Demulsifier Market Size, Share & Industry Analysis, By Type (Oil-soluble and Water-soluble), By Application (Crude Oil, Sludge Oil Treatment, Petroleum Refining, Lubricants, and Others), and Regional Forecast, 2024-2032

The global demulsifier market size was valued at USD 2.43 billion in 2023 and is projected to grow from USD 2.53 billion in 2024 to USD 3.45 billion by 2032, exhibiting a CAGR of 4.0% during the forecast period. North America dominated the demulsifier market with a market share of 30.04% in 2023. Moreover, the demulsifier market in the U.S. is projected to grow significantly, reaching an estimated value of USD 662.0 million by 2032, driven by the increasing domestic production of crude oil, coupled with a rise in exports.

The demulsifier market is expected to show significant growth owing to the increasing demand for petroleum and petroleum products. These chemicals, also known as emulsion breakers, are used to break the emulsions produced during crude oil manufacturing. The rapidly increasing extraction activities of crude oil are one of the prime factors driving the market growth.

The COVID-19 pandemic caused a temporary decline in the market due to disruptions in oil production and exploration activities. Reduced demand for crude oil and supply chain challenges led to a slowdown in product usage. However, as economic activities gradually resume and oil prices stabilize, the market is expected to recover, driven by increasing oil production and exploration efforts.

Demulsifier Market Trends

Development of Green Demulsifier to Offer More Opportunities

Due to the negative effects of chemical products on the environment, governments have banned the use of certain chemicals that are used in this product. Considering this as an opportunity, various companies have started conducting research for developing green, biodegradable, and environment-friendly products. These green emulsion breakers can be developed from plant extracts and vegetable oils.

According to research carried out by the Japan Petroleum Institute, two compositions of plant extracts that are able to break the emulsions are green tea extracts and vegetable oils, such as coconut oil and olive oil. These extracts can be further employed in developing green, non-toxic, and eco-friendly demulsifiers. Additionally, another research conducted by the University of Malaysia suggests the use of silicone derivatives E4 and E7 for the development of green emulsion breakers for oil production. Extensive research in developing such green demulsifiers supported by the stringent regulations on the usage of chemical products shall serve as an opportunity.

Product Adoption to Increase Optimization in Oil and Gas Production for Efficiency and Sustainability

The oil and gas industry, where efficiency and cost-effectiveness are crucial, is placing a greater emphasis on optimizing production processes. Demulsifiers are essential in separating water from crude oil, a procedure required to maintain production efficiency and quality. Companies may streamline operations, decrease downtime, and lower production costs by investing in superior performance and cost-effective demulsifiers. This emphasis on efficiency and cost reduction is consistent with larger industry trends to increase profitability and sustainability.

Furthermore, advances in demulsifier technology have resulted in the creation of more effective and environmentally friendly formulations. These new formulations enhance separation efficiency and comply with strict environmental laws, making them desirable to businesses looking to reduce their environmental impact while retaining operational excellence.

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Growth Factors

Increasing Crude Oil Exploration Activities to Propel Market Growth

Demulsifiers are specialty chemicals that are intended to break the emulsions and separate them into oil and water. They are highly employed in crude oil processing, which occurs in the form of stable emulsions. The formation of emulsion significantly affects production facilities and oil recovery operations. Emulsion breakers are employed to separate the saline water from the extracted crude oil. The increasing demand for crude oil across the world is expected to drive the product’s demand. For instance, the U.S. Energy Information of America estimated that the average consumption of liquid fuel in 2021 will be 97.7 million b/d and will further rise to 101.3 million b/d in 2022. The high demand for petroleum and crude oil-derived fuels shall significantly boost the market growth.

Moreover, discoveries of new oil fields and oil reserves shall serve as an opportunity for the market. Crude oil production is directly proportional to market growth. In December 2020, Saudi Arabia’s Aramco announced the discovery of four new oil and gas fields. This shall add up to the production capacity of crude oil, which shall further drive the demand.

Rising Demand for Chemical Demulsifier to Drive the Market

Petroleum refining is one of the major application segments. The high demand for petroleum products, such as fuel oil, kerosene, butane, diesel, liquefied petroleum gas, and others from various end-sectors shall influence the market growth. The increasing adoption of chemical products intended to break the emulsions extracted during oil explorations and process them to petroleum products shall positively affect the market. The high efficiency of chemical emulsion breakers due to the strong affinity towards the water-oil interface is another factor driving the growth of the market. They include polyether, biodegradable polymeric surfactants, dendrimers, and others. Copolymers with high content of hydrophiles and molecular weight are efficient products. This shall drive the market for emulsion breakers.

RESTRAINING FACTORS

Stringent Regulations Imposed by Governments May Hamper Market Growth

Traditionally used chemical demulsifiers are effective in performing W/O emulsions, but on the other hand, they are restricted by governments due to the negative effect they have on the environment. These chemicals are toxic in nature and can severely cause damage to the environment during water disposal. Commercially available polymer surfactants that include polypropylene and polyoxyethylene contain methylbenzene. The separated water, after demulsification, is discharged into the sea, which causes contamination of the environment. Government authorities have imposed heavy restrictions on the usage of certain toxic chemicals. This is expected to hinder market growth.

Segmentation Analysis

By Type Analysis

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Oil-soluble Segment to Generate Major Share Due to Higher Efficiency

Based on type, the market is segmented into oil-soluble and water-soluble. The oil-soluble segment held the major share of the market in 2023. Oil-soluble emulsion breakers are comparatively more effective than water-soluble demulsifier attributed to the higher hydrophilicity. They are employed in stabilizing and breaking the water-in-oil emulsions. The oil-soluble demulsifier helps in improving the burning characteristics of fuel and is also required in lower dosages.

