Refining Catalysts Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product Type (FCC Catalyst, Reforming Catalyst, Hydro Processing Catalyst, Isomerization Catalyst, Alkylation Catalyst, Others), By Catalyst (Zeolite, Aluminium Hydrosilicate, Bauxite, Silica-alumina), And By Geography- Forecasts From 2022 To 2027

The refining catalysts market is anticipated to grow at a CAGR of 3.25% in order to attain a market size of US$4.227 billion by 2027, from US$3.380 billion in 2020.

Stringent emission control regulations and an increase in the use of petroleum derivatives are driving the market for refining catalysts. The increasing investments in refineries coupled with the augmenting demand for transportation fuel are boosting the growth of the global refining catalysts market during the forecast period. The increasing use of nano-catalysts in various refining procedures is expected to uplift the growth of the market in the forecast period. Furthermore, the growing global energy demand is poised to fuel market growth.

Rising refining catalyst market growth in the Asia Pacific and North America

Geographically, the Asia Pacific region is expected to have a significant market share owing to the increasing number of refineries in the region. Moreover, the increasing demand for transportation fuel is also boosting the market’s growth in the region. The North American region is also expected to have a significant market share on account of the presence of large refineries in the region.

Additionally, the presence of the largest oil and gas companies with the largest refining capacity in the world is further strengthening the market demand in the forecast period. One of the examples includes the presence of ExxonMobil in the United States. The company, along with the combined facilities, has the largest refining capacity of any single firm at an international level. It is also the largest publicly traded international oil and gas company, consisting of an industry-leading inventory of resources.

However, growing concern about the harmful environmental effects of crude oil, as well as the search for alternatives, may limit market growth during the forecast period. The growing popularity of renewable sources of energy such as natural gas, solar energy, wind energy, and others is expected to hamper the growth of the market.

The growing energy demand is fueling the market demand in the forecast period.

With the rising global population, the demand for energy is also continuing to grow at a significant pace. According to UN estimates, the global population is expected to rise to 9.7 billion by 2050, from a population size of 7.7 billion in 2019. The demand for petroleum derivatives, which contributes a significant share in the fulfilment of global energy demand, is expected to drive market growth in the forecast period. Gasoline, diesel, jet fuel, and kerosene oil, among others, are a few examples of petroleum products used immensely on a wide scale globally. Also, the use of energy products in various end-use industry verticals, which include the transportation industry, is further augmenting the market demand over the forecast period. Also, the growing demand for petroleum fuels in power and other industrial sectors is driving the market demand for refining catalysts.

According to U.S. Energy Information Administration estimates, the industrial sector, which includes refining, mining, manufacturing, and other activities, consumes the most energy in terms of end-use consumption. The global industrial sector utilization is projected to grow by over 30% during the time period 2018 to 2050.

By the end of 2050, the worldwide consumption of energy from the industrial sector is poised to reach around 315 quadrillions Btu (British Thermal Units). Furthermore, the growing consumption of electricity in the developing economies of the world along with changing living conditions is driving the market demand. Globally, APAC is expected to hold a significant share of the fueling energy demand, thereby burgeoning market growth during the forecast period.

The growing transportation industry is boosting the market demand for refining catalysts in the forecast period.

The use of petroleum products in the transportation industry, including aircraft, commercial vehicles, passenger vehicles, and ships, is fueling the market demand in the forecast period. The energy consumption in the transportation sector is expected to grow by 40% approximately during the time period, 2018 to 2050 (source: EIA). The growth of the global transportation industry is majorly driven by the developing economies of the world with increasing vehicle sales, contributing to the growth of the automotive industry here.

Among the emerging economies of the world, China is leading in global automotive sales. Also, with the growing economy of China, India, South Korea, Thailand, and Indonesia, the demand for refining catalysts is further going to proliferate with the burgeoning automotive sales. Furthermore, the growing logistics with the growing e-commerce industry is increasing the demand for efficient fleet management, propagating the market demand in the forecast period. For example, in Japan (from the APAC region), the logistics industry is quite indispensable for the citizens of the country. Also, this holds importance in supporting the economic activities of companies. The market size for the logistics industry in 2017 was approximately 25 trillion yen (source: Japan Association for Logistics and Transport). The logistics industry in the country is undergoing a structural change in order to meet the growing consumer demands as the e-commerce industry grows at a steady pace.

Road transport is used for transporting goods

Road transport is one of the most dominant sectors of transportation in India. Due to the shift from rail to road dominance in the Indian economy, road transport has gained a greater share of total freight traffic in recent years.

However, the rising government initiatives for using clean energy in automobiles are encouraging citizens to adopt vehicles with low carbon emissions. Hence, this is expected to hamper the market’s growth in the forecast period. For example, the Australian government offers favourable incentives for fleet car purchases.

Key Developments

• June 2022: The Albemarle Corporation invested more than US$ 500 million in its chemical plant, La Negra. Among the unique features of the newly constructed plant is a thermal evaporator designed to significantly reduce the amount of freshwater required per metric ton as per the press release of Albemarle Corporation.
• June 2022: As per the press release by BASF, they will offer a range of chemical intermediates with a product carbon footprint significantly below the global market average. A large part of BASF's portfolio of chemical intermediates has been evaluated for their individual carbon footprints (PCF)

Impact of the COVID-19 pandemic on the Refining Catalysts Market

The impact of COVID-19 was severe. Oil prices fell as a result of failed production-cut agreements, and demand for chemicals and refined goods slowed as a result of industrial slowdowns and travel restrictions in the aftermath of the global pandemic. The oil and gas industry was in the midst of its third price crash in the last 12 years. The introduction of shale and excess supply, as well as liberal financial markets that overlooked capital discipline, have been attributed to poor returns. Leaders recognize that change is unavoidable as prices are near 30-year lows and societal pressure is increasing. COVID-19 wreaked havoc on oil-exporting poor countries. Although some countries may be able to handle the current crisis, this will not be the case for the majority of oil-exporting countries, many of which are resource-dependent and already dealing with high debt levels. Some countries are finding themselves in a spiral of unsustainable borrowing, as oil-exporting developing countries have become more reliant on short-term and expensive non-concessional private debt. However, the market was expected to recover in the year 2021 as the demand for catalysts was expected to increase. This was mainly due to the ease of the restrictions from the second half of 2020.

Refining Catalysts Market Scope:

Segmentation:

• By Product Type
  • FCC catalyst
  • Reforming catalyst
  • Hydro processing catalyst
  • Isomerization catalyst
  • Alkylation catalyst
  • Others
• By Catalyst
  • Zeolite
  • Aluminium hydrosilicate
  • Bauxite
  • Silica-alumina
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • UAE
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others