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Demulsifier Market size is estimated to record significant growth trajectory over 2032 due to the surging demand for emulsion breakers in crude oil production.
Widely known as dehydration chemicals, demulsifiers are employed to destabilize and enable the coalescence of crude-oil emulsions. The demand for crude oil has skyrocketed as a result of the growing industrial burden and the surging residential and commercial energy needs worldwide. The constantly escalating global population across countries such as India, China, and the U.S. will also play a prominent role in large-scale crude oil production, thus highlighting the importance of demulsifiers.
According to the International Energy Agency (IEA) report, the global oil demand is poised to grow by 1.9 million barrels per day in 2023, reaching over 101 million barrels per day, with the majority of the demand coming from China. Similar trends across leading developed and developing nations will force oil firms worldwide to ramp up production, subsequently contributing the demulsifier market demand.
Based on type, the industry share from water-soluble demulsifiers is set to record stellar growth by 2032 driven by the numerous benefits offered by the product. Water-soluble demulsifiers ensure highly effective braking processes through adequate compatibility with emulsions. Additionally, these types of emulsion breakers are economical as compared to other alternatives, as they are non-toxic, non-hazardous, and anti-inflammatory. They also eliminate the risk of accidents associated with material handling whilst ensuring easy removal of salt in crude oil. The ongoing developments in novel water-soluble polymer demulsifiers will further enhance the industry growth.
demulsifier market from oil sludge treatment is expected to witness surging demand through 2032. Demulsifiers play a critical role in the recovery of oil from petroleum sludge as they enable the separation of water. Sludge treatment has turned extremely important amid the increasing focus on reducing the environmental impact of oil and gas production. Oil sludge resourceful treatments help in reducing the moisture content of oily sludge from 80%-98% to about 50%. Several governments are mandating effective production practices to limit the rate of pollution by implementing advanced recovery and extraction processes, thereby driving the product demand.
Middle East and Africa (MEA) demulsifier market is poised to grow at an exponential rate over 2032 due to the growing crude oil production across countries such as the UAE, and Saudi Arabia. For instance, as per government data, the average oil production in Saudi Arabia increased by 20% between January 2022 to August 2022, reaching over 10.5 million barrels per day. The region is a hub for crude oil and natural gas production, with favorable government backing and significant international investments for scaling up production levels in the region.
Global demulsifier market key players includes BASF S.E., The Dow Chemical Company (Dow Inc.), AkzoNobel N.V., Croda International, Clariant AG, and Baker Hughes Inc. These firms are foraying into strategic partnerships to boost their production capacities. For instance, in March 2022, Baker Hughes signed an agreement with Dussur, a Saudi Arabian investment firm to provide oilfield and industrial chemicals.
The outbreak of COVID-19 pandemic hindered several growth prospects for the demulsifier market owing to the declining product demand. As operators worldwide were forced to shut down production of oil and gas in compliance with strict lockdown regulations, the need for processing chemicals was reduced dramatically during the pandemic. Furthermore, supply chain disruptions caused by the Russian invasion of Ukraine introduced new roadblocks for energy companies.
Russia, one of the largest crude oil exporters witnessed an energy crisis after several nations imposed strict sanctions on the country and banned the import of multiple commodities, including oil and gas. However, the growing number of onshore and offshore drilling activities across the world will foster demand for novel demulsifiers.