Production Chemicals Market Forecasts to 2030 – Global Analysis By Type (Demulsifiers, Scale Inhibitors, Corrosion Inhibitors, Asphaltene Inhibitors, Biocides, Scavengers, Surfactants and Other Types), Oilfield Type (Onshore, Offshore and Other Oilfield T

Production Chemicals Market Forecasts to 2030 – Global Analysis By Type (Demulsifiers, Scale Inhibitors, Corrosion Inhibitors, Asphaltene Inhibitors, Biocides, Scavengers, Surfactants and Other Types), Oilfield Type (Onshore, Offshore and Other Oilfield Types), Application (Cementing, Production Chemicals, Drilling Fluids, Improved Oil Recovery, Well Stimulation, Work Over and Achievements and Other Applications), End User (Oil & Gas, Power Generation, Water Treatment, Manufacturing, Mining and Other End Users) and By Geography

According to Stratistics MRC, the Global Production Chemicals Market is accounted for $7.60 billion in 2023 and is expected to reach $12.69 billion by 2030 growing at a CAGR of 7.6% during the forecast period. Production Chemicals are used to increase hydrocarbon recovery. They are mainly utilized in oilfield operations to enhance reserve recovery, production maintenance, and transportation. Additionally, in order to achieve peak performance and boost oil recovery efficiency, these chemicals are used in production.

According to the American Chemistry Council (ACC), the Global Chemical Production Regional Index rose by 0.4% in April following a revised 1.5 % increase in March. In the U.S., the U.S. Chemical Production Regional Index rose 0.5% in April. Both indices are measured on a three-month moving average basis to reduce month-to-month volatility.

Market Dynamics:

Driver:

Increasing industrial development and manufacturing operations

Manufacturing and industrial development are the foundations of all economies. These activities cover a wide range of industries, such as textiles, electronics, chemicals, and the automotive industry. Due to their dependence on chemicals for procedures like cleaning, surface treatment, and quality control, these industries are inextricably linked to the demand for production chemicals. Moreover, the demand for specialized production chemicals catered to each sector's needs keeps rising as new industries are created and existing ones grow.

Restraint:

High costs for research and development

Research and development must be heavily funded in the pursuit of novel production chemicals with improved capabilities. The complex nature of chemical synthesis, efficacy testing, and safety assessments contributes to high R&D costs. Furthermore, smaller market players might find it difficult to raise enough money for extensive R&D projects, which might make it harder for them to compete with more established rivals.

Opportunity:

Initiatives in sustainability and green chemistry

Green production chemicals can be developed thanks to the increased focus on environmental sustainability. Companies that invest in research to develop greener products with less of an ecological impact can establish themselves as industry leaders in a market where responsible consumption is becoming more and more important. Moreover, companies can tap into a rapidly growing market of environmentally conscious consumers and industries by aligning with sustainability goals and providing solutions that address environmental concerns.

Threat:

Compliance risks and regulatory uncertainty

Regulation modifications and changing standards have a significant impact on the market for production chemicals. Maintaining compliance with a complex web of national and international regulations is a constant challenge for businesses. Additionally, changes in regulatory requirements may necessitate expensive modifications to formulations, testing protocols, and labeling, which may disrupt supply chains and present risks to one's reputation or legal standing.

Covid-19 Impact:

The recent corona virus outbreak had a negative effect on the production chemical market because COVID-19 has led to lower refinery utilization rates globally, which has led to supply shortages for a number of end-use sectors. Moreover, the market also suffered significant financial setbacks as a result of numerous disruptions in supply-chain and manufacturing operations brought on by various precautionary lockdowns imposed by governments to stop the spread of disease, which significantly impeded the market's revenue trajectory.

The offshore segment is expected to be the largest during the forecast period

During the forecast period, it is anticipated that the offshore segment will hold the largest market share. The world's energy supply is largely dependent on offshore oil and gas extraction, which involves taking petroleum out of the seabed. It calls for the use of ever-more-advanced technologies as well as a better understanding of the effects on the environment. Additionally, around 20% of the world's oil reserves and 30% of the world's gas reserves are currently derived from offshore production. Industrial chemicals called biocides are frequently used in offshore operations. They are used to protect the gum that is present naturally in aqueous mud.

