Refinery Catalyst Market to Expand 1.5X by 2027
The oil & gas sector accounts for around 10% of human-created greenhouse-gas (GHG) emissions, and generates fuels that translate to over 30% of global emissions. Considering the escalating need to react to climate change, the industry will have to play a big part by transitioning its portfolios to net-zero emissions in the decades ahead. Refinery catalysts have been garnering good reputation, as they help reduce the impact of gasoline and diesel on the environment. With government regulations becoming more stringent, the global refinery catalyst market will attain a valuation of US$ 10 Bn by the end of forecast period, 2019-2027.
Refinery Catalyst Market - Key Research Findings
- The global refinery catalyst market was valued at US$ 7 Bn in 2018.
- The refinery catalyst market is anticipated to expand at a CAGR of 4% over the forecast period of 2019-2027.
- The FCC catalyst segment, by product, in the refinery catalyst market, is anticipated to be the dominating segment throughout the forecast period.
- The dominance of the FCC segment is attributed to the fact that, FCC units are installed in large numbers and in almost every refinery, as they are used to produce numerous end products during crude oil processing.
- Asia Pacific is expected to dominate the global value and volume share in the refinery catalyst market.
- The Asia Pacific region accounts for more than 45% of total global crude oil refining production, led by significant refinery capacities in China and India. The enormous refining potential in the region and planned exansion projects are expected to position Asia Pacific as the leading market in the global refinery catalyst market.
Key Factors Shaping the Refinery Catalyst Market
Recovering Oil & Gas Prices to Pave Way for New Projects
During 2014-2016, the slowdown in the oil & gas industry had subsequently resulted in a huge decline in exploration and production activities in the oil & gas industry, which resulted in low demand for refinery catalysts. For instance, drilling activity witnessed a reduction of 30% in 2016 as compared to 2015, whereas, the U.S. registered 45% decline. With efforts being made by major oil producing countries to counter declining oil & gas prices, the oil & gas industry has witnessed a breath of new life in the recent years.
OPEC and non-OPEC countries came to an agreement in 2016 to cut down crude oil production levels to counter the supply-demand gap, which had a positive impact on oil prices. This recent surge in oil & gas prices has ramped up refinery production, driving the demand for refinery catalysts as well. With global crude oil prices and trade stabilizing, refinery catalysts are anticipated to witness healthy demand in the coming years.
Backward Integration - An Opportunistic Area for Manufacturers
Refinery catalyst manufacturers depend on a limited number of suppliers for the procurement of raw materials such as rare-earth materials and other ingredients like zeolites. The cost of these raw materials is high and often poses a challenge to manufacturers towards increasing their operating margins. Hence, backward integration to develop raw materials in-house can save significant procurement costs and increase operating margins for refinery catalyst manufacturers.
Rising Greenfield and Brownfield Projects Amplify Demand
Greenfield and brownfield projects in countries/regions such as India, China, Brazil, the US, and the Middle East have increased over the last two years. This is due to the growing efforts by petroleum product producers to meet the growing demand for gasoline, and gain access to emerging, high-growth markets of India, ASEAN, and China in Asia Pacific.
- In March 2017, ExxonMobil expanded hydrocarbon fluid production capacity by 250,000 tons per annum, at its plants in Texas, Singapore, and Antwerp.
- In August 2017, Indian Oil Corporation signed a joint venture agreement with Adani Group to construct a refinery at Mundra Port in Gujarat, India.
Refinery Catalyst Market: Structure Analysis
The global refinery catalyst market is mostly consolidated, with the market led by a handful of manufacturers. Manufactures of refinery catalysts are focusing on establishing long-term contracts with raw material suppliers and refinery operators to reduce costs and increase profit margins, through established distribution networks.
Zeolites - The Preferred Ingredient
High-silica zeolite crystals are the most widely used refinery catalysts by weight across the globe, and exploring mechanisms regarding their formation has been intriguing the chemical industry and the research community. Capturing over half of total market value, these shape-selective refinery catalysts are highly reusable. However, a single type of zeolite fails to satiate the requirement to form a wide range of products - naphtha with high APC value, and gasoline with high octane number. Manufacturers are thus looking to synthesize tailor-made zeolites for advanced and sophisticated applications.
Stakeholders Set their Eyes on APAC
Asia Pacific (APAC) houses a well-established ecosystem of leading manufacturers, and abundance of raw materials. The region continues to be the linchpin of investment prospects, holding around 2/5 of overall refinery catalyst market value. APAC also holds over 45% of total crude oil refining production, globally. Petroleum product manufacturers are capitalizing on greenfield and brownfield projects in countries - China, and India - in order to satiate the ever-growing demand for gasoline. Moreover, these countries recorded a staggering growth in their refined products output.
* This data is only a representation. Actual data may vary and will be available in report.
Backward Integration - A Cost-cutting Approach
Given the high cost of raw materials such as rare-earth materials and zeolites due to limited suppliers, refinery catalyst manufacturers must craft strategies to curb costs and enhance the quality of products. Backward integration - a type of vertical integration - helps businesses efficiently manage the value chain, and provides direct access to the raw materials required for production. The process eliminates the need for middlemen and distributors, thereby cutting production and distribution costs. Refinery catalyst manufacturers must aggressively leverage this opportunity to expand their revenue pool.
