Drag Reducing Agents Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Drag Reducing Agents Market Analysis
The global drag-reducing agent market is anticipated to register a CAGR of over 5% during the forecast period.
- The COVID-19 pandemic had a negative impact on the market for drag-reducing agents as industries such as chemicals and petrochemicals, oil and gas, agriculture, electricity and energy, and others were shut down, decreasing the demand for the product. At the moment, the market for drag-reducing agents has recovered from the pandemic and is growing quickly.
- Over the short term, a rise in crude oil consumption due to the expansion of end-use industries such as petrochemicals, energy generation, and oil and gas is anticipated to drive drag reduction agent market growth during the forecast period.
- But the focus on switching to biofuels and the growing concern about the environment are likely to slow the growth of the global drag-reducing agents market over the next few years.
- Nevertheless, increasing research and development activities and the incorporation of novel technologies for producing advanced drag-reducing agents such as nano-fluids to improve their performance are expected to generate attractive market growth and provide substantial potential in the forecast period.
North America is anticipated to dominate the global market in terms of revenue during the forecast period, and currently has the largest market share in the drag-reducing agent market.
Drag Reducing Agents Market Trends
This section covers the major market trends shaping the Drag Reducing Agents Market according to our research experts:
Crude Oil has a Substantial Market Share
- Most crude oil pipelines have turbulent flow. This means that turbulent eddies in the oil, rather than friction against pipeline walls, produce most of the drag or energy loss when pumping. Drag reduction agents are chemicals that are injected into a crude oil pipeline to reduce energy loss; this results in a lower pressure drop than would occur if the same flow rate of untreated solvent was used.
- According to the U.S. Energy Information Administration, in 2021, United States crude oil production was 11,254,000 barrels per day, compared to 11,318,000 barrels per day in 2020. The United States imported 6,114,000 barrels of crude oil per day.Because the use of drag-reducing agents is heavily reliant on crude oil output and imports, its consumption in the United States is expected to rise in 2021.
- According to the U.S. Energy Information Administration, Saudi Arabia's crude oil production in September 2022 was 11,041 thousand barrels per day. Saudi Arabia's crude oil production climbed by 1.11% year on year, from 9,780 thousand barrels per day in October 2021 to 11,041 thousand barrels per day in September 2022. Increasing production of crude oil is expected to positively impact the demand for pipelines, thereby increasing the demand for drag-reducing agents in the crude oil industry.
- All the above-mentioned factors are likely to support the demand for the studied market in the coming years.
North America Region to Dominate the Market
- North America dominates the drag-reducing agents market in terms of market share and market revenue. The region is set to continue to flourish in its dominance over the forecast period.
- Due to the significant availability of oil and gas reserves, as well as increasing urbanization, infrastructure development, and discoveries in the oil and gas industry, North America is likely to maintain its leadership position in the next few years.
- By 2022, Financial Market Infrastructure (FMI) predicts that the United States will hold a majority share of the North American drag-reducing agent market, with more than 48.9% of the value share.
- Rapid industrialization is prompting the country to grow its oil and gas production due to rising demand for power sources such as natural gas, diesel, gasoline, and others. According to the Energy Information Administration, U.S. government efforts raised crude oil and natural gas output by 12.7% and 9.8%, respectively, in 2021.
- Currently, more than ten significant petrochemical projects worth more than USD 207 billion are under construction in the United States. Thunder Horse South Expansion Phase 2 will enhance the market significantly further since it is one of the major oil fields in the Gulf of Mexico. This project will add two additional subsea production wells soon, and about eight wells will be drilled as part of the total development. Other projects include Mad Dog Phase 2, Herschel, and Manuel, among others.
- According to Baker Hughes, the number of operational oil and gas rigs in the United States exceeded 610 in the final week of January 2022. Furthermore, according to the Energy Information Administration (EIA), United States crude oil output dipped below 11.6 million barrels per day in December 2021, a 0.2 million barrels per day decrease from November 2021. The EIA also estimated that output will increase to an annual average of 12.0 million barrels per day in 2022 and 13.0 million barrels per day in 2023.
- Because of this, all of the above factors are expected to make the market for drag-reducing agents in North America grow in the coming years.
Drag Reducing Agents Industry Overview
The drag-reducing agents' market is consolidated in nature. Some of the major manufacturers in the market include Baker Hughes, Flowchem, Innospec, NuGenTec, Oil Flux Americas, and others (in no particular order).
