Catalysts Global Catalyst Demand tor Reach US $ 19.5 Billion in 2016
The boom of petrochemicals and polymer manufacturing in Asia and the Middle East drives the demand for refining, chemical synthesis, and polymerization catalysts: A new study by Freedonia expects this market to grow by 5.8 % per year to $19.5 billion in 2016.
This growth will result mainly from rising output of the world’s refining, chemical, and polymer industries, particularly in developing nations, as well as from an ongoing shift in the catalyst product mix toward higher value, more efficient catalysts. Polymerization catalysts will exhibit the strongest growth, with rapid gains in the world’s large developing economies, as well as in the Middle East. In developed economies, catalyst growth will be moderate, as weak demand for motor fuels will restrain expansion of refining catalysts, states a new study from Freedonia, a Cleveland-based industry market research firm.
Asia and Middle East Drive Catalyst Demand in the Next Years
Rapid growth through 2016 will occur in both Asia and the Middle East. In Asia, growth will be led by China and India, and result from rapid industrialization and expansion of the refining, chemical, and polymer industries in both countries. China’s rising income levels, vehicle ownership rates, and industrial activity will all contribute to strong growth in demand for catalysts. In the Middle East, Saudi Arabia and other large oil and natural gas producers will continue efforts to expand and diversify their economies by investing in new chemical and petroleum refining capacity. Polymer producers in the Middle East will increasingly compete in global markets.
Strong Growth in Latin America Expected
Brazil will lead strong growth in Central and South America. The country is beginning to successfully develop its natural gas and oil resources. This will provide a competitive advantage for chemical and polymer producers, while the nation’s large population will provide a strong market for products manufactured with the use of catalysts.
Shale Gas Fuels Process Chemicals Market in the US
Catalyst demand in North America will see healthy growth as well, due largely to a rebound in chemical and polymer production as companies take advantage of comparatively low natural gas prices, which have fallen from the historical highs observed during the 2006-2011 period. The low gas prices will also encourage further development of catalyst technologies involved in converting natural gas to liquid fuels and other valuable products. Demand for refining catalysts in North America will be flat, as motor vehicle fuel demand stagnates due to competition from biofuels and increasing fuel efficiency of the vehicle fleet. Additionally, intense competition in global export markets will strain margins for North American refiners.