The drag reducing agent market is anticipated to flourish at an average CAGR of 5.6% 5etween 2023 and 2033. The market is expected to hold a market share of USD 1,159.5 million by 2033, while the market is likely to reach a value of USD 672.4 million in 2023.
Increasing demand for flow-improving products, such as drag-reducing agents for expanding the flow capacity and enhancing the efficiency of pipelines, is favoring growth in the market.
| Attributes | Details |
|---|---|
| Drag Reducing Agent Market CAGR (2023 to 2033) | 5.6% |
| Drag Reducing Agent Market Size (2023) | USD 672.4 million |
| Drag Reducing Agent Market Size (2033) | USD 1,159.5 million |
Future Market Insights (FMI) reveals that the global drag reducing agent market is anticipated to create an incremental opportunity of USD 633.6 million by 2022, exhibiting growth at 5.6% between 2023 and 2033.
As per FMI, North America is projected to continue dominating the global market, accounting for nearly 48.9% of the total drag reducing agents' sales in 2022. The oil & gas segment is expected to register robust growth in the market through 2029.
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FMI reveals that the demand in the global drag reducing agent market recorded at 5.6% CAGR during the forecast period.
Drag reducing agents are polymers or additives that decrease frictional pressure loss by reducing the turbulence in conduct or pipeline. Driven by this, these agents are extensively gaining popularity in the pipeline industry for improving the flow capacity of the pipes. This is estimated to assist the drag reducing agent market to a total of USD 633.6 million by the end of 2022.
In addition to this, increasing usage of drag reducing agents during the transportation of crude oil, refined petroleum products, multi-phase liquids, and water, among others, is propelling the demand in the market. Driven by this, the sales of drag reducing agent is estimated to rise at a healthy CAGR of 5.6% during the forecast period 2023 to 2033.
Government Emphasis on Oil & Gas Production Favoring Drag Reducing Agent Market Growth
Demand for sources of energy such as diesel, petrol, natural gas, and others is rapidly increasing across the world owing to growing industrialization and urbanization. Hence, governments in several countries are extensively focusing on increasing the production of oil and gas to meet this surge in demand.
For instance, according to the India Brand Equity Foundation, the Indian Government announced its plan to make an investment of around USD 2.86 Billion in the oil and gas sector to drill more than 120 oil exploration wells and double the production of natural gas to 60 bcm by 2022.
As drag reducing agents have increasingly been used across the oil & gas refining and transportation industries for enhancing the pipeline capacity and increasing laminar flow, a slew of such developments are estimated to create lucrative growth opportunities in the market.
In addition to this, increasing research & development activities and integration of novel technologies for developing advanced drag reducing agents such as nano-fluids to enhance their performance is expected to bode well for market growth in the coming years.
Principal Consultant
| Country | Revenue Share % (2023) |
|---|---|
| United States | 35.6% |
| Germany | 2.6% |
| Japan | 3.1% |
| Australia | 0.8% |
| Country | CAGR % (2023 to 2033) |
|---|---|
| China | 6.1% |
| India | 6.5% |
| United Kingdom | 3.7% |
Government Initiatives for Expanding Oil & Gas Pipelines to Fuel the Demand for Drag Reducing Agents
Future Market Insight (FMI) states that India is anticipated to register growth at a steady CAGR of 6.5% through 2023.
The Government of India is undertaking numerous initiatives for expanding the oil & gas network across the country to decline the cost of transportation and ease the availability in rural areas. For instance, the Indian Government has announced allocating nearly USD 1.73 to the Gas Authority of India Limited. for the construction of a 2655 km gas pipeline Jagdishpur - Haldia&Bokaro - Dhamra Pipeline Project (JHBDPL).
A slew of such initiatives in the country may significantly increase the demand for drag reducing agents for preventing frictional pressure loss, in turn creating immense sales opportunities in the market.
Discovery of New Oil Reserves to Bolster the Sales of Drag Reducing Agents
GCC countries, such as the United Arab Emirates(UAE), Saudi Arabia, Kuwait, and Iraq, account for a significant share of oil & natural gas reserves, making them highly lucrative markets for drag reducing agents.
