Refinery catalysts are used in petroleum refineries to crack and transform hydrocarbon fractions into more useful petroleum products. They aid in removing sulfur, converting heavy crude oil fractions into lighter products like gasoline, diesel and naphtha. Refinery catalysts help optimize yields, increase production capacity and lower costs for refiners.
Market key trends:
One of the major trends observed in the refinery catalyst market is their use for producing ultra-low sulfur diesel and gasoline to comply with stringent emission norms. Refiners are optimizing operational efficiency by employing sulphur removal and isomerization catalysts. Advanced catalyst solutions are improving heavier crude processing capabilities and enabling cost-effective upgrades of existing refineries. Manufacturers are developing customized catalyst formulations for maximizing profits and meeting specific refining needs.
Porter’s Analysis
Threat of new entrants: New players need significant capital investment to enter this market due to high set up costs and stringent government regulations regarding environment and worker safety.
Bargaining power of buyers: Buyers have moderate bargaining power as there are alternative options available in the market. However, switching costs for buyers are high since changing an existing catalyst requires plant downtime and optimization of new catalyst formulation.
Bargaining power of suppliers: Major suppliers have some control over pricing due to their patented catalyst formulations and process technology. However, alternative options are available limiting their power.
Threat of new substitutes: Limited threat as alternate process technologies are capital intensive with no clear substitutes available in near future.
Competitive rivalry: Intense competition among existing players to gain market share through product innovation, partnerships and geographic expansion.
The global Refinery Catalyst Market Demand is estimated to be valued at US$ 6.75 Billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strengths: Patent protected products, technological expertise, global footprint and diverse product portfolio giving an advantage over small players.
Weaknesses: High R&D costs, regulatory compliance and dependence on commodity prices affecting margins. Limited control over raw material prices.
Opportunities: Growth in refinery capacity additions in Asia Pacific and Middle eastern countries. Expand into petrochemicals sector.
Threats: stringent environmental norms increasing compliance costs. Shift towards green fuels affecting demand.
Key Takeaways
The global Refinery Catalyst market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand for gasoline and other fuel products across the globe. The market was valued at US$ 6.75 billion in 2023.
Regional analysis – Asia Pacific dominates currently with over 50% share majorly attributed to China and India having sizable refining capacity expansions planned over next decade. Middle East is fastest growing market with countries like Saudi Arabia, UAE increasing refining output.
Key players – Key players operating in the Refinery Catalyst market are BP Global and Royal Dutch Shell. Other key industry participants include YARA International, Foster Wheeler AG, OXEA GmbH, W R Grace, Johnson Matthey, Albemarle Corporation, BASF SE, Technip SA, and UOP LLC. They are focusing on developing specialized catalysts to reduce emissions and improve fuel yields.