Water-soluble is another segment significantly contributing to the market. They are used in separating the oil in water emulsions. These are comparatively lower in cost than their oil-soluble counterparts, which makes them an economical choice. The increasing research regarding the use of water-soluble polymer demulsifier would considerably contribute to the market growth.

By Application Analysis

Crude Oil Segment to Hold Significant Share Due to High Demand from Exploration Industry

The market is segmented into crude oil, sludge oil treatment, petroleum refining, lubricants, and others in terms of application. The crude oil segment constituted the leading demulsifier market share of almost 30% in 2023. The growing demand from the crude oil exploration industry is further driving the demand. Besides, discoveries of new oilfields and crude oil reserves shall significantly contribute to the market growth. For example, in November 2020, an estimated 22 million barrels of conventional and recoverable crude oil were discovered in Abu Dhabi. The Supreme Petroleum Council of Abu Dhabi stated that the country’s conventional oil reserves could be increased by 2 billion barrels.

Petroleum refining is one of the prominent segments contributing to the market growth. The high demand for petroleum products, such as kerosene, gasoline, diesel, and others, shall drive the segment’s growth. Demulsifiers are employed in lubricants to avoid corrosion and damage from impurities in the fuel. The increasing adoption of these chemicals in lubricant manufacturing shall aid growth.

REGIONAL INSIGHTS

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The market size in North America stood at USD 0.73 billion in 2023. The region dominated the market and is anticipated to maintain its position during the forecast period. It holds the key share in the global market attributed to the high demand from the massive oil production base. The U.S. is the leading oil-producing country attributed to the presence of large oil reserves. Additionally, the large manufacturing base is likely to boost the regional market growth.

The Middle East & Africa is expected to hold a prominent share in the market attributed to the large oil and gas reserves present in countries such as Kuwait, Iran, Iraq, Saudi Arabia, UAE, and others. The high-end petroleum and oil extraction activities in the region shall also substantially drive the demand for the product. Additionally, discoveries of new oil reserves in Saudi Arabia and Abu Dhabi shall significantly impact the market growth.

Asia Pacific is expected to hold a significant share attributed to the presence of many end-user industries. China holds almost a 5% share in terms of global oil production. Besides, India has the largest petroleum refinery with a capacity of 1.27 million barrels per day, which subsequently employs emulsion breakers in a large amount. This is expected to drive regional market growth.

Europe is expected to show considerable growth attributed to the presence of an ample number of manufacturers, namely, Baker Hughes Incorporated, Croda International, Ecolab Inc., Clariant, Schlumberger Limited, BASF SE, Clariant, and others. Moreover, the high demand from lubricant manufacturing companies shall positively impact the market growth.

South America is experiencing a boost in the economic and industrial sector attributed to the rapid industrialization and development in countries such as Brazil, Mexico, Argentina, and others. The increasing demand for crude oil from various sectors shall, in turn, uplift the regional demand.

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List of Key Companies in Demulsifier Market

Key Companies Focus on Adopting Various Strategies to Broaden their Market Presence

With a few global players capturing a significant share, the market is concentrated in nature. Baker Hughes Incorporated, Croda International, Ecolab Inc. (US) Clariant (US), Schlumberger Limited (US), BASF SE (Germany), Nouryon (Netherlands), Momentive Performance Materials (US), Innospec Inc. (US), Dorf Ketal (India), Chemiphase Ltd. (UK), MCC Chemicals Inc. (US), Rimpro India (India), Oil Technics Holdings (UK), Roemex Limited (India), and Reda Oilfield (UK) are some of the market's key players.

Market players operate principally based on the product's price and performance. To boost the company’s market position and achieve a competitive advantage, several major players are engaged in numerous planned product launches and research to promote their brand and sales. For instance, Ecolab acquired Champion Technologies and Corsicana Technologies and further set up a new business unit under the name of Nalco Champion to strengthen the demulsifier business.

LIST OF KEY COMPANIES PROFILED

• Baker Hughes Incorporated (U.S.)


• Croda International (U.K.)


• Ecolab Inc. (U.S.)


• Clariant (Switzerland)


• Schlumberger Limited (U.S.)


• BASF SE (Germany)


• Nova Star LP (U.S.)


• Nouryon (Netherlands)


• SI Group (U.S.)


• Innospec Inc. (U.S.)


• Dorf Ketal (India)


• Chemiphase Ltd. (U.K.)


• Dow Chemical Company (U.S.)


• Rimpro India (India)


• Oil Technics Holdings (U.K.)

KEY INDUSTRY DEVELOPMENTS

• June 2023 – Clariant Oil Services launched PHASETREAT WET to provide efficient and environmentally friendly solutions for the oil and gas industry’s demulsification demand. Designed to address issues innate in traditional oil production processes, most notably fulfilling higher environmental criteria for oil and water separation, the unique technology will assist operators in lowering operational costs, simplifying logistics, and curbing safety hazards.


• October 2019 – Nouryon introduced Witbreak NEO, a new and sustainable range of emulsion breakers for oil producers to separate crude oil from natural gas and water.


• August 2019 – Nouryon planned to double the surfactant capacity in Sweden to support the growing innovation pipelines for the oil & gas market. The innovative technologies and chemicals include biodegradable demulsifier.

REPORT COVERAGE

An Infographic Representation of Demulsifier Market

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The global market research report provides a detailed analysis of the industry and focuses on crucial aspects, such as leading companies, products, and raw materials. It also offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

This report includes historical data and forecasts revenue growth at global, regional, and country levels. It also analyzes the industry's latest market dynamics and opportunities.

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