Oilfield chemicals Market

The global oilfield chemicals market is projected to witness healthy growth during the forecast period, 2019–2025. The market was valued at USD 31,905.9 million in 2018 and is projected to register a CAGR of 5.52% to reach USD 46,168.8 million by the end of 2025. In terms of volume, the market was sized at 14,982.6 kilotons in 2018 and is likely to exhibit a CAGR of 4.76% to reach 20,609.0 kilotons by the end of 2025. The growth of the global market is primarily driven by increasing oil & gas exploration activities across the globe. Besides, the increasing crude oil production coupled with deep drilling activities offshore and onshore is the other factors projected to boost the growth of the global oilfield chemicals market, as oilfield chemicals are used in all the stages of the oil & gas industry, including initial drilling of wells, production of oil and gas, and in all the aspects of maintenance of the oilfields, including storage of oil and natural gas in geological conditions (in salt caverns or depleted reservoirs). Furthermore, the increasing expenditure in advance oilfield chemicals to enhance properties such as thickening, emulsification, stabilization, and conditioning is likely to create growth opportunities for the market players during the forecast period. However, stringent environmental regulations and shift toward renewable energy sources are expected to hamper the global market growth during the forecast period.

According to Wantstats analysis, the global oilfield chemicals market has been segmented based on type, application, and region. Based on type, the global market has been divided into inhibitors & scavengers, demulsifiers, friction reducers, rheology modifiers, surfactants, biocides, pour-point depressants, and others. The inhibitors & scavengers and demulsifiers segments collectively accounted for the highest market share of 71.4% in 2018 and expected to continue the trend in the coming years. Inhibitors and scavengers are further sub-segmented into corrosion inhibitors, paraffin inhibitors, asphaltene inhibitors, scale inhibitors, H2S scavengers, oxygen scavengers, and others. The corrosion inhibitors segment accounted for the largest share of 30.2% in 2018 due to increasing applications in the manufacturing of pipes, water tanks, and other equipment. The segment was valued at USD 4,268.6 million in 2018; it is expected to register a CAGR of 7.21% to reach USD 6,909.1 million by the end of 2025. In terms of volume, the segment was sized at 1,853.8 kilotons in 2018 and is projected to exhibit a CAGR of 6.40% to reach 2,843.8 kilotons by the end of 2025. Paraffin inhibitors segment held the second-largest market share of 19.6% in 2018.

The major challenges in both production and transportation in the oil and gas industry are wax deposition, gelling, and flow problems. The chemicals injected reduce the paraffin deposits in wellbore and subsea pipeline. Thus, to minimize the flow assurance problems associated with naturally occurring paraffin in crude oil, paraffin inhibitors are expected to be high in demand during the forecast period.

By application, the global oilfield chemicals market has been classified into upstream, downstream and midstream. The upstream segment has been further sub-segmented into drilling, well stimulation, production chemicals, cementing, and workover & completion. The upstream segment was valued at USD 15,665.8 million in 2018; it is expected to register a CAGR of 5.43% to reach USD 22,521.7 million by the end of 2025.

The North American market held the largest share of 44.3% in 2018 due to the growth of the shale gas industry with an increase in oil drilling activities and government support in the region, which are expected to increase the usage of oilfield chemicals during the review period. The market was valued at USD 14,134.3 million in 2018 and is expected to exhibit a CAGR of 5.07% to reach USD 19,844.2 million by the end of 2025. In terms of volume, the regional market was sized at 6,673.4 kilotons in 2018 and is projected to register a CAGR of 4.23% to reach 8,858.8 kilotons by the end of 2025. The markets in Asia-Pacific and the Middle East & Africa are expected to witness significant growth during the review period on account of an increase in exploration and production activities and startup of new oil and gas production projects. The Latin American market is expected to register a moderate CAGR owing to the increase in the spending on exploration and production activities by private and foreign companies in Mexico.

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