Global Potassium Formate Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Potassium Formate Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Market Overview:

The latest research study on the global Potassium Formate market finds that the global Potassium Formate market reached a value of USD 579.52 million in 2022. It’s expected that the market will achieve USD 810.49 million by 2028, exhibiting a CAGR of 5.75% during the forecast period.

Opportunities and Drivers

Oil and natural gas are the most important energy sources in the world. Its products support modern society, primarily providing energy for the power industry, heating homes, fueling cars and planes, and fueling goods and people around the world. For example, the oil and gas industry provides jobs for millions of Americans and lower energy costs for consumers. Oil, natural gas and coal provide 80% of America's energy. According to the U.S. Energy Information Administration EIA's Short-Term Energy Outlook released in August 2021, the global economy will strengthen in 2021, and oil demand will increase by 5.3 million barrels per day from 2020; in 2022, it will increase by 3.6 million barrels per day, and global oil consumption will increase The volume will reach 101.2 million barrels per day.
Petroleum resources are an important energy source for a country's industrial development, and various countries in North America are constantly developing and exploring new oil fields. Companies engaged in oil and gas exploration and production search the world for reservoirs of raw materials and then drill to extract the materials.
According to IBISWorld data, between 2017 and 2022, the market size of the U.S. oil drilling and gas extraction industry will grow by an average of 8.2% per year. The market size (measured by revenue) of the oil drilling and gas extraction industry will be valued at USD 463.8 billion by 2022.
In the oil industry, Potassium Formate is widely used in the oil field as a drilling fluid, completion fluid and workover fluid with excellent performance. The preparation of drilling fluid system with potassium formate has outstanding advantages such as strong inhibition, environmental protection and oil layer protection. For example, PDF-THERM drilling fluid is a seawater-based high temperature resistant and high density polysulfonic drilling fluid system, which is mainly composed of temperature resistant polymers and sulfonated materials. Potassium Formate can improve the temperature resistance of the main temperature-resistant polymer in the PDF-THERM system, which has a positive effect on reducing the amount of temperature-resistant polymer and controlling the solid content of high-density drilling fluids. At the same time, Potassium Formate can also increase the density of the drilling fluid base fluid, and can reduce the amount of barite under the same density condition, which reduces the solid phase content of the high-density drilling fluid and alleviates the viscosity increase caused by the pollution of inferior soil.
The development of oil fields is an important source of income for oil and gas exploration and production enterprises. In general, with the development of the global oil industry, the development of oil fields will continue to increase, which will increase the demand for Potassium Formate. Therefore, the development of the global oil industry will drive the development of the Potassium Formate industry.

Challenges

The main raw materials required for the company's production are formic acid, potassium hydroxide, etc. The supply of major raw materials and the risk of price fluctuations will have a material adverse impact on the company's continued profitability. The industry characteristics of Potassium Formate production enterprises make them rely on major suppliers for raw material procurement. Adverse changes in the company's partnership with these key suppliers, or adverse changes in the operations and financial conditions of key suppliers, may result in the company's inability to procure regular quantities in a timely and sufficient manner. At the same time, price fluctuations of raw materials will also have an impact on the company's production costs. If the price of raw materials rises, it will cause the production cost of Potassium Formate to rise and reduce the profit margin of the product. The company's production and operation plan will be adjusted.
For example, the outbreak of the Ukraine-Russian war in 2022 may cause the price of Potassium Formate raw material potassium hydroxide to rise. The raw materials for the preparation of potassium hydroxide mainly include potassium chloride, and Ukraine is one of the main producers of potassium chloride. The outbreak of the Ukrainian-Russian war has led to changes in border trade policy related to it. Therefore, the price of potassium chloride may show an upward trend, causing the price of potassium hydroxide to rise. The increase in the price of potassium hydroxide will lead to an increase in the raw material cost of Potassium Formate, which will bring risks to the company's production and operation.All in all, price volatility of raw materials is one of the risks faced by companies in the industry.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview:

The top three companies are Perstorp, Shuntong Group, Esseco with the revenue market share of 10.26%, 7.85%, 5.61% in 2021.

Making the lives of billions of people around the world safer, more convenient and greener. Perstorp focuses on the global resins and coatings, engineered fluids and animal nutrition markets. Perstorp provides specialty chemicals for a variety of industries and applications.

Shuntong Group is an international comprehensive enterprise group integrating environmental protection chemicals, oil and gas equipment, technical services, modern logistics, international trade and other businesses.

Shuntong Group is a chemical manufacturer of formate product series and polyacrylamide series products, and is one of the technical service providers related to these series of products. These series of products can be used in different fields such as oil and gas, coal chemical industry, mineral processing, papermaking, environmental protection and water treatment.

Segmentation Overview:

Among different product types, Solid Potassium Formate segment is anticipated to contribute the largest market share in 2027.

Application Overview:

By application, the Oil Field segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Potassium Formate market covered in Chapter 3:

Perstorp
ADDCON
Shanxi Zhaoyi Chemical
Shuntong Group
NASi
Hebei Huayun Hongye Chemical
Mianyang Aostar Phosphorus Chemical
Hawkins
M-I Swaco
Chongqing Chuandong Chemical
ICL
Esseco
Hangzhou Focus Chemical
Shouguang Hengtong Chemical

In Chapter 4 and Chapter 14.2, on the basis of types, the Potassium Formate market from 2018 to 2029 is primarily split into:

Solid Potassium Formate
Liquid Potassium Formate

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Potassium Formate market from 2018 to 2029 covers:

Oil Field
Deicing Agent

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)