The polyacrylamide market is expected to register a CAGR of more than 5% during the forecast period. One of the major factors driving the market studied is the growing use of polyacrylamide in the oil and gas industry for enhanced oil recovery (EOR). However, stringent regulations for use, due to carcinogenic nature of acrylamide monomer, is likely to restrain the market.
- Growing demand for anionic polyacrylamide as a flocculant is also likely to boost the demand for polyacrylamide during the forecast period.
- Development of bio-based polyacrylamide is likely to act as an opportunity for the market growth in future.
- Asia-Pacific dominated the polyacrylamide market, owing to the rapidly growing water treatment industry in India and China.
Key Market Trends
Water Treatment Segment to Dominate the Market
- One of the major applications of polyacrylamide is as flocculants or coagulants for treating municipal and industrial wastewater, as it causes suspended particles to aggregate and to precipitate when added to treat water.
- Anionic polyacrylamide is used extensively in water treatment and sludge de-watering. For industrial sewage treatment, it is widely used in iron and steel plants, wastewater plants, electroplating wastewater plants, metallurgical waste water plants, and coal-washing wastewater plants. Owing to the significantly high flocculation efficiency, anionic polyacrylamide is also widely used in drinking water treatment.
- Rapid industrialization and urbanization in Asia-Pacific has propelled the demand for polyacrylamide, due to rising levels of waste water and pressing need to conserve the depleting natural water resources.
- Additionally, stringent environment regulations imposed by regional regulatory bodies and government to treat industrial waste water is another factor, which may make prominent contribution toward the market during the forecast period.
- Hence, water treatment segment is likely to continue dominating the market during the forecast period.
China to Dominate the Asia-Pacific Market
- China is one of the major countries in the Asia-Pacific, with ample construction activities being supported by the growing economy.
- One of the most severe environmental challenges China is facing right now is of water pollution. According to the statistics from the National Development and Reform Commission (NDRC), more than 32% of China’s seven major river systems and around 29% of China’s major basins did not meet the prevailing water quality standards (grade III and below).
- This was majorly due to the long history of unfettered emission of untreated/under-treated industrial, agriculture, and domestic wastewater into various water bodies.
- Owing to this severe condition, the Government, in its 13th five-year plans published as the ”Water Pollution Prevention and Control Action Plan”, is aiming to halt heavily polluting sectors from contaminating water sources.
- Moreover, the country is keeping on adding new plants and projects, which is expected to boost the demand for water treatment chemicals, thereby, increasing the demand for flocculants in the country.
- In the oil and gas industry, polyacrylamide usage is comparatively limited, compared to other countries, owing to the limited enhanced oil recovery activities and fracking activities in the country. However, Chinese energy giants are making progress in unlocking natural gas from shale rock formations.
- China is a potential region in terms of shale gas reserves. The China National Petroleum Corporation, one of the global giants in the oil and gas industry, is currently emphasizing on the exploration and production of shale gas in the country.
- Hence, owing to the aforementioned reasons, China is likely to drive the market growth in the region, during the forecast period.
The polyacrylamide market is highly consolidated, with the major players accounting for a major share of the market. SNF is the global leader, with an annual production capacity of 1.1 million metric ton. The company generated ~80% of it’s net revenue from the polyacrylamide business, and accounted for 48% of the global market. Some of the major companies in the market include SNF Group ,BASF SE, Kemira, and Solvay, among others.
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