Modular Process Skid Market Size, Share & Trends Analysis Report By Type (Pump Unit System, Condensate Water Recovery System), By Applications (Energy and Electricity, Chemical, Pharmaceutical, Food and Beverage, Agricultural, Manufacturing, Other) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global modular process skid market is estimated to grow at a significant rate during the forecast period (2024–2032). The global modular process skid market is driven by the growing demand for energy and petrochemical products, especially in emerging nations, owing to rising urbanization and industrialization. Moreover, modular process skids are widely utilized in the wastewater treatment industry due to their advantages, such as cost-effectiveness and eco-friendliness, thereby fostering market growth. 

A Modular Process Skid, often called a modular process unit or module, is an industrial processing system that is pre-assembled and pre-tested and put on a skid or frame. This method entails constructing and combining different parts, machinery, and instruments into a self-contained entity that can be conveniently transported to the installation location and incorporated into a larger industrial operation.

These devices are engineered to perform precise tasks within a processing facility, such as filtering, segregating, purifying, or transferring heat. Therefore, these portable systems are extensively utilized in diverse sectors such as chemical processing, petrochemicals, pharmaceuticals, food and beverage, water treatment, and others. Compared to traditional on-site construction of process systems, they provide cost, time, and quality benefits.

Market Dynamics

Global Modular Process Skid Market Drivers

Increasing Demand for Energy and Petrochemical Products

The rising need for energy and petrochemical products, particularly in emerging nations like China, India, Brazil, and South Africa, is a significant factor driving the market growth. Modular process skids facilitate faster and more effective manufacturing of oil and gas, refined products, and petrochemicals, as they can be conveniently moved and placed in distant or offshore areas. Modular process skids mitigate process plants' environmental impact and carbon footprint by minimizing on-site building and civil works.

Furthermore, modular process skids can be tailored and incorporated into pre-existing facilities, improving operational efficiency and productivity for process plants. Based on the International Energy Agency (IEA) analysis, petrochemicals are projected to contribute to more than one-third of the increase in oil demand by 2030 and close to half by 2050. Moreover, as stated by ExxonMobil, the projected worldwide energy demand is expected to reach approximately 660 quadrillion Btu by 2050. This 15% increase compared to 2021 is attributed to a growing population and increasing income. These factors contribute to the market expansion.

Increasing Demand from Wastewater Industry

Another driver fueling the growth of the modular process skid market is the increasing need for modular process skids in the water and wastewater treatment sector. Modular process skids provide a financially efficient and environmentally conscious method for treating water and wastewater. They may be conveniently built and operated in various settings, including rural areas, metropolitan areas, and industrial zones. Modular process skids can be customized and adjusted to meet the precise specifications and demands of water and wastewater treatment plants, including water and wastewater quality, quantity, and source.

Furthermore, the global population is experiencing rapid growth while increasing industrialization and urbanization are causing substantial harm to the current freshwater supplies. Industrial activities account for 22% of global water usage. Moreover, as per the World Health Organization (WHO), nations experiencing water stress were inhabited by more than 2 billion people in 2021. Consequently, multiple governing authorities and regulatory organizations have issued many regulations and criteria regarding the treatment and disposal of wastewater, specifically from industrial sources, to safeguard the environment. Therefore, the factors mentioned above promote the growth of the market.

Global Modular Process Skid Market Restraint

High Initial Investment and Transportation Cost 

A significant limitation of the modular process skid market is the large initial capital expenditure and the expenses associated with transportation. Designing, manufacturing, and testing modular process skids necessitates a significant amount of money because of the involvement of intricate engineering and fabrication procedures. Modular process skids also result in significant transportation expenses since they must be transported or airlifted to the site location, which may be distant or difficult to reach.

Modular process skids need help adhering to many locations and nations' regulatory and safety norms, leading to higher project costs and longer timelines. Moreover, modular process skids may encounter technical complications and compatibility challenges with the current infrastructure and equipment, thus impacting the efficiency and excellence of the process plants.

Global Modular Process Skid Market Opportunities

Introduction of Advanced and Innovative Modular Process Skid

Market participants have recently been introducing advanced and novel modular process skids with improved efficiency to increase their market share. For instance, in August 2023, ITM Power introduced a 20MW core electrolysis process module that can be easily expanded for use in large-scale electrolyzer and green hydrogen projects. ITM has developed the Poseidon module, integrating practical knowledge from commercial applications.

Additionally, the module is a standardized unit optimized to have a small footprint. It is composed of skid-mounted parts that may be prefabricated and pretested. According to ITM, this decreases the amount of time it takes to deploy and construct projects, as well as saves costs. It also helps minimize the risks associated with these initiatives. The module is versatile for indoor and outdoor installation and may be seamlessly integrated into the overall infrastructure. Moreover, modular process skids can be linked to the cloud and the Internet of Things (IoT), allowing for remote access and control of the process plants. These improvements generate opportunities for market expansion.

