Drag-Reducing Agents Market Set for Expansion as Industrialization and Urbanization Fuel Energy Demand

 

Between 2023 and 2033, the drag reducing agent market is projected to grow at a compound annual growth rate (CAGR) of 5.6%. The market is anticipated to be valued at USD 672.4 million in 2023 and to have a market share of USD 1,159.5 million by 2033.

  • The growing population is pushing people to find new accommodations. The situation also leads to higher renovation and construction activities in emerging economies are expected to propel market growth. Furthermore, advanced adhesive technology is garnering the market.
  • The proliferating web of oil pipelines is demanding high-maintenance and turbulence-controlling tools and adhesives. The use of factors like frictional pressure drops and drag helps the pipelines control the turbulence while controlling the pipeline damage.
  • New government projects, higher developments in oil and gas companies, and extension of oil supplies have garnered market growth. Alongside this, the private oil companies increasing their logistics budget for lower risks are also helping the market expand its roots.
  • The fast-evolving requirements of oil producers and shippers push the vendors to add constant support to the bottlenecks. The new pipeline drags reducing agent (DRA) optimization systems and even identifies the areas where the DRA needs to be added.
  • The ongoing Russia-Ukraine war has led countries to build new pipelines with advanced technological additions. Hence, higher sales of drag-reducing agents are expected during the forecast period.

 Key Points

  1. The United States market leads the drag reducing agent market in terms of market share in North America. The United States region held a market share of 35.6% in 2022. The growth in this region is attributed to higher oil consumption, higher demand for faster oil supply, and the presence of oil companies importing oil through pipe transportation.
  2. The German market is another important market in the European region. The market thrived at held a market share of 2.6% in 2022. The growth is attributed to the presence of pipelines supplying oil to gas to Europe through the Eastern Russian oil stations.
  3. The Chinese drag reducing agent market thrives at a CAGR of 6.1% during the forecast period. The growth is caused by higher economic activities and rising oil consumption.
  4. The Indian market thrives at a CAGR of 6.5% between 2023 and 2033. The higher growth rate is caused by higher consumption, exports through multiple sources, and enhanced pipeline transportation through private oil companies.
  5. Based on product type, the polymer segment leads the market, as it held a share of 66.10% in 2022.
  6. Based on the end user, the oil and gas segment leads the market as it held a market share of 40.2% in 2022.

Competitive Landscape

The key vendors focus on enhancing the laminar flow and pipeline capacity. Key competitors and also merge, acquire, and partner with other companies to increase their supply chain and distribution channel.

Recent Market Developments

  • Innospec has introduced its Drag Reducing Agents (DRS). The product claims to improve operating costs without sacrificing the pipeline throughput.
  • Baker Hughes has introduced the FLO XLWR drag reducing agent that boosts the pipeline performance and achieves greater than 70% drag reduction at a lower treatment rate.

Key Players

  • Baker Hughes
  • Flowchem
  • Innospec
  • Lubrizol Specialty Products Inc.
  • NuGenTec
  • Oil Flux Americas
  • Sino Oil King Shine Chemical
  • Superchem Technology
  • The Zoranoc Oilfield Chemical
  • China National Petroleum Corporation
  • Others

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Key Segments Covered

By Product Type:

  • Polymer
  • Surfactant
  • Suspension/ Suspended Solids

By Application:

  • Crude Oil
  • Multi-phase Liquid
  • Refined Products
  • Heavy, Asphaltic Crude
  • Water Transportation

By End Use:

  • Oil & Gas
  • Chemicals & Petrochemicals
  • Power & Energy
  • Agriculture
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • The Middle East and Africa

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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