Sulfolane (Tetramethylene Sulfone) Market By Type (Anhydrous Type, Aqueous Type) By Application (Gas Production and Oil Refining, Purifying Gas Streams, Fine chemical Field, Others)By Type (Anhydrous Type, Aqueous Type) By Application (Gas Production and Oil Refining, Purifying Gas Streams, Fine chemical Field, Others)- Growth, Size, Share and Competitive Analysis 2015 – 2027
Sulfolane is a colorless liquid used as a solvent for chemical reactions and distillation applications. This organosulphur compound is highly soluble in water. Sulfolane is used in the purification of natural gases through a process that involves the extraction of aromatic hydrocarbons from hydrocarbon mixtures. The rising demand for such solvents in refineries and petrochemical industries is driving the Sulfolane market. The global Sulfolane market is expected to cross-market value of USD 136 million in 2027 from USD 123 million in 2020, at a 1.5% CAGR over the forecast period.
Increasing Refinery and Petrochemical Industry
Sulfolane is growing in acceptance as the solvent of choice in from oil & gas refinery industry. The increasing establishment of oil & gas refineries coupled with the strong growth in the oil & gas pipelines is expected to bolster the market. Sulfolane is primarily employed for the purification of natural gas by extraction of aromatic hydrocarbons. Sulfolane has been proved to be a very efficient solvent in the liquid-liquid extraction of aromatic compounds from mixtures of hydrocarbons. In addition, the growing demand for natural gas across Asian countries will further add to the market growth. However, concerns about the extortion of alternatives may restrict the market in the near future.
Although not concluded as a hazardous pollutant, there were some incidents traced about contamination of groundwater sources by Sulfolane. However, a study from US Federal Government is yet to be done, and the toxicology of Sulfolane is not confirmed to date. However, certain concerns related to extraction alternatives might work as a major hurdle to the growth of this industry.
Impact of COVID 19
With reduced economic activities and the shutdown of manufacturing operations, the demand for energy was significantly reduced. With all-time low demand for oil and gas over the past decade, crude oil and natural gas prices recorded a historical low. This, in turn, compelled the oil & gas-producing countries to cut down their production. This has directly impacted the demand for Sulfolane, as the greatest demand for Sulfolane comes from the oil & gas industry. However, with the revival of the economy and manufacturing activities, demand for oil & gas is expected to be restored gradually, which in turn is likely to bring demand for Sulfolane back on track.
North America is Major Growth Engine for Global Sulfolane Market
Sulfolane market growth is strongly supported by the consistent demand from North America on account of the growing oil & gas industry in the United States and Canada. Growing production of shale gas and a widespread network of oil & gas pipelines in the region if fueling the demand for Sulfolane in the region. The Middle East is also one of the notable regional markets for Sulfolane.
The anhydrous product type leads Global Sulfolane Market.
Anhydrous type and aqueous type are two major types of Sulfolane. Anhydrous Sulfolane was the major product type for the market in 2020. Anhydrous Sulfolane is increasingly being used as a raw material in manufacturing ink& dye, and agrochemical products. Sulfolane is one of the key additives used in the production of ink & dye and one of the important ingredients in agrochemicals such as insecticides, herbicides, and fungicides. However, over 40% share of the total revenue generated by the global Sulfolane industry was streamed from the gas production and oil refining application. Sulfolane is applied in the Gas and oil sector for refining, gas production, and lubricant extraction.
Sulfolane manufacturers are exploring various ways of organic as well as inorganic growth strategies.
Cost Benefits offered by Sulfolane
Sulfolane is not only an efficient solvent in the extraction of aromatic compounds from hydrocarbons but also offers economic benefits. Sulfolane is highly stable and hence can be used repetitively. It does not degrade in the form of acidic byproducts. Sulfolane regeneration has been developed in multiple ways, including distillation, adsorption, ion exchange resin column, and adsorption. When Sulfolane is used as a solvent, one can expect a comparatively low solvent-to-feed ratio. This makes Sulfolane a considerably economic solvent as compared to its peers.
Frequently asked questions about global Sulfolane industry
The report offers in-depth consequences of COVID 19 on global Sulfolane industry
This report enlists the top five players on the basis of volume as well as revenue
This report provides details of fastest growing application market for Sulfolane industry
The report highlights most dominating as well as fastest growing economies for Sulfolane industry
The global Sulfolane market report provide CAGR from 2021 to 2027
