Drag Reducing Agent Market Report, By Type (Polyacrylamide-based DRAs, Polymers-based DRAs, Surfactants-based DRAs), By Application (Crude Oil Flow Assurance, Refined Product Transportation, Slurry Flow in Mining, Other Applications), By End-Use Industry (Oil & Gas, Mining, Chemical, Water Treatment, Others), and Regions 2024-2032

Market Overview:

"The global drag reducing agent market size reached US$ 1.3 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 2.1 billion in 2032, exhibiting a growth rate (CAGR) of 5.5% during 2024-2032."

Drag reducing agents (DRAs) are chemical additives used to reduce frictional resistance and turbulence in fluid flow, primarily in pipelines. Main function of these additives is to improve efficiency of fluid transportation by minimizing energy loss and enhancing flow rates. Drag reducing agentss are vital in industries such as oil & gas, as these helps optimize pipeline operations, reduce pumping costs, and extend equipment lifespan. Rising demand for energy-efficient solutions, increasing oil & gas exploration activities, and need to overcome flow challenges in long-distance pipelines are factors driving adoption of drag reducing agents.

The global drag reducing agent market is registering steady revenue growth due to its vital role in optimizing fluid transportation in various industries, such as oil & gas, water treatment, and mining. Drag reducing agents enhance pipeline efficiency by reducing friction and turbulence, leading to increased flow rates and reduced pumping costs. Revenue growth of the market is driven by rising energy demand, growing oil & gas exploration activities, and infrastructure development. In addition, advancements in drag reducing agents technology, such as eco-friendly and biodegradable formulations, further contribute to market revenue growth. Regulatory initiatives promoting sustainable practices and compliance with environmental standards also support market revenue growth.

Drag Reducing Agent Market Report Overview:

The global drag reducing agents market research report provides comprehensive insights into driving factors, restraints, opportunities, and drag reducing agent market trends, with provision of in-depth supporting information, data, and statistics and actionable insights. 

Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use. 

Revenues and market share are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based.

Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others. 

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, research & development, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.  

The global drag reducing agents market research report is segmented on basis of type, application, end-use industry, flow regime, and regions and countries. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of Middle East & Africa).

Drag Reducing Agent (DRA) Market Trends and Drivers:

Rising Oil & Gas Exploration: Growing oil & gas industry is driving adoption of drag reducing agents to optimize pipeline transportation and reduce energy consumption, positively impacting market revenue growth.

Infrastructure Development: Increasing infrastructure projects, particularly in developing countries, necessitate efficient fluid transportation, driving adoption of drag reducing agents in water and wastewater pipelines.

Technological Advancements: Ongoing research and development efforts result in innovative drag reducing agent formulations that offer enhanced performance, better stability, and environmental sustainability, supporting market revenue growth.

Cost Savings & Operational Efficiency: Use of drag reducing agents reduces frictional losses, leading to higher flow rates and lower pumping costs, attracting industries to implement these agents for improved operational efficiency.

Environmental Compliance: Growing emphasis on environmental sustainability and regulatory initiatives promoting eco-friendly solutions is driving demand for biodegradable and environmentally safe drag reducing agents, positively impacting market revenue growth.

What Factors Are Restraining Growth of Drag Reducing Agent (DRA) Market?

Despite the various positive factors and growth prospects in the global market, some restraints and factors are having negative impacts on revenue growth. Some key factors include:  

High Initial Investment: One of the primary factors limiting adoption of drag reducing agents is the high initial investment required. Implementing DRAs in pipeline systems involves additional costs for chemical treatment, equipment installation, and ongoing maintenance. These costs can be substantial, especially for small and medium-sized companies with limited budgets, leading to companies opting for old and conventional pipeline solutions.

Limited Application Scope: Drag reducing agents are primarily used in the oil & gas industry for pipeline transportation of crude oil, refined petroleum products, and natural gas. While these industries are major consumers of drag reducing agents, application scope remains limited to specific sectors. This dependency on a few industries could hamper expansion off product applications into other potential sectors that could benefit from enhanced fluid flow.

Environmental Concerns: Some drag reducing agents may have adverse environmental impacts, raising concerns among regulatory bodies and environmental activists. These concerns include potential toxicity, biodegradability, and ecological consequences in case of accidental spills. As environmental regulations become more stringent globally, companies may hesitate to use DRAs that could lead to compliance challenges and reputational risks.

