The Refining Chemicals Market is predicted to witness steady growth during the projected period.
Refining chemicals are chemically compounded specialties used for processing and purifying crude oil, natural gas, and other raw materials in a refinery. They enable all the significant refining operations, such as cracking, desalting, alkylation, and hydrocracking, which is a process that helps in increasing the product yield and purity, accompanied by a reduction in impurities. Catalysts, corrosion inhibitors, surfactants, biocides, anti-foaming agents, and pH adjusters are some examples of refining chemicals. In refining crude oil, they play a vital role in fuels like gasoline and diesel, as well as petrochemicals and lubricants, by ensuring safe and environmentally friendly operation of refineries.
The increasing demand for crude oil is expected to fuel the market for refining chemicals in the projected period. For instance, according to the Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, the total crude oil processed during April 2024 was 21.6 MMT, with a growth of 0.8 percent compared to April 2023. The private refiners processed 7.1 MMT of crude oil, while the PSU/JV company processed 14.5 MMT. The total indigenous crude oil processed was 2.2 MMT, and the total imported crude oil processed by all Indian refineries (PSU/JV/PVT) was 19.4 MMT.
Moreover, the production of chemicals and petrochemicals is increasing, which is anticipated to fuel the market for refining chemicals in the forecasted period. For instance, according to the Department of Chemicals and Petrochemicals, India, the total major chemicals production increased from 11,243 (‘000 MT) in 2020-21 to 12,743 (‘000 MT) in 2021-22. Additionally, the production of major petrochemicals increased from 42,159 (‘000 MT) in 2020-21 to 44,589 (‘000 MT) in 2021-22. Hence, the growing chemical and petrochemical sector is anticipated to positively influence market growth in the coming years.
For instance, according to the Ministry of Petroleum and Natural Gas Economic & Statistics Division, Government of India, the cumulative crude oil production from April 2023 to February 2024 was 26,852.78 TMT, which was 0.48% higher than the previous year. Additionally, in February 2024, the total production of crude oil was 2,331.68 TMT, which was 7.88% higher than in February 2023, when the monthly production was 2,161.37 TMT. Similarly, according to the United States Energy Information Administration, the U.S. field production of crude oil was 4,00,994 thousand barrels in July 2023, which increased to 4,09,344 thousand barrels in July 2024. Hence, the increasing production and processing of crude oil is expected to positively influence market growth in the coming years.
The Asia Pacific region is expected to dominate the refining chemicals market as it is the major hub for the consumption of petroleum products, including transport fuel and polymers, among others. Additionally, the increasing activities of crude oil production and refining, especially in countries such as India and China, are fueling the demand for refining chemicals in the region. Moreover, the increased petrochemical production in the region is supporting demand for refining chemicals. Strict environmental legislation, primarily regarding sulfur content in fuels, is yet another factor that heightens the use of upgraded refining solutions. Higher output with refined crude types for upgraded refineries will considerably augment the demand for refining chemicals in the Asia-Pacific market.
| Report Metric | Details |
|---|---|
| Growth Rate | During the projected period |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Type, Application, End-User, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
|