Regional Analysis

Based on region, the global modular process skid market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

The Asia-Pacific region is projected to experience the most rapid expansion because of swift industrialization and urbanization, which is leading to increased demand for modular process skids across different industries. The Asia-Pacific region boasts a substantial and varied market for modular process skids due to the inclusion of emerging markets like China, India, Japan, and South Korea, as well as developing nations like Indonesia, Thailand, and Vietnam. Moreover, as a result of escalating water pollution and water shortages in many countries of the Asia-Pacific region, there is a rising need for wastewater treatment in the region. The rise in demand for water treatment has prompted governments in multiple countries to implement efforts to develop efficient wastewater treatment techniques. The 2030 Water Resources Group and the Council on Energy, Environment, and Water (CEEW) are working to boost private investments in building wastewater treatment plants and improving wastewater management in India.

Similarly, as per the China National Bureau of Statistics, China dedicated USD 81.6 billion to its municipal wastewater infrastructure from 2015 to 2020. This investment involved the creation of supplementary water purification facilities. In 2021, the Chinese government announced plans to build more wastewater treatment facilities to increase the country's daily wastewater treatment capacity by 20 million cubic meters between 2021 and 2025. Therefore, the region is anticipated to experience an increase in the modular process skid market because of the strong demand and advancement of wastewater treatment procedures.

The North American market is experiencing substantial growth because of the strong demand for modular process skids in the oil and gas industry, particularly in the shale gas and tight oil sectors. According to Statista, the United States' oil and gas business had a total income of 332.9 billion U.S. dollars in 2022. The revenue of the U.S. oil and gas industry experienced significant growth compared to the previous year, when it amounted to 211.2 billion U.S. dollars. Moreover, shale gas and tight oil production in the United States has experienced a significant surge since 2000, escalating from approximately 300 billion cubic feet to surpassing 26 trillion cubic feet by 2022. By 2050, it is anticipated that the amount will rise to around 35 trillion cubic feet. Consequently, this is expected to stimulate the expansion of the North American market. The North American market for modular process skids is well-established and mature, featuring prominent manufacturers and suppliers like Schlumberger, Honeywell, and Emerson.

Segmental Analysis

The global modular process skid market is segmented by type and application.

Based on type, the global modular process skid market is divided into pump unit system and condensate water recovery system.

A condensate water recovery system is a technological solution specifically developed to collect and recycle water generated as a secondary product of diverse industrial operations or air conditioning systems. Condensate is the term used to describe the transformation of water vapor into liquid form through condensation. Condensate is frequently produced in industrial operations or air conditioning systems when there is contact between warm or hot air and cooled surfaces. Moreover, condensate water recovery systems are prevalent in industrial environments that produce substantial heat and steam, such as power plants, refineries, and manufacturing facilities.

Furthermore, air conditioning systems in business buildings frequently generate condensate that can be gathered and repurposed for activities such as landscape watering. Integrating condensate water recovery systems supports sustainability objectives by decreasing water usage, saving expenses for water treatment, and mitigating the ecological consequences linked to wastewater outflow.

Based on application, the global modular process skid market is segmented into energy and electricity, chemical, pharmaceutical, food and beverage, agriculture, manufacturing, and others. 

The chemical processing sector involves intricate procedures, which inherently entail potential dangers and risks. These risks are particularly prevalent in conventional manufacturing facilities in open-air environments. These sites are vulnerable to damage during installation and fluctuations in extreme weather conditions. Consequently, plant makers prioritize installing these sites in a more secure and regulated environment to reduce risk and improve worker safety. Thus, manufacturers are transitioning to modular process skid systems due to their exceptional space utilization and integration into the system.

Moreover, the schedule efficiency of modular process skid systems is anticipated to be a significant driving factor for the market growth in the chemical processing industry. Chemical industry players actively engage in strategic mergers and acquisitions to enhance their presence in new markets. They are actively researching techniques to expedite the establishment of their plants, enabling them to capitalize on rapid turnaround times from installation to product manufacturing.

Recent Developments

• November 2023- EVgo Inc. is implementing a novel prefabrication method for installing new charging stations for electric vehicles (EVs). This approach is expected to reduce the average installation time by 50% and save approximately 15% in construction costs at eligible sites.
• August 2023- ITM Power introduced a new 20 MW core electrolysis process module named 'Poseidon' as part of its efforts to expand the scale of electrolyzer production. This module has been designed with a compact footprint and can be easily scaled up for use in large facilities, whether they are indoors or outdoors.