Hydro-processing catalysts globally reached sales amounting to USD 1,997 million in 2020 and are likely to continue in the same vein of growth. As of 2024, it will expand to USD 2,178.6 million. Growth for 2025 was estimated at 2.3% year-over-year basis. In the period from 2025 to 2035, growth in sales will continue with a compound annual growth rate of 2.5%, thus reaching an estimate of USD 2,858.5 million by 2035.
Hydro-processing catalysts are the boosters of the industry, accelerating and driving the move for cleaner fuels and better refinery processes. Catalysts are mostly in demand for hydrocracking and desulfurization processes. Hydrocracking helps refineries obtain a better quality of fuel products with reduced sulfur content, as the regulations impose the intake of fewer sulfur-based fuels worldwide.
The end-use of petroleum refineries holds the highest share of 72.7% in hydro-processing catalysts sales, considering the fact that these operations are not viable without this. Hydro-processing catalysts are vital for operations such as desulfurization, hydrocracking, and hydrodenitrogenation, which is a process essential to achieve fuel quality standards. Global demand for clean fuels and the pressure on refineries to meet environmental standards also strengthen this segment's position.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2025) | USD 2,233 million |
| Projected Size (2035) | USD 2,858.5 million |
| Value-based CAGR (2025 to 2035) | 2.5% |
Increased demand for waste-to-energy (WTE) solutions has led to the evolution of hydro-processing catalysts to be applied for waste materials like plastics and biomass, which are transformed into fuel. The catalyst ensures that complex compounds in wastes break down effectively with high yield and quality of fuels. This has the advantage of overcoming the waste management problem and aids in the energy transition towards sustainable energy production.
The Department of Energy's Bioenergy Technologies Office (BETO) in the United States began the Waste-to-Energy Technical Assistance Program in collaboration with the National Renewable Energy Laboratory (NREL). Technical assistance is provided to local, state, and tribal governments to promote the use of WTE technologies. The fact that the program expanded in 2024 to include more state governments and waste resources indicates the increasing interest in sustainable waste management solutions.
The USA Environmental Protection Agency (EPA) is also encouraging energy recovery from waste materials by devising regulations that help decrease the environmental impact of disposing of waste. The rules advance the use of fuels derived from wastes and additionally endorse hydro-processing catalysts to be integrated into WTE operations with the further encouragement of its support for eco-friendly refining technologies.
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The following table is a graphical illustration of the annual growth rates of the hydro-processing catalysts industry from 2025 to 2035. This report starts with the base year of 2024 and extends into the present year, studying how the industry growth curve shifts between the first half of the year, namely January through June (H1) to the second half comprising July through December (H2). This will give stakeholders a great perspective of how the sector has evolved and possible development directions.
Below is the table demonstrating sector growth between the half-year periods from 2024 through 2025. The growth for H1 in 2024 was predicted at a CAGR of 2.2%. For the half-year period H2, there is an upward trend is seen.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 2.2% (2024 to 2034) |
| H2 2024 | 2.5% (2024 to 2034) |
| H1 2025 | 2.3% (2025 to 2035) |
| H2 2025 | 2.7% (2025 to 2035) |
Moving into the next period, from H1 2025 to H2 2025, the CAGR is expected to be 2.3% in the first half and rise to 2.7% in the second half. In the first half (H1) and the second half (H2), the sales saw a rise of 10 and 20 BPS respectively.
Rising Demand for Clean and Sustainable Fuels Drives Hydro-Processing Catalysts in Global Energy Transition
A great demand for cleaner, more sustainable fuels is being noticed and experienced all around the globe. The pressure on individual countries to comply with very high environmental targets is making them incorporate the usage of biofuels and renewable diesel, among other low-carbon alternatives in transportation, industries, and even power generation.
The Hydro-processing catalysts have been found to be of high importance in the upgrading of feedstocks such as vegetable oils, waste materials, and animal fats into high-quality renewable fuels. Such catalysts facilitate the HDO process, and hence, the biofuels produced can be blended with traditional fuels because of their quality as required. These catalysts find great application in reducing the greenhouse gas emissions involved in refueling activities.
