Oilfield Chemicals Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, India, Russia - Size and Forecast 2024-2028

Oilfield Chemicals Market Forecast 2024-2028

The oilfield chemicals market size is forecast to increase by USD 6.75 billion, at a CAGR of 4.37% between 2023 and 2028. The market's growth rate hinges on various factors, such as the increased production of crude oil, advancements in oilfield technology, and the expansion of shale gas exploration and production. These elements collectively contribute to the market's trajectory, driving its upward momentum. With the continuous improvement and adoption of innovative technologies in the oilfield sector, coupled with the heightened focus on shale gas extraction, the market is poised for significant expansion in the foreseeable future. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the Market Size During the Forecast Period?

Request Free Sample in PDF

Market Definition 

Oilfield chemicals are specialized chemicals used in the exploration, production, and processing of oil and gas. These chemicals play crucial roles in various stages of the oil and gas industry, helping to maximize production efficiency, ensure equipment integrity, and mitigate environmental impact.

To Know more about the market report  Request a Free Sample

Market Dynamics

The market is propelled by a surge in oil exploration and production activities, driven by the shale gas revolution and increased extraction efforts. The market benefits from the need to optimize efficiency, ensure safety, and uphold environmental sustainability standards in drilling and reservoir recovery processes. Additionally, technological advancements, coupled with rising global demand for oil products, stimulate market growth. However, challenges such as the reduction in oil and gas exploration endeavours and the growing adoption of renewable energy sources pose obstacles to market expansion. 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. 

Key Market Driver

Increased production of crude oil is notably driving the market growth. As oil exploration and production activities strive to maximize hydrocarbon recovery, meet growing energy demands, and enhance operational efficiency, the demand for oilfield chemicals increases. Increased crude oil production frequently requires well-stimulation techniques, including hydraulic fracturing (fracking) and acidizing. Oilfield chemicals such as fracturing fluids and acidizing agents, are essential in these processes to enhance reservoir recovery and stimulate oil flow from wells. As crude oil production rises, maintaining flow assurance becomes crucial to prevent operational disruptions. Oilfield chemicals are applied to address issues such as wax deposition, asphaltene flocculation, hydrate formation, and scale accumulation in pipelines and production facilities, ensuring continuous and efficient oil flow.

addition, the increased production of crude oil may involve the extraction of oil and gas containing hydrogen sulfide (H2S) and carbon dioxide (CO2). Scavenger chemicals are used to reduce or eliminate these corrosive and toxic components, protecting infrastructure and ensuring safety. Increased production in crude oil necessitates the use of various oilfield chemicals to address operational challenges, optimize recovery, and ensure the integrity of production systems, which is expected to fuel the market growth during the forecast period.

Significant Market Trends 

Rising oilfield activities due to deepwater drilling operations is an emerging trend shaping market growth. Deepwater drilling often involves exposure to corrosive conditions such as high salinity and the presence of hydrogen sulfide (H2S). Oilfield chemicals, including corrosion inhibitors and scale inhibitors, are crucial to protect equipment, pipelines, and infrastructure from degradation and scaling. In deepwater environments, low temperatures and high pressures can lead to the formation of gas hydrates, which can obstruct pipelines and equipment. Hydrate inhibitors are used to prevent the formation of hydrates and ensure the smooth flow of hydrocarbons. 

Moreover, oilfield chemicals are employed for flow assurance to prevent these issues and maintain continuous production. Oilfield chemicals are utilized to protect subsea infrastructure, including wellheads and pipelines, from corrosion and fouling. They are applied to ensure well integrity in deepwater operations. Sealants, cement additives, and other chemicals help maintain the structural integrity of wellbores and prevent leaks. These chemicals extend the life of subsea equipment and reduce the need for frequent maintenance. Thus, the rise in deepwater drilling activities will fuel the market during the forecast period.

Major Challenge

Increasing corrosion of materials in oilfields is a significant challenge hindering market growth. Corrosion is the degradation of materials, typically metals, due to chemical reactions with the surrounding environment. Corrosion in oilfields can occur in various components, such as pipelines, wellbore tubings, tanks, and other infrastructure. Oilfield equipment is exposed to harsh operating conditions, including high temperatures, pressure variations, and the presence of corrosive substances such as hydrogen sulfide (H2S) and carbon dioxide (CO2). These conditions can accelerate corrosion rates.

Moreover, the compatibility of corrosion inhibitors with other chemicals used in oilfield processes is crucial. Issues such as chemical incompatibility can reduce the effectiveness of corrosion inhibition and lead to unintended consequences. The oilfield chemicals sector must navigate evolving regulatory requirements related to the use and disposal of corrosion inhibitors. Ensuring compliance with environmental and safety regulations adds complexity to the development and deployment of these chemicals, thus resulting in slow growth of the market during the forecast period.

Segmentation by Application, Type and Geography

Application Analysis 

The market share growth by the production segment will be significant during the forecast years.  Production chemicals are used to inhibit the formation of scale deposits and prevent corrosion in production equipment, pipelines, and wellbores. Controlling scale and corrosion is essential for maintaining operational efficiency and prolonging the life of assets. Oilfield chemicals are applied to enhance various aspects of production processes, ensuring operational efficiency, asset integrity, and optimal hydrocarbon recovery.

