The global refinery process chemical market size is projected to reach USD 5969.7 million in 2024. The sector is anticipated to grow at a CAGR of 5.2% during the forecast period. The sector is estimated to attain a value of USD 9950.4 million by 2034.
The increasing need to reduce carbon emissions has resulted in refineries investing in carbon capture systems. Integration of digital technology, including artificial intelligence (AI), machine learning (ML), and advanced analysis are evolving the refining business.
The circular economy, which is promoting reduction, recycling, and reuse of waste is gaining traction in the industry. Novel materials and catalysts for refining processes are being developed by leveraging nanotechnology.
| Attributes | Description |
|---|---|
| Estimated Global Refinery Process Chemical Market Size (2024E) | USD 5969.7 million |
| Projected Global Refinery Process Chemical Market Value (2034F) | USD 9950.4 million |
| Value-based CAGR (2024 to 2034) | 5.2% |
Companies involved in the development of refinery equipment are turning to 3D printing and additive manufacturing. The incorporation of digital technology and Industry 4.0 is paving the way for the supply of data-driven and intelligent chemicals for refinery processes.
The development of refinery capacity can assist companies to strengthen their presence in the global market. They can benefit from the expanding markets and broaden their consumer base by formulating strategic partnerships.
Manufacturers have a golden opportunity to develop refinery sociality chemicals that facilitate the synthesizing, storage, and utilization of hydrogen in refining processes. This is mainly owing to the increased interest in hydrogen as a clean energy source.
Petroleum refinery chemicals supporting the circular economy are projected to be created to meet the growing demand for resource-efficient and eco-friendly solutions. To achieve energy efficiency, businesses are set to research the possibility of producing chemicals used in refinery processes to enable waste heat recovery systems.
Companies may be required to make additional investments to ensure compliance with stringent environmental regulations or develop novel formulations that would fit the regulatory requirements.
Switching to alternative energy sources, including electric vehicles (EVs) and renewable energy poses a threat to the existing oil and gas industry. This is because the decrease in reliance on fossil fuels is projected to negatively impact the refinery product sector.
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Impact of the Shift toward Bio-based and Renewable Feedstock on the Industry
The shift toward bio-based and renewable feedstock has bestowed manufacturers with the rare chance to lead the industry by creating and selling responsibly sourced chemicals required in refinery operations. Manufacturers can meet the increasing demand for green solutions without having to sacrifice performance by utilizing sustainable chemistry and biotechnology.
This strategy aligns with the global sustainability goals and positions companies as the industry-leading in the race to provide sustainable solutions in a sector where environmental concerns are driving change.
The innovative technologies developed by Petrobas’ Research, Development, and Innovation Center (CENPES), for instance, have resulted in the successful processing of 100% soybean oil in a fluid catalytic cracking (FCC) unit. These technologies are utilized to process 100% renewable feedstock, apply process and catalyst improvements, and produce renewable petrochemical products.
Integration of Circular Plastic Economy is Creating Strategic Avenues
Companies have a high chance of benefiting from petroleum refinery chemicals that align with the principles of circular economy, particularly in the plastic manufacturing sector. Businesses are responding to increasing concerns regarding plastic waste by developing chemicals that enhance sustainability, recycling, and reuse of goods created from petrochemicals.
The approach appeals to environmentally conscious consumer choices and regulatory demands by positioning companies as participants in the circular plastic economy. It also presents businesses as industry leaders in promoting sustainability and ethical resource management in the petrochemical sector.
To help reduce petrochemical imports, India’s Hindustan Petroleum Corp (HPCL) is planning to commence the construction of its 9 million ton-per-year Barmer refinery and petrochemical project in Rajasthan.
India is the world’s third-most prominent importer of oil and is therefore expanding its refining capacity to cater to the growing demand for fuel and petrochemicals. This is likely to help the country in sustaining economic growth.
