Increasing demand for low-grade economic crude is set to drive paraffin inhibitors market growth, says this report.
SELBYVILLE, Del., January 20, 2021 (Newswire.com) – Based on Global Market Insights Inc.’s report, the Paraffin Inhibitors Market size was estimated at $655.5 million in 2020 and is slated to surpass $915 million by 2027, registering a CAGR of 6% from 2021 to 2027. The report provides a comprehensive analysis of the top winning strategies, wavering industry trends, drivers and opportunities, top investment avenues, competitive scenarios, market estimations and size.
Paraffin inhibitors prevent wax deposition on cold surfaces such as pipeline walls, lower fluid viscosity, and offer better pumpability. Paraffin is a naturally occurring substance in crude oil, which causes flow challenges in the pipeline during production, storage, and transportation of oil & gas. With increasing crude oil production and rapidly rising industrial production, the use of paraffin inhibitors is expected to grow at a considerable pace.
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Paraffin inhibitors play a pivotal role in the upstream sector of oil & gas, as they provide superior flowability and enhanced productivity of crude oil. Rising consumption of oil & gas across major end-user industries will create the need for an increase in oil supply by 2027. Globally, crude oil production was projected to grow at a considerable rate from 2016 to 2019. The monthly data for crude oil production in July 2020 indicated around 1.5% growth compared to June 2020. According to estimates of the Organization of Petroleum Exporting Countries (OPEC), countries including Saudi Arabia, Iraq, the UAE, & Kuwait have increased their production output in July 2020.
Apart from increasing demand from the end-user industry, advancements and innovations in the sector are also observed to be other driving factors as manufacturers are increasingly coming up with alternatives to reduce carbon footprint. Oil & gas companies spend a significant amount of time and money on technological advancements to improve the overall system efficiency. Increasing government pressure on curbing carbon footprints is driving the need for sustainability in the sector. Major companies are investing in new technologies that promote zero-carbon emissions. Such trends are further driving the need for new materials in the paraffin inhibitors market. Ongoing research activities related to the usage of biodegradable and waste materials may create innovations in the sector.
The ongoing COVID-19 pandemic has significantly disrupted crude oil production owing to plummeting demand. Major oil-producing countries had to dial-back their production and refining operations. Due to the contagious nature of the virus, the majority of countries have imposed stringent lockdowns and movement restrictions on domestic & international travel and trade. These restrictive factors have significant impacts on paraffin inhibitor demand. However, the paraffin inhibitors market share is expected to rebound in 2021 with the establishment of strict guidelines and the demand gradually returning to normalcy.
Based on chemistry, the modified polycarboxylate segment will witness over a 4.5% CAGR. These chemistries possess high solid content and showcase excellent performance as wax inhibitors. Many researchers are carrying out experiments to improve its viscosity and strength will increase its popularity in the oil & gas sector, further driving the paraffin inhibitors market segment growth over the projected timeframe.
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Downstream is expected to showcase over a 3.5% CAGR over the forecast timeframe. Downstream companies are engaged in the refining, purification, and processing of raw crude oil and petroleum products. The companies also utilize inhibitors for removing paraffin from flowlines & pipelines and in refinery clean-up operations. Rising consumption of petrochemical and oil products in the end-user industries is expected to support the paraffin inhibitors market growth from downstream.
The Asia Pacific paraffin inhibitors market size will exceed USD 95 million by 2027. Major countries including India, Japan, South Korea, & Australia rely on imports to meet their domestic consumption of crude oil. Additionally, the region accounts for more than 30% of the world’s oil demand, which is majorly contributed to the large population and industrialization. However, Asia Pacific has proven oil reserves of 48 billion barrels, out of which around 50% are located in China. Increasing upstream investments in the region supported by governments’ focus on building domestic infrastructure for the oil & gas sector will be driving product penetration post-2027.
Strategic mergers & acquisitions by industry players will increase regional presence. Major players in the paraffin inhibitors industry include BASF SE, The Dow Chemical Company, Chemiphase International, SI Group, Inc., Croda International PLC, Evonik Industries, Champion X, Baker Hughes Company, and Clariant.
Read the latest blog on “Increasing oil & gas exploration activities to enhance the demand for paraffin inhibitors“: https://people.partilepep.com/news/261/paraffin-inhibitor-industry/
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Source: Global Market Insights Inc.