Formate Brines Market size is poised to cross USD 883 Million by the end of 2035, growing at a CAGR of 4% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of formate brines was over USD 530 Million. The market is estimated to grow on the back of continuous demand for formate brines in the oil and gas sector, and various research and development activities in the oil field sector. According to the India Brand Equity Foundation, in India, oil demand is projected to increase by 11 million barrels per day by the end of 2045. Hence, continuous growth and oil consumption are anticipated to result in growth in the global formate brine market. Furthermore, formate brines provide high environmental compatibility with a reduction in operating costs.
The global formate brines market is also estimated to witness growth on account of the increasing adoption of sodium formate brines as an application in food additives and the aerospace industry. Moreover, sodium formate is a form of brine and is mostly preferred by companies in terms of sustainable development. It is in huge demand in the aerospace industry as an anti-corrosion and deicing material. For instance, in 2019, the US aerospace industry generated sales revenue of approximately USD 390 billion, which is approximately 1.5% of the United States GDP. Moreover, the system-based industry has registered an 8% growth in sales as compared to 2018. Therefore, the growth in the aerospace industry is anticipated to increase the demand for sodium formate brine in the coming years. Some of the key characteristics of formate brine that make them more acceptable for industrial purposes include low corrosive properties, eco-friendly and safe for use, non-critical health, and recyclable nature.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
4% |
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Base Year Market Size (2022) |
USD 530 Million |
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Forecast Year Market Size (2035) |
USD 883 Million |
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Regional Scope |
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The formate brines market is segmented and analyzed for demand and supply by type into sodium formate, potassium formate, cesium formate, and others. Out of these segments, the potassium formate segment is anticipated to garner the largest revenue by the end of 2035, backed by the rising demand for potassium formate in the oil and gas industry as a conventional drilling fluid as well as used in the production of potassium metals. According to data from the India Brand Equity Foundation, by the end of 2030, India plans to increase its refining capacity to 450-500 million tons, which is projected to increase the demand for potassium formate. In addition, potassium formate brines are environmentally friendly and are also used as heat transfer fluids. Such factors are expected to boost segment ‘s growth over the forecast period.
The global formate brines market is also segmented and analyzed for demand and supply by end-user into the oil & gas industry, chemicals industry, pharmaceuticals industry, leather industry, and others. oil & gas industry. Out of these segments, the oil & gas industry is anticipated to garner the largest revenue by the end of 2035, backed by the rising demand for formate brines in the oil and gas industry. Moreover, formate brines are commonly used as an ion source in drilling fluids in the oil and gas industry. These ions serve to mainatin the pH balance of the drilling fluid and prevent the accumulation of scale deposits on the good bore. The utilization of formate brines will increase according to the oil & gas industry's growth. For example, in 2020, the United States oil and gas industry earned more than USD 109 billion in revenue.
Our in-depth analysis of the global formate brines market includes the following segments:
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By Type |
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By Application |
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By End User |
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North America Market Forecast
The North America formate brines market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by the exploration of the oil and gas industry and increasing demand for environmentally friendly drilling fluids. Rising awareness and demand for ecologically harmless completion fluid options are also contributing to the growth of the formate brines market in the region. According to the U.S. Energy Information Administration (EIA), in 2019, oil production in the United States exceeded 12 million barrels per day, with natural gas extraction reaching nearly 115 billion cubic feet per day in the same year. In addition, potassium formate is expected to see the highest growth for its application in drilling operations, with increased R&D in the segment expected to drive major growth opportunities for the market in the North America region.
Europe Market Forecast
Furthermore, the market in Europe region is also anticipated to register significant growth during the forecast period, owing to the new policies and regulations by the government. Moreover, chemical industry monitoring rules are expected to raise the bar for market growth in Europe region. For instance, REACH is a European regulation that aims to make chemical use safer for human health and the environment while also encouraging innovation and competitiveness in the regional market. Other secondary factors, such as growing demand in de-icing applications and the capacity to formate brines to handle high temperatures and pressure, are collectively expected to provide better market growth in the respective region.
TETRA Technologies, Inc. and Halliburton, two giants in the oil service industry, signed an agreement by announcing their commencement into global joint marketing and development, driving the sales and distribution of TETRA CS Neptune i.e., TETRA’s propriety of completion fluids. This collaboration agreement will raise innovative bars in development for the oil and & gas drilling and completion fluids market.
Perstorp Holding AB, has undertaken a Securities Purchase Agreement which states, Perstorp Group’s acquisition by PETRONAS Chemical Group Berhard (PCG). This acquisition provides a strong market position to PCG in the specialty chemical industry and contributes benefits to the economy in the coming period while maintaining sustainability goals.
Author Credits: Smruti Ranjan, Rajrani Baghel
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