Refinery Catalyst Market

Global Refinery Catalyst Market Snapshot

Future Market Insights (FMI) has projected the global refinery catalyst market to witness a year-on-year growth of4.5%in 2022 reaching a value of aboutUS$ 9,011.0 Mnby 2022 end. Catalysts are utilized in the refinery industry to transform heavy oil into lucrative, distillable products.

New growth opportunities in the refinery catalysts market are projected to emerge as a result of product diversification and enhancement. Global refinery catalyst market is anticipated to witness a considerable growth of 4.6% CAGR during the period 2022 and 2030.

FMI has identified the Asia Pacific region to remain a key market for refinery catalyst market over the forecast period owing to significant demand from end-use sector. The region is estimated to witness a value CAGR of 5.7% in the industry of refinery catalyst market.

How The Market Progressed Till June 2022?

A half-yearly comparison of the growth forecast for the market of refinery catalysts has been presented by Future Market Insights with recent market developments occur in the market. Urbanization, growing industrialization, and increasing demand for petroleum and chemical products are expected to boost the refining catalyst market.

To cater to growing strict environmental regulations key players are opting for a better refining procedure to reduce pollutants generated by diesel and gasoline engines. Key players are further expanding their catalyst production capacities to meet the growing demand for efficient fuels production and increase in refinery capacity.

The global market for refinery catalysts in H1 2021 has witnessed growth at magnitude of 4.5%. The growth of the market remains highly uneven across various regions with Europe and Latin America region witnessing a moderate growth outlook. India, China, and some ASEAN countries are estimated to witness a significant growth rate owing to rising demand from the petrochemical industries, providing the growth outlook of 4.2% over the first half of 2022.

Higher growth outlook in India, China, and some ASEAN countries had slightly benefit the consumption rate of 10 bps of refinery catalysts in H1 2022 as compared to earlier projections. Owing to increase in refinery capacity in these countries the growth prospects to remain significant.

Despite the positive prospects, there are certain challenges that lie ahead for industrial growth, this includes growing availability of alternative fuels such as bioethanol, biodiesel, among others, increasing adoption of “Go Green” campaigns and strict emission standards in developed economies, with increase in usage of electric vehicles worldwide, are expected to impact the growth outlook of the global market in the coming years.

2015-2021 Global Refinery Catalyst Market Outlook Compared To 2022-2030 Forecast

The demand outlook for refinery catalyst market between 2015 and 2021 remains 2.7% as the pandemic crisis has impacted the market. The world's population is growing, which has resulted in increasing transportation through several mediums. This increase in the transportation is enhancing the demand for fuel, which is boosting the consumption of catalyst in the refinery industries. Regional Government are focusing on decreasing air pollution caused by IC engine vehicles.

As a result, manufacturers are opting for a better refining procedure. Refining catalysts have the ability to reduce pollutants produced by diesel and gasoline engines. Even when used in tiny quantities, refinery catalysts can work at different temperatures and improve the pace of activity. The growth of the refinery catalyst market is likely to grow at a growth rate of 3.7% by volume over the assessment period of 2022-2030.

Nikhil Kaitwade

Principal Consultant

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How Growth In Petrochemical Industry Is Stirring The Market Growth?

The petrochemical industry is one of the key sector contributing significantly in the economic growth of a nation. The ongoing developments in the petrochemicals industry have generated a demand for efficient fuels that will have superior activity, selectivity and lifetime.

Refining catalysts are used in such applications for hydrogenation, dehydrogenation, amination, oxidation, halogenation, dehydration and hydration reactions. The critical applications of refinery catalysts are growing and their use is being adopted across these industries to facilitate easy processing of fuels.

A number of companies worldwide are investing in research and development that will drive fuel usage in the future and consequently drive the global refining catalysts market.

How Stringent Environmental Regulations Will Impact The Refinery Catalyst Market?

Industrialists and researchers are focusing on methods to minimize the environmental impact from the refinery industries. They need to comply with the mandatory regulations pertaining to air and water quality. These regulations are also necessary to shed light on product quality specifications and have set high standards for operations.

Continuously setting compliance with these regulations and standards is a big threat to overall industry operations. It includes controlled air emissions, reduced toxicity in effluent discharges and management of sulphur concentrations in final product and also discharge fuels.

These requirements and significant adjustments to the process of refining have reshaped operational configurations and magnified capital investments. Overall it is a negative factor in market growth and is proving to be a restraint for the future.

What Was The Impact Of The COVID-19 Crisis On The Refinery Catalyst Market?

The covid-19 pandemic had a significant impact on the global economy resulted in severe loss to the manufacturing sector. Previously, oil prices were falling due to failed production-cut agreements, and the demand for chemicals and refined products was declining as a result of industrial slowdowns and travel restrictions in the aftermath of the global pandemic.

Lower consumption has had a substantial influence on the global refinery catalyst market, however it is expected to recover in the year 2021 as the demand for the catalysts owing to the increasing demand from the refinery industries. This is due to the ease of the restrictions from the second half of 2020.

