The global oilfield chemicals market size was calculated at USD 30.81 billion in 2023 and is projected to hit around USD 45.79 billion by 2032, growing at a CAGR of 4.5% from 2024 to 2032.
The oilfield chemicals industry plays a crucial role in supporting the exploration, production, and processing of oil and gas resources. Oilfield chemicals are specialized chemical compounds used to enhance the efficiency, productivity, and safety of various oil & gas operations. They are utilized throughout the entire lifecycle of oil & gas reservoirs, from drilling and completion to production and maintenance. The oilfield chemical industry encompasses a diverse range of chemical products, including but not limited to drilling fluids, production chemicals, stimulating chemicals, cementing chemicals, corrosion inhibitors, scale inhibitors, biocides, demulsifiers, surfactants and rheology modifiers.Each type of chemical serves specific purposes and addresses various challenges encountered during oil & gas operations. The market is being driven by several factors including growing exploration and production activities, technological advancements, growing consumption of primary energy and growing investment in research and development activities.
Oilfield Chemicals Market Statistics
- Middle East and Africa led the global market with the highest market share of 39.51% in 2023.
- North America generated more than 26.53% of revenue share in 2023.
- By Product, the biocides modifiers segment is estimated to hold the highest market share of 21.20% in 2023.
- By Application, the production chemicals segment is expected to grow at a remarkable CAGR of 5% during the forecast period.
- By Location, the onshore segment captured the biggest revenue share of 70.15% in 2023.
Regional Insights
North America is expected to dominate the market over the forecast period. The development of shale resources, particularly in the US, has transformed the oil & gas industry in the region. The use of advanced drilling and hydraulic fracturing techniques has significantly increased the demand for oilfield chemicals. For instance, according to Statista, by 2050, the output of shale gas and tight oil in the US is expected to rise from 26.91 trillion cubic feet in 2022 to about 35 trillion cubic feet. Moreover, the region has been at the forefront of technological advancements in the oilfield sector. They witnessed innovation in drilling techniques, completion practices, and production optimization. These advancements have created opportunities for the development and application of specialized oilfield chemicals that address the challenges associated with unconventional resource extraction. Thereby, driving the growth of the market in the region.
The Asia Pacific is growing at the fastest rate over the forecast period. Regional growth is ascribed to the growing energy demand coupled with increasing urbanization. For instance, as per International Energy Agency, under the current regulatory arrangements in the STEPS, the trend of rising energy consumption in Southeast Asia, which has climbed by around 3% annually during the last two decades, would continue until 2030. Almost all of the economies of Southeast Asian Nations have grown by more than a factor twice since 2000 while being at various levels of development. Additionally, according to the United Nations Human Settlements Programme, approximately 54% of the world’s urban population, reside in Asia. By 2050, Asia’s urban population is expected to increase by 50%. Thus, the aforementioned facts support the market growth during the analysis period.
Oilfield Chemicals Market Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 30.81 Billion |
| Market Size by 2032 | USD 45.79 Billion |
| Growth Rate from 2024 to 2032 | CAGR of 4.5% |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2032 |
| Segments Covered | By Product, By Application, and By Location |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Report Highlights:
Product Insights
The surfactants segment is expected to grow at a substantial rate over the forecast period. Surfactants are utilized to break oil-water emulsions that occur during the production of oil & gas. These emulsions can hinder the separation and treatment of produced fluids. Surfactants reduce the interfacial tension between oil and water, allowing for efficient separation and improved water treatment. In addition, these are employed as foamers to generate foam in oil & gas wells. The foam helps control fluid mobility and pressure, and it is used in operations such as drilling, well stimulation, and enhanced oil recovery. Surfactants reduce the surface tension of fluids, enabling the formation and stability of foam. Thus, this application is expected to drive segment growth over the analysis period.
