The refinery catalyst market has emerged as a vital part of the petroleum refining industry. Refinery catalysts are specialized materials that assist in converting crude oil into useful petroleum products like gasoline, diesel, and other fuel oils through chemical reactions in refineries. They help speed up reaction rates and lower energy costs significantly. The key types of refinery catalysts include FCC catalysts, hydrotreating catalysts, hydrocracking catalysts, catalytic reforming catalysts, and alkylation catalysts. With rising vehicular usage and demand for transportation fuels worldwide, refineries rely heavily on catalysts to optimize production volumes and meet stringent environmental regulations.
The Global Refinery Catalyst Market is estimated to be valued at US$ 4.34 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.Key Takeaways
Key players operating in the refinery catalyst market are Ashok Leyland, General Motors Company, Bosch Rexroth AG, Xiamen Golden Dragon Bus Co., Ltd., Daimler AG, Volvo Group, Volkswagen AG, Mahindra and Mahindra Ltd., Toyota Motor Corporation, and Tata Motors Ltd. Growing transport sector around the world coupled with depleting fossil fuel reserves is propelling the demand for refinery catalysts. Major players are expanding their production facilities globally especially in high growth regions like Asia Pacific andMiddle East & Africa to leverage the business opportunities.
The growing Refinery Catalyst Market Demand for gasoline and other fuels from the expanding global transport sector is driving the need for refinery catalysts. Refiners are facing increasing pressure to meet product demand as well as comply with stringent environmental norms. This is positively impacting the sales of refinery catalysts worldwide. Major manufacturers are emphasizing on developing innovative catalyst technologies to help refineries improve clean fuel yields and reduce operating costs.
Key players are focusing on investments and strategic partnerships for expanding global footprint. For instance, BASF has partnered with Nouryon to strengthen refinery catalysts business in Middle East and Africa. In addition, rising investments to develop petrochemical hubs and new refineries in Asia Pacific are facilitating regional expansion of leading refinery catalyst producers.
Market key trends
One of the key trends in the Refinery Catalyst Market is the rising adoption of nanotechnology and advanced materials. Leading players like W. R. Grace are researching applications of nanotechnology to substantially enhance catalyst performance, activity and service life. Use of nanomaterials as catalyst supports can boost resistance to impurities, temperature, and thermal degradation. This will enable refiners to further reduce emissions and upgrade heavier crudes efficiently.
Porter’s Analysis
Threat of new entrants: Entry barriers are moderate due to economies of scale, patents and access to distribution channels.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and differentiated products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated raw materials and established suppliers.
Threat of new substitutes: Threat of new substitutes is low due to switching costs for end-users and dependence on petroleum refining processes.
Competitive rivalry: Intense competition exists between domestic and international players.
The geographical region contributing the most to refinery catalyst market value is Asia Pacific due to presence of major crude oil refining hubs and growing energy demands. Countries like China, India and Japan account for over 50% market share. North America is another majorly concentrated region owing to large refining capacity and established refinery infrastructure in the US.
The fastest growing region for refinery catalyst market is expected to be Middle East & Africa. This is mainly attributable to ongoing capacity expansions of petroleum refineries across GCC countries and investments towards developing new refinery projects. Countries like Saudi Arabia, UAE and Iran are slated to be the major revenue generators with inauguration of greenfield refineries over the forecast period.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it