Refinery Process Chemicals Market size is anticipated to cross USD 30 Billion by the end of 2036, growing at a CAGR of 4% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of refinery process chemicals was over USD 19 Billion. One of the key growth drivers for the market is anticipated to be the continuously rising demand for fuels, particularly from the transportation sector. OPEC predicted in its 2023 World Oil Outlook that global fuel demand is estimated to reach 116 million barrels per day (bpd) by 2045, up from 99.6 million bpd in 2022. However, specialized chemicals and methods must be used for cost-effective and efficient fuel generation. As a result, increased demand for transportation fuels drives the demand for refinery chemicals.
Furthermore, growing environmental awareness and tightening regulatory standards necessitate the utilization of refinery process chemicals to reduce emissions, optimize energy consumption, and mitigate environmental impacts. For instance, in many nations, a large number of states, local, and tribal governments are implementing clean energy policies to lower energy use and greenhouse gas emissions, enhance public health and air quality, and accomplish economic development objectives. Compliance with emissions reduction targets and regulations often entails using specialized chemicals that aid pollutant capture and abatement. In light of this, the demand for refinery process chemicals market is predicted to grow.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 4% |
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Base Year Market Size (2023) |
~ USD 19 Billion |
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Forecast Year Market Size (2036) |
~ USD 30 Billion |
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Regional Scope |
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Product (Corrosion Inhibitors, PH Adjusters, Catalysts, Anti-fouling Agents)
Refinery process chemicals market for the catalysts segment is poised to hold a share of 37% during the projected period. Materials known as catalysts help to speed up or encourage chemical reactions during the refining of oil & gas. They are principally employed in the process of cracking, which divides complicated organic molecules into smaller ones. Significant environmental harm has been caused by emissions emitted into the atmosphere by industrial processing units and cars.
Application (Cracking Process, Conversion Process, Blending Process)
Refinery process chemicals market for cracking process is poised to account for a share of 44% by the end of 2036. Large hydrocarbon molecules are broken down into smaller ones by a process called cracking. This method is used by oil refineries to separate marketable by-products from crude oil. Before they can be marketed, some oils, including light sweet crude, require a minimal amount of refining. Depending on a number of variables, including the pace at which different petroleum by-products are produced, the relative value of commodities like gasoline and heating oil can change over time. This gives commodity dealers speculative options for hedging. Therefore, the growing demand for petroleum by-products will drive the market growth of the cracking process segment.
Our in-depth analysis of the global refinery process chemicals market includes the following segments:
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Product |
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Application |
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End-use |
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North American Market Forecast
North American refinery process chemicals market is poised to hold a share of 35% by the end of 2036. The growth can be attributed to the growing demand for oil and the number of refineries in the region. North America's capacity for processing oil was roughly 21.6 million barrels per day in 2022—a marginal increase from 21.6 million barrels per day the year before. The refining catalyst players of the region are making aggressive investments in their research and development, which is predicted to augment the regional market. The growing usage of petroleum feedstock in sectors such as propylene, ethylene, and butadiene in North America is offering various avenues of opportunities to the market.
APAC Market Statistics
Refinery process chemicals market in Asia Pacific is anticipated to hold the second-largest share of 27% during the forecast period. The market is expanding in the region due to factors such as growing industrialization, increasing population, environmental regulations, and stringent government norms. Also, the growing development of oil production in oil refineries of developing countries like China and India is likely to offer opportunities for market expansion. The manufacturers are generating more challenging feedstock compositions despite fluctuating fuel costs. Further, the stringent environmental regulations imposed by the government to curb air pollution are anticipated to boost the market in the forecast period.
Author Credits: Smruti Ranjan, Rajrani Baghel
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