Potassium Formate Market to Reach US$ 920 Mn by 2027

Potassium Formate Market: Increasing Environmental Regulations Push Demand

The rising demand for environment-friendly formate brines as a drilling fluid for oil and gas drilling projects continues to push the growth of the potassium formate market. The use of potassium formate as a de-icing agent, heat transfer fluid, and fertilizer, in various end-use industries, has opened up new avenues for industry manufacturers and suppliers.

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Although potassium formate has been used as a drilling agent for a long time, there has been a spurt in R&D activities in recent years. As environmental regulations influence manufacturers across a range of industries to adopt sustainable materials and practices, the adoption of biodegradable materials has witnessed a steady increase. Potassium formate, known for its biodegradable properties, is garnering increased interest, and R&D on its potential applications is gaining traction. Sensing the impact of these developments, Transparency Market Research, in its latest offering, analyzes this landscape in detail, offering readers lucid and analytical information on how growth will unfold in this market space.

The demand for potassium formate has been on the rise due to its myriad uses, especially in de-icing and drilling applications. According to TMR, the global potassium formate market has been witnessing steady growth in the recent past. With a current value of ~US$ 615 million, the market is expected to grow at a CAGR of ~5% through to .

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Potassium Formate Market: Increase in Drilling Activities Creating Sustained Opportunities

The potassium formate market&#;s reliance on demand from the oil & gas sector will continue to prevail during the forecast period. In , the oil & gas sector accounted for approximately half of the market revenue share, and this is unlikely to change during the forecast period.

The oil & gas industry is going through a period of resurgence, as supply continues to exceed demand. The sustained period of bullishness in the oil & gas sector has also rubbed off on the drilling activities around the world. has seen a steady increase in drilling activities, globally, with investments growing across all major regions, except the Middle East. Although this growth will be pervasive, offshore oil & gas drilling activities are likely to grow at a higher rate. The strong momentum in the oil & gas drilling domain can mean a steady stream of demand for potassium formate in and beyond.

Ecological Impact of De-icing Solutions Induces Demand for Sustainable Materials

The preference of potassium formate-based brines as a de-icing agent over other solutions has been growing steadily. As of , application as a de-icing agent accounted for ~26% revenue share of the market.

Stringent regulations of the aerospace industry enforcing sustainable and environment-friendly solutions for de-icing in Europe have led to potassium formate gradually replacing potassium acetate and urea as the preferred de-icing agent on runways. The municipal and commercial sectors are also being influenced by these developments, with potassium formate-based de-icing solutions being used to lessen the negative impact of road winter de-icing as well. Although a complete shift towards potassium formate-based de-icing agents is expected to be gradual, these developments have led to far greater opportunities for manufacturers in the potassium formate market.

While stringent regulations in Europe are driving the adoption of potassium formate as a de-icing agent, outside of Europe, demand continues to be limited. Current regulations in North America and Asia Pacific mean that, contractors can still use potassium acetate and other affordable de-icing variants. The growing focus on environmental conservation can induce amendments to existing regulations in North America and Asia Pacific &#; any stringency in regulations will work to the advantage of manufacturers and suppliers in the potassium formate market, especially those catering to the de-icing industry.

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Growing Demand for Non-hazardous Heat Transfer Fluids brings Potassium Formate into Prominence

The applications of potassium formate as a heat-transfer liquid have remained limited. However, owing to the growing focus on sustainability, end-use industries are looking at feasible solutions for heating and cooling processes, and potassium formate is being looked at as a viable option.

With a premium being placed on efficiency, manufacturers are now focusing on potassium formate-based heat transfer fluids to be used in refrigerated systems, in the place of calcium chloride and other brine solutions. Potassium formate-based refrigerated systems are steadily gaining momentum, and with non-toxic and non-hazardous products making their way into the commercial sector, the market is likely to grow at a substantial rate during the forecast period.

Fluctuating Raw Material Prices Limiting Potassium Formate Market Growth

The fluctuating prices of the raw materials used for the production of potassium formate have restrained market growth. With stakeholders encountering a constricting supply of raw materials, a slump in the consumption of formic acid has been observed. This, coupled with the seasonal demand for potassium formate, is likely to have a negative impact on the growth of the market.

Potassium Formate Market: Key Strategies for Growth

The chemical industry is witnessing a phase of evolution, as it continues to be influenced by a range of myriad, yet interconnected factors. The industry is adapting to developments through strategic moves such as mergers and divestments. For instance, Perstorp Holdings has divested its BioProduct and Caprolactone businesses in the recent past to streamline its portfolio, and focus on high growth and high revenue areas in the specialty chemicals market.

