According to a new research report by Global Market Insights Inc., the Paraffin Inhibitors Market size will likely reach USD 915 million by 2027. Rise in industrial production especially in developing regions to propel market towards growth.
Increasing oil production to complement sector growth
Paraffin inhibitors are modified chemical compounds designed and manufactured to eliminate clogging and deposition of wax or paraffin in the oil pipelines. Growing oil exploration & production activities around the globe are expected to stimulate the global paraffin inhibitors market growth rate over the forecast period. Major oil & gas companies have planned to develop offshore projects across Latin America, which will be fuel market demand.
Over the next five years, Brazil is expected to develop 16 projects related to oil exploration & production for offshore application, which have already been sanctioned by authorities. Floating Production, Storage and Offloading (FPSO) has planned to develop around 14 projects out of the total oil projects sanctioned in Brazil. Such trends are expected to drive product penetration in the sector.
The ongoing coronavirus pandemic is expected to disrupt the existing ecosystem of the oil & gas sector. Upstream oil companies operating at a lower-scale may find it difficult to sustain during the pandemic period, further leading to an increasing of liquidation among oil producers. However, industry leaders will try to gain benefits from this pandemic owing to their large portfolio and the availability of funds. Such trends will further result in market consolidation in the upstream market.
Companies operating in the downstream and midstream sectors of oil & gas will face challenges of fixed costs. This will create an alarming situation for refineries and assets with higher cost & poor proximity to the emerging non-OECD countries. Such trends are expected to shift the existing business model of the paraffin inhibitors market, which will further drive the need to revamp the sector ecosystem by the end of 2027.
Browse key industry insights spread across 200 pages with 240 market data tables & 28 figures & charts from the report, “Paraffin Inhibitors Market, By Chemistry (Hyperbranched Polyester, Poly Acrylate, Modified Poly Carboxylate, EVA Acrylate Copolymer), By Operation (Upstream, Midstream, Downstream), By Application (Onshore, Offshore), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The poly acrylate subsegment will witness over 4% CAGR by 2027. These chemistries are available in waxy solid or liquid forms and can contain short or long carbon chains. Poly acrylate reduces yield stress required during the restart of a well or pipeline after its unscheduled shutdown. Increasing oil & gas exploration and production activities around the globe may drive the poly acrylate-based paraffin inhibitors market demand.
Mid-stream operations showcase a promising growth outlook
In the operations segment, midstream held the second-largest share, following upstream operations. Midstream companies are majorly involved in storage, marketing, distribution, and transportation activities of oil & gas products. These companies utilize a large network of pipelines to supply oil from one place to another, which are highly susceptible to wax formation on pipeline wall surfaces. Such trends may reduce or block the oil supply from and within pipelines, which will further drive the need for paraffin inhibitors in the sector.
Onshore application segment will witness around 5% CAGR and can be majorly attributed to the proliferation of unconventional oil production activities in the developed regions. A rising focus on shale oil recovery in the U.S. together with growing consumption of oil & gas worldwide will propel the paraffin inhibitors market toward a growth trajectory.
North America to hold a considerable share due to high shale oil & gas production
In 2020, North America will hold more than 20% share in the overall paraffin inhibitors market. The region reported more than 750 million tons of crude oil production in 2016, which is expected to grow at a gradual rate over the forecast period. Additionally, major oil companies are planning to expand their facilities in the U.S., which will further provide opportunities to paraffin inhibitor suppliers.
For instance, ExxonMobil Corporation plans to produce approximately one billion barrels of oil equivalent in the Permian basis by the end of 2024. Similarly, Chevron Corporation expanded its oil resources to seven billion barrels from 2017 to 2019.
Industry players are engaged in market consolidation to increase market share
Industry players are increasingly resorting to mergers & acquisitions to enhance capabilities and expand market share. Key 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.
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