Analysis by Type (Sodium, Potassium, Cesium, and Others); by Application (Drilling Fluids, De-icing Heat, Transfer Fluids, and Others); and by End-User (Oil & Gas Industry, Chemicals Industry, Pharmaceuticals Industry, Leather Industry, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global formate brines market is estimated to garner a revenue of ~USD 883 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 an approximate revenue of USD 530 million in the year 2022. 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.
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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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Growth Drivers
Increased Development in Drilling Activities – including both exploration and production drilling, as well as drilling new wells and re-drilling existing wells. Therefore, increased drilling activity for development raises the demand for formate brines, and it is predicted to rise the market’s growth. According to the India Brand Equity Foundation, in 2019, onshore development drilling activities in India increased to 649, up from 338 in 2018.
Increased Research and Development Expenditure – Increased R&D spending on formate brines can result in the creation of new and improved formate brine products and uses, which can enhance the effectiveness and efficiency of oil and gas drilling operations. According to data from the World Bank, global research and development expenditure in terms of GDP (Gross Domestic Product) increased from 2.33% in 2019 to 2.63% in 2020.
Growth of Textile and Printing Industry – Increasing adoption of sodium formate brine in the textile and printing industries to improve color in printing fabrics, and it is anticipated to surge the growth of the market. For instance, global revenue from print advertising grew by over 17% from 2019 to 2020.
Increasing growth of the Leather Industry – Sodium formate has properties to induce chrome penetration therefore, it is applied in leather tanning formulations and enhances the quality of the final product. As per data by India Brand Equity Foundation, in India, leather goods exports were valued at USD 1.29 billion in the years 2021-2022, an increase of 36.3% over the previous year.
Challenges
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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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.
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.
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: The increasing demand for formate brines in the oil and gas industry for drilling operations, along with its adoption in the chemical and pharmaceutical industry are some of the major factors estimated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of raw materials, and lack of consumer awareness about the benefits of formate brines are estimated to hamper the market growth.
Ans: The market in the North America 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 TETRA Technologies, Inc., Cabot Corporation, Schlumberger Limited, Perstorp Holding AB, ADDCON GmbH, 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 type, application, end-user and by region.
Ans: The oil & gas industry formate segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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