Market Trends of Industrial Absorbent Industry
Oil and Gas Industry to Dominate the Demand
In the oil and gas industry, absorbents are widely used to repel water and absorb only oil and other hydrocarbon products.
The expansion of oil refineries is expected to increase the demand for absorbents, thereby driving the market. Demand for oil and subsequent products worldwide is also expected to drive the market.
As of 2022, the United States had 130 operable petroleum refineries. The newest refinery in the United States is the Texas International Terminals which started operating in February 2022.
The chemical industry plays an important role in the growth of the absorbent industrial market. Over the three years from 2021 to 2024, the industry is expected to grow, with overall industry growth expected to be 1.8% in 2024. Basic chemicals are expected to see the largest growth of any chemical segment, at a 2.1 percent forecast for 2024.
According to the European Chemical Industry Council, AISBL, the worldwide sales of chemicals increased by 15.2% and reached USD 4332.38 billion in 2021 from USD 3759.89 billion in the previous year.
The increasing number of drilling operations in the North American and Middle Eastern regions is expected to affect the market demand positively.
The United States is expected to be one of the largest markets for drilling services, mainly due to the increasing number of wells drilled and fracked in shale and tight reserves. For instance, in 2021, the United States government reopened the land to develop oil and gas fields to meet the global demand for oil and natural gas and deal with high prices in the United States, which would aid the market.
As the United States invested heavily in expanding its oil and gas production capacity, the Gulf of Mexico has become a global hotspot for offshore drilling. As of 2021, the Gulf of Mexico region is responsible for 97% and 15% of the US offshore and total hydrocarbon production, respectively. The region has one of the highest global densities of offshore oilfield services.
There is an increase in the number of exploration and production operations, as many oil and gas players are looking for new prospects in the crude oil sector, which may enhance the usage of absorbent in the industry.
In May 2022, European Union announced it to end its reliance on Russian oil and gas and invest USD 319.15 billion by 2030. The investment division includes USD 10.64 billion for gas infrastructure, USD 2.2 billion for oil, and the remaining for clean energy.
Therefore, the demand for industrial absorbents will grow from the oil and gas industry over the forecast period.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region is expected to account for the largest and fastest-growing market for industrial absorbent during the forecast period.
Chemicals demand in the market plays a keen role in boosting the market for industrial absorbent. China is the largest chemicals producer in the world, contributing 43% of global chemical sales, followed by the EU27 chemical industry with 14.7% and the United States coming in third with 10.9%. In 2022, worldwide chemical production grew by 2.7% compared to a 7% growth in 2021.
Many major companies in the market have their chemical plants in China. With the growing demand for various chemicals globally, the market studied in this sector is projected to grow during the forecast period.
India is poised to attract USD 58 billion in investments from global energy companies, such as Chevron, ExxonMobil, and Total Energies, for oil and gas exploration by the end of 2023. The government aims to double the net area explored for oil and gas to 500,000 sq. km from 250,000 sq. km by 2025. This will help in boosting the market for industrial absorbent.
In 2021, China National Petroleum Corp was one of the leading oil refining companies in the world. The company reported a capacity of 4,899 million barrels per day and generated revenue of USD 435,244 million for that year.
The Indian oil and gas industry has been growing rapidly, and the players are undertaking investments to cater to the burgeoning demand. The industry attracted investments of USD 25 billion in exploration and production in 2022.
The chemical processing industry in the country is highly diversified and manufactures more than 70,000 products. The country is the 3rd-largest chemical producer, in terms of volume, in Asia, and 7th by output, globally.
According to the India Brand Equity Foundation (IBEF), the country's chemical sector is growing rapidly to reach USD 300 billion by 2025, with an annual growth of about 15% to 20%. Therefore, the demand for industrial absorbents will increase in the chemical industry in the coming years.
Hence, with such trends, the demand for industrial absorbents in the Asia-Pacific region is expected to grow considerably during the forecast period.
