The Refinery Process Additives Market size is estimated to reach US$2.1 billion by 2027, after growing at a CAGR of 4.1% during the forecast period 2022-2027. Refinery process additives are the chemicals that are utilized to improve the performance of various refinery processes and fuels, by being utilized as antifoulants, octane and cetane improvers and more. The fuel performance is enhanced to achieve the fuel specifications regulated by government bodies. The growing oil & gas sector is driving the refinery process additives market growth, for crude oil processing and breaking water content from the oil. The oil & gas sector is growing, for instance, according to the Ministry of Petroleum and Natural Gas, there is approximately US$100 billion in investment potential in the Indian Oil & Gas Sector. Also, there is a target to increase the share of natural gas in the energy mix from 6.7% to 15% by 2030. Moreover, the increasing requirement for refinery process additives in the automotive sector, due to its usage to increase the mileage and pick-up performance of vehicles is anticipated to upsurge the growth of the refinery process additives industry during the forecast period. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in additives-producing industries all across the world, which had a significant impact on the growth of the refinery process additives market size.
Refinery Process Additives Market Report Coverage
The “Refinery Process Additives Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the refinery process additives industry.
By Type: Product Quality Improvement Additives, Environmental Protection Additives, Extend Operating Cycle and Reduce Energy Consumption Additives, Raw Oil Quality and Catalytic Activity Improvement Additives and Product Distribution Improvement Additives.
By Functionality: Demulsifiers, Defoamer, Desalter, Hydrogen sulfide scavengers, Corrosion inhibitors, Diesel stabilizers, Antifoulants, Octane and Cetane improvers and Others.
By Process: Distillation, Cracker, Desulfurization, Catalytic reforming, Coker and Others.
By Crude Type: Low viscosity crude oil, Medium viscosity crude oil and High viscosity crude oil.
By Application: Crude Oil Processing, Fluid Catalytic Cracking, Hydroprocessing and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa).
Key Takeaways
- The North America region dominates the Refinery Process Additives market owing to the increasing investments in the oil & gas sector. For instance, in 2020, according to the International Institute of Sustainable Development, in Canada, oil & gas pipelines received over CAD23 billion (US$18.35 billion), in support from the Canadian government, over the past 3 years. Rapidly rising demand for Refinery Process Additives in the oil & gas industry for breaking water content from the oil has driven the growth of the refinery process additives market.
- The increasing demand for Refinery Process Additives in the automotive sector, due to its usage to increase the mileage and pick-up performance of vehicles, has been a critical factor driving the growth of the refinery process additives market in the upcoming years.
- However, the problems associated with refinery process additives such as the variations in environmental mandates and regulations can hinder the growth of the refinery process additives market.
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- Refinery Process Additives Market Segment Analysis – by Functionality
The antifoulants segment held the largest Refinery Process Additives market share in 2021 and is estimated to grow at a CAGR of 4.2% during the forecast period 2022-2027. Antifoulants are utilized to minimize organic and inorganic material deposition on heat transfer surfaces such as sludge, polymers, coke, corrosion productions and catalyst fines. The antifoulant additives maximize throughput and enhance production, improve the product quality and overall equipment reliability, decrease the equipment cleaning and replacement costs and lessen overall energy costs and waste disposal costs. Moreover, it improves the worker’s safety. Thus, all these exhibit characteristics of antifoulants make it a preferred choice over the other refinery process additives functions that are driving its segmental growth.
Refinery Process Additives Market Segment Analysis – by Application
The crude oil processing segment held the largest Refinery Process Additives Market share in 2021 and is estimated to grow at a CAGR of 4.7% during the forecast period 2022-2027. Crude oil processing comprises three different processes, including thermal cracking, hydrocracking and catalytic cracking. Crude oil processing converts residual oil to diesel, fuel oil, petrol and naphtha Refinery process additives are utilized in crude oil processing to address problems in upstream, midstream and downstream. The oil and gas industry is growing, for instance, in 2022, India's top oil and gas producer ONGC invested Rs31,000 crore (US$3,898 million), in exploring the Indian sedimentary basin for fuel reserves, over the next three years. Thus, with the rising oil & gas sector, the crude oil processing segment is growing, which is driving the refinery process additives market growth over the forecast period.
