The global formate brines market is estimated to garner a revenue of ~USD 800 million by the end of 2031 by growing at a CAGR of ~4% over the forecast period, i.e., 2022 – 2031. Further, the market generated an approximate revenue of USD 510 million in the year 2021. 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 are propelling further growth. 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 formate brine market. Formate brines provide high environmental compatibility with a reduction in the operating cost.
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The global formate brines market is also estimated to witness growth on account of increasing adoption of sodium foramte brines as an application in food additives and the aerospace industry. 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 brines that make them more acceptable for industrial purposes include low corrosive property, eco-friendly and safe for use, non-critical health and recyclable nature.
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 2031, 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 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 growth.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global formate brines market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in North America is projected to hold the largest market share by the end of 2031, 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 American region.
Furthermore, the market in Europe is also anticipated to register significant growth during the forecast period, owing to the new policies and regulations by the government. Chemical industry monitoring rules are expected to raise the bar for market growth in Europe. 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 capacity to formate brines to handle high temperatures and pressure, are collectively expected to provide better market growth in the respective region.
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The global formate brines market is further classified on the basis of region as follows:
Our in-depth analysis of the global formate brines market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The increasing demand for formate brines in oil and gas industry for drilling operations, along with its adoption in chemical and pharmaceutical industry are some of major factors estimated to drive the growth of market.
The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2022 – 2031.
High cost of raw materials is estimated to hamper the market growth.
The market in North America is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are TETRA Technologies, Inc., Cabot Corporation, Schlumberger Limited, Perstorp Holding AB, ADDCON GmbH, and others.
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.
The market is segmented by type, application, end-user and by region.
The potassium formate brines segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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