The refining catalysts market is anticipated to grow at a CAGR of 3.01% in order to attain a market size of US$4.037 billion by 2025, from US$3.379 billion in 2019. Stringent emission control regulations and an increase in the usage of petroleum derivatives are driving the market for refining catalysts. The growing 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.
Geographically, the Asia Pacific region is expected to have a significant market share owing to the increasing refinery in the region. Moreover, increasing demand for transportation fuel is also boosting the market growth in the region. North America 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 include, 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, also, it is the largest publicly traded international oil and gas company consisting of an industry-leading inventory of resources.
However, rising concern towards the harmful environmental effects of crude oil and search for alternatives may restrain the market growth in 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 the 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 fulfillment of global energy demand is expected to surge the market growth in the forecast period. Gasoline, diesel, jet fuel, and kerosene oil among others are 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, with the growing demand for petroleum fuels in power and other industrial sectors is propelling the market demand for refining catalysts.
As per the U.S. Energy Information Administration estimates, the industrial sector comprising of refining, mining, manufacturing, and other activities is accounted to hold the highest share, in terms of energy consumption, on the basis 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 quadrillion Btu (British Thermal Units). Furthermore, the growing consumption of electricity in the developing economies of the world along with the changing living conditions is driving the market demand. On a global level, APAC is expected to hold a major share in the fueling energy demand, burgeoning the market growth in 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 are 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 the growing 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 25 trillion yen approximately (source: Japan Association for Logistics and Transport). The logistics 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.
In India, road transport is one of the dominant sectors of transportation. The Indian economy has turned from the previous rail dominated to road dominated, and this, at present, has resulted in the increase of road transport share in total freight traffic here. In Australia, VFACTS, which was established by the Federal Chamber of Automotive Industries (FCAI), member of OICA in 1992 for the breakdown of monthly sales statistics of new cars stated that among the new car sales in Australia, fleet cars dominated with a share of more than 50 percent in 2017. Around 584,895 vehicles and more than 35,000 heavy commercial vehicles were purchased for fleet use in 2017. However, with the rising government initiatives for using clean energy in automobiles is encouraging citizens to adopt vehicles with low carbon emissions, hence, this is expected to hamper the market growth in the forecast period. For example, in Australia, there are favourable government initiatives for buying cars for fleet use. In 2015, the government of Australia signed a deal of $50 million with an independent vehicle leasing company Eclipx Group for providing favourable loan interest rates for leasing low emission passenger and light commercial vehicles.