The North America potassium formate market is anticipated to flourish at an average CAGR of 4.9% between 2023 and 2033. The market is expected to hold a market share of USD 364.3 million by 2033 while the market is likely to reach a value of USD 225.8 million in 2023.
The oil and gas sector is using potassium formate liquid as an alternative to traditional drilling fluids due to its superior functional qualities and sustainability. One of the key factors driving the demand graph upward is the emergence of brand-new, cutting-edge, quickly expanding applications of potassium formate as a heat transfer liquid.
The market is likely to expand due to the high quality and environmental friendliness of formic acid, as well as the widespread adoption of potassium formate as a safe alternative to salts made of hazardous chemicals.
Key manufacturers operating in the market are focused on research & development activities to launch new and customized products as per the needs of clients. Also, they are aiming to produce different formulations that are being made with the help of potassium formate to cater to the surging demand and meet regulatory standards set by the government.
| Attributes | Details |
|---|---|
| North America Potassium Formate Market CAGR (2023 to 2033) | 4.9% |
| North America Potassium Formate Market Size (2023) | USD 225.8 million |
| North America Potassium Formate Market Size (2033) | USD 364.3 million |
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The North America potassium formate market witnessed a CAGR of 2.2% over the historical period of 2018 to 2022. High raw material prices, varying demands for chemicals & specialty materials, altered customer expectations & behaviors associated with chemical products, and rising logistical costs declined the growth during the historical period.
The North America potassium formate market is set to exhibit growth at a CAGR of around 4.9% in the forecast period between 2023 and 2033, as per the current estimate. The market is further anticipated to pick up pace due to ongoing technological advancements in multiple end-use sectors and rising consumption of potassium formate in various formulations.
Increasing Demand for Drilling Fluids
North America has various reserves of crude oil and gas. In oil and gas drilling operations, drilling fluid is a heavy, incompressible viscous mixture that is used to cool and lubricate the drill bit. It also transfers rock shavings to the surface.
Potassium formate fluids are organic monovalent fluids that are non-corrosive and perform better in many aspects than conventional divalent brines. Over the past few years, there has been a steady rise in the use of biodegradable materials and thus the demand for this chemical is likely to grow in North America.
Potassium formate brine reduces damage and hole stability problems by preventing reservoir shell hydration and migration when used as a drilling fluid. Also, the urgent need for drilling fluids is anticipated to push growth in the market.
The market is also expanding as a result of increased demand for formate brines that are environment-friendly and can be used as drilling fluids for oil and gas drilling activities. Furthermore, the drilling fluid segment is thus expected to reach about USD 132.0 million by the end of the forecast period, says FMI.
Urgent Need for Deicing Liquids during Winters
Potassium formate-based brines have been gaining immense popularity as a de-icing agent in comparison to other solutions. It has taken the place of alternative chloride-based solutions as the preferred deicing agent on runways as a result of strict rules revolving around the aerospace industry. Additionally, the industry requires sustainable and environment-friendly options for de-icing in North America.
Demand for de-icing salt is greatly influenced by harsh winters in North America. Countries like the United States of America and Canada experience snowfall compared to other parts of North America. Thus, these countries require smart deicing solutions for commercial and residential purposes. The United States of America has more than 4 million miles of roads and a 78,000 km interstate highway system. During snowfall, the above-mentioned roads and highways get covered by ice and to melt it down, de-icing salts are required.
Non-toxic properties of potassium formate liquids are also anticipated to significantly propel their use in the aerospace sector, as well as in roads and walkways across suburbs and cities in North America. Also, the de-icing segment is thus expected to reach about USD 128.9 million by the end of the forecast period.
Demand for Eco-friendly Solutions in the Aerospace Industry
Countries in North America are facing airfield challenges with de-icing solutions. Aircraft maintenance authorities are looking for environment-friendly de-icing solutions that might be safe for runways, aircraft components, and employees. In addition, various manufacturers are working on the development of a new formulation of potassium formate based on the SAE AMS 1435 D specification that meets the requirements of the Federal Aviation Administration.
