Significant Investments In R&D Activities With A Growing Emphasis on Low-cost Adsorbents is Bolstering The Growth of The Global Adsorbents Market

The usage of adsorbents is rising due to its application in the gas drying process and for the removal of pollutants from oil and gas streams in the oil and gas industry. The increasing environmental concerns due to the impact of wastewater have initiated regulatory agencies in many countries to necessitate the usage of adsorbents. For instance, the EPA specified guidance “The Incorporation of Water Treatment Effects on Pesticide Removal and Transformations in Food Quality Protection Act (FQPA) Drinking Water Assessments”. Moreover, in order to double the natural gas output to 60 bcm, the Indian government intends to invest US$2.86 billion in upstream oil and gas production. Also, by 2023, the government aims to set up around 5,000 compressed biogas (CBG) plants. Therefore, the growth in the key end-use industries such as chemicals, oil and gas, and petrochemicals, particularly in the Asia Pacific, Latin America, and the Middle East, is surging the demand for adsorbents. Global Adsorbents Market size is forecast to reach US$7.7 billion by 2027 after growing at a CAGR of 6.3% during 2022-2027.

In the case of water pollution, removing toxins from wastewater is a significant task. Utilizing adsorbents such as activated carbon is a simple, efficient, and effective way for pollutant removal among the many techniques available. However, activated carbon has a high price, activated carbon use is restricted. Therefore, several non-conventional adsorbent techniques have been investigated in the last three decades to produce cheaper and more effective adsorbents for removing contaminants at detectable levels. For instance, various research organizations and companies researchers are focusing on introducing “green adsorption” i.e., low-cost materials derived from agricultural sources and by-products, from which the majority of complex adsorbents are created (i.e., activated carbons after pyrolysis of agricultural sources). 

Moreover, stringent water quality regulations such as the Safe Drinking Water Act (SDWA) by US EPA, backed by various government initiatives to encourage investment in water treatment industries, are opening up new opportunities for the adsorbents market. To add on, the development of effective CO2 capture systems is considered an important priority due to the increasing CO2 concentration in the atmosphere and the associated environmental impact. Adsorption takes center stage among the numerous approaches. This is mostly owing to its low energy consumption, cyclability, quick kinetics, and environmental friendliness. A variety of low-medium and high-temperature solid adsorbents, such as alumina, metal-organic frameworks (MOFs), zeolites, porous polymers, alloy-based dry sorbents, and others, are currently being researched. Researchers aim to improve the capture performance and selectivity under various pressure and temperature conditions, as well as for a wide range of mixture characteristics, such as gas streams with low CO2 content (5-10%), and broad applicability, such as energy exchangeable multi-stage CO2 capture technology schemes. The materials under investigation for CO2 adsorption must be optimized to satisfy the requirements for large-scale capture applications. High capacity, selectivity, chemical, and thermal stability, quick kinetics, long-term performance, low energy consumption, low manufacturing cost, and resistance to attrition and erosion are all desirable characteristics in adsorbents. Thus, this is further creating opportunities for the market growth.

Asia-Pacific region dominated the global adsorbents market in terms of revenue with a share of 38% in 2021 and is projected to dominate the market during the forecast period (2022-2027). In developing countries such as India, South Korea, and Malaysia, the growing demand of adsorbents have raised the market growth. In India, the demand for adsorbents is rising because of the country’s growing oil and gas, petrochemical, and other end-use industries. Adsorbents are used for the removal of pollutants from the refineries and petrochemical industries. Thus, rising initiatives for the development of new oil & gas and petrochemical facility in India is estimated to uplift the demand for adsorbents. For instance, according to the India Brand Equity Foundation, Indian Oil Petronas Pvt. Ltd. started in July 2021 and it will create a new brand for vehicle fuel retailing in India to extend its operations in the country. Additionally, the Indian Oil Corporation (IOC) stated in July 2021 that it will build India's first green hydrogen plant at its Mathura refinery to introduce green hydrogen operations and projects in the country's oil and gas sector. Furthermore, the rising production of new medical oxygen plants in the country is anticipated to raise the demand for zeolites, which would drive the growth of the adsorbents market. For instance, in June 2021, Honeywell announced that it will supply molecular sieve adsorbents (zeolites) to the Defense Research Development Organization (DRDO) and the Council of Scientific and Industrial Research–Indian Institute of Petroleum (CSIR–IIP), both of the Government of India, to help speed the establishment of Medical Oxygen Plants (MOP) in the country to combat the ongoing pandemic. Thus, this raised the production of adsorbents and surged the overall market growth in APAC. 

The global need for water has increased and water quantity and quality have also remained two of the most pressing issues for many years. Water scarcity is exacerbated by the decrease in water quality as a result of pollution. Intensive mining and industrial activity, which causes acidity and increased metals content, is one of the key contributors to the global deterioration of water quality. For instance, according to the EIA, the United Arab Emirates (UAE) was one of the top ten oil producers in the world in 2019. In 2019, the UAE produced roughly 3.1 million barrels of crude oil per day, with a goal of 5 million barrels per day by 2030. As a result, it is projected that the volume of wastewater produced will expand, stimulating demand for adsorbents. Also, according to the State Oceanic Administration (SOA), China has 131 seawater desalination facilities, producing 66.6 percent desalinated water for industrial usage and the rest for residential use. The coal-based industries in North China account for over 90% of the country's total. Furthermore, because North China has fewer freshwater reserves, demand for wastewater technology is increasing, which presents prospects for the adsorbents market. In addition, the Council on Energy, Environment, and Water (CEEW), in collaboration with the 2030 Water Resources Group, is working to improve India's wastewater management by increasing private investment in wastewater treatment plants. Therefore, this is likely to fuel market expansion during the projected period.

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the global adsorbents markets. Major players in the global adsorbents market are BASF SE, Arkema SA, Honeywell International Inc., Cabot Corporation, W. R. Grace & Co., Clariant AG, Mitsubishi Chemical Corporation, Calgon Carbon Corporation (Kuraray), Graver Technologies, Axens Group and others. In June 2019, BASF launched Durasorb HG, which is used for mercury removal from natural gas. It is a non-regenerable, mixed metal oxide adsorbent, has a fast kinetics and improved capacity. In addition, in July 2017, Honeywell UOP introduced a new Connected Plant ARMGuard' system, which is a remote monitoring service that helps natural gas processors, in order to manage the adsorbents that are used in the removal of water from natural gas.

The COVID-19 outbreak caused economic problems and challenges for a variety of industries such as oil and gas, petrochemicals, chemicals, and others. A drop in business for at least five months in 2020, combined with lower demand from a few markets, put pressure on adsorbents manufacturers and vendors. Also, various governments announced strict measures to slow the spread of the coronavirus, owing to which the production output growth slowed down in various industries causing widespread concern and economic hardship for the adsorbents market. For instance, according to the International Energy Agency (IEA), worldwide energy demand fell by -3.8 percent in the first quarter of 2020. Moreover, according to the Drilling Productivity Report Supplement published by U.S. Energy Information Administration, U.S. crude oil production shrank sharply in April 2020, by 5.8 percent month over month and 16.6 percent in May. However, the industries have been on a recovery path since 2021. As various firms around the world adopted various strategies to put this behind them, pointing to a probable economic recovery in 2021. For instance, according to American Chemistry Council, in the U.S, total chemical production volume fell by 3.6 percent in 2020 but is expected to rise by 2.7 percent in 2022. Therefore, the growth in these industries also indicates a fast recovery in the adsorbents market.