The Global Oil Refining Catalyst Market is expected to grow at a high CAGR during the forecasting period (2022-2029).
Catalyst is used to make a chemical reaction process faster than usual process time which saves time, cost as well as energy. Whereas, refinery catalyst is used to convert low octane count into high-octane products. In other words, refinery catalysts can help in converting crude oil into liquid products include gasoline, kerosene, and diesel. The oil refining catalysts are widely used to counter issues such as metal contamination and heat balance effect in tight oil processing.
Increasing tight oil production in the U.S., Russia, China, India, and Argentina are expected to drive market growth over the forecast period. Stringent government regulations including those related to Ultra-low Sulfur Diesel (ULSD) and strict emission standards in developed economies are anticipated to remain the major factors steering demand for refinery catalysts in the petroleum refining sector.
Emissions that are released into the environment from automobiles and industrial processing units have been harming the environment significantly. According to the US Environmental Protection Agency (EPA), a typical vehicle emits about 4.6 metric tons of CO2 per year.
On the other hand, there is a discernible growth of the aerospace industry across the globe which is much dominated by the regions such as North America, Europe, and some parts of Asia-Pacific. According to Aviation Benefits beyond Borders, the aviation industry supports US$2.7 trillion (3.6%) of the world’s gross domestic product (GDP). This is creating a sustainable demand for aviation fuel.
In the manufacturing of aviation fuel, hydro-processing is a very important process because it upgrades the feed by executing catalytic cracking at high temperatures. The growing demand from the aerospace industry is leading to an enhanced rate of hydro-cracking in the refineries across the globe which is leading to growth prospects in the oil refining catalyst market across the world.
Global oil refining catalyst is segmented into type, catalyst ingredient, distribution channel, application, and region. Based on the type, the market is segmented into Fluidized Catalytic Cracking (FCC) Catalyst, Alkylation Catalyst, Hydrocracking Catalysts, Hydrotreating Catalysts, Catalytic Reforming, Residue Fluidized Catalytic Cracking (RFCC), Diesel Fuel Dewaxing, Oligomerization of Butane-Butylene Fraction, Aromatization of Paraffins and others. . based on catalyst ingredient, the market is segmented into metallic, zeolites and chemical compounds.
Based on the distribution channel, the market is segmented into Direct Sales/B2B, Distributors, Third-Party Distributors/Traders, E-Commerce, and others. Based on application, the market is segmented into Diesel, Kerosene, Distillate Dewax, and others.
Currently, the major market players of oil refining catalysts are highly focused on designing catalysts that can handle all kinds of feedstock and ensure stable, reliable, easy, and profitable hydrotreating and hydrocracking applications. For the same, adoption of superior process designs, proprietary equipment, and innovation of performance refinery catalysts has helped the manufacturers gain a competitive edge over the others. Further, a combination of technical expertise and sustainable approaches to production is increasingly being adopted by the manufacturers.
For instance, in 2019, Honeywell UOP formed a joint venture with Kuwait Integrated Petroleum Industries Company (KIPIC; Kuwait) to supply refinery catalysts for refining and petrochemicals sections in its Al-Zour refinery. This joint venture will help in increasing the plant’s output capacity of fuels and petrochemicals.
By region, the oil refining catalyst market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, Asia-Pacific dominated the oil refining catalyst market. China and India were reported as the second and fifth largest countries, respectively, in the market for refinery catalyst in 2019. The increasing number of private sector companies has played a crucial role in promoting the refining industry in the aforementioned countries especially in India.
Reliance-operated Jamnagar refinery complex in Gujarat had a capacity of 1.2 million barrels per day in 2019, which was the largest refinery in the world. The government of India has approved Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) policy for promoting FDI investments in the oil and gas sector. This regulatory move is expected to accelerate the petrochemicals and polymers production in India, thus contributing to the demand for oil refining catalysts in the upcoming years.
Key players operating in the market are Albemarle Corporation, BASF SE, Johnson Matthey Plc, Clariant International Ltd., and others. Leading multinational players dominate the market and hold substantial market share, thereby, presenting tough competition to new entrants.
Key players focus on various strategic initiatives such as merger & acquisition, geographical expansion, new product launch, and increasing R&D expenditure to stay competitive in the market. For instance, in 2019, Sinopec completed the central unit of the AL-Zout refinery project in Kuwait. The refinery is expected to produce 3,150 tons of oil annually, thereby increasing the demand for the company’s refinery catalyst.
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