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Chemical Injection Skids Market - Forecast(2023 - 2028)
Chemical Injection Skids Market Overview
Chemical Injection Skids Market size
is forecast to reach US$2.4 billion by 2027,
after growing at a CAGR of 1.9% during 2022-2027.
Chemical dosing skids are used to inject chemicals in the process where
injection in specific quantities is necessary. The specialized chemicals can be
injected into the produced oil & gas flow stream from the wellhead or can
be injected through an annulus downhole into the oil and gas reservoirs. This
skid is used for the injection of corrosion inhibitors and hydrochloric acid. Hence, the demand for
chemical injection skids is expected to rise moderately during the forecast
period. Chemical injection skids are cost-effective, safe to use,
have an easy and fast installation process; therefore, their demand is high in
hazardous areas. The use of chemical injection skids in the wastewater sector
and rapid investments and development in the wastewater treatment sector and oil
and gas sector are some of the major driving factors of the market. For
instance, in 2020, New Zealand Council has allocated US$40 million in
Government funding to upgrade parts of the city’s drinking and wastewater infrastructure.
The characteristics of drag reducing agents
(DRA) make it a notoriously difficult injection application to pump and meter.
Covid-19 Impact
The outburst of the covid-19 has
specified several extraordinary challenges to all manufacturers and production
companies. The chemical injection skids industries also confronted a lot of
difficulties in receiving the workforce as the whole world was under
quarantine. The gathering of the raw material and the delivery of the end
product all was at stake during the lockdown. However, after a while, the
market was back to normal when certain rules were changed. With the change
where everyone around the world has to turned into extra aware of environmental
safety. As the lifestyles have transformed people are choosing to be healthier
and more sustainable after the pandemic. After the Covid-19 pandemic, oil and
gas industry investment will have to rise over the next three years by at least
25% yearly from 2020 levels to stave off a crisis.
Report Coverage
The report “Chemical Injection
Skids Market Report– Forecast (2022-2027)”, by IndustryARC, covers an
in-depth analysis of the following segments of the Chemical injection skids Industry.
By Design Type: Flanged, Buttweld, Flareweld,
and Plug
By Product Type: Antifoam Chemical
Injection Skids, Demulsifying Chemical Injection Skids, Corrosion Inhibitor
Chemical Injection Skids, and Scale Inhibitor Chemical Injection Skids
By End-Use
Industry: Pharmaceuticals, Energy and Power, Chemicals, Food and
Beverage, Oil and Gas, Water Treatment, and Others
By
Geography: North America (USA, Canada and Mexico), Europe
(UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of
Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand,
Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile, Rest of South America), and Rest of the world (Middle East and Africa)
Key Takeaways
- The Asia Pacific region dominates the chemical injection skids market owing to a rapid increase
in energy and power and oil and gas sector.
- The increasing use of chemical injection skids in wastewater
treatment for injection of water
treatment chemicals is driving the market growth.
- Rapid investments and development
of oil and gas sector is boosting the market growth.
The corrosion inhibitor chemical injection
skids segments accounted for approximately 18%
of the market share in 2021 and are estimated to grow at a 2.4% CAGR during the forecast period. The demand for corrosion
inhibitor chemical injection skids is expected to grow owing to its efficacy in
reducing corrosion and the formation of deposits such as wax, scales, foam in
liquid chemical treatment systems. The manufacturers are also providing
customizable equipment, with online monitoring instrumentation for optimized
control in a wide array of onshore and offshore environments. They are widely
employed in the chemicals industry. They are used for the injection of various
chemicals, including caustic soda (for high-pressure cleaning, corrosion
inhibitor chemicals, hydrochloric acid (for descaling purposes), and amines
(for removal of sour gas), among many more. Thus, the development in the
chemical industries are highly impacting the market growth, for instance, in
2021 the Indian government on Wednesday said the Indian chemical industry has
an opportunity to attract investment of about US$13 billion by 2025 as the
country offers a location advantage. Opportunities
exist in the entire value chain and across the sector, improving the overall
market of chemical injection skids during the forecast period.
Chemical Injection Skids Market Segment Analysis - By End-Use Industry
Oil and Gas
segment held the largest share in the chemical injection skids market in 2021
and is growing at a CAGR of 2.8% during 2022-2027.