Principal Consultant
Potassium formate is widely used at the industrial level for different applications in which the leading consumer is the oil and gas industry. It is extensively used as a drilling fluid in oil and gas drilling operations. Production of potassium formate involves formic acid. Also, fluctuations in the price of formic acid have a direct impact on the North America market.
The availability of low-cost alternatives in the market may hamper growth. Further, the rising adoption of alternative anti-icing and de-icing compounds such as sodium chloride and magnesium chloride can hinder the market. Potassium formate is expensive, as compared to other alternative solutions such as rock salt and chloride-based deicers, which may obstruct the market in the forecast period.
Requirement of Aircraft Deicing to Push Sales of Potassium Formate Liquid
The United States is considered to be one of the leading countries in the North America potassium formate market. It is one of the largest crude oil producers in the world. Moreover, the demand for eco-friendly drilling fluids is increasing in the country, which is expected to result in a surging demand for potassium formate.
The United States witnesses heavy snowfall, which covers the roads, pathways, walkways, and runways, thereby hindering transportation. Every year, snowfall leads to heavy damage to the infrastructure, vehicles, and ecosystem.
Deicing and anti-icing of aircraft and runway pavement is a significant requirement of the Federal Aviation Administration (FAA) for airlines and airports that operate in icy conditions. This guarantees the security & safety of cargo operations and passengers.
For de-icing purposes, potassium formate is employed as it is a smart solution, as compared to other chloride-based products. Owing to the aforementioned factors, the United States of America’s potassium formate market is expected to thrive at a CAGR of 4.8% during the forecast period.
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| Category | By Product Type |
|---|---|
| Leading Segment | Liquid Potassium Formate |
| Market Share% (2022) | 58.9% |
| Category | By Application Type |
|---|---|
| Leading Segment | Drilling Fluid |
| Market Share% (2022) | 38.7% |
Liquid Potassium Formate Solutions to Gain Traction in Future
By product type, the liquid (brine) segment is expected to witness significant growth in the upcoming decade as it is being used in various applications, including drilling fluids, de-icing, and heat transfer fluids. Liquid potassium formate is used with various densities according to its applications. These solutions have high purity and find usage in many sectors, including the oil industry, fodder preservation, and deicing sectors.
The North America potassium formate market is fairly consolidated, with leading manufacturers controlling a sizable portion of the same. Moreover, key market participants are focusing on the development of new products that can meet regulatory standards. They are also focusing on expanding their existing portfolios to maintain a competitive edge in the market.
Recent Developments:
In 2023, the market is valued at USD 225.8 million.
By 2033, the market will reach USD 364.3 million.
Organic onions will expand at an 4.9% CAGR through 2033.
BASF SE, Gelest Inc., and Hawkins Inc. are some key players.
From 2018 to 2022, the market registered a 2.2% CAGR.
1. Executive Summary 2. Market Overview 3. Market Background 4. Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Liquid (Brine) 5.2. Solid (Powder) 6. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Drilling Fluid 6.2. De-icing 6.3. Heat Transfer Fluid 6.4. Others (Fertilizers, Feed) 7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 7.1. USA 7.2. Canada 8. Key Countries Potassium Formate Market Analysis 9. Market Structure Analysis 10. Competition Analysis 10.1. BASF SE 10.2. Evonik Industries 10.3. Honeywell International Inc. 10.4. Cabot Corporation 10.5. Addiction GmbH 10.6. Dynalene Inc. 10.7. Perstorp Holding AB 10.8. Gelest Inc. 10.9. Hawkins Inc. 10.10. Tomiyama Pure Chemical Industries 10.11. Industrial Chemical (ICL) 10.12. Tetra Technologies Inc. 10.13. Spectrum Chemical MFG Corp 10.14. Proviron 11. Assumptions & Acronyms Used 12. Research Methodology
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North America Potassium Formate Market
