New study sees steady growth

By Staff -- Purchasing, 5/4/2000

U.S. demand for chemical and petroleum process catalysts is expected to grow more than 6.5% per year, reaching $3.2 billion by 2003, according to a study by the Freedonia Group, Cleveland, Ohio.

Petroleum refining consists almost entirely of catalytic processes and is expected to grow at an annual rate of about 5%. Demand for chemical processing catalysts is expected to grow at a rate of about 8%/yr, totaling more than $1.9 billion by 2003.

Rising use of value-added product mix is one chemical catalyst growth driver identified by the Freedonia study. Increasingly, these formulations include products such as metallocenes, precious metals, biocatalysts and other custom catalysts.

"Opportunities for single-site catalysts will develop rapidly as catalysts become fully commercialized," says an analyst at SRI Consulting, Menlo Park, Calif. "Polymers based on metallocenes or other single-site catalysts will create new markets and cannibalize markets currently served by conventionally catalyzed polymers.

Gains in use of chemical manufacturing catalysts will be supported by general growth in chemical production as well as by healthy growth in demand for pharmaceuticals, plastic products and chemical intermediates. However, increased use of longer-lasting, more efficient catalysts and growing importance of regeneration and recycling will restrain these volume gains, according to Freedonia.

Continuing effects of mergers and acquisitions among chemical companies may dampen value growth by increasing competition and price pressure, the study notes. Catalyst producers are expected to continue forming strategic alliances with process developers, customers and other catalyst producers in order to share catalyst development costs.