Market Trends of Chemical Injection Skids Industry
Energy, Power, and Chemicals Segment to Dominate the Market
- Energy, Power and Chemicals is one of the major end-user segments for the chemical injection skids market. The pulp and paper industry is also included in this segment.
- In 2021, China stood as the largest energy consumer with 157.65 exajoules, followed by the United States and India. The growing need for energy for industrial purposes in developing economies is the major driver for the growth of the energy and power end-user industry.
- Chemical injection skids are widely employed in the chemicals industry. They are used for the injection of various chemicals, including caustic soda (for high-pressure cleaning, corrosion inhibitor chemicals, hydrochloric acid (for descaling purposes), and amines (for removal of sour gas), among many more.
- These chemicals are injected into key components of refineries, such as heat exchangers, mixers, flow conduits, columns, and towers, to ensure efficient processing and outputs of the input crude oil.
- In addition, these skids are also used for the injection of water treatment chemicals to treat the wastewater produced and for inhibition of gasoline and other additives to fuel oils. Coagulant dosing is also done using chemical injection skids in order to aid in the coagulation of solids.
- The refinery capacities are witnessing a surge globally due to the rising usage and demand for petrochemical products.
- The increase in the capacities is also fueled to some extent by increasing oil & gas activities across the globe both in terms of production and consumption.
- Moreover, chemical injection skids also find a major use in power generation. There are chemicals, such as ferric sulphate and sulphuric acid, which are needed in precise measurements for transformation of water into ultra-pure water for the boilers. Hence, the demand for chemical injection skids is expected to rise moderately during the forecast period.
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Asia-Pacific to Witness Lucrative Growth
- The Asia-Pacific region is estimated to witness the fastest CAGR during the forecast period, primarily due to the increasing demand from the petrochemicals and chemical industries.
- China and Japan dominated the market in the Asia-Pacific. However, India is expected to witness healthy growth during the forecast period.
- Increasing refining activities in these countries are, in turn, expected to boost the market demand.
- Japan is the fourth-largest oil consumer globally, with a refinery capacity of about 3,500 thousand barrels per day, constituting 3.7% of the world's refining capacity. Currently, Japan has approximately 21 oil refineries, and the demand for petroleum products is decreasing by 1-2% per year.
- Furthermore, the Government of India is developing the Chandikhol Strategic Petroleum Reserve Construction Project with a total cost of USD 1.1 billion. The project is expected to reach operational capacity by the end of year 2028.
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