Application Insights
The production chemicals segment is expected to grow at the fastest rate during the forecast period, the segment growth is attributed to the increasing focus on maximizing production rates, extending the lifespan of producing wells, and ensuring efficient production operations.
location Insights
The offshore segment is expected to grow at the highest CAGR over the forecast period. The growth in the segment is owing to the growing offshore industry. For instance, the offshore extraction of oil and gas in the UK is already in its sixth decade. Over 30,000 employments are directly related to the sector. According to OEUK, the UK upstream oil and gas industry supported 60,000 more employment in the broader economy in addition to around 120,000 jobs overall in 2022.
- For instance, the Alaska LNG project in the United States and Sriracha Refinery Expansion & Upgrade in Thailand are expected to offer a plethora of opportunities for the oilfield chemicals sector by 2025 and 2024 respectively.
Global Oilfield Chemicals Market, By Location, 2020-2023 (USD Million)
| By Location | 2020 | 2021 | 2022 | 2023 |
| Onshore | 19,284.0 | 20,011.8 | 20,787.1 | 21,613.2 |
| Offshore | 8,264.6 | 8,556.1 | 8,866.4 | 9,196.8 |
Oilfield Chemicals Market Dynamics
Drivers
Increasing energy demand
The global demand for energy, particularly oil & gas, continues to rise due to population growth, industrialization and economic development. This drives the need for efficient exploration, production, and refining of hydrocarbon resources, thereby boosting the demand for oilfield chemicals. For instance, according to the Energy Information Administration’ projection, the demand for residential demand for purchased energy will increase about 14-22% during 2022-2050. Thus, the increasing demand for energy across the globe is expected to propel the growth of the market during the forecast period.
Restraint
Environmental and regulatory concerns
The oil & gas industry faces increasing scrutiny and regulations related to environmental impact and worker safety. Oilfield chemicals need to comply with stringent environmental regulations, and the industry is under pressure to adopt more sustainable and environmentally friendly solutions for the industry. Compliance with these regulations can increase costs and limit the use of certain chemicals, in turn, act as a major restraint for the market growth over the forecast period.
Opportunities
Adoption of Enhanced Oil Recovery (EOR) techniques
As conventional oil reserves deplete, there is growing interest in implementing enhanced oil recovery techniques to maximize production from mature fields. EOR methods such as chemical injection as surfactants, and polymers provide an opportunity for the oilfield chemicals market. Developing specialized chemicals that improve oil recovery rates and reduce operational costs in EOR applications can be a lucrative opportunity for the global oilfield chemicals market.
Challenge
Multiple geopolitical issues
Several geopolitical issues create significant concerns for the development of oilfield chemicals market. Geopolitical factors such as trade disputes, political instability and sanctions, especially in oil producing regions create challenge for the market. Such factors create supply chain and demand problems for the key players in the country or region. As these geopolitical issues may create fluctuations in the market, there are observed to act as a challenge that limits the growth of the market.
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Recent Developments:
- In March 2022, the transaction that resulted in DL Chemical Co., Ltd. acquiring Kraton was announced by Kraton Corporation, a top manufacturer of specialty polymers and high-value bio-based products generated from byproducts of pine wood pulping. By utilizing DL Chemicals’ production abilities, market presence in Asia, and financial strength, the combination enables Kraton to increase its worldwide reach and fund more investments in market-beating sustainable innovation. The combination also makes DL Chemical and Kraton’s aim of dominating the world of specialty chemicals a reality soon.
- In March 2022, in Saudi Arabia, Halliburton announced the launch of the Halliburton Chemical Reaction Plant, which will produce a wide range of chemicals for use along the entire oil & gas value chain.
Oilfield Chemicals Market Companies
- SMC Global
- BASF SE
- Solvay
- BERRYMAN CHEMICAL
- Thermax Limited
- Oilfield Chemicals
- SVS Chemical Corporation LLP
- SEATEX LLC
- Kemira
- Hawkins
- Chemiphase
- SicagenChem
- SAHARA Middle East Petroleum Services, Ltd.
