April 11, 2016
Wellesley, Mass., April 11, 2016 – In the petroleum refining industry, the share of the regions in the global market for hydrogen purification is changing. BCC Research reveals in its new report that the shift of refining hubs from Europe to regions such as Asia-Pacific and the Middle East should bring dynamic growth to these regions, growing their respective market shares.
The hydrogen purification market is defined as the total market for hydrogen purification systems with application in the purification of off gases obtained in the refinery processes in all the refineries globally (i.e., recovery). This report focuses on the hydrogen purification market in the petroleum refining industry, which mainly uses three technologies: pressure swing adsorption, membrane diffusion and cryogenic separation.
The global hydrogen purification market in the petroleum refining industry is expected to reach nearly $9.9 billion by 2020 from nearly $7.5 billion in 2015, reflecting a five-year compound annual growth rate (CAGR) of 5.7%. Of the total global market for hydrogen purification, pressure swing adsorption (PSA) systems accounted for more than $6 billion. Membrane-based and other hydrogen purification systems currently account for less than 15% of the overall hydrogen purification market.
Because of their high reliability and lower downtime for the refinery operations, PSA systems are the preferred choice for petroleum refiners. Hydrogen is basically a cost for the refiners, so the petroleum refiners are highly sensitive to the cost of the purification systems, which in turn makes the PSA systems attractive. Many of the membrane-based systems in development are more expensive than PSA systems. Similarly, the cryogenic purification systems have higher initial expenditure, which makes the cryogenic systems economical for high-volume applications like air purification. Improvements in the technology and services may grow the share of the membrane-based systems in the future.
The hydrogen purification market should grow steadily due to key drivers such as more demand for high-purity hydrogen in the refining industry, tight refining margins, and increased use of heavy oil in refining and stringent regulations globally. The increased usage of hydrogen and the increased focus on efficiency and cost reduction, however, has caused refineries to purify the off gases to obtain usable products and byproducts. Due to the expected increased usage of hydrogen in the refinery processes in the future, the market for hydrogen recovery from the off gases has gained momentum in recent years.
TheU.S.,China,Russia,Japan,CanadaandIndiaare the key markets for hydrogen purification in the refining industry. The hydrogen purification market in the refining industry in the Europe andMiddle Eastregion was estimated to be $2.6 billion in 2015. With the continued growth in theMiddle Eastregion, notwithstanding the decline of the western European refining industry, the total hydrogen purification market in this region is forecast to grow to roughly $3.4 billion in 2020, with a CAGR of 6%.
“The current market for hydrogen purification in the petroleum refining industry reflects the refining industries in these regions, but the share of the regions in the global market is expected to change in the future toward a growing market in the Asia-Pacific and Rest of World regions and a declining market in Europe,” says BCC Research analyst Sandeep Hassan Rangaswamy. “The Asia-Pacific region is among the most dynamic regions for the refining industry, and the market for hydrogen purification is expected to grow to roughly $3 billion in 2020.”
Hydrogen Purification in Petroleum Refining: Global Markets (AVM132A) analyzes technologies and applications, programs in development, and quantifies market opportunities. The report examines trends, pricing considerations, R&D, government regulations, and competitive technologies. Analyses of global market drivers and trends, with data from 2014, 2015, and projections of CAGRs through 2020 also are provided.
Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.
Hydrogen Purification in Petroleum Refining: Global Markets( AVM132A )
Publish Date: Mar 2016
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