Digitalization is Reshaping the Sector
The refining process chemical market is being significantly shaped by the integration of Industry 4.0 and digitalization. The Industry 4.0 revolution, typified by the integration of digital technologies in industrial processes is evolving the landscape of the oil refinery chemical sector. Refineries are implementing smart technologies to improve productivity, reduce downtime, and optimize operations.
Refinery catalysts are progressively offering synergistic effects with improved monitoring and control systems as a response to the global shift toward digitalization. The combination of chemical and digital innovation raises operational resilience, boosts efficiency, and positions companies at the forefront of technological leadership in the cutthroat refining sector.
The global refinery process chemical market size was USD 5176.8 million in 2019. The sector grew at a CAGR of 1.9% from 2019 to 2023. The industry size was valued at USD 5697.7 million in 2023.
Operations of refineries had become increasingly complex during the historical period owing to evolving regulations and the need to handle a variety of crude oils. Refineries focused on utilizing specialized chemicals, including chemical inhibitors and anti-fouling agents to maintain asset integrity and prevent unplanned shutdowns.
It resulted in a spike in demand for these compounds during that time as preventive maintenance became crucial. Expansion of the specialized chemical sector witnessed a surge in demand owing to the increasing emphasis on preventive maintenance techniques.
The refinery process chemical market forecast projects the sector to reach a value of USD 5969.7 million in 2024. It is anticipated to grow at a CAGR of 5.2% throughout the forecast period to reach a size of USD 9950.4 million by 2034. Advancements in materials science, especially nanotechnology are anticipated to facilitate the synthesis of sophisticated downstream chemicals.
Nanostructure materials along with refinery catalysts with enhanced efficiency and selectivity are expected to play a crucial role in addressing specific issues in the refining procedures and promoting innovation in the sector. The global energy transition toward clean and renewable sources is anticipated to have a substantial impact on the refining business.
Oil refinery chemicals particularly designed to cater to these evolving requirements are experiencing high demand as refiners can be tailored to create alternate fuels and chemicals. Companies that can anticipate and adapt to the evolving energy landscape are likely to have a greater chance of success.
Principal Consultant
Two prominent characteristics of Tier 1 firms are their stability and brand awareness. These industry giants make up a sizable chunk of the industry. They integrate contemporary technologies in manufacturing processes to increase production.
The companies have huge production units dispersed across several locations and an extensive product portfolio. BASF SE, Dow Chemical Company, Albemarle Corporation, ExxonMobil Chemical, and Chevron Phillips Chemical are a few of the well-known businesses in Tier 1.
Tier 2 is made up of organizations operating in specific locations. These companies are renowned at the global stage and have a big impact on the regional economy. Key players have a wealth of business expertise. A few businesses in Tier 2 include Clariant AG, Nalco Champion, Baker Hughes, Johnson Matthey, and Air Products and Chemicals.
Medium-to small-sized businesses with regional headquarters make up a sizeable portion of Tier 3. These enterprises, compared to businesses in Tier 1 and Tier 2, are less structured and formalized. The limited geographical reach translates to less competition. Leading Tier 3 companies are Dorf Ketal Chemicals, Albemarle Corporation, GE Water & Process Technologies, Cestoil Chemical Inc., and Thermax Limited.
The section below provides organizations with an overview of the refinery process chemical industry. It consists of a detailed examination of the emerging trends and opportunities in the sector on a country-by-country basis. This country-specific data into the dynamics of the sector is likely to help businesses understand the complex nature of the sector.
The analysis consists of key factors, potential challenges, and forecasts influencing the demand, production, and consumption within each country. This section aims to help organizations make informed decisions and develop effective strategies tailored to individual countries.
India is projected to emerge as a dominating country in the sector during the forecast period with an estimated CAGR of 7.8%. China, Spain, and France are expected to follow closely behind India to become the leading countries with projected CAGRs of 5.9%, 3.9%, and 3.7%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 7.8% |
| China | 5.9% |
| Spain | 3.9% |
| France | 3.7% |
| Italy | 3.4% |
India, being the third-most important importer of oil, is focusing on increasing its refining capacity to meet the rising demand for petrochemicals and fuel, thereby supporting economic growth. The country is progressively adopting advanced refining technology and process chemicals to meet the Bharat Stage VI emission standards.