Get a glance at the market contribution of the End User  segment Request Free Sample

The production segment was the largest and was valued at USD 9.97 billion in 2018. The production phase involves the management and treatment of produced water. Chemicals are applied for water treatment to address issues such as scaling, corrosion, and microbiological growth. Effective water management enhances operational efficiency and environmental compliance. The application of chemicals for scale and corrosion inhibition is critical in production systems. These chemicals prevent the formation of scale deposits and protect equipment from corrosion, ensuring the integrity of pipelines, wellbores, and production facilities. Thus, oilfield chemicals are crucial for maintaining flow assurance in pipelines and production facilities. They are used to prevent issues such as wax deposition, asphaltene flocculation, hydrate formation, and scale accumulation, ensuring the uninterrupted flow of hydrocarbons. Moreover, advancements in smart chemical technologies, including responsive polymers or sensors, are contributing to the growth of the segment during the forecast period. 

Type Analysis 

Based on the type, the market has been segmented into onshore and offshore. The onshore segment will account for the largest share of this segment.? The growth of the onshore segment in the market is influenced by various factors related to onshore oil and gas exploration, drilling, and production activities. The onshore oilfield chemicals segment is characterized by the presence of several large to small-scale oilfield chemical companies, as the capital investment required to operate in onshore fields is considerably lower than in offshore fields. As exploration and drilling activities expand, the need for chemicals to optimize production and address challenges such as reservoir complexities increases. Onshore regions often host unconventional resources such as shale oil and gas. The growth of unconventional production, including hydraulic fracturing (fracking), has driven the demand for specialized oilfield chemicals to enhance well stimulation, improve recovery rates, and manage reservoir conditions. Overall, the segment is expected to drive the market's growth during the forecast period.

Region Analysis

North America is estimated to contribute 38% 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.

For more insights on the market share of various regions Request Free Sample

In 2023, the US was the key contributor to the market in North America. Recovery in crude oil prices and the significant growth in shale oil production in the US were the key drivers for the market growth in North America in 2023. The level of oil and gas exploration and production activities significantly impacts the demand for oilfield chemicals. North America, particularly the US and Canada, has been home to extensive shale oil and gas developments, contributing to the growth of the regional market. Advancements in automation and Internet of Things (IoT) technology are encouraging oil rig operators in the region to adopt automated drilling solutions in onshore and offshore oil and gas projects.

Companies operating in the oil and gas industry are increasingly adopting semi-automated technologies to gain access to remote offshore oil wells that pose several logistical hurdles, such as harsh weather conditions. Ongoing advancements in drilling technologies, hydraulic fracturing, and enhanced oil recovery methods have led to increased complexities in oilfield operations. As a result, there is a growing need for specialized oilfield chemicals to address challenges related to drilling, production, and reservoir management. Growing awareness about the long-term cost benefits of drilling automation is expected to drive the market in the region during the forecast period. 

Key Companies

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.

3M Co - The company offers oilfield chemicals such as fluorochemicals, Dynamar polymer processing additives, drilling fluids and hydraulic fluids.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 3M Co., Ashland Inc., Baker Hughes Co., BASF SE, Chevron Corp., Clariant International Ltd., Croda International Plc, Evonik Industries AG, FMC Corp., Halliburton Co., Kao Corp., Qixia Aotong Chemical Co. Ltd., Sasol Ltd., Schlumberger Ltd., Solvay SA, The Lubrizol Corp., The SNF Group, Yantai Humon Group Co. Ltd., Artek Surfin Chemicals Ltd., and Huntsman International LLC

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.

Segment Overview

The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Production
  • Well stimulation
  • Drilling fluids
  • Enhanced oil recovery
  • Others

• Type Outlook 
  • Onshore
  • Offshore

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The Global Oilfield Chemicals Market is driven by the extraction of oil and gas from mature and aged wells, necessitating optimization and adherence to environmental standards. The adoption of enhanced oil recovery techniques enhances onshore exploration activities, particularly in developing economies like Brazil. The industry benefits from investments amid rising demand for oil, although traditional exploration faces challenges. Key players like ABPIP and RIMPRO India play vital roles in protecting equipment and pipelines, especially with the increasing demand for oil and gas. Rheology modifiers, inhibitors, and workover & completion segments dominate, addressing various challenges such as damage prevention and solid-free fluids utilization. The market also caters to drilling needs, with a focus on corrosion prevention and equipment maintenance, crucial for sustaining the revitalized oil and gas industry. Notable players like Nouryon contribute to enhanced oil recovery efforts, supporting various applications from petrochemicals to electric vehicles.

Additionally, the market is driven by industry players and influenced by renewable energy sources like solar and wind power, which face challenges due to declining demand and reduced exploration efforts. With the United States as a leading oil producer, conventional deposits and offshore extraction remain significant. Key segments like Rheology modifiers and inhibitors dominate, addressing challenges such as corrosion prevention and reservoir assessment. Chemicals like Micro-fibrillated cellulose (MFC) and xanthan gum stabilize drilling fluids, while Gas well foamers enhance extraction efficiency. However, issues like equipment damage and corrosion, exacerbated by exposure to CO2 & hydrogen sulfide, pose significant challenges. Despite these hurdles, enhanced oil recovery techniques and innovative chemicals like Water clarifiers and Paraffin inhibitors contribute to the market's resilience and continued growth.

Market Scope
Report Coverage	Details
Page number	171
Base year	2023
Historic period	2018- 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.37%
Market growth 2024-2028	USD 6.75 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	3.56
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 38%
Key countries	US, Canada, China, India, and Russia
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	3M Co., Ashland Inc., Baker Hughes Co., BASF SE, Chevron Corp., Clariant International Ltd., Croda International Plc, Evonik Industries AG, FMC Corp., Halliburton Co., Kao Corp., Qixia Aotong Chemical Co. Ltd., Sasol Ltd., Schlumberger Ltd., Solvay SA, The Lubrizol Corp., The SNF Group, Yantai Humon Group Co. Ltd., Artek Surfin Chemicals Ltd., and Huntsman International LLC
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.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request Free Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch