The chemical injection skid market is estimated to grow at a CAGR of 3.24% during the forecast period.
The main drivers of the chemical injection skid market are the significant increase in the chemical industry and the rapid development of water treatment applications. For instance, the U.S. Environmental Protection Agency (EPA) predicts that just to maintain present levels of service, the U.S. drinking water and wastewater infrastructure will need to spend up to USD 472.6 billion over the next 20 years. To maintain bulk levels in the primary process line, the majority of chemical injection skids offer concentrated chemicals at accurate dosages. There is widespread agreement that the federal government needs to invest in infrastructure for the collection, treatment, and disposal of wastewater.
This is due to the increasing need for a wide range of onshore and offshore activities to improve oil recovery applications, as well as the expanding use of chemical injection techniques to inject various types of specialized chemicals to boost production, prevent corrosion, and decrease foaming. The market for chemical injection skids will also increase dramatically over the next few years as a result of governments from different nations across the world steadily increasing expenditures in the development of the oil and gas industry. For instance, with the largest year-over-year growth in history, oil and gas upstream capital expenditures rose by 39% to $499 billion in 2022, the highest level since 2014 and the highest level ever. According to the International Energy Forum.
Due to its effectiveness in lowering corrosion and the generation of deposits like wax, scales, and foam in liquid chemical treatment systems, the need for corrosion inhibitor chemical injection skids is anticipated to increase. In the chemicals sector, they are commonly used. As a result, the rise of the chemical industries has a significant impact on the market. For instance, as per the Indian Brand Equity Foundation, the Department of Chemicals and Petrochemicals received funding from the government of Rs. 173.45 crore ($20.93 million) during the Union Budget 2023–24. Moreover, refinery capacities are increasing as a result of increased petrochemical product usage and demand. The rise in oil and gas operations worldwide also contributes to the expansion of the chemical injection skid market size.
Chemical injection skids are utilized for both the inhibition of gasoline and other fuel oil additives, as well as the injection of chemicals for water treatment to treat the wastewater produced. Moreover, they are increasing the demand in water supply and water treatment industries as a result of the rising worldwide population and decreasing supplies of clean, drinkable water. Chemical injection skids allow chemicals for the treatment of water, water softening, and disinfection to be injected into water treatment systems. For instance, Deputy Under Secretary for Rural Development for the U.S. Department of Agriculture (USDA), Bette Brand, committed $281 million to 106 projects in 2020 to upgrade the water and wastewater infrastructure in rural areas throughout 36 states and Puerto Rico.
Integration of the Internet of Things (IoT) and data analytics is a crucial trend that is gaining traction in the market for chemical injection skids. This involves the collection of real-time data from chemical injection systems using networked devices and sensors, followed by data analysis to improve operational effectiveness and optimize the injection process. Baker Hughes, for instance, offers a Smart Injection System. The early ESP failures are avoided because of the smart injection systems technology, which was created in partnership with Baker Hughes Artificial Lift and Oilfield Chemicals Services. The fully automated injection equipment allows for remote injection rate adjustment and level control monitoring to show customers how much chemical is being consumed.
The chemical injection skid market in the Asia Pacific region is anticipated to increase as refining activities in these nations increase. For instance, Japan had more than 44 million barrels of domestic oil reserves in 2022. Refineries accounted for the majority of the nation's 101,000 barrels per day (b/d) of production in 2022. Chemical injection skids market expansion is undoubtedly being driven by ongoing investments and developments in end-use industries such as wastewater treatment, pharmaceuticals, oil & gas, and others throughout the forecast period. Moreover, the expansion of waste treatment in the area foreshadows the expansion of the Asia Pacific market for chemical injection skids.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 3.24% from 2022 to 2029 |
| Base Year | 2022 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
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| Companies Covered |
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| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |