The global drag reducing agent market is estimated to total US$ 937.3 Million by 2029, in comparison to the US$ 597.2 Million registered in 2021. Increasing demand for flow-improving products such as drag-reducing agents for expanding the flow capacity and enhancing the efficiency of pipelines is favoring growth in the market.
Future Market Insights (FMI) reveals that the global drag reducing agent market is anticipated to create an incremental opportunity of US$ 633.6 Million by 2022, exhibiting growth at 5.8% CAGR over the forecast period 2022 to 2029.
As per FMI, North America is projected to continue dominating the global market, accounting for nearly 48.9% of the total drag reducing agents’ sales in 2022. The oil & gas segment is expected to register robust growth in the market through 2029.
2014 to 2021 Drag Reducing Agent Market Outlook in Comparison to 2022 to 2029 Growth Forecast
FMI reveals that the demand in the global drag reducing agent market grew at 5% CAGR over the past assessment period from 2014 to 2021.
Drag reducing agents are polymers or additives that decrease frictional pressure loss by reducing the turbulence in conduct or pipeline. Driven by this, these agents are extensively gaining popularity in the pipeline industry for improving the flow capacity of the pipes. This is estimated to assist the drag reducing agent market to a total of US$ 633.6 Million by the end of 2022.
In addition to this, increasing usage of drag reducing agents during the transportation of crude oil, refined petroleum products, multi-phase liquids, and water among others is propelling the demand in the market. Driven by this, the sales of drag reducing agent is estimated to rise at a healthy CAGR of 5.8% during the forecast period 2022 to 2029.
What are the Chief Factors Driving Drag Reducing Agents Market?
Government Emphasis on Oil & Gas Production Favoring Drag Reducing Agent Market Growth
Demand for sources of energy such as diesel, petrol, natural gas, and others is rapidly increasing across the world owing to growing industrialization and urbanization. Hence, governments in several countries are extensively focusing on increasing the production of oil and gas to meet this surge in demand.
For instance, according to the India Brand Equity Foundation, the Indian Government announced its plan to make an investment of around US$ 2.86 Billion in the oil and gas sector to drill more than 120 oil exploration wells and double the production of natural gas to 60 bcm by 2022.
As drag reducing agents have increasingly been used across the oil & gas refining and transportation industries for enhancing the pipeline capacity and increasing laminar flow, a slew of such developments are estimated to create lucrative growth opportunities in the market.
In addition to this, increasing research & development activities and integration of novel technologies for developing advanced drag reducing agents such as nano-fluids to enhance their performance is expected to bode well for market growth in the coming years.
Country-wise Analysis
Why are the Sales of Drag Reducing Agent Accelerating in India?
Government Initiatives for Expanding Oil & Gas Pipelines to Fuel the Demand for Drag Reducing Agents
Future Market Insight (FMI) states that India is anticipated to register growth at a robust CAGR through 2029, assisting the South Asia market to account for nearly 3.9% of the total drag reducing agent by 2022.
The Government of India is undertaking numerous initiatives for expanding the oil & gas network across the country to decline the cost of transportation and ease the availability in rural areas. For instance, the Indian Government has announced allocating nearly US$ 1.73 to the Gas Authority of India Limited. for the construction of a 2655 km gas pipeline Jagdishpur – Haldia&Bokaro – Dhamra Pipeline Project (JHBDPL).
A slew of such initiatives in the country will significantly increase the demand for drag reducing agents for preventing frictional pressure loss, in turn, creating immense sales opportunities in the market.
Why is the Demand Burgeoning in the USA Drag Reducing the Agent Market?
Increasing Production of Oil & Gas to Propel the Drag Reducing Agents Demand
As per FMI, the USA is forecast to dominate the drag reducing agent market in North America, assisting the region to account for more than 48.9% of the value share by 2022.
Surging demand for power sources such as natural gas, diesel, gasoline, and others, owing to rapid industrialization, is encouraging the country to increase its production of oil & gas. For instance, according to the Energy Information Administration, with the efforts of the USA government, the production of crude oil and natural gas increased by 12.7% and 9.8%, respectively, in comparison to 2018 across the country.
In addition, the rapidly expanding chemical and petrochemical industry in the USA is further favoring the demand for drag reducing agents in the USA market.
Competitive Landscape
Leading manufacturers in the global drag reducing agent market are focusing on launching novel biopolymer-based drag reducing agents. Some of the players are aiming at entering into partnerships, collaborations, mergers, and acquisitions with other companies to expand their production of drag reducing agents.
For instance:
In March 2021, Indian Oil Corp. Ltd, a leading petroleum refining company in India announced entering into a partnership with a global chemical manufacturing and supply company, Dorf Ketal Chemicals LLC to manufacture drag reducing agents at the latter company’s production facility at Dahej, Gujarat.
