Drag Reducing Agent Market size was over USD 680.26 Million in 2023 and is likely to cross USD 1.25 Billion by the end of 2036, growing at more than 5.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of drag reducing agent is estimated at USD 701 Million. The growth of the DRA market is estimated to be influenced by factors such as fluctuations in oil and gas prices, advancements in DRA technology, increased focus on sustainability, and regulatory changes. The demand for DRAs is expected to continue to grow in tandem with the expansion of pipeline infrastructure and the need for more efficient fluid transportation.
DRAs are chemicals or additives used in pipelines for the transportation of crude oil, natural gas, and other fluids. They are designed to reduce the frictional resistance between the fluid and the pipeline's inner surface. By doing so, DRAs help increase the flow rate and reduce energy consumption in pipeline operations. The main drivers for the DRA market included the growth of the oil and gas industry, increased pipeline transportation, and the need to improve the efficiency of fluid transportation systems.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
5.5% |
Base Year Market Size (2023) |
USD 680.26 Million |
Forecast Year Market Size (2036) |
USD 1.25 Billion |
Regional Scope |
|
Type (Polymer, Surfactant)
The polymer segment in the drag reducing agent market is estimated to gain the largest revenue share of 60% in the year 2036. As the demand for hydrocarbons escalates, the polymer-based DRA segment benefits from optimizing the transportation of crude oil and natural gas, reducing energy consumption and increasing flow rates. The International Energy Agency (IEA) predicts that global energy demand will grow by 27% by the year 2040.
End User (Petrochemical, Oil and Gas, Water Treatment)
The petrochemical segment is expected to garner a significant share in the year 2036. Petrochemical DRAs are benefiting from technological advancements, enabling tailored solutions for various fluid compositions and pipeline configurations, ultimately enhancing their effectiveness. Investment in research and development for advanced DRA formulations is driving innovation in the sector. By optimizing fluid transportation and reducing energy consumption, petrochemical DRAs contribute to substantial operational cost savings, increasing the competitiveness of petrochemical manufacturers.
Our in-depth analysis of the global market includes the following segments:
Type |
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End User |
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APAC Market Forecast
The drag reducing agent market in the Asia Pacific region is projected to hold the largest market share of 38% by the end of 2036. With increased industrial activity comes greater demand for energy and petrochemicals. The Asia Pacific DRA market is well-positioned to cater to these growing requirements for efficient fluid transportation. Asia Pacific economies, including India and Southeast Asian nations, are experiencing rapid industrialization and urbanization. The Asia Pacific DRA market benefits from technological advancements, enabling the development of tailored solutions that address fluid composition variations and pipeline configurations specific to the region.
North American Market Statistics
The drag reducing agent market in the North America region is projected to hold the second largest share during the forecast period. As North America continues to lead in hydrocarbon production, the DRA market benefits from the need to enhance the efficiency of transporting these resources via pipelines, resulting in increased flow rates and energy savings. The United States was the world's leading producer of oil and natural gas in the year 2020, contributing to record-breaking production levels. As new pipelines are constructed and existing ones are expanded, the North American DRA market experiences robust growth by ensuring the smooth and efficient flow of hydrocarbons through these vital arteries.
Author Credits: Rajrani Baghel
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