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The drag reducing agent market is estimated to increase by USD 80.73 million between 2022 and 2027, at a CAGR of 5.5%. The growth of the market depends on several factors, including the increasing application of drag-reducing agents in petroleum, friction resistance and other excellent properties, and rising complexity in offshore field operations.
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The rising complexity in offshore field operations is notably driving the market growth, although factors such as rising investments in electric vehicles may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The rising complexity in offshore field operations is notably driving the market growth. Petroleum companies are engaging in a large number of deepwater and ultra-deepwater petroleum fields. These offshore petroleum, especially deepwater and ultra-deepwater fields, have different characteristics than conventional petroleum fields, which makes it difficult to carry out operations. The harsh operating environment further adds to the complexity of the process, such as refining, transportation, and extraction.
Therefore, the demand for offshore field operations has increased in the petroleum industry. The availability of drag-reducing agents eases the flow of crude oil through pipelines, which improves processes such as refining and pipeline transportation, besides enhancing safety.
Thus, the growing complexity of offshore field operations is expected to contribute significantly to the growth in the oil and gas industry. With new offshore projects expected to rise, the need for drag-reducing agents will increase, which will drive the growth of the market during the forecast period.
Significant Trend
The increasing use of drag-reducing agents in medical applications is the key trend in the market. Drag-reducing agents are proven to be beneficial for blood circulation and helpful in treating cardiovascular diseases. These agents are administered for metastasizing tumor cells. These agents reduce drag in veins and arteries and regularize blood flow. This prevents potential tumor cells from settling down and deprives them of nutrients.
In addition, drag-reducing polymers improve tissue perfusion via the modification of the red blood cell (RBC) traffic in microvessels. Drag-reducing polymers reduce microvascular resistance and improve myocardial perfusion during coronary stenosis. Several applications of drag-reducing agents in the medical field are increasing their popularity in this sector. Therefore, the increasing use of drag-reducing agents in medical applications is expected to positively influence the growth of the market during the forecast period.
Major Challenge
Rising investments in electric vehicles are the major challenge impeding the growth. The EV industry is growing rapidly and sales are becoming large enough to create substantial profit pools for well-positioned investors. Several benefits are associated with the EV sector, for instance, the transition to EVs has the potential to significantly reduce the import bill of crude petroleum due to its reduced demand.
In addition, electric vehicles are environmentally friendly, as the energy is generated from renewable resources. Moreover, switching to electric vehicles can significantly lower operating and maintenance costs for users. Electric vehicles offer lower operating costs than their petrol, diesel, and compressed natural gas (CNG) counterparts, such as two-wheelers, three-wheelers, cars, buses, and trucks.
All of these factors offer various opportunities for investments in the electric vehicle sector. However, with a rising number of investments in the electric vehicle sector, the demand for crude oil is expected to decline, which will indirectly impact the market during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
China National Petroleum Corp. - The company operates under one segment. Under this segment, the company offers oilfield services, petroleum engineering and construction, equipment manufacturing, financial services, and new energy development. The company offers drag reducing agents such as EP Series Drag Reducer as its key offerings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the crude oil segment will be significant during the forecast period. Drag-reducing agents help reduce turbulence in the pipeline of the crude oil mass by rearranging the bonds between atoms in crude oil. This helps in decreasing pressure in the pipeline, which results in a high flow stream at the same pressure. Thus, drag-reducing agents facilitate the continuous flow of the crude oil mass to prevent clogged production wells and flow stream processes.
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The crude oil segment was valued at USD 136.14 million in 2017 and continued to grow until 2021. The benefits of adding drag-reducing agents in crude oil have made them a popular choice in crude oil applications. Leveraging this opportunity, several companies in the market have started offering a wide range of drag-reducing agents for crude oil applications. Thus, the increasing popularity of drag-reducing agents in crude oil applications is expected to drive the growth of this overall market in focus during the forecast period.
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Middle East and Africa is estimated to contribute 35% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In North America, the demand for drag-reducing agents is high in the oil and gas industry. North American countries such as the US and Canada are key oil and gas producers worldwide. Oil and gas production output in both countries has increased significantly, owing to a rise in unconventional exploration and production activities, such as the drilling of shale reserves in the US and oil sands in Canada. Moreover, the US possesses approximately two-thirds of the world's total pipeline network length due to its long history of oil exploration and refining. Fueled by the development of pipelines during the shale oil and gas boom in the US, the market has a strong presence in the region. Therefore, the significant rise in exploration and production activities in unconventional oil and gas sources, such as oil sands and shale in the region and the development of pipelines is responsible for the high demand for drag-reducing agents in the region.
The Market is witnessing global growth driven by factors like the rise in crude oil consumption and the increasing demand for biofuels. Nano-fluids play a significant role in reducing drag in crude oil pipelines, mitigating turbulent flow and turbulent eddies, which result in energy loss and pressure drop. The market caters to the demand for drag-reducing agents in various sectors, including oil and gas reserves, urbanization, infrastructure development, and industrialization. As per the Energy Information Administration, petrochemical projects are also contributing to the market's expansion. Overall, the market is poised for substantial growth, offering solutions to enhance efficiency and productivity in fluid transportation systems.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Drag Reducing Agent Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.5% |
Market growth 2023-2027 |
USD 80.73 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.15 |
Regional analysis |
North America, Middle East and Africa, APAC, Europe, and South America |
Performing market contribution |
Middle East and Africa at 35% |
Key countries |
US, Canada, Saudi Arabia, United Arab Emirates, and China |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Berkshire Hathaway Inc., China National Petroleum Corp., Deshi Energy Technology Group Co.,Ltd, Dorf Ketal Chemicals India Pvt. Ltd., Evonik Industries AG, Finoric LLC, Flowchem, Indian Oil Corp. Ltd., Innospec Inc., Jiangyin Huaheng Auxiliary Co. Ltd., KMG Chemicals, Monsoon Oilfield Ltd., NuGenTec, Oil Flux Americas LLC, Specialized Technologies for Industrial Services Co., The Lubrizol Corp., The Zoranoc Oilfield Chemical, Weifang Xinchang Chemical Co. Ltd., and Partow Ideh Pars Co. P.J.S |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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