Gas Treatment Market

Gas Treatment Market Size

The global gas treatment market is expected to grow at a CAGR of 5.7% during the forecast period (2024-2034). The market size was valued at US$ 4.8 billion in 2023 and is projected to reach US$ 8.8 billion by 2034.

Gas treatment involves removing impurities like hydrogen sulfide, carbon dioxide, water vapor, and contaminants from natural gas or other industrial gases to purify them. This procedure is crucial to guarantee that the gas meets certain quality standards for transportation, storage, or end-use activities such as power generation or chemical production.

The process includes using chemical solvents, physical separation methods, or a mix of both to remove the undesired parts from the gas flow. Through this process, gas treatment improves the gas's energy content, reduces pipeline corrosion, and lowers environmental emissions to meet strict regulatory requirements. It is an essential stage in the oil, gas, and petrochemical sectors.

Market Highlights: 

This growth is driven by the rising global demand for natural gas as a more environmentally friendly energy option, especially in power generation and industrial sectors. Industries are being pushed to embrace advanced gas treatment technologies due to strict environmental regulations that target reducing greenhouse gas emissions.

Moreover, the increasing oil and gas exploration efforts in developing markets are increasing the demand for efficient gas treatment solutions. Strong future growth is expected as industries prioritize sustainability, requiring additional advancements in gas treatment processes to comply with the ever-changing environmental regulations and improve operational efficiency in processing and transportation.

Source: Fatpos Global

Market Segmentation:

Amines dominate the market due to their effectiveness and versatility in both small and large-scale gas processing applications

The market is segmented based on Type into Amines and Non-Amines. Amines hold a dominant position in the market based on their ability to efficiently eliminate acid gases like hydrogen sulphide (H₂S) and carbon dioxide (CO₂) from natural gas and industrial streams. Primary and secondary amines such as monoethanolamine (MEA) and diethanolamine (DEA) are the primary choices for gas-sweetening methods due to their strong reaction with acidic elements and recyclability for multiple uses.

Their ability to adapt to different levels of acid gases, along with their strong proven track record in both large-scale natural gas processing and smaller industrial settings, has cemented their market leadership. The increasing demand for cleaner fuels and more stringent environmental regulations continue to propel the use of amine-based gas treatment solutions in various industries.

Acid gas removal leads the market, driven by pipeline corrosion and environmental concerns  

The Market is segmented based on Application into Acid Gas Removal, Dehydration, and Others. Acid gas removal (AGR) is a crucial procedure for treating natural gas, refinery gases, and flue gases by targeting the removal of acidic substances like carbon dioxide (CO2) and hydrogen sulfide (H2S), holding a prominent role in the process. This step is crucial to align with pipeline and processing regulations, as acid gases may lead to pipeline corrosion and restrict downstream activities.

Environmental concerns also fuel the demand for such processes, as these gases play a role in global warming. Moreover, it is essential to have elevated acid gas removal levels to guarantee the purity of products such as liquefied natural gas (LNG) and synthetic fuels. Typical AGR technologies consist of amine absorption, which involves amines chemically absorbing acid gases; physical absorption using solvents such as methanol; adsorption using materials like activated carbon; and membrane separation that filters out acid gases selectively.

Source: Fatpos Global

Market Dynamics:

Growth Drivers

Increasing Demand for Natural Gas Globally to Drive Need for Gas Treatment Solutions

The ever-rising global demand for natural gas is due to its status as a cleaner option compared to coal and oil, especially in power generation and industrial use. Natural gas produces lower amounts of pollutants such as sulfur dioxide (SO₂) and nitrogen oxides (NOx), making it appealing to countries/economies wanting to lower their carbon footprints.

The increasing use of natural gas is creating a demand for advanced gas treatment solutions to guarantee that the gas meets strict quality standards for safe transport and effective combustion. Efficient gas treatment is essential to avoid pipeline corrosion, enhance processing efficiency, and maintain the purity of natural gas in applications such as LNG production by effectively removing acid gases like CO₂ and H₂S.

Stringent Environmental Regulations Propel Demand for Effective Gas Treatment Technologies  

Governments globally are implementing more stringent environmental regulations to decrease greenhouse gas emissions and minimize air pollution. These rules specifically focus on the oil and gas sector, a major producer of acid gases such as CO₂ and H₂S. Corporations must actively implement cutting-edge gas treatment technologies to meet these requirements and eliminate these pollutants from natural gas and industrial emissions.

