Demulsifier Market Trends

Growth Drivers

• Increasing Global Exports of Lubricants to Boost the Market Growth- As reported by the International Trade Center (Trademap), the value of global exports of lubricants for the year 2021 amounted to USD 720,173,067, an increase from USD 479,998,020 the year before. Demulsifiers are widely used in the production of lubricants. Recently, the lubricants industry has experienced a significant increase in exports. Likewise, increasing automobile production and sales have resulted in higher consumption of lubricants which is expected to propel the demand for demulsifiers over the forecast period.
• Rising Expenditures on Research & Development Worldwide- The World Bank reports that research and development expenditures have increased from 2.2% of GDP in 2018 to 2.63% in 2020.
• Growing Consumption of Crude Oil across the World- According to the S. Energy Information Administration (EIA), the total world consumption of petroleum in 2019 was approximately 100.37 million barrels per day (b/d).  U.S. petroleum consumption in 2021 reached 19.78 million b/d, including about a million b/d of biofuels. 
• Exploration and Discovery of New Oil and Gas Fields- The Saudi Arabian government announced the discovery of 2 oil and gas fields in the northern border region in August 2020, further in December, Saudi Arabia announced the discovery of 4 additional oil and gas fields.  
• Increasing Oil Production from Aging and Mature Oil Fields- In a survey, it was observed that oil and gas production from mature fields accounted for approximately 75% of global production in 2018. 

Challenges

• Disruption in Production Activities due to the COVID-19 Pandemic
• Strict Environmental Restrictions on the Use of Chemical Demulsifiers
• The use of traditional demulsifiers is water-based emulsions but the government restricted their use owing to their negative impact on the environment. The use of chemicals in the preparation will release toxins into nature and destroy the water disposal system. Hence government authorities imposed heavy restrictions on the use of toxic materials hindering the market growth.
• International Trade Regulations on Demulsifiers