Discover new crude oil and natural gas deposits within these aforementioned countries is a primary factor favoring the growth in the market. For instance, Bahrain announced discovering new tight oil deposits near the country’s west coast, holding an oil reserve of around 80 billion barrels, in the year 2018.
Hence, increasing the use of drag reducing agents during the refining and transportation of these new oil deposits may fuel the demand in the GCC countries' market. Middle East & African markets held for more than 14.9% of global sales through 2022.
Increasing Production of Oil & Gas to Propel the Drag Reducing Agents Demand
As per FMI, the United States is forecast to dominate the drag reducing agent market in North America, as it held more than 35% of the value share in 2022.
Surging demand for power sources such as natural gas, diesel, gasoline, and others, owing to rapid industrialization, is encouraging the country to increase its production of oil & gas. For instance, according to the Energy Information Administration, with the efforts of the United States government, the production of crude oil and natural gas increased by 12.7% and 9.8%, respectively, in comparison to 2018 across the country.
In addition, the rapidly expanding chemical and petrochemical industry in the United States is further favoring the demand for drag reducing agents.
| Category | By Product Type |
|---|---|
| Leading Segment | Polymer |
| Market Share% (2022) | 66.1% |
| Category | By End Use |
|---|---|
| Leading Segment | Oil and Gas |
| Market Share% (2022) | 40.3% |
Introduction of Novel Bio-Based Polymers to Favor the Drag Reducing Agents Market Growth
In terms of product type, the global drag reducing agents market is segmented into polymers, surfactants, and suspension/ suspended solids. The polymer segment is projected to expand at a rapid pace over the forecast period.
With increasing environmental concerns, leading players in the market are increasingly focusing on introducing novel eco-friendly bio-based polymers such as mucilage to address the demand for alternatives to conventional synthetic polymers for drag reduction and pipeline flow improvement. This is expected to favor the growth in the segment.
Increasing Oil & Gas Exploration Activities Elevating the Sales of Drag Reducing Agents
As per FMI, the crude oil segment is anticipated to account for a significant share of the drag reducing agent market through 2033.
Rapidly expanding crude oil transportation pipelines and an increasing number of oil and crude oil exploration activities across the countries such as the USA, China, India, Russia, and Saudi Arabia, among others, are propelling the demand for drag reducing agents across the segment.
Government Emphasis on Strengthening Oil & Gas Distribution Network to Accelerate Drag Reducing Agents Sales
Future Market Insights estimated that the oil & gas industry may continue accounting for a dominant share in the global drag reducing agent market between 2023 and 2033.
Growing oil & gas production activities and rising government emphasis on strengthening the oil & gas distribution network to meet the demand for petroleum products such as petrol, diesel, and liquefied petroleum gas (LPG) is spurring the sales of drag reducing agents in the segment.
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Leading manufacturers in the global drag reducing agent market are focusing on launching novel biopolymer-based drag reducing agents. Some of the players are aiming at entering into partnerships, collaborations, mergers, and acquisitions with other companies to expand their production of drag reducing agents.
Recent Developments:
Key Players
The market is expected to advance at a CAGR of 5.6% through 2033.
The market is valued at USD 672.4 million in 2023.
The market is projected to reach a market valuation of USD 1,159.5 million by 2033 end.
Government emphasis on oil & gas production favoring drag reducing agent market growth.
Advanced DRAs with more than 70% drag reduction for crude oil pipelines.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Polymer 5.2. Surfactant 5.3. Suspension/ Suspended Solids 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Crude Oil 6.2. Multi-phase Liquid 6.3. Refined Products 6.4. Heavy, Asphaltic Crude 6.5. Water Transportation 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Oil & Gas 7.2. Chemicals & Petrochemicals 7.3. Power & Energy 7.4. Agriculture 7.5. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Baker Hughes 18.2. Flowchem 18.3. Innospec 18.4. Lubrizol Specialty Products Inc. 18.5. NuGenTec 18.6. Oil Flux Americas 18.7. Sino Oil King Shine Chemical 18.8. Superchem Technology 18.9. The Zoranoc Oilfield Chemical 18.10. China National Petroleum Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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Drag Reducing Agent Market