Hydrotreating catalysts stay in-demand
FCC catalysts to see adoption decline
Zeolites maintain their lead
Chemical compounds compounds to slide
How Growth will Unfold
Incumbents in the oil & gas industry are toiling hard to keep pace with the sustainability drift, while ensuring cost-effective processes. Hydrotreating refinery catalysts ensure that refineries fulfil product specifications economically. As clean fuel prerequisites continue to gain ground, hydrotreating catalysts will remain commonplace in distillate and pyrolysis gasoline (Pygas) processing units. Fluid catalytic cracking (FCC) catalysts help produce premium-grade gasoline with high octane rating, yet boost production volume. FMI finds that, FCC units produce around half of total transportation fuel, and over one-third of total global gasoline.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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A recent report published by FMI on the refinery catalyst market provides comprehensive insights into several factors and market dynamics affecting market growth, along with a detailed description of the macroeconomic factors, market dynamics, value chain, competitor analysis, and market structure.
Refinery Catalyst Market Taxonomy
The global refinery catalyst market is segmented into three different categories based on product, ingredient, and region.
- Isomerization & Alkylation
- Chemical Compounds
- North America
- Latin America
- Asia Pacific
This section of the refinery catalyst market gives a brief summary of market overview, supply and demand trends, and analyst recommendations for manufacturers involved in the manufacturing of refinery catalysts.
This chapter includes market taxonomy, definition, and key inclusions considered for the research scope of the refinery catalyst market.
A list of critical success factors that can help the market players in the refinery catalyst market are included in this chapter.
In this chapter, volume analysis and forecast of the refinery catalyst market in kilo tons, for historical period and forecasted period are detailed.
Global and regional pricing analysis by product type is detailed in the chapter.
Historical and future market value projections of the refinery catalyst market in “US$ Mn” are detailed in this chapter, along with absolute $ opportunity.
This chapter of the refinery catalyst market report includes various market dynamics, macro-economic factors, forecast factors, and supply chain analysis that are expected to have an impact on the growth of the target market.
On the basis of product type, the refinery catalyst market is segmented into FCC, reforming, hydrotreating, hydrocracking and isomerization & alkylation. This chapter helps readers understand key market trends and latest developments in the refinery catalyst market based on product.
This chapter provides details about the refinery catalyst market based on ingredients, and has been classified into zeolites, chemical compounds, and metals. In this chapter, readers can understand the market attractiveness analysis based on ingredients.
This chapter provides the refinery catalyst market growth across several regions like North America, Europe, Latin America, Asia Pacific, and MEA.
A detailed analysis of growth trends of the North America refinery catalyst market, pricing analysis, regional trends, along with a country-wise assessment that includes the U.S. and Canada are included in this chapter.
Growth scenario of the refinery catalyst market in Latin American countries like Brazil, Mexico, and the Rest of Latin America, along with assessment of the market across target segments has been provided in this chapter.
Important growth prospects of the refinery catalyst market based on its end users in several countries such as Germany, France, the U.K., Russia, and Rest of Europe are covered in this chapter.
A detailed analysis of growth trends of the Asia Pacific refinery catalyst market, pricing analysis, regional trends, along with a country-wise assessment of China, India, Japan, ASEAN, and Rest of Asia Pacific are covered in this chapter.
Growth trends of the refinery catalyst market in the MEA region across GCC, Northern Africa, South Africa, Turkey, and Rest of Middle East & Africa are covered in this chapter.
Growth trends of the refinery catalyst market across emerging countries in the market like India, China, and Mexico are presented in this chapter.
In this chapter, detailed information about the competition tier structure analysis and market concentration of key players in the refinery catalyst market, along with their market presence analysis by region and product portfolio is presented.
Detailed analysis of key players in the refinery catalyst market with company overview, financial performance, strategic overview, and SWOT analysis are presented in this chapter. Some of the market players featured in the report are Albemarle Corporation, W.R. Grace & Co, Axens S.A., Clariant International Ltd., Criterion Catalysts & Technologies L.P., ExxonMobil Corporation, and Haldor Topsoe A/S, among others.
A list of acronyms and assumptions used in the refinery catalyst market report is given.
A description of research methodology used to obtain the market size of the refinery catalyst market is detailed in the section.
How the research was conducted?
- C - Level Executives
- Marketing Directors
- Product Managers
- Business Development Officers
- Production Managers
- Procurement Heads
- Sales Executives
- Raw Material Suppliers
- Industry Experts
- End Users
- Current Market Dynamics and Challenges
- Yesteryear Trends
- Market Characteristics
- Market Performance and Growth Quadrants
- Competition Structure and Market Structure
- Strategic Growth Initiatives
- Near-Term and Long-Term Market Growth Prospects
- Market Segment Splits and Authenticity
- Opinions on Market Projections and Validity of Assumptions
- Industry Publications
- World bank
- Industry Associations
- Company Press Releases
- Annual Reports and Investor Presentations
- Research Papers
- Government Websites and Publications
- Trade Websites
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