Hydrodesulfurization Catalyst Market Expected to Reach $3.66 Billion by 2028

According to a new report published by Allied Market Research, titled, "Hydrodesulfurization Catalyst Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2028," the global hydrodesulfurization catalyst market was valued at $2.64 billion in 2020, and is projected to reach $3.66 billion by 2028, growing at a CAGR of 4.30% from 2021 to 2028.

Chemical process that involves removal of sulfur from natural gas and from refined petroleum products is known as hydrodesulfurization (HDS). Use of catalysts to aid hydrodesulfurization process are known as hydrodesulfurization catalysts. Use of silicon in HDS catalysts improve dispersion of active phase, extent of sulfidation, and level of desulfurization process.     

Air pollution is the major concern where several strategies are put forward to mitigate and reduce air pollution. Use of hydrocarbons for energy production is widely adopted method, and is expected to continue to be the most used method during the forecast period. However, use of hydrocarbons for energy production outsources environmental pollution that usually generates pollutants such as SOx, CO, NOx, and traces of some heavy elements. SOx are dangerous pollutants, owing to its ability to be oxidized to SO3, which leads to formation of sulfuric acid and acid rain. Thus, hydrodesulfurization catalysts are widely adopted among oil refinery industries to significantly reduce sulfur content in petroleum distillates. This is the major factor that propels growth of the global hydrodesulfurization catalyst market.  In addition, advancements in hydrodesulfurization catalysts and extraction of fuel oil from coal tar is another factor that is expected to augment growth of the global market during the forecast period. 

Prices of crude oil are controlled by oil traders, current oil supply, and future supply & demand. These factors make crude oil a highly volatile commodity. Moreover, natural and man-made disasters have a great influence on price fluctuations of oil. For instance, attributed to wake of the COVID-19 pandemic, factories and manufacturing sites went on a complete shutdown that declined the global oil demand. Moreover, plants were closed or either are running at reduced rates, which affects the demand for hydrodesulfurization catalysts. 

Alumina supported hydrodesulfurization catalyst is incorporated in production of sulfur free refinery products. Use of alumina supported hydrodesulfurization catalysts produce cleaner and less sulfur containing diesel fuels. This factor is expected to offer new opportunities in the upcoming period. 

The global hydrodesulfurization catalyst market is segmented on the basis of type, application, and region. 

Depending on the type, the global hydrodesulfurization catalyst market is segmented into cobalt molybdenum, nickel-based, and others. The cobalt molybdenum segment dominated the global market, in terms of revenue in 2020, with around 32.67% market share. This is attributed to its properties such as high activity, sulfur absorption, fuel impregnation, and reduced emissions. 

On the basis of application, the market is segmented into natural gas, naphtha, diesel oil, and others. The diesel oil segment dominated the global market, with around 46.7% of the total market share in 2020, as hydrodesulfurization catalyst are capable of reducing sulfur occupancy and enhance overall effectiveness of the fuel.

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific hydrodesulfurization catalyst market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major hydrodesulfurization catalyst market share in 2020.

Key players operating in the global hydrodesulfurization catalyst market include Advanced Refining Technologies LLC, Albemarle Corporation, Axens SA, BASF SE, China Petroleum and Chemical Corporation (Sinopec), Clariant AG, Dorf Ketal Specialty Catalysts LLC, Haldor Topsoe, JGC Catalysts & Chemicals Ltd., and Johnson Matthey PLC.

COVID-19 analysis

COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December. The global hydrodesulfurization catalyst market witnessed a negative effect due to the COVID-19 pandemic. Oil & gas sector is the major consumer of hydrodesulfurization catalyst. There are several challenges put forward by COVID-19 pandemic on oil & gas sector, owing to fluctuating crude oil price, failed For instance, according to a publication by the Organization of Petroleum Exporting Countries (OPEC), there was a decline in production of crude oil by 9.7 million barrels in May 2020 in Russia. International Oil Companies (IOCs), indigenous oil & gas and chemicals companies are subsequently cutting down their capital and operational expenditures, which affects production of crude oil and other products. Thus, demand of hydrodesulfurization catalysts has increased amid the COVID-19 pandemic.Other major consumers of hydrodesulfurization catalysts include naphtha refining, natural gas, jet fuels, marine fuels, heating oils, and low sulfur fuel oils (LSFO). Disruption in value chain, unavailability of raw material due to travel restrictions, and temporary closure of manufacturing plants has negatively impacted naphtha refineries, jet fuel manufacturers, and heating oil manufactures.  Moreover, there are several refineries that have closed their bulk manufacturing plants, owing to decrease in demand for oil products. For instance, according to the International Energy Agency (IEA), there were about a dozen refinery closures in the U.S. and production has been cut down by 1bpd in the U.S. Another major consumer of hydrodesulfurization catalyst are natural gas manufacturers. Natural gas demand has also been affected amid COVID-19 pandemic, which is attributed to reduced consumption of gas and city gas distribution. For instance, according to a report by S & P global, India witnessed natural gas downfall by 40% in January 2021.  

Key findings of the study

• The cobalt molybdenum segment is estimated to display highest growth rate, in terms of revenue, registering a CAGR of 4.5% from 2021 to 2028.
• The natural gas segment is estimated to display highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2021 to 2028
• Asia-Pacific garnered highest share of 32.67% in 2020, and is estimated to display highest growth rate, in terms of revenue, registering a CAGR of 5.20% from 2021 to 2028.