Globally refiners continue to face several challenges as environmental policies are becoming increasingly stringent. The profitability of refiner’s is influenced because of strict regulations on sulphur content of gasoline & diesel oil and curbs on refinery emissions. Agencies such as the International Maritime Organizationhas already proposed changes in specifications of bunker fuel oil. These regulations will drastically impact the refinery’s profitability which would then have a tough time increasing or maintaining current refining margins. Thus those refineries which currently produce a substantial amount of residual oil and lack the complexity to upgrade it to middle distillates will face difficulties. They either have to invest in commercially proven and reliable solutions to convert residual oil to more valuable liquid products or face a threat to shut down the refinery as the operation becomes uneconomicalto continue. With the increasing crude oil prices and growing demand for middle distillates refiners have felt the need to invest in this segment.
The increasing demand for middle distillates is one of the primary driver for this market. With strict environmental norms, the need to install upgradation units is becoming a necessity if refiners want to stay in the market. Globally the production of sweet grade crude oil has declined and is costly if compared to sour grade crude. Thus to maintain the refining margins the refineries need to install upgradation units and increase the productivity of middle distillates.The decision on which technique to use must be arrived at before installation of such upgradation units. Some of the market restraints hindering adoption of such units include huge capital investments, high replacement lead time of the new unit with the older one. However as the demand for high sulphur products is in a downtrend due to strict environment policies, refiners need to invest in conversion units in future. Thus there is definitely an opportunity for players who wish to providerefiningsolutions in this market segment.
Middle distillates can be obtained using a number of process units. The common processes are: Distillate hydrotreater, Fluid catalytic cracking, Reforming, Hydrocracker, and Visbreaking. The decision on which process to adopt depends on the sulphur content of the crude oil and the configuration of end products desired. All these techniques are adopted by refineries to break down heavy fractions into more valuable lighter products. These refining processes are also used to remove or lower the impurity content present in the refined products, depending upon the market needs.
The current demand for middle distillates is not only expected to grow in the US, Europe but also in the emerging markets. Currently refining investment is mainly made in Asia-Pacific especially China and India, theMiddle East, Russia and LatinAmerican regions. This is because of increasing demand for refined products in these regions. Existing refineries in these areas have to invest in deep conversion units to comply with the strict product qualityspecifications. Some of the major players present in this market segment are Warren Letzch, Honeywell UOP and Grooves Equipments.
This research report analyzes this market depending on its market segments, major geographies, and current market trends. Geographies analyzed under this research report include
- North America
- Asia Pacific
- Rest of the World
This report provides comprehensive analysis of
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- Current market trends
- Market structure
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This report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.
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This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
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1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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4. Strategic Frameworks
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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.