What Has Been the Growth of the Production Chemicals Market So Far?
The production chemicals market has seen considerable growth due to a variety of factors.
• The market size of production chemicals has seen substantial growth in recent times. It is projected to escalate from $6.68 billion in 2024 to $7.22 billion in 2025, with a compound annual growth rate (CAGR) of 8.1%.
The historic growth has been driven by factors such as an increase in oil and gas exploration and production, a surge in demand for specialty chemicals, expansion in deepwater drilling endeavors, the growth of the enhanced oil recovery (EOR) market, and the necessity for water management solutions.
How Will the Production Chemicals Market?
The production chemicals market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of production chemicals is anticipated to witness robust growth in the coming years, reaching a value of $9.3 billion by 2029 with a compound annual growth rate (CAGR) of 6.5%.
The projected growth during the forecast period is largely due to the rising demand for oil and gas production, the escalation in global energy consumption, the requirement for enhanced oil recovery methods, an increased need for hydraulic fracturing chemicals, and a burgeoning demand for corrosion inhibitors. Noteworthy trends predicted for the forecast period include the broadening of industrial activities, the enlargement of the petrochemical sector, the expansion of renewable energy initiatives, the integration of cutting-edge technology, and strategic alliances and collaborations.
Which Factors Are Boosting Growth In The Production Chemicals Market?
Expectations for the production chemicals market's growth are fueled by the escalating need for oil and gas. This upsurge is prompted by factors such as economic expansion, surge in population, industrial growth, transportation requirements, the need for petrochemicals, and shifting weather conditions. In the oil and gas sector, production chemicals serve a pivotal function by facilitating production optimization, boosting operational effectiveness and safeguarding the durability of production machinery. For instance, the Net Zero and Department for Energy Security, a UK government department, reported in September 2024 that primary oil net imports had surged by 16% in contrast to Quarter 2 of 2023. This surge was due to exports rising by 4.2% in the second quarter of 2024, outpaced by a rise in imports by 8.7%. Concurrently, during the second quarter of 2024, petroleum product demand saw a 1.7% growth compared to the equivalent quarter in the previous year, 2023. Thus, the escalating need for oil and gas provides impetus to the growth of the production chemicals market.
What Key Areas Define The Segmentation Of The Global Production Chemicals Market?
The production chemicals market covered in this report is segmented –
1) By Type: Demulsifiers, Corrosion Inhibitors, Scale Inhibitors, Asphaltene Inhibitors, Biocides, Scavengers, Surfactants, Other Types
2) By Oilfield Type: Onshore, Offshore
3) By Application: Cementing, Production Chemicals, Drilling Fluids, Improved Oil Recovery, Well Stimulation, Other Applications
Subsegments:
1) By Demulsifiers: Oilfield Demulsifiers, Industrial Demulsifiers
2) By Corrosion Inhibitors: Oil And Gas Corrosion Inhibitors, Water Treatment Corrosion Inhibitors
3) By Scale Inhibitors: Organic Scale Inhibitors, Inorganic Scale Inhibitors
4) By Asphaltene Inhibitors: Solvent-Based Inhibitors, Non-Solvent-Based Inhibitors
5) By Biocides: Glutaraldehyde-Based Biocides, Non-Oxidizing Biocides
6) By Scavengers: Hydrogen Sulfide Scavengers, Carbon Dioxide Scavengers
7) By Surfactants: Anionic Surfactants, Cationic Surfactants, Non-Ionic Surfactants
8) By Other Types: Fluid Loss Additives, Foaming Agents
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How Are Emerging Trends Reshaping The Dynamics Of The Production Chemicals Market?
Leading organizations in the production chemical market are leaning towards innovative technologies, like chemical processing technology, to maintain their market edge. This technology utilizes scientific principles and technical abilities for the operation of chemical processing equipment, fundamental in industries such as chemical manufacturing. To illustrate, Sulzer Ltd., a Swiss-based industrial engineering and manufacturing company, introduced SULAC in December 2023. This is a new licensed technology that aids polylactic acid (PLA) manufacturers in smoothly integrating new lactic acid to lactide ability, an essential part of PLA's eco-friendly bioplastic production. The transition from lactic acid to lactide, an action necessary for PLA production, is constrained by the present supply, and SULAC offers the desired support.
Who Are the Key Players In The Production Chemicals Market?
Major companies operating in the production chemicals market are:
• BASF SE
• Dow Inc.
• Mitsubishi Chemical Corporation
• Schlumberger Limited
• Baker Hughes Company
• Evonik Industries AG
• Halliburton Company
• Sasol Limited
• Solvay S.A.
• Chevron Phillips Chemical Company LLC
• Ecolab Inc.
• Akzo Nobel N.V.
• Huntsman Corporation
• Albemarle Corporation
• FMC Corporation
• Clariant AG
• SNF Group
• Kemira Oyj
• Stepan Company
• Croda International Plc
• Ashland Global Holdings Inc.
• Innospec Inc.
• W. R. Grace & Co.
• Cabot Corporation
• Calumet Specialty Products Partners
• L.P.
• LANXESS AG
• Lonza Group Ltd.
What Is The Most Dominant Region In The Production Chemicals Market?
North America was the largest region in the production chemicals market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the production chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