Drag Reducing Agents Market Leaders
-
Baker Hughes
-
Flowchem
-
Innospec
-
NuGenTec
-
Oil Flux Americas
*Disclaimer: Major Players sorted in no particular order
Drag Reducing Agents Market News
- August 2022 : Baker Hughes announced an agreement to acquire Quest Integrity a subsidiary of Team, Inc, in the development and delivery of technology-enabled asset inspection and reliability management solutions for the pipeline, refinery, petrochemical, and power generation industries. Baker Hughes pipeline inspection services identify, describe, locate, and size abnormalities in a pipeline's wall that may need the use of drag reducers to decrease frictional pressure drops in a pipeline or conduit during fluid flow.
- October 2021: LiquidPower Specialty Products Inc. (LSPI) formed a strategic partnership with Safe Marine Transfer, LLC (SMT) to supply their market-leading drag-reducing agents (DRA) subsea (submerged ocean equipment) using SMT's innovative all-electric dual barrier subsea storage and injection unit. The installation of DRA at the underwater well/drill center has the potential to significantly boost output while remaining cost-effective by increasing flow rates in existing subsea production lines, subsea collection lines, and subsea trunk lines.
Drag Reducing Agents Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Increasing Demand from Refineries
- 4.1.2 Other Drivers
-
4.2 Restraints
- 4.2.1 Switch to Biofuels
- 4.2.2 Rising Environmental Concerns
- 4.3 Industry Value-Chain Analysis
-
4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
-
5.1 Application
- 5.1.1 Low- and Medium-phase Crude Oil
- 5.1.2 Heavy/Asphaltic Crude
- 5.1.3 Multiphase Fluid
- 5.1.4 Refined Products
- 5.1.5 Other Applications
-
5.2 Geography
- 5.2.1 Asia-Pacific
- 5.2.1.1 China
- 5.2.1.2 India
- 5.2.1.3 Japan
- 5.2.1.4 South Korea
- 5.2.1.5 Rest of Asia-Pacific
- 5.2.2 North America
- 5.2.2.1 United States
- 5.2.2.2 Canada
- 5.2.2.3 Mexico
- 5.2.3 Europe
- 5.2.3.1 Germany
- 5.2.3.2 United Kingdom
- 5.2.3.3 France
- 5.2.3.4 Italy
- 5.2.3.5 Rest of Europe
- 5.2.4 South America
- 5.2.4.1 Brazil
- 5.2.4.2 Argentina
- 5.2.4.3 Rest of South America
- 5.2.5 Middle-East and Africa
- 5.2.5.1 South Africa
- 5.2.5.2 Saudi Arabia
- 5.2.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share/Ranking Analysis**
- 6.3 Strategies Adopted By Leading Players
-
6.4 Company Profiles
- 6.4.1 Baker Hughes
- 6.4.2 Dorf Ketal Chemicals India Pvt. Ltd
- 6.4.3 Flowchem
- 6.4.4 Indian Oil Corp. Ltd
- 6.4.5 Innospec
- 6.4.6 Jiangyin Huaheng Auxiliary Co., Ltd
- 6.4.7 LiquidPower Specialty Products Inc.
- 6.4.8 NuGenTec
- 6.4.9 Oil Flux Americas
- 6.4.10 The Zoranoc Oilfield Chemical
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Advanced Drag-Reducing Agents such as Nano-Fluids
Drag Reducing Agents Industry Segmentation
A drag-reducing agent is a chemical with a high molecular weight that is introduced to a pipe to reduce turbulence and thereby increase the ability and efficiency of flow through the pipe. The friction or interaction between the moving stream and the pipe wall causes turbulence in a pipeline. Drag-reducing compounds are widely utilized in the oilfield industry whereas their rising application in the transportation of crude oil, refined petroleum products, multi-phase liquids, and water is fueling market demand. The drag-reducing agent market is segmented by applications and geography. By application, the market is segmented into low- and medium-phase crude oil, heavy/asphaltic crude, multiphase fluid, refined products, and other applications. The report covers the market size and forecast for the drag-reducing agent market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on the value (USD million) for all the above segments.
| Application | Low- and Medium-phase Crude Oil | |
| Heavy/Asphaltic Crude | ||
| Multiphase Fluid | ||
| Refined Products | ||
| Other Applications | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | South Africa |
| Saudi Arabia | ||
| Rest of Middle-East and Africa |
Drag Reducing Agents Market Research FAQs
What is the current Drag Reducing Agents Market size?
The Drag Reducing Agents Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Drag Reducing Agents Market?
Baker Hughes , Flowchem , Innospec , NuGenTec and Oil Flux Americas are the major companies operating in the Drag Reducing Agents Market.
Which is the fastest growing region in Drag Reducing Agents Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Drag Reducing Agents Market?
In 2024, the North America accounts for the largest market share in Drag Reducing Agents Market.
What years does this Drag Reducing Agents Market cover?
The report covers the Drag Reducing Agents Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Drag Reducing Agents Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Drag Reducing Agents Industry Report
Statistics for the 2024 Drag Reducing Agents market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Drag Reducing Agents analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
