The Total Addressable Market (TAM) for Hydrodesulfurization Catalyst was valued at USD 2.55 billion in 2021. It is projected to reach USD 3.66 billion by 2030, growing at a CAGR of 4.1% during the forecast period (2022-2030). Hydrodesulfurization's chemical process removes sulfur compounds from petroleum products like gasoline, jet fuel, fuel oils, and petrol. Hydrodesulfurization catalysts are used to speed up the process of hydrodesulfurization. Cars, planes, trains, ships, oil power plants, and domestic and industrial furnaces use gasoline, jet fuel, fuel oils, and fuel catalysts. Catalysts for hydrodesulfurization help remove sulfur from the process, lowering sulfur dioxide emissions. The hydrodesulfurization catalyst depends on natural gas, naphtha, diesel oil, and jet fuel extraction. Additionally, hydrodesulfurization catalysts are used in other industries, including heating oils, low-sulfur fuel oils (LSFO), and marine fuels, which are anticipated to spur market expansion over the forecast period.
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Growing Industrial Activities
Industrialization in emerging economies like China and India is accelerating quickly. Sectors, including vehicles, electricity (power plants), and public transit, play a significant role in the economy's expansion. Reduced sulfur dioxide (SO2) emissions from automobiles, airplanes, ships, industries, and other services are accomplished by the use of hydrodesulfurization catalysts (HDS). Additionally, it is used in industrial and residential furnaces and oil-fired power plants to prevent the immediate release of hydrogen sulfide (H2S) into the atmosphere. As a result, the market for hydrodesulfurization catalysts in emerging economies is growing quickly in sectors where these catalysts are crucial.
Rising Environmental Regulations
If sulfur is present in crude oil, it may cause several issues, including producing sulfur oxide (SOx) compounds when fuel is burned, scaling and pipe clogging, and lower fuel efficiency. Sulfur dioxide emissions into the atmosphere significantly negatively impact the environment, contributing to acid rain, ozone layer loss, global warming, and smog formation. Emission guidelines for releasing sulfur oxides during fuel combustion have been established in nations like the United States, Australia, China, and Switzerland. Organizations like the International Maritime Organization (IMO) and the United States Environmental Protection Agency (USEPA) have also established standards for fuel sulfur levels. For instance, the average annual sulfur content of gasoline is 10 ppm. Crude oil and distillates are catalytically hydrodesulfurized to remove contaminants such as metals, oxygen, sulfur, and nitrogen. Additionally, it lowers SOx emission levels and improves fuel-burning efficiency.
Volatility in Crude Oil Prices
Crude oil dealers, the existing oil supply, and potential supply and demand all influence price. These elements contribute to crude oil's high level of volatility. Additionally, both natural and man-made calamities have a significant impact on changes in oil prices. For instance, the COVID-19 epidemic led to a complete shutdown of factories and manufacturing facilities, reducing the demand for oil worldwide. Additionally, several plants were shut down or operating at reduced capacity, which impacted the demand for hydrodesulfurization catalysts. A decline further hampers the market for hydrodesulfurization catalysts in oil and gas rig counts and investors due to high investment risks.
Advent of Nanotechnology
In order to meet demand in the Middle Eastern market and other oil-producing economies, low-sulfur crude oil and its distillates are necessary. The hydrodesulfurization catalysis process benefits significantly from the significant properties of nanomaterials, including their increased surface area, optimal adsorption, enhanced mixing, high activity, and ease of separation. Utilizing nanomaterials also increases reaction speeds and boosts fuel efficiency by significantly reducing sulfur concentration. Several significant producers, like Sinopec and JGC Catalysts & Chemicals, have already begun utilizing nanotechnology to create more effective hydrodesulfurization catalysts. Thus, it is projected that nanotechnology will open up the profit potential for the growth of the hydrodesulfurization catalysts market over the forecast period.
The global hydrodesulfurization catalyst market is segmented by type and application.
Based on type, the global hydrodesulfurization catalyst market is bifurcated into cobalt-molybdenum catalysts, nickel-based catalysts, and others.