Compatibility Issues: Drag reducing agent may not be compatible with certain types of pipeline materials, fluids, or additives used in specific industries. Incompatibility issues can result in reduced efficacy of DRAs or even damage to the pipeline infrastructure. This factor necessitates extensive compatibility testing before implementing drag reducing agents, leading to additional costs and time delays for companies.

Lack of Comprehensive Research: While drag reducing agents have proved as an effective additive in reducing frictional pressure losses in pipelines, there is still a need for more comprehensive research to optimize DRA formulations, application methods, and long-term performance. Lack of extensive research and data in certain regions or industries may deter potential users from adopting DRAs.

What are the Opportunities for Leading Drag Reducing Agent Manufacturers?

Expansion into New Industries: While the oil & gas sector is a major consumer of drag reducing agents, there is an opportunity to expand into other industries. For instance, water transportation and mining industries can benefit from using DRAs to improve flow efficiency and reduce energy consumption. Exploring applications in new sectors can create new revenue streams for DRA manufacturers.

Growing Infrastructure Projects: Increasing number of infrastructure projects, such as pipelines for water distribution and wastewater management, present as a potential market for drag reducing agent manufacturers. These projects demand efficient fluid transportation, making DRAs a viable solution to reduce energy costs and enhance operational efficiency.

Emphasis on Energy Efficiency: Growing emphasis on sustainability and energy efficiency, companies across industries are seeking solutions to reduce their carbon footprint and operational costs. drag reducing agents can play a crucial role in achieving these goals by optimizing fluid flow in pipelines, resulting in reduced energy consumption and greenhouse gas emissions.

Technological Advancements: Ongoing research and development in the field of drag reducing agents are expected to lead to technological advancements. Innovations in drag reducing agent formulations, application methods, and compatibility with various pipeline materials can improve the performance and effectiveness of drag reducing agents, making these more attractive to potential users.

Increased Awareness: Efforts to increase awareness and education about the benefits of drag reducing agents can drive product adoption in both conventional and emerging markets. Companies, industry associations, and regulatory bodies can collaborate to conduct awareness campaigns, seminars, and workshops to highlight the advantages of drag reducing agents in improving pipeline efficiency.

Global Infrastructural Development: Rapid infrastructural development in emerging economies is driving demand for efficient transportation solutions. As these regions invest in building new pipeline networks and upgrading existing infrastructure, adoption of drag reducing agents is expected to increase.

Strategic Partnerships and Collaborations: Drag reducing agent manufacturers can explore strategic partnerships and collaborations with pipeline operators, engineering companies, and research institutions. Collaborative efforts can facilitate technology transfer, expansion in untapped markets, and joint product development, enabling companies to tap into new revenue streams and expand their market presence.

Government Initiatives and Incentives: Government initiatives to promote energy conservation and sustainable practices can create a conducive environment for adoption of drag reducing agents. Subsidies, incentives, and supportive policies that encourage use of energy-efficient solutions can drive adoption of drag reducing agents in various industries.

What factors drives the growth of North America drag reducing agent market? 

In North America, drag reducing agents demand is high in United States and Canada, mainly driven by extensive pipeline infrastructure. Revenue growth of the market in this region is owing to presence of major DRA manufacturers, increasing number of pipeline projects and energy conservation efforts, and consumer preference for efficient transportation and reduced energy consumption, thus driving continuous revenue growth of the market in this region. In addition, ongoing developments in this region, focus on research to create eco-friendly DRAs that align with sustainability goals, and government initiatives support regulations promoting energy efficiency and pipeline safety are driving revenue growth of the market in this region.

Which key trends will drive the drag reducing agent sales in Europe?

In Europe, sale of drag reducing agent is steadily increasing, particularly in countries such as Germany, France, and the United Kingdom. Europe market share incline is due to strong presence of leading drag reducing agent suppliers and local players, expansion of pipeline infrastructure in countries in this region. In addition, consumers in Europe are becoming more aware of the benefits of DRAs in enhancing pipeline efficiency, which is contributing to revenue growth of the market in this region. In addition, ongoing developments in Europe, high focus on development of cost-effective and environmentally friendly DRAs, along with government initiatives and investments in pipeline modernization and environmental conservation are factors expected to drive revenue growth of the market in this region.

Why is investment in China and India a key to growth of Asia Pacific drag reducing agent market? 