The improved oil recovery segment is expected to have the highest CAGR during the forecast period

In the production chemicals market during the anticipated period, the improved oil recovery segment will grow at the highest CAGR. In order to improve the withdrawal operations by improving the efficiency and effectiveness of the oil drilling process and petroleum refining and to achieve the best performance with effective oil recovery, production chemicals are used in production facilities and well drilling. Furthermore, during examination and drilling, these chemicals prevent the development of metal scales and reduce the amount of water entering the oiler, which leads to an increase in the demand for and use of production chemicals in oil recovery.

Region with largest share:

The Asia-Pacific region is expected to have the largest market share for production chemicals. The region's strong industrial and manufacturing sectors, which include a variety of sectors like oil and gas, electronics, automotive, and chemicals, can be credited with this dominance. Additionally, in order to optimize manufacturing processes, guarantee product quality, and adhere to changing environmental regulations, there is a significant demand for production chemicals, particularly in nations like China and India. Further boosting the demand for a wide variety of production chemicals is the Asia-Pacific regions strategic positioning as a hub for global manufacturing, which has attracted investments and technology transfer.

Region with highest CAGR:

The global market for production chemicals has shown the highest CAGR in the Middle East and Africa (MEA) region. The region's crucial function as a hub for oil and gas exploration and production is responsible for this exceptional growth. The MEA region has seen strong demand for production chemicals due to a focus on improving extraction procedures, preventing corrosion, and following strict environmental regulations. Moreover, the production chemicals market is on the rise, making it a significant driver of economic growth and development as emerging economies in the MEA region continue to invest in industrialization and technological advancements.

Key players in the market

Some of the key players in Production Chemicals Market include Titan Oil Recovery, Inc., Baker Hughes Company, Schlumberger Limited, Chevron Phillips Chemical Company LLC, Universal Oil Field Chemical Pvt. Ltd., BASF SE, Ultimate EOR Services LLC, Chemcon Speciality Chemicals Ltd., Ecolab Inc., Solvay, Croda International plc, The Dow Chemical Company, Suncor Energy Inc., Huntsman International LLC, XYTEL Corporation, Exterran Corporation, Core Laboratories, Halliburton Company, Akzo Nobel N.V. and DuPont de Nemours, Inc.

Key Developments:

In August 2023, Baker Hughes, an energy technology company, announced Tuesday a memorandum of understanding with airport management and operations company Avports to develop, implement and operate onsite microgrid solutions for the airport industry. The collaboration agreement addresses emissions reduction and the global industry’s goal to focus on zero-emission buildings, horizontal airport infrastructure, vehicles and aircraft systems.

In May 2023, BASF Environmental Catalyst and Metal Solutions, a global leader in precious metals and catalysis, and Advent Technologies Holdings, Inc., an innovation-driven leader in the fuel cell and hydrogen technology sectors, have concluded the terms of a new agreement to join efforts in building a full loop component supply chain for fuel cells and enter discussions to extend the partnership into the field of water electrolysis.

In February 2023, Nexus Circular, Atlanta, has signed a long-term commercial agreement with Chevron Phillips Chemical Co. LLC, The Woodlands, Texas, for the annual supply of circular liquid feedstocks from a new advanced recycling facility. Nexus says the long-term contractual commitment further strengthens its relationship with CPChem for advanced recycled plastic feedstocks to produce Marlex Anew polyethylene.

Types Covered:
• Demulsifiers
• Scale Inhibitors
• Corrosion Inhibitors
• Asphaltene Inhibitors
• Biocides
• Scavengers
• Surfactants
• Other Types

Oilfield Types Covered:
• Onshore
• Offshore
• Other Oilfield Types

Applications Covered:
• Cementing
• Production Chemicals
• Drilling Fluids
• Improved Oil Recovery
• Well Stimulation
• Work Over and Achievements
• Other Applications

End Users Covered:
• Oil & Gas
• Power Generation
• Water Treatment
• Manufacturing
• Mining
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements


Companies Mentioned
Titan Oil Recovery, Inc.,
Baker Hughes Company
Schlumberger Limited
Chevron Phillips Chemical Company LLC
Universal Oil Field Chemical Pvt. Ltd.
BASF SE
Ultimate EOR Services LLC
Chemcon Speciality Chemicals Ltd.
Ecolab Inc.
Solvay
Croda International plc
The Dow Chemical Company
Suncor Energy Inc.
Huntsman International LLC
XYTEL Corporation
Exterran Corporation
Core Laboratories
Halliburton Company
Akzo Nobel N.V.
DuPont de Nemours, Inc.