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The drag reducing agent market size is forecast to increase by USD 93.1 million with growth at a CAGR of 5.97% between 2023 and 2028. The drag-reducing agent (DRA) market is experiencing significant growth due to the increasing utilization of these agents in the petroleum industry. DRAs are essential for enhancing the flow of oil and gas in pipelines, particularly in complex offshore operations. Their unique properties, such as friction reduction and resistance to erosion and corrosion, make them indispensable in optimizing production and reducing operational costs. The rising complexity of offshore field operations, including deepwater drilling and harsh environmental conditions, further bolsters the demand for DRAs. As a result, the market for drag-reducing agents is expected to expand at a steady pace in the coming years.
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The market is crucial for enhancing efficiency in fluid transportation across sectors like the gas segment, petroleum pipelines, and the transportation sector. DRA products, including drug-reducing polymers and flow-improving products, are essential in mitigating turbulence and optimizing pipeline operations. They improve pipeline capacity by reducing friction and promoting laminar flow in multiphase liquids such as refined petroleum and petrochemical products. As demands for oil, diesel, and petrol continue to rise, DRAs play a vital role in conserving energy sources and lowering operational costs. Companies like Equity Foundation innovate with advanced additives and polymers to meet future market needs, ensuring efficient and sustainable fluid transportation in the energy and petrochemical industries. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
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 market growth and trends period.
The key trend in the market is the increasing use of drag-reducing agents in medical applications. Drag-reducing agents are proven to be beneficial for blood circulation and helpful in treating cardiovascular diseases. These agents are administered to metastasizing tumor cells. They reduce drag in veins and arteries and regularize blood flow, which 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.
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.
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 141 million in 2018. 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.
Middle East and Africa is estimated to contribute 40% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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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.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
China National Petroleum Corp. - 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:
Baker Hughes Co., Berkshire Hathaway Inc., China National Petroleum Corp., Deshi Energy Technology Group Co.,Ltd, Dorf Ketal Chemicals I 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, Partow Ideh Pars Co. P.J.S, Specialized Technologies for Industrial Services Co., The Lubrizol Corp., The Zoranoc Oilfield Chemical, and Weifang Xinchang Chemical Co. Ltd.
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market plays a crucial role in enhancing efficiency and reducing costs in fluid transmission across various industries such as the oil sector, gas refining, and transportation industries. DRAs, including nanofluids, surfactants, and biobased polymers, are instrumental in mitigating frictional pressure and optimizing fluid flow in oil exploration wells and gas pipelines. They improve flow rate and decrease pressure drop, thereby minimizing energy consumption and operating expenses in petroleum production and refinery operations. Leading manufacturers collaborate on advanced polymer-based solutions to meet the diverse needs of crude oil transportation and liquefied petroleum gas distribution, supported by nanotechnology advancements. As governments promote energy efficiency initiatives, DRAs contribute to sustainable energy requirements and infrastructure improvements in the petrochemical industry and beyond.
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Drag Reducing Agent Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.97% |
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Market growth 2024-2028 |
USD 93.1 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.28 |
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Regional analysis |
North America, Middle East and Africa, APAC, Europe, and South America |
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Performing market contribution |
Middle East and Africa at 40% |
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Key countries |
US, Saudi Arabia, United Arab Emirates, China, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Baker Hughes Co., Berkshire Hathaway Inc., China National Petroleum Corp., Deshi Energy Technology Group Co.,Ltd, Dorf Ketal Chemicals I 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, Partow Ideh Pars Co. P.J.S, Specialized Technologies for Industrial Services Co., The Lubrizol Corp., The Zoranoc Oilfield Chemical, and Weifang Xinchang Chemical Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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