Refinery Process Additives Market Segment Analysis – by Geography
North-America region held the largest Refinery Process Additives market share in 2021 up to 41%, due to the rising oil and gas processing activities. Additionally, the rising growth of the end-use industry of oil & gas has uplifted the growth of the refinery process additives market, since it is extensively being utilized in crude oil processing, fluid catalytic cracking, hydro-processing and others, as antifoulants, octane and cetane improvers and more. Moreover, the oil & gas industry is growing, for instance, according to the International Trade Administration, in Mexico, from 2021 to 2024, companies such as ExxonMobil and Fieldwood will invest US$18 billion, in order to purchase drilling, exploration and seismic services and extraction equipment, involving platforms and related services for 794 wells. Thus, the increasing investments in the oil & gas industry are proving to be a market booster for the refinery process additives market size in this region.
Refinery Process Additives Market Drivers
Growing Oil & Gas Industry:
The oil and gas industry uses Refinery Process Additives for breaking water content from the oil and are cost-effective and efficient additives. The refinery process additive is added during the refinery process such as the distillation process, catalytic reforming, reformer system, desulfurization and vacuum distillation. The oil & gas industry is growing, for instance, according to the Indian Brand Equity Foundation (IBEF), in November 2021, Oil and Natural Gas Corp. Ltd. (ONGC) invested US$800 million in the petrochemicals arm of ONGC Petro Additions Ltd. (OPaL), to meet its equity requirements. Thus, the increasing investments and production of oil and gas will drive the demand for the refinery process additives market during the forecast period.
Increasing Automotive Sector:
In the automotive industry, Refinery Process Additives are utilized to increase the mileage and pick-up performance of vehicles. Refinery process operators use octane and cetane improvers in diesel and gasoline products, respectively. The automotive industry is growing, for instance, in 2021, 79.1 million motor vehicles were manufactured globally, a rise of 1.3% in comparison to 2020, according to the European Automobile Manufacturers' Association (ACEA). With the increasing production of automobiles, it is estimated that in the upcoming years the requirement for refinery process additives in the automotive industry will rise. This will boost the growth of the refinery process additive industry.
Refinery Process Additives Market Challenge
Problems Associated with Refinery Process Additives:
The implementation of strict rules and regulations by the government bodies on various industrial applications of refinery process additives related to industrial activities is anticipated to further slow down the refinery process additive market growth rate. The variations in environmental mandates and regulations, new regulations set by the governmental organizations of various countries related to air pollution control, lack of standardization norms and changes in the demand-supply spectrum due to the strengthening of rules and regulations will further hamper the market situation. Thus, the problems associated with refinery process additives will create hurdles for refinery process additives market growth in the forecast period.
Refinery Process Additives Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies players adopt in the refinery process additives markets. The top 10 companies in the refinery process additives market are:
1. Chevron Corporation
2. Total
3. Westlake Chemical Corporation
4. Mitsubishi Chemical Corporation
5. SABIC
6. LG Chem
7. BASF SE
8. 3M
9. Dow
10. DuPont
Recent Developments
- In October 2021, BASF launched Enable, its next-generation Carbon Monoxide (CO) promoter additive. Enable significantly enhances the activity and delivers superior performance for refiners with more efficient use of precious metal. Enables and optimizes durability via support surface morphology modification.
- In March 2019, Chevron launched Techron fuel treatment solutions for ATVs, UTVs, watercraft, karts, snowmobiles, scooters and other maintenance equipment engines.
- In January 2019, Brenntag was established as the distributor of Infineum products in Latin American countries, namely Colombia, Ecuador, Peru, Bolivia, Brazil and Mexico. This latest appointment extends the relationship between the parties beyond their existing arrangements in Europe and the Middle East.
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