The drive to comply with emissions regulations, along with the risk of significant fines for failing to do so, is leading the way for the use of advanced gas treatment options. Moreover, the growing focus on cleaner energy and sustainability is driving more innovation and investment in gas treatment technologies, helping companies to reduce their environmental footprint while still operating efficiently.

Restraints

High Operational Costs Associated with Gas Treatment May Hinder Market Growth

The significant expenses associated with installing and maintaining gas treatment systems can hinder market expansion. Generally, these systems require costly materials and technologies, such as unique solvents, membranes, or adsorbents, to efficiently eliminate acid gases such as carbon dioxide (CO₂) and hydrogen sulfide (H₂S). Moreover, the complex nature of these systems requires trained workers for setup, routine upkeep, and problem-solving, leading to higher operational costs.

Corporations, particularly those located in regions with cheaper energy and less stringent environmental regulations, might hesitate to implement advanced gas treatment technologies due to the significant upfront and ongoing expenses potentially overshadowing the advantages. This cost element can hinder the acceptance of the market, especially among small businesses and in developing economies where financial restrictions are more noticeable.  

Recent Developments

• In recent times, BASF has been focusing on enhancing its amine-based gas treatment products, which are crucial for carbon dioxide (CO2) and hydrogen sulfide (H2S) removal. They have introduced new formulations that improve the efficiency and environmental performance of gas treatment processes, particularly in natural gas and refinery applications.
• The Dow Chemical Company has expanded its gas treatment portfolio by acquiring a smaller specialty chemical company specializing in solvent-based gas treatment solutions. This acquisition aims to diversify Dow's offerings and improve its market position in gas dehydration and acid gas removal.
• Clariant AG has recently entered into a joint venture with a regional oil and gas player to develop customized gas treatment solutions tailored to specific local needs. This collaboration focuses on enhancing the sustainability and efficiency of gas purification processes.
• Huntsman Corporation has expanded its portfolio of amine gas treatment products by introducing a new series designed specifically for high-CO2 natural gas streams. These products offer improved stability and efficiency in removing acidic components from natural gas.
• ExxonMobil has made a significant investment in expanding its gas treatment facilities, focusing on enhancing the capacity of its amine-based gas treatment plants. This expansion is part of ExxonMobil's broader strategy to meet the increasing demand for cleaner natural gas.

Key Players:

• BASF SE
• Dow Chemical Company
• Clariant AG
• Huntsman Corporation
• ExxonMobil Corporation
• Ecolab Inc.
• Honeywell International Inc.
• Solvay S.A.
• Innospec Inc.
• Schlumberger Limited
• Sasol Limited
• Treibacher Industrie AG
• Eastman Chemical Company
• Arkema S.A.
• Mitsubishi Chemical Corporation
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)   

Regional Analysis

Global market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa.

North America leads the market due to advanced industrial infrastructure, strict environmental regulations, and substantial investments in technology. The focus in the area of cutting emissions and improving gas processing in sectors like oil and gas, petrochemicals, and power generation drives the need for advanced gas treatment solutions.

Moreover, North America's dedication to cutting-edge technologies and research strengthens its dominant position in the market. On the other hand, Latin America, Europe, Asia Pacific, the Middle East, and Africa make up an expanding market with varying dynamics.

Europe is recognized for its demand shaped by regulations, whereas Asia Pacific has benefitted from its fast-paced industrialization and urbanization.

Increased investments in the energy sector are driving the expansion of the Middle East and Africa, while Latin America is experiencing growth driven by its natural resource industries. Although there has been notable advancement, these areas typically mimic North America in terms of market control.  

Source: Fatpos Global

Impact of Covid-19 on The Market

The market was significantly affected in multiple ways by the COVID-19 pandemic. At first, the market faced challenges from supply chain disruptions, project delays, and reduced industrial activity as governments implemented lockdowns and travel restrictions. Nonetheless, with economies starting to recover, the market experienced a strong recovery fueled by an increased focus on environmental laws and the demand for more sustainable technologies.

The pandemic accelerated the implementation of remote monitoring and digital solutions in gas treatment procedures. Moreover, the increased investment by the government in infrastructure and energy areas within post-pandemic recovery strategies also enhanced the need for gas treatment technologies. In general, even though the pandemic presented obstacles, it also generated chances for innovation and investment within the industry.

Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Market Scope and Segments:

Frequently Asked Questions (FAQ):