Global Drag-reducing Agent Market

Drag-reducing Agent Market Size Analysis

According to a research analysis conducted by ChemView Consulting, in 2022, the worldwide drag-reducing agent market was worth US$ 2.6 Bn, and it is expected to grow at a CAGR of 5.6% over the forecast period. The market is expected to hit US$ 4.0 Bn by 2030 end.

The market is expanding due to world oil and gas consumption, crude oil and natural gas production, and exploration.

Drag-reducing agents are predominantly used for transportation and logistical applications in pipelines for crude oil, refined products, asphaltic crude transportation in oil and gas, chemicals, petrochemical, power, and energy industries.

Market Dynamic

Which is the Key Factor driving the demand for Drag-reducing agent?

Drag-reducing agents are extensively used to reduce overall operating costs by optimizing pipeline efficiency. This works as a flow improver as it aids in reducing the frictional pressure loss in the pipeline carrying oil, fuels, and liquid chemicals.

The Asia-Pacific region dominates the global market over the forecasted period because of the potential of developing nations India and China.

What are the opportunities in the Drag-reducing agent business?

The surge in oil and gas exploration activities and growth of chemical and agricultural activities across the globe are driving factors for the huge demand of drag-reducing agents. Moreover, scientific research on the use of drag-reducing agents to treat tumor cells and reduce the drag of blood through arteries and veins will boost the market further.

They are extremely easy to install as they are directly injected into pipeline products using injection pumps and tanks and hence don’t require significant capital expenditure.

Segment-Wise Analysis

Why is Polymer drag-reducing agent type estimated to grow at a high CAGR?

Polymer drag-reducing agent type is expected to hold a prominent position in the drag-reducing agent market, growing at a CAGR of 6.7% between 2022 and 2030. Polymer types are bio-degradable, cost effective, and most easily available and compactible with many other pipeline exploration machinery.

Which application type creates the highest demand for Drag-reducing agent?

Crude oil application accounts for the highest market share of drag-reducing agent and is expected to grow significantly in the forecasted period. This is basically because of the growing energy demand of oil and gas in the market with the rise of exploration activities.

Which region is consolidating its drag-reducing agent market dominance in the world?

The Asia Pacific region is estimated to be the fastest growing market with a CAGR of about 7.6% within the estimated period.  India is estimated to hold significant share of 3.8% in the global Drag-reducing Agent market in 2021. This is due to the numerous initiatives undertaken by the Government of India (GOI) to expand the oil and gas network across the country to reduce transportation costs and improve availability in rural areas.

For example, the Indian government has announced a nearly US$ 1.73 billion allocation to the Gas Authority of India Limited for constructing a 2655-kilometer gas pipeline called the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline Project (JHBDPL).

Competition Analysis

The market is consolidated with few players accounting for high revenue share. The global drag-reducing agent market’s leading manufacturers are focusing on the introduction of novel biopolymer-based drag-reducing agents.

Several vital players invest a fair share of their revenue in research and development boosting their product portfolio. Market participants focus on technological development and utilizing a product in several applications.

Some of the key developments that have taken place in the drag-reducing agent market include:

• In March 2021, Indian Oil Corp. Ltd, a leading petroleum refining company in India, announced a collaboration with Dorf Ketal Chemicals LLC, a global chemical manufacturing and supply company, to manufacture drag-reducing agents at the latter company’s production facility in Dahej, Gujarat.
• In August 2020, Innospec Inc. expanded production of for its proprietary Drag-reducing Agents (DRA) technology at its plant in Pleasanton, TX. This helped the company to work with a wider range of crude oil pipeline operators.

A list of some of the critical suppliers present in the market are:

• Flowchem
• Baker Hughes
• Innospec
• Oil Flux Americans
• Sino Oil King Shine Chemical
• Superchem Technology
• NuGen Tech
• Lubrizol Speciality Products Inc.
• The Zoranoc Oilfield Chemical
• China National Petroleum Corporation
• National Petroleum Corporation
• Liquid Power Speciality Product Inc

Market Segments Covered in Report

By Type:

• Polymer
• Surfactant
• Suspension/suspended solid
• Biomaterials

By Application:

• Crude oil
• Multi-Phase liquid
• Refined Products
• Heavy, Asphaltic crude
• Water transportation

By End-Use Industry:

• Oil and Gas
• Chemicals and Petrochemical
• Power and Energy
• Agriculture
• Medical
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Global drag-reducing agent Market 2022-2030: Report Coverage and Highlights

• Assessment of the historical and current market size (2017-2021), market projections (2022-2030), and its contribution to the parent market
• Key drivers, restraints, opportunities, and key emerging trends impacting market growth
• Predictions on critical supply, demand, and technological trends and changes in consumer behavior
• Value chain analysis (list of manufacturers, distributors, end-users, average profitability margins, etc.)
• Segment-wise, country-wise, and region-wise market analysis
• Competition mapping, market share analysis, key strategies adopted by top players, and competitive tactical intelligence
• Key product innovations and regulatory framework
• Covid-19 impact on the market and how to navigate
• Strategic market analysis and recommendations on crucial winning strategies