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Potassium Formate Market: Collaboration for Product Development

The pace of research and development in the application of potassium formate-based de-icing agents has quickened. For instance, SynaTek, in conjunction with BASF, one of the largest de-icing solution manufacturers in North America, has developed, ENTRY - a potassium formate-based de-icing product for commercial and domestic use. It has been marketed as less corrosive, and a readily-biodegradable product providing rapid and reliable results, in comparison to the existing chloride- and acetate-based alternatives. 

Using a derivate of BASF&#;s formic acid, Naturs Alpine Solutions Industrial (NASi), a major chemical manufacturer in North America, has launched Alpine RF-14F, a de-icing agent for commercial use, marketed as being fast acting and reliable.

Assessment of the Potassium Formate Market Competitive Landscape

The potassium formate market is highly fragmented, with production concentrated in Europe and Asia. With the applications for potassium formate-based agents growing, companies are collaborating, co-innovating, and acquiring players to gain a competitive advantage. Stakeholders are also adopting newer strategies to control operational costs and manufacturing expenses.

Despite the high level of fragmentation, few players continue to hold significant revenue shares in the potassium formate market; Perstorp Holdings, ADDCON, and BASF SE, collectively hold a revenue share of ~30%. Considering the nature of the product, a number of regional and local players have minuscule revenue shares. These companies usually meet domestic demand and operate in regions where the regulations are less stringent.

Frontrunners are focusing on expanding their business in the oil & gas industry, catering to the increased demand for potassium formate as a drilling and completion fluid. These companies are focusing on continual R&D to accommodate the divergent needs of safety and efficacy of drilling fluids, of the end users in the oil & gas industry.

Analysts&#; View of the Market

Authors of TMR&#;s study on the potassium formate market estimate global revenue to grow at a CAGR of ~5% during the forecast period of -, and have a positive outlook on the growth of the market. Sustainability &#; a trend that has transformed an array of industries &#; will have a massive influence on the strategies of stakeholders.

Success in the potassium formate market will depend upon manufacturers focusing on expanding their presence in international markets. Though potassium formate is more expensive than its alternatives used in various industries, manufacturers can capitalize on its environment-friendly nature to attract more customers and improve their sales performance. Market players will also have to adapt to the evolving landscape by aligning their strategies to collaborate with other chemical manufacturing companies that mainly focus on the production of sustainable de-icers and drilling fluids.

Potassium Formate Market Description

• The oil & gas sector is a significant consumer of potassium formate brines. Drilling and exploration activities have increased over the last few years. Rise in drilling activities and growth in rig counts are projected to drive the potassium formate market during the forecast period.
• Potassium formate brines are incorporated in drilling in high pressure high temperature (HPHT) oil wells, as these are environment-friendly and improve polymer stability. Their use as drilling and completion fluids is projected to rise during the forecast period.
• Airports and municipal consumers of de-icers are gradually switching toward cost- effective products that are less damaging to the environment. This is projected to drive the potassium formate market during the forecast period.

Key Growth Drivers of the Potassium Formate Market

• Potassium formate is widely used in drilling fluids. It provides high density, which is required for deep well drilling. It has higher solubility in water than any other formate and is environmentally safe.
• Potassium formate clear brines are environment-friendly, since they are biodegradable. They are more environmentally suitable vis-à-vis halide-based fluids.
• According to the lifecycle assessment of potassium formate brines, 56% to 57% of formate brine can be recovered for reuse in oil & gas drilling operations. This is anticipated to drive the demand for potassium formate during the forecast period

Lucrative Opportunities for the Global Potassium Formate Market

• Potassium formate can be used as a foliar fertilizer. This can be helpful in Sub-Saharan areas where fertilizers are essential to make the soil fertile. Therefore, agricultural applications are anticipated to create immense opportunities for the potassium formate market during the forecast period.

Europe a Prominent Potassium Formate Market

• In terms of value, Europe accounted for a prominent share of the global potassium formate market in . This can be attributed to the high demand for potassium formate in the oil & gas industry and as a de-icing agent. He demand for potassium formate is projected to rise at a sluggish pace during the forecast period. The demand for potassium formate in Germany is likely to increase at a considerable pace during the forecast period, due to the increase in the usage of potassium formate as a de-icing fluid in the country.
• North America and Asia Pacific are other prominent consumers of potassium formate across the globe. Potassium formate is increasingly used for de-icing in North America, while it is employed majorly in oil & gas applications in India.
• The demand for potassium formate in Mexico is anticipated to rise at a rapid pace during the forecast period. Growth in investments in the oil & gas sector and expansion of the manufacturing industry in Mexico are estimated to propel the demand for potassium formate in Mexico during the forecast period. The demand for potassium formate in the Middle East & Africa is projected to rise at a rapid pace, due to the increase in the usage of potassium formate in the oil & gas industry in the region.

