Global Hydrotreating Catalysts Market

Overview

Global Hydrotreating Catalysts Market reached US$ 1,284.2 million in 2023 and is expected to reach US$ 1,735.5 million by 2031, growing with a CAGR of 4.0% during the forecast period 2024-2031.

The demand for hydrotreating catalysts is growing as bio-based feedstocks, such as animal and vegetable fats, become more and more popular for fuel generation. The feedstocks are thought to be more environmentally friendly and are in line with the globally trend toward biofuels. The process of hydrotreating catalysts is essential for transforming bio-based feedstocks into premium, low-sulfur fuels.

The demand for renewable fuels is being fueled by the growing focus on sustainability on globally. To produce sustainable aviation fuel and renewable diesel from feedstocks including vegetable and animal fats, hydrotreating catalysts are essential. Hydrotreating catalysts are becoming more necessary in the generation of renewable fuels due in large part to increasing ecological awareness and the need to cut carbon emissions.

Asia-Pacific is among the growing regions in the global hydrotreating catalysts market covering more than 1/3rd of the market. Cleaner and better fuels are in demand due to Asia-Pacific's growing automotive industry, which is reflected by an increase in the number of automotive products. Catalysts that have been hydrotreated are crucial to the production of low-sulfur fuels that comply with strict emission regulations.

Dynamics

Increasing Demand for Clean Fuels

The growing demand for cleaner fuels globally is one of the main factors driving the global hydrotreating catalysts market. Ultra-low sulfur diesel (ULSD) and low-sulfur gasoline are instances of refined petroleum products with a reduced sulfur content that is in increased demand due to environmental concerns and strict emissions demands. The demand for hydrotreating catalysts is growing, driving market expansion as nations across the world work to minimize air pollution and adhere to stringent emission rules.

For Instance, in 2022, According to Honeywell, the Lanaz Company plans to improve its refinery in Iraq to generate cleaner-burning transportation fuels by utilizing UOP modular naphtha hydrotreating and fixed-bed Platforming process units. The project will assist Lanaz in meeting the ever-tougher requirements for fuel products and will be the first use of UOP modular technology in the nation.

Developments in Catalyst Formulations Using Technology

The global market for hydrotreating catalysts is also significantly influenced by increasing technical developments in catalyst formulations. Manufacturers of catalysts are spending money on R&D to improve the hydrotreating catalysts' durability, efficiency and selectivity. Improved catalyst performance and long-term are a result of compositional and design innovations, such as the addition of new materials and catalysts.

For Instance, in 2023, Advanced Refining Technologies LLC, a collaborative effort between W. R. Grace & Co. and Chevron, introduced ENDEAVOR, a cutting-edge hydroprocessing catalyst intended to produce sustainable aviation fuel and renewable diesel only from renewable sources. Vegetable oils, refined oils, animal fats and greases are some of these sources. The introduction is in response to the growing need for sustainable transportation fuels. Throughout a protracted research and development program, ENDEAVOR has already proven to function at high levels in a variety of refinery applications.

Strict Environmental Regulations

Strict environmental restrictions have an impact on a lot of companies, especially the energy generation and refining ones, including the hydrotreating catalysts market. The laws are put into place to solve pollution issues, protect the environment and lessen the negative effects of industrial operations on the quality of the air and water. Reducing the sulfur content of transportation fuels, including gasoline and diesel, is frequently the main goal of environmental legislation in the context of the hydrotreating catalysts market to minimize sulfur dioxide (SO2) emissions during combustion.

The strict regulations, though a limitation, also stimulate innovation in the hydrotreating catalysts industry. Manufacturers of catalysts are under pressure to create more sustainable and efficient solutions so that refineries can either meet or surpass regulatory standards. As a result of the constant focus on environmental sustainability, catalyst technology is encouraged to progress, which eventually helps the industry and the environment by lowering emissions and raising the general standard of refined products.

Capital Intensity and Economic Volatility

The hydrotreating catalysts market is restricted by the economic instability of the oil and gas sector. Because refining operations need a large amount of money, particularly when establishing or upgrading hydrotreating units, the business is susceptible to changes in the price of oil globally and downturns in economic activity.

The demand for hydrotreating catalysts may be impacted by postponed investments and project delays brought on by uncertain market conditions. The significant upfront costs associated with the setup and maintenance of hydrotreating units may act as a disincentive for smaller refineries or those with tighter budgets, hence impeding the expansion of the industry as a whole.

Segment Analysis

The global hydrotreating catalysts market is segmented based on type, material, technology, feedstock, application and region.

Rising Demand for Petrochemicals Feedstocks of Heavy Oil

The heavy oils segment is among the growing regions in the global hydrotreating catalysts market covering more than 1/3rd of the market. Heavy oils demand specific processing to fulfill health and product quality standards because of their increased viscosity and higher quantities of contaminants including metals, nitrogen and sulfur.

Catalysts that have been hydrotreated are essential to this process because they make it easier to remove contaminants by hydrogenation, which raises the yield and overall quality of refined products made from heavy crude oil. The rising demand for petrochemical feedstocks and transportation fuels on a globally scale is one important factor. The demand for heavy oil resources is increasing as traditional light crude oil stocks run out.

Geographical Penetration

Growing Demand for Hydrotreating Catalysts in the Refining Industry in Asia-Pacific

Asia-Pacific has been a dominant force in the global hydrotreating catalysts market. Growth in the global hydrotreating catalysts market is mostly due to the Asia-Pacific. The fast industrialization of nations like China and India has raised the demand for refined petroleum products, which in turn has increased the need for effective hydrotreating catalysts in the refining industry.

The market for hydrotreating catalysts is anticipated to develop as these economies continue to expand and consumers want cleaner, higher-quality fuels. The rising energy demand brought on by urbanization and population increase. Diesel and gasoline are among the refined products that are in greater demand due to rising energy demands; thus, hydrotreating catalysts are required for the product to achieve quality standards.

For Instance, in 2024, L&T Heavy Engineering's MRU unit completed projects for HPCL's Mumbai Refinery Expansion Project, increasing capacity to 9.5 MMTPA for BS-VI-compliant fuels. The MRU team achieved the concurrent shutdown of four crucial plants, namely Atmospheric Pipe Still, Naphtha Stabilizing Unit, Continuous Catalyst Regenerator and Fluid Catalytic Cracking Unit at HPCL's Mumbai Refinery. Meticulous pre-shutdown work in the operational refinery and strategic modifications of critical components minimized risks and ensured a seamless shutdown. The successful project aligns with HPCL's goals for refinery expansion and environmental compliance.

In another instance, in 2021, Numaligarh Refinery Ltd., a subsidiary of Bharat Petroleum Corporation Ltd., selected Axens for its Numaligarh Refinery Expansion Project (NREP) in Assam, India. The expansion aims to increase the refinery capacity from 3 million to 9 million tons per year by adding a new 6 million ton/yr refinery at the existing location. Axens will provide advanced technologies for the gasoline block in this significant project.

COVID-19 Impact Analysis

The COVID-19 pandemic has somewhat impacted the global market for hydrotreating catalysts. The demand for and output of hydrotreating catalysts has been greatly impacted by the general economic recession, supply chain, and industrial interruptions. Lockdowns and travel restrictions led to a reduction in the market for refined goods, which in turn affected the requirement for hydrotreating catalysts in the refining process. The was especially true for the oil and gas industry.

Additionally, the oil and gas industry experienced delayed project completion and postponed investment choices due to the uncertainty regarding the scope and length of the epidemic. The market for catalysts used in hydrotreating processes was negatively impacted by the widespread reduction in operations or temporary shutdown of units by several refineries globally.

The reduction in globally oil prices, resulting from a decrease in demand and an excess of crude oil, has introduced intricacy to the market dynamics and affected the investment environment for producers of catalysts. The pandemic also highlighted how crucial supply chains' resilience and agility are. Hydrotreating catalyst production and delivery were affected by labor, transportation and raw material disruptions.

Additionally, to maintain the continuity of their activities, businesses in the industry had to overcome logistical obstacles and put safety measures in place. In the future, the market for hydrotreating catalysts is anticipated to grow as the globe progressively recovers from the pandemic. It will be fueled by a rise in refining operations as well as an increased focus on sustainability and environmental standards in the oil and gas sector.

Russia-Ukraine War Impact Analysis

The global market for hydrotreating catalysts may be significantly impacted by the start of hostilities between Russia and Ukraine. In the energy industry, both nations are vital, especially in the extraction and refinement of gas and oil. Russia has a significant influence on the world's energy markets as one of the main producers of gas and oil globally. Despite not being as significant, Ukraine remains a crucial nation for the transportation of Russian gas to Europe.

The energy supply system may be disrupted in the case of a conflict or geopolitical tensions between these two countries. The might influence the price and availability of natural gas and crude oil, which would be immediately felt by the petrochemical and refining sectors that depend significantly on these feedstocks. To remove impurities and improve the quality of refined goods, the hydrotreating catalyst is a crucial step in the refining process.

Furthermore, trade relations and supply chains in the energy sector may be impacted by geopolitical unpredictability and prospective economic penalties. The world energy scene may become much more complex if sanctions are placed on Russia, a significant source of natural gas and crude oil. Due to this uncertainty, firms may reconsider their supply chain strategies and look into alternate sources, which might result in strategic alterations in the hydrotreating catalysts market.

By Type

• Cobalt-Molybdenum (Co-Mo) Catalysts
• Nickel-Molybdenum (Ni-Mo) Catalysts

By Material

• Zeolites
• Chemical Compounds
• Metals
• Others

By Technology

• Fixed Bed Hydrotreating
• Moved Bed Hydrotreating
• Floating bed hydrogenation
• Boiling bed hydrotreating
• Others

By Feedstock

• Heavy Oil
• Light Oil
• Others

By Application

• Diesel Hydrotreat
• Lube Oils
• Naphtha
• Residue Upgrading
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On July 25, 2023, Advanced Refining Technologies LLC, a collaborative effort between W. R. Grace & Co. and Chevron, introduced ENDEAVOR, a cutting-edge hydroprocessing catalyst intended to produce sustainable aviation fuel and renewable diesel only from renewable sources. Vegetable oils, refined oils, animal fats and greases are some of these sources. The introduction is in response to the growing need for sustainable transportation fuels. Throughout a protracted research and development program, ENDEAVOR has already proven to function at high levels in a variety of refinery applications.

Competitive Landscape

The major global players in the market include Albemarle Corporation, BASF SE, Haldor Topsoe A/S, Shell, Axens, Honeywell UOP LLC, Clariant, Johnson Matthey, Sinopec Catalyst Co., Ltd. and Grace Catalysts Technologies.

Why Purchase the Report?

• To visualize the global hydrotreating catalysts market segmentation based on type, material, technology, feedstock, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hydrotreating catalysts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global hydrotreating catalysts market report would provide approximately 78 tables, 76 figures and 206 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies