Paraffin Inhibitors Market Size

Paraffin Inhibitors Market Size

Paraffin Inhibitors Market size was valued at USD 655.5 million in 2020 and will grow at a CAGR of 5.0% from 2021 to 2027. A rapid rise in demand for specialty chemicals and petroleum products will escalate the market growth.

Paraffin inhibitors are mainly used to prevent wax formation during the production of crude oil in the oil & gas sector. These products are also known as Pour Point Depressants (PPDs) owing to their ability to reduce gelling of wax along with improving the fluidity of the crude oil. The product assists in reducing Operational Expenditure (OPEX) for manufacturers in the long run.

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These trends have led to an increase in the consumption level of paraffin inhibitors in the oil & gas sector over the past few years. Rising oil & gas exploration activities around the globe are expected to drive the product demand over the projected timeframe. The proliferation of unconventional onshore oil production in the U.S. will stimulate the paraffin inhibitors market growth. Additionally, the increasing demand for oil & natural gas in the end-user industries will create a need for developing crude oil capacities, which will further drive the consumption level of paraffin inhibitors at significant rates.

The COVID-19 pandemic has significantly hit the global oil & gas sector owing to the shutdown of the industrial sector and the implementation of social distancing norms. The global petroleum & other liquids production value was estimated to decline by 6.3% in 2020 to reach 94.25 million barrels per day. This change will affect product demand as the majority of paraffin inhibitors are consumed at the upstream level. Shutdown or partial closure of automotive facilities around the globe has created a sharp decline in sales volume of petroleum products. Such trends will limit paraffin inhibitors market expansion in 2020.