Liquid Form to Account for a Prominent Share

• In terms of solid form, potassium formate is available as white crystalline powder that is hygroscopic in nature. Liquid potassium formate is available in the form of a solution in water, termed as potassium brine. Potassium brine is a clear liquid with high density.
• Solid potassium formate is produced from liquid potassium formate through evaporation and drying. However, this is primarily done for easy transportation and storage.
• Potassium formate is extensively employed in the form of brine. The powder produced is converted into a solution by dissolving it in water. Therefore, the liquid segment is anticipated to continue to dominate the market during the forecast period.

Oil & Gas Industry Offers Growth Opportunities

• The oil & gas segment accounted for a prominent share of the global potassium formate market in . The segment is estimated to expand at a rapid pace during the forecast period, owing to the increase in the demand for potassium formate as a drilling fluid as an alternative for halide-based and water-based drilling fluids.
• The de-icing segment held a key share of the market in . The segment is likely to expand at a considerable pace during the forecast period. Potassium formate is increasingly used as a de-icing agent for runways and in the municipal and commercial sectors, as it is environment-friendly and bio-degradable.
• In terms of demand, the heat transfer fluids application segment constituted a small share of the market in . The segment is estimated to expand at a moderate pace during the forecast period, owing to the growth in chemical and manufacturing industries that use heat transfer fluids.

Leading Players Actively Engage in Joint Ventures and R&D Activities

• Key players operating in the global potassium formate market include
  • Perstorp Holdings
  • ADDCON
  • BASF SE
  • ESSECO UK Limited
  • Chongqing Chuandong Chemical (Group)Co., Ltd
  • Kemira Oyj
  • Cabot Corporation
  • NACHURS ALPINE SOLUTIONS Industrial (NASi)
• In June , Perstop Holdings acquired pentaerythritol, penta, and calcium formate businesses from Chemko A.S. Strážske, a Slovenia-based producer of chemicals. The move was a part of Perstorp&#;s investment plan to increase its production capacity of polyol.
• In , SynaTek, a leading producer of anti-icing solutions, created a biodegradable de-icing product known as Entry, for usage in commercial and residential applications. It is a potassium formate based de-icing fluid produced using formic acid from BASF SE. BASF SE is the only producer of formic acid in North America. Some of the manufacturers of de-icing liquids use formic acid produced by BASF SE.

Key Segments of the Potassium Formate Market

This study by Transparency Market Research on the potassium formate market categorizes the information into three segments: form, application, and region. Readers will find data on how the changing trends can have an impact on the dynamics and evolution of the potassium formate market.

Form

Solid

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Liquid

Application

Oil and Gas

De-icing

Heat Transfer

Others (Food Additives, Flame Retardants, Agriculture)

Region

North America

Europe

Asia Pacific

Middle East and Africa

Latin America

Potassium Formate Market Overview

to reach $779.5 million by , after growing at a CAGR of 2.8% during -. Potassium formate (HCO2K), is the potassium salt of formic acid. In high-pressure high temperature (HPHT) oil wells, potassium formate brines are extensively utilized in drilling, as these are environmentally friendly and enhance polymer stability. There is a continued preference for potassium formate over other salts, for application in oilfield, de-icing, heat transfer fluid, and hydrate inhibition which is anticipated to support the potassium formate industry growth. De-icers at airports and local customers are increasingly transitioning to cost-effective goods that are less harmful to the environment. This is projected to substantially drive the potassium formate industry. Furthermore, the rapid growth of the oil & gas industry has increased the demand for oilfield fluids; thereby, fueling the overall market growth during the forecast period.

Potassium formate market size is forecastPotassium formate (HCO2K), is the potassium salt of formic acid. In high-pressure high temperature (HPHT) oil wells, potassium formate brines are extensively utilized in drilling, as these are environmentally friendly and enhance polymer stability. There is a continued preference for potassium formate over other salts, for application in oilfield, de-icing,, and hydrate inhibition which is anticipated to support the potassium formate industry growth.This is projected to substantially drive the potassium formate industry. Furthermore, the rapid growth of theindustry has increased the demand for oilfield fluids; thereby, fueling the overall market growth during the forecast period.

