According to a report by Grand View Research, Inc., global oilfield chemicals market is expected to value USD 28.48 billion by 2025. High demand in petroleum operations, such as Enhanced Oil Recovery (EOR), production, cementing, well stimulation, hydraulic fracturing, and drilling, is estimated to drive the market. Furthermore, rising demand for natural and eco-friendly products can foster the growth of this market over the forecast period (from 2018 to 2025).
On the other hand, costly disposable procedures for toxic compounds may hinder the market growth. However, shifting preference towards innovative drilling operations over conventional methods is also said to fuel the product demand in the years to come. The oilfield chemicals market can be segregated on the basis of product, application, location, and region. Based on product, the market can be categorized into rheology modifiers, friction reducers, biocides, inhibitors, demulsifiers, surfactants, foamers, and others.
In 2016, rheology modifiers led the market and accounted for 20% of the overall revenue share. Increasing use of these modifiers as synthetic mud to provide high viscosity while drilling at high angles can fuel their demand, driving the segment growth. These agents help reduce splashing while brushing and enhance sag resilience of coatings, which is also likely to boost their demand. The biocides segment is likely to expand at the fastest CAGR of 5.4% during the forecast period.
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Rising adoption of biocides in offshore operations can have a positive impact on the segment growth. The ability of biocides to protect water muds, which contain naturally-occurring gum, can also help boost their demand. Based on application, the market can be classified into production, drilling, workover and completion, and cementing. Workover and completion emerged as the dominant segment in 2016 and accounted for 35% of the global revenue.
The market valuation in this segment is estimated to expand at a CAGR of 4.8% during the forecast years. This is mainly due to its ability to improve the oil and gas recovery in a cost-effective manner, thereby minimizing its adverse effect on the environment. The production chemical segment is estimated to grow well in Middle East and Africa (MEA). It is expected to reach a valuation of USD 2.20 billion by 2025 in MEA.
Increasing use of formulation in the existing reservoirs to enhance productivity can augment the segment demand further. Petroleum sector has been witnessing a shift towards slick water fracturing fluids and high-performance drilling muds. Rising environmental concerns coupled with the advent of eco-friendly compositions will have a negative effect on petroleum sector, thereby propelling the demand for eco-friendly formulations. Based on location, the market can be bifurcated into offshore and onshore.
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The market demand in the onshore location is the highest and was valued at USD 3 billion in 2016. Increasing use of a variety of oilfield chemicals in onshore location is likely to fuel the segment growth over the next few years. The offshore location segment is predicted to expand at the fastest CAGR of 5% over the forecast period. Operating conditions in offshore locations are usually extreme and harsh.
This, in turn, can fuel the demand for specific chemicals including inhibitors and biocides as such chemicals ensure smooth operations at low cost. Regional segmentation includes Asia Pacific, Europe, North America, Central & South America, and Middle East & Africa. North America was the dominant regional market in 2016 and accounted for 30% of the global share. Rising demand for oilfield chemicals in production and workover and completion sectors can fuel segment growth.
Growing investments by multinational companies in the emerging markets of Asia Pacific including Eastern Europe, Central & South America, and Southeast Asia. Most of these companies are also focusing on strengthening their presence in emerging regions attributed to lenient environmental policies and low labor and land costs. Some of the leading companies in the oilfield chemicals market are Dow Chemical Co., BASF SE, Lubrizol Corporation, Halliburton, and Stepan Company.
Most of these companies manufacture and distribute their products by direct supply or through distributors and third-party vendors. Moreover, they have also undertaken several business strategies including mergers and acquisitions to maintain their market position.
Grand View Research has segmented the global oil field chemicals market on the basis of product, application, location and region:
Product Outlook (Revenue, USD Million, 2014 - 2025)
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Inhibitors
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Demulsifiers
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Rheology Modifiers
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Friction Reducers
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Biocides,
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Surfactants
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Foamers
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Others
Application Outlook (Revenue, USD Million, 2014 - 2025)
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Drilling
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Production
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Cementing
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Workover & completion
Location Outlook (Revenue, USD Million, 2014 - 2025)
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Onshore
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Offshore
Regional Outlook (Revenue, USD Million, 2014 - 2025)
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North America
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Europe
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Asia Pacific
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Central and South America
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Middle East and Africa
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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