A fully functional chemical injection system has various components that
function together to optimize productivity in the oil and gas industry. Chemical injection systems can be deployed in
a variety of enhanced oil recovery applications onshore and offshore. These chemical
injection packages inject viscosity increasers to improve the sweep through a
reservoir improving the production of oil & gas recovery. Thus, the rapid
growth in the oil and gas sector is certainly positively impacting the chemical
injection skids market. For instance, India has witnessed a steady increase in
production as well as consumption of petroleum products over the years. The
production of petroleum products stood at 262.94 MMT in the year 2019-20. Upstream oil and gas investment is expected to
rise by about 10% in 2021 as companies recover financially from the shock of
2020, but spending remains well below pre-crisis levels. Firmer demand and
higher oil and gas prices have led to diverging investment strategies. Cost
control remains a common theme, but some major national oil companies are
looking to invest counter-cyclically to gain market share.
Chemical Injection Skids Market Segment Analysis - By Geography
Asia-Pacific region holds the largest share in the chemical injection skids market in 2021 and is estimated to grow at 42% CAGR during 2022-2027. China and Japan dominated the market in the Asia-Pacific; however, India is expected to witness healthy growth during the forecast period. Increasing refining activities in these countries are in turn expected to boost the market demand. For instance, Japan is the fourth-largest oil consumer globally, with a refinery capacity of about 3,600 thousand barrels per day, which constitutes 3.7% of the world’s refining capacity. currently, Japan has approximately 23 oil refineries, and the demand for petroleum products is decreasing by 1-2% per year. The constant investments and development in the end-use industries like wastewater treatment, pharmaceutical, oil and gas, and others are certainly driving the market growth of the chemical injection skids market during the forecast period. For instance, according to the World Bank, in 2009-2020, global spending on wastewater projects exceeded US$26 billion, with 84% of investments in wastewater treatment being in greenfield projects, which means a predominance of new facilities in this segment of infrastructure. A significant proportion of these projects are being implemented in China and other East Asian countries, where governments have recently turned towards environmental protection. Thus, the growth of waste treatment in the region certainly anticipates the growth of the chemical injection skids market.
Chemical
Injection Skids Market Drivers
Rapid use of Chemical Injection Skids in Wastewater Treatment Sector
Increasing Investments in Oil and Gas and Energy Sector
This is
currently focused on increasing domestic production and is planned to expand chemical
injection skids. There is now substantial growth, in particular in oil and gas,
in the area in various end-user industries. Such factors are expected to
contribute to the growth of demand in the area during the forecast timeframe
for chemical injection skids. The constant investments in the sector are
driving market growth. For instance, in 2021, annual global energy
investment is set to rise to USD 1.9 trillion, rebounding nearly 10% from 2020
and bringing the total volume of investment back towards pre-crisis levels.
However, the composition has shifted towards power and end-use sectors – and
away from traditional fuel production. After
staying flat in 2020, global power sector investment is set to increase by
around 5% in 2021 to more than USD 820 billion. Thus, the growth in the sector boosts
the market growth of chemical injection skids during the forecast period.
Chemical Injection Skids Market Challenges
Monitoring Controls Chemical Inventory can be Challenging
There are many factors both facilities and chemical skid
manufacturers must consider when selecting chemical feed skid components for
the oil and gas industry. Due to the industry's demanding environment,
delivering chemicals in a safe and reliable manner can be challenging. Chemical
feed skids must be built with the proper equipment and accessories to ensure
accurate operation and system integrity. Level monitoring controls chemical inventory
and determines when the tanks require filling. Though the precise measurement
often comes from chemical metering pumps, it is important for the tanks not to
run out or overflow. Thus, the factor might hinder the market growth.
Chemical Injection Skids Industry Outlook
Technology
launches, acquisitions, and R&D activities are key strategies adopted by
players in the Chemical Injection Skids Market. Chemical Injection Skids Market
top 10 companies include:
- Proserv Group Inc.
- IDEX Corporation
- SPX FLOW Inc.
- Petronash
- Seko SpA
- Cameron (Schlumberger)
- Hunting PLC
- ITC Dosing Pumps
- Lewa GmbH
- McFarland-Tritan LLC
- Others.
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