COVID-19 Impact

The COVID-19 pandemic has severely harmed the world's economy, putting a stop to the manufacturing process and hampering the worldwide trade cycle. Therefore, as companies were unable to satisfy the demand, the potassium format market was also hindered. Potassium formate has one of the most significant uses in the oil and gas industry; however, the functioning of the oil and gas industries was moderately hindered due to the lockdown. For instance, According to the Drilling Productivity Report Supplement published by the U.S. Energy Information Administration, in the first half of , U.S. crude oil production shrank sharply. In April, it declined by 5.8% month over month and 16.6% in May. With the decrease in the drilling operation, the demand for oilfield fluids has significantly fallen, which is having a major impact on the potassium formate industry. This restrains in the oil & gas industry drilling operation eventually restrained the potassium formate market growth during the pandemic.

Report Coverage

The report: &#;Potassium Formate Market &#; Forecast (-)&#;, by IndustryARC, covers an in-depth analysis of the following segments of the Potassium Formate Industry.

By Form: Solid, and Liquid

By Application: Oilfield Fluids, De-icing Agent, Heat Transfer Fluids, Anti-Freeze, Hydrate Inhibition, Water Treatment, Lubricants & Greases, Agrochemicals, and Others

By End-Use Industry: Mining, Oil & Gas (Shale Stabilization, Drilling, Reclamation, and Others), Energy & Power, Automotive (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Others), Healthcare, Aerospace (Commercial, Military, and Others), Building, and Construction (Residential, Commercial, Infrastructural, and Industrial), Agriculture (Fertilizers, Forage Preservation, and Others), and Others

By Geography: North America (U.S., Canada, and Mexico), Europe (U.K, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Europe dominates the potassium formate market, owing to the increasing demand for potassium formate from the aerospace industry in the region. According to Boeing Commercial Market Outlook &#;, Europe&#;s total fleet in was 5,220, which is forecasted to increase and reach 9,050 by .
• Also, there is an increasing demand for efficient de-icing on runways in the aerospace industry and this is likely to boost the market for potassium formats in the projected timeframe.
• Potassium formates are being used as a foliar fertilizer in the Sub-Saharan areas where fertilizers are essential to make the soil fertile. Therefore, such applications are anticipated to create immense opportunities for the potassium formate market during the forecast period.
• In recent years, however, a decline in the use of formic acid has been noted. Moreover, the market value is also impeded by seasonal demand for potassium formate.

Potassium Formate Market Segment Analysis - By Form

The liquid segment held the largest share in the potassium formate market in and is growing at a CAGR of 2.4% during -. Potassium brine is a transparent liquid with a superior density and is used significantly in the form of brine. Solid potassium formate is a white crystal clear powder that is hygroscopic in type, but relative to liquid form its use is very narrow. Therefore, the production of liquid potassium formate is more lucrative and generates more revenue-generating opportunities in the industry. Also, potassium formate brine solutions are being produced to clear snow from aircraft surfaces, which are anticipated to be a major opportunity for the potassium formate market growth during the forecast period.

Potassium Formate Market Segment Analysis - By Application

The oilfield fluids segment held the largest share in the potassium formate market in and is growing at a CAGR of 2.7% during -. Potassium formate is extensively used in oilfield fluids and is being more popular due to its compatibility and favourable properties. Traditional salts are being replaced by potassium formate in the oilfield application as potassium formate clear brines are environment-friendly and are biodegradable, which makes them suitable vis-à-vis halide-based fluids. Also, potassium formate fluids are considered as one of the most efficient drilling fluids in petroleum industries, especially in shale to minimize the drilling inefficiencies during operational performances. The mixture of sodium-potassium has the highest shale recovery (approximately 95%). Thus, these extensive properties make potassium formate suitable for oilfield fluid applications, owing to which it is the largest and fastest-growing segment under the application segmentation of the market during the forecast period.

Potassium Formate Market Segment Analysis - By End-Use Industry

The oil & gas segment held the largest share in the potassium formate market in and is growing at a CAGR of 2.5% during -, as it provides high density, which is required for a deep good drilling. Further, it has a higher solubility in water than any other formate and is environmentally safe, which is driving its demand in the oil & gas industry for applications such as drilling fluids, shale stabilization, and more. Since supply continues to surpass demand, the oil & gas industry is going through a phase of a renaissance. In the oil & gas market, the prolonged period of bullishness has also rubbed off on drilling activities across the globe. has seen a steady rise in drilling operations. For example, according to the U.S. Increases in drilling activity by the Energy Information Administration (EIA) forced U.S. crude oil and natural gas output to set new peaks of 12.2 million barrels per day (b/d) and 111.5 billion cubic feet per day (Bcf/d), respectively, in . Thus, the strong momentum in the oil & gas exploration domain is expected to lead to a steady stream of demand from the oil & gas industry for potassium formate during the forecast period.