Companies offering solutions that reduce the sulfur quantity in products, facilitate BS-VI compliance, and enhance quality are meeting the critical requirements of the sector amid the evolving emission standards. The country’s downstream petrochemical sector is expanding swiftly owing to the rising domestic demand and India’s high export potential.
The trend has created a substantial demand for specialized chemicals used in refinery processes. It is expected to be beneficial for manufacturers to ensure product quality, boost petrochemical output, and make the integration of refining and petrochemical operations seamless.
China is focusing on developing its hydrogen economy, thereby opening up novel opportunities. The country’s strategic emphasis on developing a hydrogen economy offers several opportunities for refinery process chemical providers that delivers production, purification, and application of hydrogen in refining processes.
Local manufacturers that can align their products with the rising demand for an energy environment to prioritize hydrogen are set to attain a competitive edge in the evolving landscape.
The rise of independent refineries, also known as teapot refineries, in China’s refinery sector, has introduced several operating procedures and configurations in the sector. Refinery process chemical suppliers in the country are focusing on increasing their market share by offering flexible and customized solutions designed to cater to the specific requirements of independent refineries.
The shale gas revolution in the United States supports growth of the refinery process chemical market. This revolution, marked by an increase in shale gas and oil output, has given refineries access to a substantial supply of reasonably priced feedstock.
It necessitates the use of efficient chemicals in refinery processes to increase the processing of diverse and unconventional feedstock. It also assists in boosting the profitability of refining operations and ensuring efficient conversion and superior-quality end products.
The country has an expanding demand for refinery process chemicals that are specifically designed to serve integrated refining and petrochemical complexes owing to growth of the petrochemical hubs along the Gulf Coast and other prominent areas in the United States.
Manufacturers providing refinery specialty chemicals to these hubs for feedstock treatment, catalyst management, and product enhancement are likely to benefit from the synergies created by co-locating operations.
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The section below offers organizations with insightful data and analysis of the two leading segments of the target sector. Segmentation of these categories allows businesses to understand the dynamics of the sector and to invest in the beneficial zones.
Analysis of the growth of the refining process chemicals sector enables businesses to obtain a thorough understanding of the trends, opportunities, and challenges present in the market. This analytical data is likely to assist organizations to navigate the complex business environment and make informed decisions.
In terms of application, the water treatment segment is likely to dominate the sector with a value share of 35.1% in 2024. The oil and gas industry is emerging as the leading end-user with a value share of 61.7% in the same year.
| Segment | Water Treatment (Application) |
|---|---|
| Value Share (2024) | 35.1% |
Refineries have a high demand for water for several processes, including desalination, cooling towers, and steam generation. This results in the generation of a significant amount of wastewater containing contaminants like grease, oil, and suspended solids.
Governments worldwide are implementing stringent regulations on the handling of wastewater by refineries. Policies mandate effective treatment to minimize pollutants and ensure safe discharge or reuse of the wastewater.
Rising costs of sludge disposal are pushing refineries to explore ways to reduce sludge volume. Contemporary refineries are seeking methods to operate sustainably and efficiently.
Water treatment chemicals assist in optimizing water usage, reducing freshwater intake, and enhancing the performance of the process. An increase in extraction processes of shale gas can cause water contamination. Refineries processing crude materials therefore require specialized water treatment chemicals to tackle these novel pollutants.
| Segment | Oil and Gas Industry (End-user) |
|---|---|
| Value Share (2024) | 61.7% |
Chemicals involved in the refining processes are primarily consumed by the oil and gas sector, particularly petroleum refineries. These chemicals play a critical role in several stages of transforming crude oil into usable products like diesel, jet fuel, and gasoline. Distillation aids, including antifoam agents and corrosion inhibitors ensure seamless operation and protection of equipment during the primary separation of several components in crude oil.