As one example, the USA Environmental Protection Agency has created a Renewable Fuel Standard program, a programme of annual renewable fuel volume requirements to be blended into transportation fuels. The Renewal Fuel Standard, enacted into law in 2005, reduces the consumption of fossil fuel and minimizes carbon emissions in the environment.
Renewable diesel, along with hydro-processing catalysts, is witnessing fast popularity because of its high energy content and low emissions that enable refineries to fulfill these regulatory requirements efficiently as part of this program.
Transition to Low-Carbon Economy Drives Hydro-Processing Catalysts for Cleaner Fuels and Climate Goals
Global efforts are now in an intensification mode toward decreasing carbon emissions and developing a low-carbon economy in line with this urgency of climate change. The governments in different parts of the world have challenged industries in energy or transportation to introduce cleaner and more sustainable fuel alternatives by drawing ambitious climate objectives.
In this regard, refineries focus on producing low-carbon fuels such as renewable diesel and biofuels. Only through the application of high-quality hydro-processing catalysts can such a transition be facilitated to fully convert renewable feedstocks like vegetable oils, animal fats, and waste into high-quality low-carbon fuels that are commensurate with regulatory targets on carbon reduction.
The Green Deal and the Fit for 55 package are the core parts of the low-carbon transition process in the European Union. Both these packages are aimed at reducing the greenhouse gas emissions of the EU by 55% by 2030.
The largest cuts in carbon emission from transport fuels are scheduled, and this reduction in carbon emission can be done by renewable diesel. It is a sort of diesel, which is manufactured using hydro-processing catalysts. This is expected to be sufficiently high in the EU, henceforth opening up a robust market for refineries to be able to employ hydro-processing technologies and support such aims.
High Initial Investment Costs Hinder Widespread Adoption of Hydro-Processing Catalysts in Emerging Markets
Advanced hydro-processing catalysts are important for producing high-quality, low-carbon fuels. However, developing and installing such technologies involves considerable capital expenditures. Refineries require substantial investments not only in the catalysts but also in the accompanying infrastructure, namely upgrading processing units and implementing new operational systems.
These huge investment requirements form a challenge for most refineries, especially emerging industries whose source of funding might not be robust enough to manage large expenditures and hence tend to absorb only little fractions, limiting the widespread integration and absorption rate in a wider geography of refineries.
For instance, in developing regions such as Asia-Pacific and Africa, where refining infrastructure is still evolving, the capital-intensive nature of hydro-processing catalyst installations may be a challenge.
Refineries in these areas may opt for lower-cost alternatives that do not provide the same level of efficiency or environmental benefits as hydro-processing catalysts, delaying their transition to cleaner fuels. As regards the new refineries, financial constraints have generally been the bottleneck for emerging countries, according to the International Energy Agency, IEA.
Development of Hybrid Catalysts for Multifunctional Use Presents Major Opportunities for Refineries
One of the major opportunities for players in the hydro-processing catalysts industry is hybrid catalysts, which involve hydrocracking and hydrotreating functionalities combined into a single one. Hybrid multifunctional catalysts are slowly becoming more appealing since they reduce complexity and promote better efficiency due to less time and lower capital costs for refineries.
Simplicity has reduced maintenance times and fewer stages using different catalysts minimize complexity in such operations. This innovation has the potential to increase refinery profitability by enhancing fuel production while minimizing the number of catalysts required.
The advantage of hybrid catalysts is their ability to process a variety of feedstocks, which means that they can be used for refineries targeting both conventional crude oils and renewable biofuels.
The hydrocracking and hydrotreating functions could be integrated into one catalyst in order to achieve better fuel quality and yield and save energy while lowering operational costs. This trend falls into the general desire for cleaner fuels and environmentally friendly refining methods and for refineries looking to increase bottom-line profitability under growing environmental regulation demands.
The sales of global hydro-processing catalysts continue to grow along with the expansion of demand for cleaner fuels coupled with improvements and developments in refinement technologies. Through 2020, the figure stood at USD 1,997 million, and an estimated figure was to be valued at USD 2,178.6 million by 2024, evidencing a robust compound annual growth rate of about 1.9%.
