Oil and Gas
Market outlook of gasoline market in the US
Technavio’s research analyst predicts the gasoline market in the US to witness a decline in the consumption of gasoline during the forecast period. In terms of gallons consumed per day, the analysts have estimated this market to surpass 18,732 gpd by the end of 2020. The government mandates to use gasoline in conjunction with additives has led to the constant use of gasoline in the market. Gasoline can be blended with biofuels such as ethanol, which results in better performance than its other counterparts such as diesel. Government regulations support the use of gasoline over other fuels due to the right balance of emissions and fuel performance that it provides.
The transportation industry in the US is undergoing continual changes in terms of technology upgrades in light duty vehicles. The vehicles currently being manufactured have improved vehicle bodies and engines. Also, the stringent government regulations encourage the use of better grade gasoline leading to more efficiency gains. This in turn leads to a decrease in the quantity of gasoline consumed per mile. A combination of these two factors has resulted in a constant decline in gasoline consumption over the years that is expected to continue during the forecast period.
Geographical segmentation and analysis of the gasoline market in the US
- East Coast
- Gulf Coast
- Rocky Mountain
- West Coast
During 2015, the Midwest region held the largest share of about 37%. The gasoline consumption in the region is expected to decline at a CAGR of 5% over the forecast period. This is because blending of biofuels with gasoline is highly popular in the region.
Competitive landscape and key vendors
Overview of the aviation fuel market
Market research analysts at Technavio have predicted that the global aviation fuel market will grow steadily at a CAGR of more than 3% by 2020. Countries such as the US and the developed countries in Europe have started investing in biofuel products. However, due to the long gestation period for returns, the investments have been primarily short-term in nature. Since, biofuels are still not commercially available at a competitive price, there is no bulk purchase by airlines. However, the recent regulations by several countries all across the globe that mandate the reduction of greenhouse gas emissions (GHG) will encourage the use of biofuels in the aviation industry. Several countries in the European Union have already started using blended fuel, a mixture of biofuel and jet fuel for reducing carbon emissions. The trend will follow in the coming years, and more countries around the globe will adopt biofuel as the primary fuel for the aviation industry.
In terms of geography, the Americas will dominate the airplane fuel market throughout the predicted period and will also account for a total market share of about 66% by 2020. The US is the major contributor in the market, and this mainly attributes to the increase in the number of aircraft in the recent years and the continued growth in the number of passengers flying to and from the US. Also, air fleet additions and upgradations in the US military sector will also contribute to the growth of the market.
Competitive landscape and key vendors
The market is characterized by the presence of several global, regional, and local aviation fuel companies
Overview of the global bisphenol-A market
Market research analysts at Technavio have predicted that the global bisphenol-A market will grow steadily at a CAGR of almost 6% by 2020. The application of bisphenol-A in the production of epoxy resins has been prevailing for decades, and this is expected increase significantly in the next four years. Owing to their properties such as resistance to chemicals and strong adhesion along with toughness, epoxy resins have found considerable significance in the production of several daily-use products. Metal containers have epoxy linings as a protective layer, and the automotive industry uses epoxy resin components in the production of cars and boats. The estimated growth of these industries will fuel the demand for epoxy resins, which in turn, will propel the growth of the bisphenol-A market. Moreover, the growth of the construction industry that uses epoxy resins in paints and coatings will also aid in the growth of this market.
The recent years have seen an increase in the number of industrial applications of bisphenol-A products. Automotive manufacturers have started replacing glasses with polycarbonate plastics made from bisphenol-A as it helps in reducing the overall weight of the automobile and also helps in improving safety features. Epoxy resins made from bisphenol-A have found considerable significance in the production of wind turbine blades which makes them stronger and lighter. The demand from these markets in the coming years will increase the production of bisphenol-A. This will lead to the broadening of the spectrum of product applications of this compound and is considered to be one of the major factors that will have a positive impact on the
Overview of the global marine lubricants market
In terms of volume, the global marine lubricants market will grow steadily at a CAGR of more than 4% by 2020. This market research and analysis from Technavio has identified the growing size of global marine cargo fleet to be one of the primary growth factors for this market. Much of the interaction between economies in the global market is through means of international trade; and since two-thirds of the world is covered by water, most of the trade is carried out through the marine route. Benefits such as the ability to cover significant distance, carry substantial amount of goods in volume, lower cost of transportation, and lower maintenance costs have led to the increase in demand for marine trade. The presence of large shipping industries and the increasing demand for maritime trade will consecutively lead to the high demand for marine lubricants during the estimated period.