Conversion procedures, including cracking and reforming are heavily dependent on catalysts to optimize yields and quality of valuable fuels. The blending procedure also utilizes particular distinct chemicals to achieve the desired properties in the end product.
Refineries handle a larger volume of crude oil compared to other end-users. This results in a high demand for refinery process chemicals throughout the refining process in several sections of the oil and gas sector.
Key market players, including The Dow Chemical Company, Chevron Phillips Chemical Company LLC, Exxon Mobil Corporation, and Royal Dutch Shell PLC are constantly investigating and developing novel, efficient, and sustainable refinery procedures chemicals.
This involves the creation of targeted catalysts for particular refining procedures resulting in high yields and enhanced product quality. The development of sustainable water treatment chemicals that are effective at eliminating pollutants while reducing their influence on the environment is gaining impetus.
Manufacturers are focusing on developing water treatment chemicals and other process aids derived from bio-based materials. This is likely to assist refineries to meet the stringent environmental regulations. There is ongoing research into finding chemical solutions that would enable refineries to reuse water in the procedures, thereby decreasing freshwater usage and contributing to water sustainability efforts.
Companies are also focusing on developing cost-efficient corrosion inhibitors that have long lifespans and less maintenance requirements in refineries. Integration of digital tools like sensor-based monitoring systems and AI-powered optimization software can assist in optimizing chemical dosing for water treatment and other processes, thereby reducing waste and increasing efficiency.
AI tools are set to help predict equipment problems and potential corrosion issues. This enables preventive maintenance and helps reduce downtime. These tools can also assist businesses by developing data-driven recommendations and enhancing the process performance and chemical usage.
Businesses are offering complete solutions to consumers, including technical support, on-site application expertise, and performance insurance. This approach is projected to be desirable to refinery owners looking for streamlined experiences.
They are also working toward providing compelling value propositions to refineries by providing solutions that decrease the operational costs, including energy consumption and equipment maintenance requirements.
Industry Updates
Based on product type, the sector is divided into catalysts, pH adjustors, anti-fouling agents, and corrosion inhibitors.
By refinery process conversion type, the segment is divided into water treatment and petroleum treatment.
Refinery process chemicals have applications in the oil and gas, chemical, and water treatment industries.
The sector is spread across North America, Latin America, Western Europe, South Asia, East Asia, Eastern Europe, and the Middle East and Africa.
The sector is anticipated to reach USD 5969.7 million in 2024.
The sector is set to reach USD 9950.4 million by 2034.
The Dow Chemical Company and Chevron Phillips Chemical Company LLC.
India is expected to lead with a CAGR of 7.8% through 2034.
The sector is projected to grow at a CAGR of 5.2%.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Product Type
6.2. Refinery Process Conversion Type
6.3. End Users
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type
7.1. Catalyst
7.2. pH Adjustors
7.3. Anti-fouling Agents
7.4. Corrosion Inhibitors
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Refinery Process Conversion Type
8.1. Water Treatment
8.2. Petroleum Treatment
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User
9.1. Oil and Gas Industry
9.2. Chemical Industry
9.3. Water Treatment Industry
9.4. Others
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East and Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Product Type and Refinery Process Conversion Type for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. The Dow Chemical Company
20.2. Chevron Phillips Chemical Company LLC
20.3. Exxon Mobil Corporation
20.4. Royal Dutch Shell PLC
20.5. SABIC (Saudi Basic Industries Corporation)
20.6. Clariant AG
20.7. Evonik Industries AG
20.8. Honeywell International Inc.
20.9. Albemarle Corporation
20.10. Johnson Matthey
20.11. W.R. Grace & Co.
20.12. Arkema S.A.
20.13. DuPont de Nemours, Inc.
20.14. Haldor Topsoe A/S
Chemicals & Materials
November 2023
REP-GB-18391
333 pages
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Refinery Process Chemical Market