The growth in this period is largely credited to the surge in regulatory pressure for cleaner fuels and the necessity for more efficient refining processes. Between 2025 and 2035, the industry will continue to upwardly trend; by 2035, a value of USD 2,858.5 million is expected. This is likely to be brought about by rising demand for renewable diesel and biofuels coupled with increasing use of hydro-processing technologies.
Some key growth drivers for continued expansion in sales of hydro-processing catalysts come from major sectors like petroleum refining, chemical manufacturing, and renewable fuels. This is because more and more feedstocks will be upgraded, using hydro-processing catalysts to meet the tough fuel quality specifications that will likely be mandated with the ever-increasing deployment of sustainable feedstocks and further regulatory pressure toward low-carbon fuels.
The market size of hydro-treating catalysts is expected to grow at a 2.5% compound annual growth rate while hydro-cracking catalysts are expected to grow at a 1.9% CAGR, though there will be year-on-year growth of 2.3% in 2025. These developments indicate rising demand for enhanced refining processes, which further require constant improvement of the catalyst.
The development of hybrid catalysts that have multifunctional capabilities is another growth factor in sales. These catalysts are cheaper and more efficient in the refining process. As countries tighten their environmental regulations and commit to sustainable energy transitions, hydro-processing catalysts will be more vital in meeting these demands.
Increased attention to waste-to-energy technologies, as well as the move to cleaner, lower-sulfur fuels, will continue to power this industry as it becomes increasingly important to the global energy sector's transformation to sustainability.
Among Tier 1 players in the Hydro-Processing Catalysts industry are ExxonMobil Chemical Company, Shell Catalysts & Technologies, Chevron Phillips Chemical Company, BASF SE, and UOP LLC (A Honeywell Company). Their share of value and revenue exceeds USD 200 million. Its revenue is comprised 50-55%, and it has a high production capacity, cutting-edge technologies, and a vast range of products.
Such giant resources and scales of operation empower them to accelerate innovation and technological progress across various industries. Such global giants' presence, catering to different regional needs, confirms their position at the top of the hydro-processing catalysts industry.
Companies under Tier 2 & 3 include Clariant International Ltd., Haldor Topsoe A/S, Johnson Matthey PLC, SABIC, LG Chem Ltd., and others, which take 45-50% value share. Their revenues are below USD 200 million, with a focus on regional industries and specific applications.
While they may not have the same level of global reach as Tier 1 players, they are niche players catering to specific markets and providing targeted technological solutions. Their contributions are crucial for driving regional growth and meeting specific local demands, which makes them important in the hydro-processing catalysts industry.
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The hydro-processing catalysts sales are expected to experience great growth in regions such as China, India, Saudi Arabia, South Korea, and Brazil. These countries have a higher demand for advanced catalysts because of an expanding energy and petrochemical industry. Strong demand growth will be observed in China and India due to their rapidly developing industries.
The investments by Saudi Arabia and South Korea in refining technologies are further supporting the increasing demand for efficient hydro-processing solutions, and Brazil's oil and gas industry is growing and adding to the market potential.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| China | 5.3% |
| India | 5.1% |
| Saudi Arabia | 4.7% |
| South Korea | 4.3% |
| Brazil | 4.2% |
In Saudi Arabia, the hydro-processing catalysts sales are projected to reach a value of USD 59.8 million by 2035, growing at a CAGR of 4.7%.
The oil and gas refining industry is a key driver of the hydro-processing catalysts industry in Saudi Arabia. As one of the world's largest oil producers, the country has a large refining capacity and is committed to improving its production facilities.
According to the Saudi Ministry of Energy, the country intends to invest heavily in its refining sector to meet both domestic fuel needs and growing international demand. This investment in upgrades of refineries increases the requirements for high-class hydro-processing catalysts, to be used essentially in enhancing refined fuel quality, be it diesel or gasoline.
The Saudi Arabian refinery expansion projects include new facilities and the modernization of existing ones. In this, the adoption of high-performance catalysts is considered, which aid in the removal of impurities such as sulfur, nitrogen, and metals from crude oil so that the products meet the increasingly strict environmental standards.
Hydro-processing catalysts are in high demand due to the ease with which such methods can be introduced to achieve better energy efficiency, decrease industrial emissions, and further sustainable developments in the oil and gas sector, as envisioned in Saudi Vision 2030.
Upgrading of refinery capacities has been notable for Saudi Arabia over the recent years. Driving such developments has been Aramco, the largest oil company globally in the Kingdom. It has a plan of investment in the projects both domestic and international towards the refining of over 8 million barrels per day of crude oil. Hydro-processing catalysts will continue to play a crucial role in keeping the fuel quality and in-line with the country's environmental targets as these projects progress.
In South Korea, the sales are expected to reach USD 111.8 million by 2035, with a CAGR of 4.3%.
South Korea's drive for high-value petrochemicals is significantly driving the market for hydro-processing catalysts. The country stands as one of the world leaders in the chemical industry, specializing in a plethora of chemicals employed in plastics and electronics, amongst others.
Indeed, South Korean petrochemical exports have seen a record stand at USD 32.3 billion in 2022, according to a report by KPIA. To meet the fast-growing demand while improving the quality of its petrochemicals, the nation has been concerned with upgrading refining processes, leading to a bigger demand for more efficient hydro-processing catalysts.
Hydro-processing catalysts have become a critical part of South Korea's refining industry due to the need to upgrade feedstock and improve the efficiency of chemical production processes. The catalysts help in the hydrogenation and hydrocracking of feedstocks, thus ensuring that the products meet the strict specifications required by both domestic and international industries.
With South Korea aspiring to remain ahead of its peers in terms of petrochemical production, its refining processes' efficiency and environmental performance have now become an absolute priority that enhances the demand for advanced catalysts.
Brazil's hydro-processing catalysts industry is anticipated to reach USD 78.7 million by 2035, growing at a CAGR of 4.2%.
The Brazilian biofuel sector is a massive driver for hydro-processing catalysts. Brazil stands as one of the world's top biofuel manufacturers, and strong encouragement for renewable fuel sources has expanded its biofuel sector significantly.
The Brazilian Ministry of Mines and Energy- MME, said that in 2021, the country produced nearly 6.6 billion liters of biodiesel. Brazil has planned to reach up to 13 billion liters of biodiesel production by 2030. Such a development scenario is generating great demand for sophisticated hydro-processing catalysts, as they are essential for converting feedstocks like vegetable oils and animal fats into quality biofuels.
Efficient processing technologies for biodiesel should convert different feedstocks into renewable fuels. Hydro-processing catalysts are strategically important as they enhance the conversion of these feedstocks into renewable fuels, improve quality and yield biodiesel, and strip away impurities like sulfur. Recent growth in Brazil's biofuel production with an environmentally friendly approach to this energy source has, to a greater degree, increased the use of such catalysts in many plants throughout Brazil.
Hydro-processing catalysts sales are also expected to have hydrotreating catalysts at the leading edge, commanding a share of 66.8%. From the ingredient segment, metals-based catalysts dominated the market share of 54.9%. These segments hold growth potential through increased demand for high-quality fuel and petrochemical products, which require the use of more advanced catalyst solutions for efficient processing.
| Segment | Value Share (2024) |
|---|---|
| Hydrotreating Catalysts (by Product Type) | 66.8% |
Hydrotreating catalysts are the most widely used in the world today, since they play an important role in the refining processes, especially for producing cleaner fuels. The impurities to be removed include sulfur, nitrogen, and metals from crude oil and its derivatives. As the regulations of environmental concerns are tightening up, especially in regions such as the EU and North America, hydrotreating plays a crucial role in ensuring that the fuels comply with stringent emission standards, and therefore high demand is expected for these catalysts.
