Hydrate Inhibitors Market Is Estimated To Witness High Growth Owing To Opportunity For Oil & Gas Ind
Author : Raj Dhote | Published On : 22 Jan 2024
Hydrate inhibitors are chemicals added to inhibit the formation of gas hydrates in oil & gas pipelines and storage tanks. Hydrate inhibitors prevent the formation of gas hydrates by modifying water structure and/or bonding to gas molecules preventing the formation of crystalline hydrates. They are used to prevent blockages in offshore and onshore oil & gas production and transportation infrastructure. The global hydrate inhibitors market is dominated by thermodynamic hydrate inhibitors owing to their cost effectiveness and high performance.
The global Hydrate Inhibitors Market is estimated to be valued at US$ 275.34 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing oil & gas industry, especially offshore oil & gas production presents a key market opportunity for hydrate inhibitors. Offshore oil & gas production is challenging due to low temperatures and high pressure at sea floors promoting rapid hydrate formation. Hydrate inhibitors thus play a vital role in preventing production losses for offshore oil & gas operators. Their use helps achieve higher production uptime and facilitates transportation of oil and gas over long distances via pipelines. This is expected to significantly boost the demand for hydrate inhibitors over the forecast period.
Porter’s Analysis
Threat of new entrants: The hydrate inhibitor market requires huge investments in R&D activities to develop new and innovative products. This poses as a potential barrier for new players.
Bargaining power of buyers: There are numerous global players operating in the market providing buyers with a variety of options. This gives buyers moderate bargaining power.
Bargaining power of suppliers: The availability of raw materials from diverse sources gives suppliers low bargaining power.
Threat of new substitutes: No close substitutes exist for hydrate inhibitors currently, giving less threat from substitutes.
Competitive rivalry: The presence of numerous international brands leads to high competitive rivalry.
SWOT Analysis
Strength: Hydrate inhibitors find extensive application in oil & gas industry. Existing players have established global distribution networks.
Weakness: Environmental regulations regarding the use of toxic inhibitors is a challenge. Development of bio-based inhibitors requires significant investments.
Opportunity: Growing demand for energy worldwide offers scope for market expansion. Development of alternatives to toxic inhibitors presents an opportunity.
Threats: Volatility in crude oil prices impacts investment decisions of industry players. Stringent quality standards set by regulators increase compliance costs.
Key Takeaways
The global Hydrate Inhibitors Market Growth is expected to witness high growth over the forecast period driven by increasing offshore and onshore hydrocarbon production activities. The global Hydrate Inhibitors Market is estimated to be valued at US$ 275.34 Mn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031.
Regional analysis: The Asia Pacific region holds the major share of the global market currently owing to strong growth in industries such as oil & gas in China and India. China dominates Asia Pacific hydrate inhibitor consumption due to large domestic production of oil and gas. rapidly growing energy needs of developing economies in the region will further drive the APAC hydrate inhibitor market.
Key players: Key players operating in the hydrate inhibitor market are BP Plc, Chevron Corporation, Essar Oil Ltd., ExxonMobil Corporation, HPCL - Mittal Energy Limited, Indian Oil Corporation Limited, Reliance Industries Limited, Royal Dutch Shell Plc, Saudi Arabian Oil Co., and Valero Energy Corporation. These major companies account for a significant share of the market.
For more insights, read- https://www.ukwebwire.com/hydrate-inhibitors-market-trends-size-and-share-analysis/
For more details on the report, Read- https://cmiinfopiece.blogspot.com/2024/01/the-global-luxury-travel-market-growth.html