The cobalt-molybdenum catalyst segment is the highest contributor to the market and is expected to grow at a CAGR of 4.5% during the forecast period. Cobalt-molybdenum hydrodesulfurization catalysts are well-known for their superiority in removing sulfur from various fuels, including diesel, naphtha, and natural gas. High activity, high octane occupancy, pretreatment, and fuel impregnation are just a few of its notable attributes. The edges of the molybdenum surface include larger cobalt atoms, making it a high-activity desulfurization catalyst. It interacts vigorously with the active sulfur particles, turning them into hydrogen sulfide gas (H2S). The hydrogenation reaction transforms this hydrogen sulfide gas into sulfuric acid (H2SO4) and a sulfur-free product (diesel, naphtha, and natural gas), which is removed from the reactor. It is frequently utilized in conjunction with an alumina carrier to speed up the interaction between hydrogen and sulfur in the hydrocarbon feedstock.
Additionally, the leading prominent market trend in the global market is cobalt and molybdenum-based hydrodesulfurization catalysts in industries like oil and gas, transportation, and pollution control. For instance, the transportation industry has observed an increase in demand for KF772 STARS®, a high-activity cobalt and molybdenum-based hydrodesulfurization catalyst used primarily for ultra-low sulfur diesel oil (ULSD).
The thermally generated molybdenum sulfides in the nickel-based hydrodesulfurization catalysts are composed of 95% nickel and 5% molybdenum. High activity, improved hydro refining, thermal stability, and enlarged pore space are just a few of the defining characteristics of these catalysts, which together allow them to remove nearly 98% of sulfur from crude oil and its distillates. It is made by calcining ammonium molybdate and nickel nitrate for 15 hours at 120 degrees Celsius. The primary trend in the global market is nickel-based hydrodesulfurization catalysts in industries like emission control, transportation, refinery development, and biofuel production. For instance, the oil and natural gas industry observed demand for HDS2310, a premium nickel-based hydrodesulfurization catalyst primarily utilized in the naphtha desulfurization unit.
Based on application, the global hydrodesulfurization catalyst market is bifurcated into natural gas, naphtha, diesel oil, and others.
The diesel oil segment owns the highest market share and is expected to grow at a CAGR of 3.4% during the forecast period. Diesel's sulfur content causes problems with corrosion, scaling and fouling, and efficiency. Catalysts for hydrodesulfurization are used to remove sulfur species from diesel oil and increase its general effectiveness. A catalytic hydrogenation reactor is utilized to transform the organic sulfur compounds found in diesel oil into hydrogen sulfide gas (H2S) at relatively high temperatures (nearly 290–450 Celsius). Desulfurized diesel oil is collected from the reactor's bottom, and hydrogen sulfide gas is evacuated from the reactor as a byproduct. The hydrodesulfurization catalyst is a suitable alternative for sulfur removal because of its excellent qualities, including reduced emission, increased effectiveness, improved cleaning properties, and severe pressure load. The primary market trend in the global market is desulfurized diesel oil in industries like pollution control, transportation, automotive, and power plants.
Sulfur in naphtha can cause several issues, including hazardous emissions, lower fuel efficiency, scaling and fouling, and corrosion-related issues. Catalysts for hydrodesulfurization are used to eliminate sulfur species and enhance naphtha reforming, octane occupancy, and other naphtha properties. The device used to capture sulfur and turn it into hydrogen sulfide gas can be cobalt, molybdenum, nickel, or ruthenium disulfide (H2S). Additionally, the catalytic hydrogenation reactor produces sulfuric acid (H2SO4) or elemental sulfur as a byproduct from converting the captured hydrogen sulfide gas. A hydrodesulfurization catalyst is an excellent option for sulfur removal because it has essential qualities like high octane occupancy, reduced emission, extreme pressure load, and enhanced fuel efficiency. The primary market trend in the global market is desulfurized naphtha in industries including automotive and transportation, energy production, and power plants.