Generally, the global move to lower sulfur content in fuels has encouraged the increased use of hydrotreating catalysts. The policies that most governments have put in place about reducing the environmental effects of fuels, such as sulfur emissions, caused refiners to switch to using hydrotreating catalysts. Therefore, this push by regulators ensures continuous dominance in the market of hydrotreating catalysts.
| Segment | Value Share (2024) |
|---|---|
| Metal-based (by Ingredient) | 54.9% |
The hydro-processing catalysts based on metals are the most widely used because of their efficiency in refining processes. These catalysts contain nickel, molybdenum, and cobalt, which are the main metals that have a critical role in hydrogenation and hydrocracking. They have been used extensively in the oil and gas refining industry across the globe due to their ability to enhance fuel quality while maintaining high processing efficiency.
It also goes with the principle that metals-based catalysts hold strong catalytic activity and durability that makes them fit for industries wishing to meet tough environmental standards. As refiners focus on making low-sulfur fuels to adapt to the demands of regulations, these metals-based catalysts are there to stay because they are even effective in giving petrochemical products a much better quality as well, adding to their strength in industries using them for high-performance chemical feedstock.
The key players in the market have been focusing more on increasing capacity and optimizing resources to meet demand from the refining and petrochemical industries. These companies would be looking to invest in advanced technologies that would result in higher efficiencies operationally and increase the quality of their catalysts so that they can be sure of delivering reliable high-performance solutions.
The companies look to strengthen their resource base, ensuring that they can maintain competitiveness and address the changing requirements of global markets, especially in areas with tight environmental regulations.
The leaders in the hydro-processing catalysts industry are also building strategic alliances and joint ventures to co-develop innovative catalyst solutions. These partnerships promote technological advancement, where companies can capitalize on each other's strengths in research, development, and production. Such alliances allow manufacturers to diversify their product lines and offer more specialized solutions for specific industries like oil refining, petrochemicals, and biofuels, besides accessing new growth opportunities.
Key players focus on geographical growth to access those emerging industries while diversifying income streams. While establishing a dominant position in more regions, be it Asia-Pacific, the Middle East, and Latin America; these companies prevent market saturation, increase client base, as well as garner growth prospects by both developed as well as by developing sectors.
Industry Updates
25 July 2023, Advanced Refining Technologies LLC, a joint venture of Chevron and W. R. Grace & Co., launched ENDEAVOR™, a hydroprocessing catalyst solution for producing renewable diesel and sustainable aviation fuel from 100% renewable sources. This innovation responds to the growing demand for renewable transportation fuels. ENDEAVOR™ enables the efficient conversion of vegetable oils, animal fats, and greases into cleaner, sustainable energy.
In terms of Product Type, the industry is divided into Hydrotreating Catalysts and Hydrocracking Catalysts.
In terms of Ingredients, the industry is divided into Metals, Support Materials, and Additives.
In terms of End-Use Industry, the industry is divided into Petroleum Refineries, Chemical Manufacturing, Renewable Fuels, and Others.
The report covers key regions, including North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa (MEA).
The hydro-processing catalysts industry is projected to reach a valuation of USD 2,233 million in 2025, reflecting steady growth.
The sales are expected to attain a valuation of USD 2,858.5 million by 2035, showing continued expansion.
The industry is anticipated to grow at a rate of 2.3% year-over-year in 2025 and maintain a steady growth outlook through 2035, driven by demand in the refining and petrochemical sectors.
The top countries driving demand for hydro-processing catalysts are China, India, Saudi Arabia, South Korea, and Brazil, with notable growth from these regions due to expanding refining capacities and environmental regulations.
| Market Size (2023) | USD 4,022.5 Million |
|---|---|
| Market Projected Size (2033) | USD 6,367.5 Million |
| Value CAGR (2023 to 2033) | 4.7% |
| Market Size (2022) | USD 38.57 billion |
|---|---|
| Market Size (2032) | USD 59.33 billion |
| Market CAGR (2022 to 2032) | 4.4% |
| Expected Market Value (2022) | USD 2.89 Billion |
|---|---|
| Anticipated Forecast Value (2032) | USD 4.71 Billion |
| Projected CAGR (2022 to 2032) | 5% |
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