Low Dosage Hydrate Inhibitors Market – Key Findings
- The global low dosage hydrate inhibitors market size exceeded the revenues of US$ 51 Mn in 2018.
- Low dosage hydrate inhibitors market value is projected to grow at a robust 8% CAGR over 2018–2028.
- Increasing environmental concerns are pushing the use of low dosage hydrate inhibitors.
- Europe accounted for a prominent share; however, Latin America is projected to grow at a higher growth rate.
- Increasing offshore gas exploration and rising acceptance of low dosage hydrate inhibitors over thermodynamic hydrate inhibitors are important factors for the growth of the low dosage hydrate inhibitors market.
- Demand for anti-agglomerate hydrate inhibitors is likely to see robust growth in terms of value during the forecast period.
- Anti-agglomerate hydrate inhibitors are more biodegradable than kinetic hydrate inhibitors, which makes them the choice for environmental standard compliance.
Top 2 Factors Shaping the Low Dosage Hydrate Inhibitors Market
Growing Preference for Low Dosage Hydrate Inhibitors over Thermodynamic Inhibitors
Thermodynamic hydrate inhibitors have been in use to address challenges related to gas hydrates, particularly in the oil & gas industry. However, thermodynamic inhibitors, as are required in large volumes, account for significantly high logistical costs, and need substantially large storage tanks, followed by large injection lines.
Low dosage hydrate inhibitors on the other side are required in significantly less quantity and thus are cited beneficial for manufacturers in terms of costs, transportation, storage, and efficiency. Low dosage hydrates have been proven as cost-effective as well as effective hydrate treatment compounds, which will continue to foster their consumption over conventional thermodynamic hydrate inhibitors.
Increasing Compliance with Environmental Regulations
Increasing focus on environmental compliance in the oil & gas industry is pushing the demand for biodegradable materials. Usage of thermodynamic hydrate inhibitors is constrained by their low sustainable quotient, which has been pushing other environmentally sustainable alternatives – including low dosage hydrate inhibitors.
While manufacturers are constantly exploring new applications of low dosage hydrate inhibitors, they are also augmenting investments in product innovations to cater to sustainability demands.
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Low Dosage Hydrate Inhibitors Market: Structure Analysis
- Developmental strategy if key players in the global low dosage hydrate inhibitors market is concentrated at innovation in terms of high biodegradability and improved hydrate inhibition capabilities.
- Strategic acquisitions are also being considered as a key to product portfolio expansion.
- New product development with a combination of various other production chemicals is likely to emerge as a trending product differentiation strategy among prominent companies in the low dosage hydrate inhibitors market.
- The global market for low dosage hydrate inhibitors is characterized by moderate-to-high competition, highlighting more profitable opportunities emerging in regions leading in offshore natural gas production.
Low Dosage Hydrate Inhibitors – The Key to Cost Reduction & Performance Optimization
Low dosage hydrate inhibitor (LDHI), being an effective hydrate inhibitor type, is actively sought for various applications in oil and gas fields. As per the target applications’ requirements, different types of low dosage hydrate inhibitors, such as anti-agglomerates and kinetic inhibitors, are deployed. Use of low dosage hydrate inhibitors is gathering significant momentum, as they effectively control and oversee hydrates to maintain flowline and pipeline safety & integrity while reducing total costs in case of offshore applications.
Market Set for a Buoyant Growth Through 2028
Worldwide sales of low dosage hydrate inhibitors is set for a robust growth over the assessment timeline, driven by a massive end user shift from conventional thermodynamic inhibitors to low dosage hydrate inhibitors. Adoption of low dosage hydrate inhibitors will further continue to be underpinned by multipronged cost benefits associated with flow maintenance, logistics, and storage.
Europe & East Asia Stay at the Forefront of Demand, Latin America to Promise New Opportunities
Europe will continue being the pre-eminent region for manufacturers of low dosage hydrate inhibitors in 2019 and beyond. East Asia is likely to follow suit and emerge as the second largest market for low dosage hydrate inhibitors, owing to large scale production of offshore natural gas. Latin America is likely to emerge as a high growth market for LDHI through 2028.
Anti-Agglomerate or Kinetic Hydrate - Who Would Lead the Adoption Race?
End-user preference for a specific product type in the low dosage hydrate inhibitors market would remain highly influenced by performance. Though kinetic hydrate will witness substantial demand in 2019, sales of anti- agglomerate are likely to pick pace and grow at an exponential rate through 2028. This can be attributed to the fact that Anti-agglomerate offer crucial advantages, some of them being lower capital costs, lower transportation costs, high compatibility, and others.
- Anti-Agglomerate (AA) Inhibitors
- Kinetic Hydrate Inhibitors (KHIs)
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa