Reformer Unit Market

Reformer Unit Market Analysis

The Reformer Unit Market is expected to register a CAGR of greater than 9% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.

• Over the medium term, the increasing investments in the expansion of downstream activities to meet the increasing demand for higher quality petroleum products, thus increasing the demand for a reformer unit market.
• On the other hand, the difficulty in operations at extremely high operations leads to increased shutdown or breakdown times due to equipment malfunction, which is expected to hinder market growth.
• Nevertheless, the increasing government regulations on controlling harmful emissions from vehicles are expected to create huge opportunities for the reforming unit market.
• Asia-Pacific is expected to dominate the market during the forecasted period due to the increasing oil refinery projects in the region, especially in countries like India and China.

Reformer Unit Market Trends

The Oil Industry Is Expected To Dominate The Market

• The demand for gasoline and diesel has been on a constant rise in recent years, and the demand will likely maintain its momentum over the medium term. These products are predominantly used in various places, such as for vehicles, heavy machinery, and other sectors.
• Moreover, many countries are focusing on reducing their environmental emissions. Furthermore, few countries have even set targets to reduce or eliminate emissions. These high-octane fuels produced through reformer units help produce cleaner fuels that emit significantly less emission than conventional fuels.
• For instance, in July 2022, a group of senators in the United States proposed legislation to increase ethanol consumption by introducing high-octane certification test fuels containing 20% to 30% ethanol and requiring automakers to build and warranty their vehicles to utilize the fuels beginning in 2026.
• Furthermore, the consumption of oil has increased significantly around the world. For instance, in 2021, oil consumption increased by 6.1% compared to 2020. In 2021 the oil consumption was 96908 thousand barrels per day, and in 2020 the consumption was around 91360 thousand barrels per day.
• Additionally, several petrochemical projects are being proposed around the world. For instance, 512 petrochemical plants will begin operations in China between 2021 and 2025. According to an International Energy Agency (IEA) petrochemicals assessment, practically all areas, except Europe, will grow primary chemical production by 2050.
• Hence, the oil industry is expected to dominate the forecast segment due to increased demands for cleaner fuels and supportive government policies.

Asia-Pacific to Dominate the Market

• The Asia-Pacific region is expected to witness significant growth during the forecasted period due to the increasing consumption of oil, increasing investment in the expansion of downstream activities, increasing push from the government to use high-octane fuel, and increasing development activities in the region that utilizes heavy machinery which uses diesel as the primary source of fuel.
• As of 2021, Asia-Pacific had a refining capacity of roughly 36,478 thousand barrels per day (tbpd). China and India were the region's major players, with oil refining capacities of 16,990 tbpd and 5,018 tbpd, respectively.
• In the future years, India's refining capacity is expected to expand. The country's crude oil refining capacity reached 249.87 million metric tonnes per year in 2021. In addition, Indian Oil Corporation (IOC), India's largest refining firm, announced intentions to boost its refining capacity from 80.7 million metric tonnes per year to 150 million metric tonnes per year by 2030.
• Moreover, many countries in the region are mandating the usage of cleaner fuel in order to curb the environmental emissions from the transportation sector. For instance, in August 2022, the Albanese Labor Government in Australia presented legislation to move the sale of lower-sulfur gasoline in Australia from 2024 to 2027. All petrol in retail outlets in Australia will have a maximum sulfur level of 10 parts per million by December 15, 2024. This applies to unleaded petrol with 91 RON, 95 RON, 98 RON, and E85.
• Therefore, due to the abovementioned facts, the Asia-Pacific region is expected to dominate the reformer market due to increasing investment in the petrochemical sector and supportive government policies.

Reformer Unit Industry Overview

The Global Reformer Unit Market is moderately fragmented. Some key players in this market (in no particular order) are Honeywell International, Wood plc, BP plc, Larsen and Toubro Limited, and Siemens AG., among others.

Reformer Unit Market Leaders

Reformer Unit Market News

• In September 2022, Raver SR Inc. announced a successful trial completion of its Reformer SR2 unit, which converted methane to transportation-grade hydrogen at a rate exceeding other commercially available technologies for producing hydrogen from methane. The trial was held at Raven SR's Benicia Fabrication & Machine facility in Benicia, California, United States.
• In June 2022, TechnipEnergies announced the completion of The ACATBS project (projet d'Augmentation de Capacité et d'Adaptation des unités pour le Traitement du Brut Sénégalais), which targeted the expansion of the refinery's capacity from 1.2m to 1.5m tonnes per year (tpy). It consisted of installing a pre-flash column to increase production capacity by 30% and the extension of the reforming unit to enable the processing of domestic crude oil from the Sangomar offshore field, where the first oil is expected in 2023.