The global hydrodesulfurization catalyst market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant shareholder in the global hydrodesulfurization catalyst market and is expected to grow at a CAGR of 5.2% during the forecast period. China's transportation industry is expanding quickly, which has compelled manufacturers of hydrodesulfurization catalysts to create more effective and sophisticated hydrodesulfurization catalysts for smooth and refined engine transmission. Additionally, the number of refineries with hydrodesulfurization units installed to generate more refined petrochemical products rapidly increases in nations like Australia and India. Japan's average bioethanol mix rate has climbed to 1.9%. The hydrodesulfurization catalysts (HDS) used in this bioethanol blend technique serve as a promoter for enhancing bioethanol's efficacy. As a result, Asia-Pacific hydrodesulfurization catalyst performance is improved as biofuel dependence increases. Catalysts for hydrodesulfurization are utilized in many processes, including fluid catalytic cracking (FCC), sulfur absorption, promoter, biofuel blending, and hydrotreating. The primary market trend in the Asia-Pacific region is hydrodesulfurization catalysts in industries like transportation, biofuel production, refinery expansion, and pollution control.
North America is expected to grow at a CAGR of 3.4%, generating USD 1,008.54 million during the forecast period. The hydrodesulfurization catalyst market is analyzed in the U.S., Canada, and Mexico. The U.S. oil and gas industry is expanding quickly, which has raised the demand for hydrodesulfurization catalysts to remove sulfur from crude oil and its distillates effectively. Approximately 45% of the nation's crude oil and natural gas are produced in Texas, followed by New Mexico, North Dakota, Colorado, Alaska, California, and other states. Catalysts for hydrodesulfurization are frequently employed for octane occupancy, pretreatment, sulfur removal, and fuel conditioning. The primary market trend in North America is hydrodesulfurization catalysts in industries including oil & gas and power plants. For instance, the demand for ICR®, HOP®, SmART®, and 420DX hydrodesulfurization catalysts in the North American market has increased, according to Advanced Refining Technologies (ART), a prominent manufacturer of hydrodesulfurization catalysts.
Additionally, massive industrialization and urbanization have raised energy needs, which has increased the need for hydrodesulfurization catalysts across the U.S. Hydrodesulfurization catalysts are also essential for sulfur collecting, pH balancing, pre-impregnation, and fuel conditioning applications in Canadian refineries where refinery capacity is continually being maximized. The hydrodesulfurization catalysts market in North America has lucrative prospects to expand due to the use of these catalysts for the sulfur removal and pretreatment of crude oil and natural gas.
Europe is expected to grow significantly over the forecast period. The use of high-activity hydrodesulfurization catalysts based on cobalt and molybdenum (CoMo) and nickel and molybdenum (NiMo) in kerosene hydrotreating and fluid catalytic cracking (FCC) units drives sales of hydrodesulfurization catalysts in Europe. Integrated Rheinland Refinery and Lingen Refinery are expanding their reach among other parts of Europe by offering premium fuels with shallow sulfur content. As a result, refineries now employ more hydrodesulfurization catalysts to meet specifications. The hydrodesulfurization catalysts based on cobalt and molybdenum (CoMo) and nickel and molybdenum (NiMo) are extensively employed in fuel conditioning, sulfur removal, sulfide absorption, and hydrotreating. The primary market trend in the region is hydrodesulfurization catalysts in industries like transportation, oil and gas, and pollution control.
In Latin America, the demand for low-sulfur fuel oils (LSFO) and deficient sulfur fuel oils (VLSFO) has increased sales of hydrodesulfurization catalysts in the oil and natural gas industry. Middle Eastern countries are now using hydrodesulfurization catalysts for fuel conditioning due to the rising prevalence of sulfur content reduction and rising trends toward sustainable energy. As a result, the Middle Eastern nations have increased their hydrodesulfurization catalyst sales and production and are expected to maintain their dominance during the projected period. Additionally, Africa is continually working to increase its refining capacity to fulfill the population's expanding needs. Due to its use as a promoter in fluid catalytic cracking (FCC) units in refineries to increase oil production, the demand for hydrodesulfurization catalysts is rapidly expanding in Africa.
The global hydrodesulfurization catalyst market’s major key players are Advanced Refining Technologies LLC, Albemarle Corporation, Axens SA, BASF Catalysts, China Petroleum and Chemical Corporation (Sinopec), Clariant AG, Dorf Ketal Specialty Catalysts LLC, Haldor Topsoe, JGC Catalysts & Chemicals Ltd., and Johnson Matthey.