The current overcapacity in the shipping market is considered to be one of the major trends influencing growth during the forecast period. Balance in demand and supply is one of the major drivers for any product market. Since the demand for marine lubricants is directly dependent on growth of the marine shipping industry, the utilization rate of lubricants will be dependent on the shipping capacity demand-supply dynamics. As the shipping industry is over-flooded by capacity additions, the demand for marine lubricants will increase significantly over the next few years.
Segmentation by product type and analysis of the marine lubricants market
- Mineral oil-based lubricants
- Synthetic lubricants
- Bio-based lubricants
During 2015, the mineral oil-based lubricant
Overview of the global naphtha market
Technavio’s market research analyst predicts the global naphtha market to grow at a CAGR of more than 4% by 2020. The rise in global gasoline demand is primarily driving the naphtha market. One of the most important use of naphtha is in the blending of gasoline. The olefin rich naphtha obtained through various reforming processes is used for blending gasoline-grade fuel which is the primary support of the energy demand worldwide. Another important growth driver for the naphtha market is the huge demand for petrochemicals, primarily ethylene and propylene for production of plastics in the developing economies.
One of the latest trends in the market is the growing focus on the Asian economies. APAC is home to some of the major consumers of naphtha such as South Korea, Taiwan, and Japan that have based a significant portion of their infrastructure growth on naphtha. With the increased local consumption of naphtha, the demand will have to be satisfied with the importation of naphtha from the Middle East or the US. This will accelerate the production of naphtha in the US and maintain a balance with the growing local consumption and subsequent global production of naphtha.
Segmentation by application and analysis of the naphtha market
- Gasoline Blending
- Petrochemical feedstock
The petrochemical feedstock segment will dominate the market by 2020, and is expected to occupy 52% of the total market share. Naphtha is the primary feedstock for the manufacture of petrochemicals especially polyethylene and polypropylene. Naphtha has been widely recognized as a feedstock for the plastics production because one of the major components of the naphtha cuts is olefin rich. Owing to the growing demand for plastics, this segment will retain its dominance in the coming years, especially in the APAC region.
Overview of the global three-phase separator market in the oil and gas industry
The global market for three-phase separators in the oil and gas industry will post a slow but modest CAGR of over 1% during the forecast period. The rising need for a cost-effective separation method will propel the prospects for growth in this market until the end of 2020. Technavio’s market research analysts have observed that the global oil supply has been more than its consumption since 2014. This oversupply has resulted in the reduction of oil prices, which in turn has been highly beneficial for end users in the downstream oil and gas industry. Furthermore, to reduce operational costs, many integrated oil and gas companies have started adopting cost-effective technologies to become lean and survive the oil price turmoil. Similarly, many companies have also started to shift the oil and gas separation process to the beginning of the value chain as it helps to reduce the total operational cost.
In terms of geography, EMEA will be the largest market for three-phase separators in the oil and gas industry and will account for an impressive market share of almost 55% by the end of 2020. Factors such as increasing investments in upstream activities and the recent increase in onshore and offshore oil and gas exploration and production will result in the steady growth of this market in EMEA.
End-user segmentation of the three-phase separator market in the oil and gas industry
- Upstream industry
- Downstream industry
In this market study, analysts have estimated the upstream industry segment to account for an impressive market share of more than 70% by 2020. The augmented demand for three-phase separators at exploration sites will lead to the steady growth of this end-user segment. Three-phase separators are extensively used in the
The oil and gas sector is transforming, with greater diversification and expansion of upstream, midstream, and downstream operations.
In the upstream segment, exploration of unconventional sources, like shale gas, tight gas, coal bed methane, and heavy oil, is the new area of focus for oil and gas experts. The shale gas revolution has been a big game changer for the US economy, and several other countries are expecting similar booms in the near future.
The downstream (oil and gas refinery) sector is also experiencing growth because of the increasing production of shale gas and tight gas.
Since the onshore oil and gas industry has reached a saturation point, attention is now turning to offshore operations.
However, growing environmental concerns have now compelled governments to mandate strict regulations on oil and gas production, which is likely to impact business dynamics in this market significantly through the projected period.