Oil Production, Petro Refineries, Sludge Oil Treatment, Lubricant Manufacturing, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global demulsifier market is estimated to garner a revenue of ~USD 36 Million by the end of 2035 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 23 Million in the year 2023. The growth of the market can be primarily attributed to the rising crude oil production around the world. During crude oil processing, demulsifiers are highly utilized to create stable emulsions. Emulsion breakers are used to separate the crude oil from the saline water and significantly affect oil recovery operations and production facilities. Data released by the U.S. Energy Information Administration (EIA) stated the total world production of crude oil to be 95.62 million barrels per day in 2021 which is further estimated to reach 100.33 million barrels per day in 2022.
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Global demulsifier market key trends such as the adoption of sustainable oil production systems and the increasing use of green demulsifiers are estimated to propel the demand for demulsifiers over the forecast period. Moreover, the increasing sales of petroleum products such as diesel, fuel oil, liquefied petroleum gas, kerosene, and others are expected to extend the global demulsifier market size over the forecast period. US Energy Information Administration data indicates that kerosene sales increased by 11.4 million gallons (11.0%) in 2020. In the farming sector, sales accounted for 11.1%, while in the industrial sector, sales reached 134.0%. Moreover, rapid industrialization along with the expansion of power plants and high growth rates in the oil and gas industry worldwide is expected to propel the demand for demulsifier chemicals during the forecast period.
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~4% |
|
Base Year Market Size (2023) |
~ USD 23 Million |
|
Forecast Year Market Size (2035) |
~ USD 36 Million |
|
Regional Scope |
|
Increasing Global Exports of Lubricants to Boost the Market Growth- As reported by the International Trade Center (Trademap), the value of global exports of lubricants for the year 2021 amounted to USD 720,173,067, an increase from USD 479,998,020 the year before. Demulsifiers are widely used in the production of lubricants. Recently, the lubricants industry has experienced a significant increase in exports. Likewise, increasing automobile production and sales have resulted in higher consumption of lubricants which is expected to propel the demand for demulsifiers over the forecast period.
Rising Expenditures on Research & Development Worldwide- The World Bank reports that research and development expenditures have increased from 2.2% of GDP in 2018 to 2.63% in 2020.
Growing Consumption of Crude Oil across the World- According to the S. Energy Information Administration (EIA), the total world consumption of petroleum in 2019 was approximately 100.37 million barrels per day (b/d). U.S. petroleum consumption in 2021 reached 19.78 million b/d, including about a million b/d of biofuels.
Exploration and Discovery of New Oil and Gas Fields- The Saudi Arabian government announced the discovery of 2 oil and gas fields in the northern border region in August 2020, further in December, Saudi Arabia announced the discovery of 4 additional oil and gas fields.
Increasing Oil Production from Aging and Mature Oil Fields- In a survey, it was observed that oil and gas production from mature fields accounted for approximately 75% of global production in 2018.
Disruption in Production Activities due to the COVID-19 Pandemic
Strict Environmental Restrictions on the Use of Chemical Demulsifiers
The use of traditional demulsifiers is water-based emulsions but the government restricted their use owing to their negative impact on the environment. The use of chemicals in the preparation will release toxins into nature and destroy the water disposal system. Hence government authorities imposed heavy restrictions on the use of toxic materials hindering the market growth.
International Trade Regulations on Demulsifiers
The global demulsifier market is segmented and analyzed for demand and supply by product type into water and oil soluble. Out of these sub-segments, the water-soluble segment is anticipated to capture the largest market size in the global demulsifier market owing to the increasing research focusing on the application of water-soluble demulsifiers. It was observed that the separation improves with increasing demulsifier concentration, salt content, and temperature to 81 °C while keeping pH values between 6-9. Furthermore, water-soluble demulsifiers mix easily with emulsions and initiate oil-in-water emulsions separation. In addition, the product's properties such as non-hazardous, non-toxic, and non-inflammatory increase the quality of fuel, as well as economic pricing of the product are expected to drive segment growth during the forecast period.
The Middle East & Africa demulsifier market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The expansion of oil & gas industry in the region. Further, the increasing production of crude oil in countries such as Saudi Arabia, UAE, Kuwait, Iraq, and South Africa is expected to increase demand for demulsifiers in the region. For instance, crude oil production in Saudi Arabia increased from 8,500 thousand barrels per day (b/d) in 2021 to 10,400 thousand b/d in 2022 growing at a rate of 1.80% on an annual basis. As a result, demulsifiers have been in high demand in the country. Furthermore, onshore and offshore oil extraction activities in different Middle East & Africa countries and the presence of a large number of key market players are further expected to drive the global demulsifier market growth in the region over the forecast period.
BASF SE
At the 2021 SPE Global Conference held in Texas, Clariant Ltd. announced plans to exhibit hi-tech oilfield chemistry products including corrosion inhibition, anti-agglomerates, and demulsifier formulations, among others.
Nouryon Chemicals Holding B.V. offered a range of demulsifiers that can be used by oil producers to separate crude oil from water and gas. The new demulsifier range is inherently biodegradable in seawater and provides better performance at a lower cost than conventional demulsifiers.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing crude oil production along with thehigh demand of petroleum products are the major factors driving the growth of the demulsifier market.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2035.
Ans: Disruption in production activities and strict environmental restrictions on the use of chemical demulsifiers are challenges expected to hamper market growth.
Ans: The market in the Middle East & Africa region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are BASF SE, Clariant Ltd., Nouryon Chemicals Holding B.V., Siltech Corporation, Innospec Inc., Schlumberger Limited, Baker Hughes Company, The Dow Chemical Company, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by chemical type, product type, application, and by region.
Ans: The water soluble demulsifier segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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