The Asia Pacific is registering rising demand for drag reducing agents, especially in countries such as China, India, and Japan, where pipeline networks are expanding rapidly. Asia Pacific market share incline is due to presence of global DRA manufacturers and regional players in countries in the region. In addition, increasing investments in infrastructure development, and growing use of DRA for various applications in oil & gas transportation are other factors supporting revenue growth of the market in this region. Moreover, innovations in DRA formulations and technologies, high focus on developing high-performance DRAs for challenging conditions, and government initiatives including supportive policies for energy efficiency and pipeline safety are factors driving revenue growth of the market in this region.

Which countries in Latin America will be at the forefront of revenue growth for drag reducing agent manufacturers? 

In Latin America, particularly in countries such as Brazil and Mexico, there is an increasing adoption of drag reducing agents, where oil & gas transportation operations are expanding. Market share of the market in this region is inclining due to expansion of manufacturing units by global drag reducing agent manufacturers in this region, and collaborations with local players. Revenue growth of the market in this region is supported by increasing need for enhanced pipeline efficiency and reduced operational costs, steadily increasing investments in infrastructural developments in Latin America, rising demand for tailored drag reducing agent solutions for specific applications, and government initiatives seek to promote sustainable energy practices and invest in pipeline infrastructure.

What is the outlook on drag reducing agent sales in Middle East & Africa? 

In Middle East & Africa (MEA), demand for drag reducing agents is gradually increasing, with key countries such as Saudi Arabia and the United Arab Emirates leading in terms of demand and consumption. MEA market share incline is owing to expanding oil and gas sector and substantial growth opportunities, leading to investments by international drag reducing agent manufacturers in countries in the region. Increasing need for drag reducing agent solutions to optimize pipeline operations and ensure efficient transportation of resources, focus on DRA research and application in extreme environmental conditions, and government initiatives aiming to promote energy efficiency and infrastructure development are driving revenue growth of the market in this region.

Leading Drag Reducing Agent Manufacturers & Competitive Landscape:

The global drag reducing agent market has a landscape with various key players competing for market share. Leading drag reducing agent manufacturers dominate in the global market with their extensive product portfolios and global presence. These companies also focus on research and development to introduce innovative and efficient drag reducing agents to cater to diverse industries, including oil and gas, transportation, and wastewater. Strategic partnerships, mergers, and acquisitions are common strategies adopted by companies to expand their market presence and gain a competitive edge. The industry landscape remains dynamic, with companies continuously seeking to enhance their product offerings to meet evolving customer demands.

Company List:

• BASF SE
• Flowchem
• Clariant AG
• Baker Hughes
• Nalco Champion
• Innospec Inc.
• LiquidPower Specialty Products Inc.
• Halliburton Company
• Schlumberger Limited
• The Lubrizol Corporation
• Arkema Group
• Infineum International Limited
• Stepan Company
• Innophos Inc.
• Cebo Holland B.V.

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base Year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	5.5%
Segment covered	Type, Application, End-Use Industry, Flow Regime, and Region
Regions Covered	North America:  The U.S. & Canada Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific Latin America: Brazil, Mexico, Argentina, & Rest of Latin America The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Country in Europe	Germany
Largest Market in Asia Pacific	China
Key Players	BASF SE, Flowchem, Clariant AG, Baker Hughes, Nalco Champion, Innospec Inc., LiquidPower Specialty Products Inc., Halliburton Company, Schlumberger Limited, The Lubrizol Corporation, Arkema Group, Infineum International Limited, Stepan Company, Innophos Inc., Cebo Holland B.V.

Market Segmentation:

By Type:

• Polyacrylamide-based DRAs
• Polymers-based DRAs
• Surfactants-based DRAs

By Application:

• Crude Oil Flow Assurance
• Refined Product Transportation
• Slurry Flow in Mining
• Other Applications

By End-Use Industry:

• Oil & Gas
• Mining
• Chemical
• Water Treatment
• Others

By Flow Regime:

• Laminar Flow
• Turbulent Flow

Segmentation By Region:

North America:

• United States
• Canada

Asia Pacific:

• China
• India
• Japan
• South Korea
• Australia & New Zealand
• Association of Southeast Asian Nations (ASEAN)
• Rest of Asia Pacific

Europe:

• Germany
• The U.K.
• France
• Spain
• Italy
• Russia
• Poland
• BENELUX (Belgium, the Netherlands, Luxembourg)
• NORDIC (Norway, Sweden, Finland, Denmark)
• Rest of Europe

Latin America:

• Brazil
• Mexico
• Argentina
• Rest of Latin America

The Middle East & Africa:

• Saudi Arabia
• United Arab Emirates
• South Africa
• Egypt
• Israel
• Rest of MEA (Middle East & Africa)