Demulsifier Market Outlook by Type (Water Soluble, Oil Soluble), Application (Sludge Oil Treatment, Petro Refineries, Crude Oil Processing, Lubricant Manufacturing) - Industry Growth and Demand Forecast to 2030

Market Overview

The global demulsifier market was valued at $2,414.6 million in 2021, and it is expected to grow at a CAGR of 4.2% during the forecast period, to reach $3,485.6 million by 2030. This growth can be attributed to the surging demand for crude oil and oil derivative products and the growing end-use sectors, including oil sludge treatment, lubricant manufacturing, and pesticide manufacturing. Moreover, an increase in the number of oil discoveries and mature oil fields and the upsurge in refined petroleum demands are expected to offer lucrative opportunities for industry players.

Specialty chemicals called demulsifiers or emulsion breakers are used to separate water from crude oil. During the extraction of this oil from reservoirs, it is combined with either injection water or natural formation water. Therefore, failure to remove the maximum amount of water prior to oil refining might lead to serious problems.

Rising Demand for Crude Oil Drives the Industry Growth

The surging economic growth and the expanding disposable income, living standards, and power requirements are major drivers for the increasing demand for crude oil. Its refining is greatly influenced by the increased industrialization, surge in global energy consumption, and rise in government investments to improve oil and gas infrastructure.

Crude oil is mostly utilized as a combustible fuel, and it is also essential as a raw material in the production of about 90% of chemical products, including solvents, polyurethane, plastics, and countless other intermediate and finished commodities. The rapid rates of industrialization and urbanization bring a surge in demand for crude oil processing, aiding the industry growth.

Additionally, the market advancements are supported by the upsurge in petroleum demand from the automobile industry. For example, in 2021, the average U.S. petroleum consumption was 19.78 million barrels per day (b/d). The entire petroleum usage in the country has increased by 8% since 2020. Furthermore, as the aviation sector expands, there is a greater need for petroleum of higher quality. Thus, these reasons are responsible for the rise in petroleum processing, which, in turn, drives the market.

Oil-Soluble Dominates the Market

Oil-soluble demulsifiers accounted for a larger revenue, of $2,014.2 million, in 2021. This is attributed to the added advantages they have over water-soluble demulsifiers, such as their superior performance at lower treating temperatures, improved fuel burning characteristics, and require smaller dosages than other products. Due to these factors, they are widely used in the crude oil industry to separate water from oil.

Whereas, the water-soluble category is expected to witness significant growth in the coming years. This can be because they are less expensive, which makes them a much more economical choice in the industry, although water-soluble demulsifiers are less effective than oil-soluble.

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Crude Oil Processing Application Holds Highest Market Share

Emulsion breakers are utilized in a variety of end-use industries, including crude oil processing, lubricant manufacturing, petrol refining, oil sludge treatment, pesticides, and wastewater treatment. Among these, the crude oil processing category held the largest revenue share, of around 37%, in 2021. This is attributed to the surging oil exploration and refining activities both onshore and offshore, the expanding numbers of mature oilfields, and the rapid growth in shale oil and gas extraction.

The demulsification of water-in-oil and oil-in-water emulsions is the main usage of demulsifiers in this industry. The need for these products is expected to rise throughout the forecast period, as global fuel refining, both onshore and offshore, increases. The effective and speedy separation of water from crude oil, which maximizes the value of the oil and lowers operating costs, is a crucial step in the refining process.

Moreover, the market will increase as a result of the surging demand for petroleum products, including kerosene, gasoline, diesel, and others. Additionally, the need for lubricants and premium engine oil for aircraft and automobiles is rising, which supports the demand for emulsion breakers. The petroleum industry utilizes emulsion breakers to separate oil and wastewater before disposal, in order to protect aquatic life and reduce environmental contamination.

Moreover, demulsifiers are highly needed, as the lubricant industry expands since failing to separate water may have a number of detrimental effects on a vehicle's parts, including rust and corrosion, component breakage, and viscosity loss. Therefore, emulsion breakers are used to separate water from lubricants. Furthermore, a key opportunity for players in the market is the rising amount of sludge produced by the petroleum industry, as a result of expanding refining operations.

MEA Is the Leader in the Market

MEA is the leading market for demulsifiers, followed by North America, Europe, APAC, and LATAM. The regional market is also predicted to witness the fastest growth during the forecast period. This is due to the enormous deposits of crude oil in the region. For instance, large amounts of crude oil are produced by countries, including Saudi Arabia, the U.A.E., Iraq, Iran, and Kuwait. Additionally, the expanding crude oil production, mature oilfields, potential oilfield finds, and government and private player investments to support the expansion of oil & gas infrastructure reinforce the demulsifier use in the region.

In addition, according to studies, the demand for demulsifiers will increase, as the petroleum processing sector expands in North America. For instance, the U.S. is the largest producer of crude oil and Canada has the third-largest crude oil reserve, globally. Moreover, due to the region's increasing need for crude oil and the expanding lubricants business, North America holds second place in the global market.

Additionally, the APAC market is expected to grow considerably, with a CAGR of more than 3.7%, during the course of the projection period. The surging economic growth, rapid urbanization, and rising buying power are driving businesses to establish industrial facilities in the region, which, in turn, drive the demand for demulsifiers. Moreover, the growing end-use industries, including oil & gas, pharmaceutical, and cottonseed oil, ease in government policies, and the rise in investments in the oil & gas sector will all contribute to the significant growth of the regional market.

Key Players in the Global Demulsifier Market Are:

• BASF SE
• Baker Hughes Group
• Clariant International Ltd.
• The Dow Chemical Company
• Ecolab USA Inc.
• Schlumberger Limited
• Roemex Ltd.
• Croda International Plc.
• Halliburton Energy Services Inc.
• Momentive Performance Materials Inc.

Demulsifier Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Water Soluble
• Oil Soluble

Based on Application

• Sludge Oil Treatment
• Petro Refineries
• Crude Oil Processing
• Lubricant Manufacturing
• Other Applications

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Russia
  • Norway
  • Germany
  • U.K.
  • Italy
• Asia-Pacific
  • China
  • Vietnam
  • India
  • Indonesia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia