World demand for petroleum refining, chemical synthesis, and polymerization catalysts will rise 5.8 percent per year to $19.5 billion in 2016. Growth will result 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. These and other trends, including market share and product segmentation, are presented in World Catalysts, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
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.
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.
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.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.