Country-Wise Insights

Why demand for Refinery Catalyst is increasing in the U.S.?

In the United States, refineries with small cracking capacity have increases the production of higher-valued fuels in the recent past. During last few years, the United States went from being one of the world's key net importers of refined products to one of the largest exporters. Companies in the U.S. are broadening their global reach through improving distribution network, which will enhance their consumer reach.

All these factors are expected to boost the demand for the refinery catalyst in the coming years. Further sales of several number of vehicles had also boosted the demand for petroleum. The market of refinery catalyst is expected to be benefited in the coming years through these scenarios. In 2022, U.S. refinery catalyst market is expected to register 2.6% y-o-y growth by volume.

What is the potential for Refinery Catalyst Market growth in Russia?

In terms of the existence of oil and petroleum product manufacturing units, Russia is one of the key producer of crude oil and natural gas. In Russia, the growing tendency of manufacturing expansion is also promoting demand growth. The expansion of distribution network by Russia, as well as the establishment of a strong presence in the existing areas, are projected to drive long-term demand.

In Russia, vertical integration is being explored to combat rising raw material prices. Several manufacturers are working significantly on expanding their production capacity in the worldwide refinery catalysts market, notably in the European region, where competition is fierce. Russia is anticipated to remain a prominent market in the European region and the market of refinery catalyst to witness a CAGR of 2.9% over the period of 2022 and 2030.

How China is expected to change the Global Refinery Catalyst Market scenario?

In terms of oil and petroleum product consumption, Asia-Pacific is the key market influencer for refining catalysts. It has a rapidly rising population and considerable purchasing power. The greater customer base in this region is boosting the demand for vehicles and other modes of transportation. China is anticipated to possess over half of the market value share in the Asia-Pacific region.

Due to the availability of raw materials at an efficient price, low labor costs, and favorable government rules governing pine tapping, China accounts for a key share of Asia Pacific market.

Moreover, government policies for supporting end-use industries such as, reducing the customs duty, providing tax and other incentives, and relaxing FDI norms are expected to positively affect the growth of the market. China Refinery Catalyst Market is estimated to create an incremental dollar opportunity of US$ 1,062 Mn during the period of 2022 and 2030.

Category-Wise Insights

Which of the Product type is expected to witness significant growth in Refinery Catalyst Market?

FCC is anticipated to witness a significant growth in the global market owing to its significant characteristics enhancing the efficiency for a refinery industry. Fluid catalytic cracking (FCC) is a refinery catalyst for cracking residual oil, heavy oil, and wax oil. The catalyst and heat are used by the FCC to break down the big molecules of gas oil into smaller molecules.

It is employed in order to maximize the proportion of gasoline produced. The global refinery catalysts market is projected to be dominated by the FCC segment, which is expected to continue in the future assessment period. The FCC segment is projected to create an absolute dollar opportunity of more than US$ 647.0 Mn during the period of 2022 and 2030.

Which of the Ingredient type in the Global Refinery Catalyst Market is expected to Gain Traction?

The zeolites segment is expected to witness a significant growth rate due to its simplicity of processing and abundant availability in the industrial sector, making it a preferred ingredient type. As refinery catalysts are increasingly used as an octane upgrading element, the increased demand for high-octane fluids is expected to create considerable opportunities in the coming years.

For these reasons, zeolites and metal complexes such as platinum are often used in refineries. The Zeolites segment is projected to reach a value of US$ 3,127.0 Mn by the end of the forecast period.

Competitive Landscape

Over the past few years, development in the petroleum and petrochemical industries and changes in government policies have been witnessed to increase the applications of refinery catalyst. Several key players are focusing on sustainable development, they are focusing on investing a fair share of their annual turnover to boost the application of the catalyst. The emergence of various manufacturers had also been witnessed in global businesses especially in China, India, Russia, and the U.S.

For Instance

• In July 2021, BASF expands chemical catalyst recycling capacity and capability. The site recycles precious metals from industrial scrap, primarily chemical catalysts, and will complement BASF’s existing precious metal recycling.
• In Aug 2020, ExxonMobil and Global Clean Energy Holdings sign an agreement for renewable diesel.
• In Jun 2020, Clariant and the VUCHT research institute in Duslo are transforming waste into wealth. Using a proprietary technique and Clariant's HYDEX E next-generation hydro-dewaxing catalyst, VUCHT has successfully converted plastic waste into premium winter fuel distillate.

The latest study conducted by Future Market Insights covers all the strategies and success factors of key manufacturers of the market.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis is available in the report.

Scope Of Report

Global Refinery Catalyst Market By Category

By Product Type:

• FCC (Fluidised Catalytic Cracking)
• Reforming
• Hydrotreating
• Hydrocracking
• Isomerization & Alkylation

By Ingredients:

• Zeolites
• Metals
• Chemical Compounds

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa