Polyacrylamide Market

Increasing demand for enhanced oil recovery to boost market growth

Rapid growth of energy demand across the globe due to increasing industrial activities is likely to create challenging situation to find new oilfields from which oil can be extracted in adequate quantities. Currently identified supplies of crude oil are anticipated to be sufficient to meet energy needs for around 50 years. Techniques for increasing the amount of oil recovered, thus, are being adopted to extend the capacity of oil reserves, whereby delaying the need to identify new giant fields.

The global average for oil recovery from existing oilfields is only between 20% and 40%, less than half the recovery rates typically achieved in gas fields.

Water flooding is generally the preferred option for enhanced oil recovery due to the ready availability of sea water at oilfields. This involves injecting water into the oil reservoir to displace the oil and force it to flow into the production well. The efficiency of water flooding can be increased by adding polymers to the injected water, a practice known as polymer flooding. Typically synthetic polymers are used by the oil industry for polymer flooding. Historically these were unhydrolyzed polyacrylamide-based polymers, selected because of their good chemical stability.

However, it became apparent that these polymers did not increase viscosity substantially and showed a high level of adsorption onto mineral surfaces. Consequently, the increases in recovery rates were not huge and lost polymer continually needed to be replaced.

Moreover, Growing mining activities is another key driver for polyacrylamide for augmenting the Polyacrylamide Market. Polyacrylamide is used as a flocculating agent to treat waste water generated during mining activities. The expansion in the mining sector is expected to propel the demand for polyacrylamide. Polyacrylamide is widely used in mining processing and in the treatment of minerals to separate mineral and mineral ore. It is also used as flocculants in the treatment of waste water from mineral processing that is formed by the mining channels during the mining process.

Furthermore, increasing temperatures along with reduced rainfall has led to drying of river beds and lakes causing water scarcity. Anionic PAM can boost the settling mechanism of inorganic suspended solids in effluent water. This characteristic makes APAM ideal for utilization as a flocculent agent to ease solid-liquid separation in the paper and pulp industry, wastewater and drinking water treatment, aquaculture, and several other industrial applications. Besides, products that employ negatively charged polyacrylamide as their active component have exhibited low toxicity and promising performance in analyses completed to date, further pushing their adoption in the years to come.

Thus, the increasing demand for enhanced oil recovery and increasing awareness regarding wastewater management and growing need to reduce soil erosion driving the growth of the Polyacrylamide market revenue.

The Global Polyacrylamide Market Industry benefits from the expansion of the oil and gas sector, where polyacrylamide is utilized in enhanced oil recovery processes. The chemical's ability to improve fluid viscosity and reduce friction losses makes it indispensable in drilling and production operations. As global energy demands rise, the oil and gas industry is likely to invest more in polyacrylamide-based solutions, contributing to market growth. The anticipated market value of 7.22 USD Billion by 2035 underscores the potential of polyacrylamide in supporting energy sector advancements.

The Global Polyacrylamide Market Industry experiences a robust demand surge due to the increasing need for effective water treatment solutions. Polyacrylamide serves as a crucial flocculant in wastewater treatment processes, facilitating the removal of contaminants and improving water quality. As urbanization accelerates, the pressure on water resources intensifies, prompting municipalities and industries to invest in advanced water treatment technologies. This trend is reflected in the projected market value of 6.05 USD Billion in 2024, indicating a growing recognition of polyacrylamide's role in sustainable water management practices.

The Global Polyacrylamide Market Industry is significantly influenced by its applications in agriculture, particularly in soil conditioning and erosion control. Polyacrylamide enhances soil moisture retention, which is crucial for improving crop yields in arid regions. As agricultural practices evolve to address food security challenges, the adoption of polyacrylamide products is expected to rise. This trend aligns with the projected CAGR of 1.62% from 2025 to 2035, indicating a steady growth trajectory driven by agricultural innovations and sustainability efforts.

The Global Polyacrylamide Market Industry is poised for growth due to ongoing technological advancements in production processes. Innovations in polymerization techniques and raw material sourcing are enhancing the efficiency and cost-effectiveness of polyacrylamide manufacturing. These advancements not only improve product quality but also expand the range of applications across various industries, including mining and construction. As production capabilities evolve, the market is likely to witness increased competition and diversification, contributing to a more dynamic landscape.

The Global Polyacrylamide Market Industry is positively impacted by increasing regulatory support for environmental sustainability. Governments worldwide are implementing stringent regulations aimed at reducing pollution and promoting efficient waste management practices. Polyacrylamide's effectiveness in wastewater treatment aligns with these regulatory frameworks, encouraging industries to adopt its use. This regulatory environment not only fosters market growth but also enhances the reputation of polyacrylamide as a sustainable solution in various applications, further solidifying its position in the market.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America, and Middle east & Africa. Asia-Pacific Polyacrylamide market accounted for USD 1.78 billion in 2021 and is expected to exhibit an 5.59% CAGR during the study period. This is attributed to the robust base of pharmaceutical and chemical manufacturing industries in the region has resulted in huge volumes of wastewater, which is expected to propel the demand for polyacrylamide as a water treatment chemical.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: POLYACRYLAMIDE MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Polyacrylamide market accounts for the second-largest market share due to the growing investments in water recycling and purification technology. Further, the Germany Polyacrylamide market held the largest market share, and the UK Polyacrylamide market was the fastest growing market in the European region

The Asia-Pacific Polyacrylamide Market is expected to grow at a CAGR of 5.59% from 2022 to 2030. This is because of the increasing demand of wastewater treatment for most of the industrial applications in developing nations like China and India. Moreover, China Polyacrylamide market held the largest market share, and the India Polyacrylamide market was the fastest growing market in the Asia-Pacific region

For instance, India Polyacrylamide market is the favored destination for Polyacrylamide manufacturers due to the wastewater treatment. On the other hand, Japan is famous for the technology industry. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Polyacrylamide market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Polyacrylamide industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Polyacrylamide industry to benefit clients and expand the Polyacrylamide market sector is to manufacture locally to reduce operating costs. In recent years, Polyacrylamide has provided some of the most significant benefits.

SNF (France) is a privately held, specialty chemical company based in the Rhone-Alpes region of France, with a long-standing presence on every continent. With 21 production sites in Europe, Asia, Australia, and America, with a production capacity of 1,325,000 tonnes, SNF has the largest polyacrylamide production capacity in the world. SNF products are sold into 130 countries, across every sector of the economy, with 70 subsidiaries located in more than 40 countries, in 3 major economic regions.

In July 2022, Governor John Bel Edwards and SNF Holding Company President John Pittman confirmed the company is investing an additional $375 million to expand its water-treatment and water-conditioning polymer production plant near Plaquemine, Louisiana. With the investment, the company will retain 390 existing jobs while adding 150 positions with an average annual salary of $87,300, plus benefits. Louisiana Economic Development estimates that upon full employment of 540 jobs, the project will support 1,400 direct and indirect jobs in Iberville Parish and the broader Capital Region.

Also, BASF SE (Germany) is one of the leading chemical producers in the world. Its portfolio is organized into six segments, namely, chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions. The company has an extensive regional presence. It has subsidiaries and joint ventures in more than 80 countries and operates 390 production sites in Europe, Asia-Pacific, North America, and Africa. BASF has customers across more than 190 countries and supplies products to a range of industries. In April 2019, BASF expands production of polyacrylamide powder in Nanjing, China.

The new fully owned asset in China expands BASF’s global PAM manufacturing footprint for the mining and oilfield industries which relies primarily on long term supply agreements with production units in Europe, North America and Australia.