Refinery Catalyst Market Is Estimated To Witness High Growth Owing To Opportunity Of Meeting Increasing Energy Demands
Refinery catalysts are substances used to increase the rate of chemical reactions in refineries without themselves undergoing any permanent chemical change. They are of high importance in the oil refining industry as they help maximize fuel production, improves crude oil conversion efficiency, and regulates emission control. Growing energy needs and rising fuel demand has increased refinery capacity additions globally presenting numerous growth prospects for refinery catalyst suppliers.
The global Refinery Catalyst Market is estimated to be valued at Us$ 3.76 Bn in 2023 and is expected to exhibit a CAGR Of 8.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The opportunity of meeting increasing energy demands will boost the refinery catalyst market growth. With rapid industrialization and rising vehicle ownership in developing economies, the global energy demand is projected to increase significantly. Existing refineries are opting for capacity expansions and new refineries are being constructed to cater to this demand. This will necessitate higher refining capacity additions requiring large volumes of refinery catalysts. Developing regions such as Asia Pacific and Middle East & Africa will invest heavily in new refining projects presenting lucrative opportunities for refinery catalyst manufacturers and suppliers. The expansion of existing and construction of new refineries to fulfill the increasing energy needs worldwide will thereby drive the demand for refinery catalysts over the forecast period.
Porter's Analysis
Threat of new entrants: Refinery catalyst industry requires huge capital investments for establishing manufacturing plants and R&D facilities. Strict environmental regulations also act as a barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power as there are numerous established players offering wide range of refinery catalysts. However, switching costs for buyers are low.
Bargaining power of suppliers: Suppliers of key raw materials like precious metals enjoy significant bargaining power due to limited availability of resources and need for adherence to product quality and purity.
Threat of new substitutes: Threat is moderate as alternative green technologies for refining are still at a nascent stage. However, focus on cleaner fuels may pose a long term threat.
Competitive rivalry: Intense due to presence of major global players. Players differentiate based on catalyst formulations, product performance and improvements in oil refining processes.
SWOT Analysis
Strength: Wide applications in petroleum refining and established product offerings. Renewed investment in oil refineries post pandemic.
Weakness: Vulnerability to raw material price fluctuations. High R&D costs for continuous product improvements.
Opportunity: Shift to higher value speciality catalysts. Expanding refinery capacity in developing markets.
Threats: Stringent emission norms. Focus shifting to alternate clean technologies.
Key Takeaways
The Global Refinery Catalyst Market Demand was valued at US$ 3.76 Bn in 2023 and is anticipated to reach US$ 7.02 Bn by 2030, expanding at a CAGR of 8.9%.
Regional analysis:
Asia Pacific dominated the market with over 40% share in 2023 led by China and India. The region is expected to maintain its dominance owing to rising energy needs of developing economies and expanding refining capacity in the region.
Key players analysis:
Key players operating in the refinery catalyst market are Ipsen Pharma, Allergan, Acorda Therapeutics, Inc., Merz Pharma, Teva Pharmaceutical Industries Ltd., Novartis AG, Sun Pharmaceutical Industries Ltd., Beximco Pharmaceuticals Ltd., Johnson & Johnson Private Limited, Zydus Cadila, F. Hoffmann-La Roche Ltd., and Elite Pharmaceuticals Inc. These players focus on new product launches and capacity expansions to gain higher market share.
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