Potassium Formate Market Segment Analysis - By Geography

Europe region held the largest share in the potassium formate market in up to 42%, owing to the high demand for potassium formate in the oil & gas industry and as a de-icing agent. According to the BP Statistical Review of World Energy, the oil refinery throughput increased from 12,666 thousand barrels daily in to 12,740 thousand barrels in . The demand for potassium formate is projected to rise at a sluggish pace in Europe owing to the increasing oil refinery activities, which is substantially increasing the demand for potassium formate as oilfield fluids. Furthermore, the stringent regulations of the aerospace industry enforcing sustainable and environment-friendly solutions for de-icing in Europe have led to potassium formate gradually replacing potassium acetate and urea as the preferred de-icing agent on runways. These innovations are also affecting the municipal and commercial industries, with potassium formate-based de-icing solutions being used to reduce the negative effects of road winter de-icing as well. While a complete change towards de-icing agents based on potassium formate is supposed to be incremental, these innovations have led to much greater opportunities for manufacturers on the market for potassium formate, which will then drive the potassium formate market growth in Europe during the forecast period.

 

Figure: Europe Potassium Formate Market Revenue, - (US$ Million)

 

Potassium Formate Market Drivers

Growing Demand for Non-hazardous Heat Transfer Fluids

There have been minimal applications of potassium formate as a heat-transfer liquid. However, end-use industries are looking at feasible solutions for heating and cooling processes due to the increasing emphasis on sustainability, and potassium formate is seen as a viable alternative. With a quality premium, producers are now focusing on heat transfer fluids based on potassium formate to be used in refrigerated systems, instead of calcium chloride and other brine solutions. And governments are taking initiative to boost the refrigeration industry to provide access to sustainable cooling. For instance, in March , the Indian government launched the India Cooling Action Plan (ICAP) encompassing inter alia reduction of cooling demand, refrigerant transition, enhancing energy efficiency, and better technology options with a 20-year time horizon. Potassium formate-based refrigerated systems are steadily gaining momentum, with non-toxic and non-hazardous products making their way into the commercial sector in the name of viable technology. Thus, the growing demand for non-hazardous heat transfer fluids brings potassium formate into prominence in the growing refrigeration industry, owing to which the market is likely to grow at a substantial rate during the forecast period.

Growing Demand for Safety, Agility, and Efficacy to Develop Potassium Formate as Durable Agent

The end-use industries are continually under pressure to reduce operating costs, improve efficiency and raise productivity. This strain hits the supply chain in which end-use suppliers are actively engaged in R&D to satisfy customer demand. The prominent requirements created by the end-user are among the divergent needs, protection, agility, and efficacy of the drilling fluids. The growth of smooth fluids and the introduction of high chemical strength are phenomena among the changes that are actively incorporated into the drilling process. In addition, the demand for the former feature includes an improvement in end-user sentiment for hazardous results due to snowfall and that of the latter from ongoing deicing applications at airports. There is a growing demand for the production of potassium formate brine solutions to extract snow from the surface of the aircraft, as they are delicate and stable when handling a wide range of temperatures compared to other alternatives on the market. Thus, the growing demand for potassium formate for different applications is driving the market.

Potassium Formate Market Challenges

Drawbacks Associated With Potassium Formate

Seasonal variations, including low winter snowfall, remain highly affected by the intake amount of potassium formate. The widespread availability of competitively priced potassium formate alternatives will continue to restrict sales to some degree. In addition, the volatility of the prices of raw materials used in the manufacture of potassium formate is another strong factor limiting producers in the demand for potassium formate. Although market stakeholders are facing upward pricing pressure as a result of the tightening supply scenario, a substantial decrease in formic acid consumption observed over the past few years will also continue to be a significant factor with a negative effect on market development.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the potassium Formate market. Major players in the potassium formate market are Perstorp Holdings, ADDCON, SynaTek, BASF SE, ESSECO UK Limited, Chongqing Chuandong Chemical (Group) Co. Ltd., Kemira Oyj, Cabot Corporation, Sinomine Resource Group Co., Ltd., and Nachurs Alpine Solutions Industrial (NASi).

Acquisitions/Technology Launches

• In May , with the launch of AmicultTM K42, Perstorp entered the fertilizer market. Without raising salinity or obstructing foliar and drip irrigation systems, this chloride-free source of potassium has a high solubility and absorption rate.
• In February , Sinomine Resource Group acquired the specialty fluids company of Cabot Corporation for $135 million. Cesium formate brines and cesium chemicals are manufactured by the specialty fluids company.

 

Relevant Reports

Report Code: CMR

Report Code: CMR

 

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