Refinery Catalysts Market

Catalyst use is continuing to increase because of a steady increase in global refinery processing capacity. As per the International Energy Agency's projected global refinery throughput of 83.50 mb/d (million barrels per day) in 2025 and 84.00 mb/d (million barrels per day) in 2026 indicates a strong base of refinery operations globally. Refiners process heavier crude oils to obtain more high-value products (diesel and petrochemical feedstocks) from the same existing equipment, so refiners are optimizing their output as well as using more complex processing methods to process heavier crude oils. This creates an increased dependence on FCCs, Hydrocrackers, and Reformers catalysts for conversion efficiency and selectivity for future refining. This increased complexity of refining also requires more catalysts in the downstream processing of the heavier crude oils because of the additional processing requirements associated with processing heavier crude oils as per the U.S. Energy Information Administration.

The refinery catalyst industry is facing a significant restraint from the availability of alternative materials to conventional refining processes (i.e., petroleum); therefore, these alternatives create the option of decreased use of petroleum-based products. As biofuels, electric vehicles, and renewable energy sources become more common, the need for refined fuels in long term is decreasing; this will affect the demand for refinery catalysts used in hydrotreating, cracking, and reforming. According to the International Energy Agency, electric vehicle sales exceeded 17 million units in 2024, accounting for over 20% of global car sales, and displaced more than 1 million barrels per day of oil demand. With the trend of downstream industries and end-users moving to lower-carbon solutions, refiners are under pressure to re-evaluate where to place their investment priorities, including capacity expansions and investment in catalyst intensive upgrading units. Simultaneously, as more cost-effective and eco-friendly alternatives are developed, competition from alternative materials is increasing for catalyst manufacturers. These alternative materials are becoming an attractive option for refiners due to lower operating costs, improved sustainability performance, and increased compliance with stricter environmental expectations. Therefore, as these conventional refinery catalysts face increased competition, they must continue to innovate to meet higher efficiency, selectivity, and durability requirements so that they can remain competitive in the market. In order for manufacturers to stay ahead of their competition, innovative product differentiation through advanced formulations, greater resistance to deactivation, and improved solutions that will promote cleaner, more efficient operations is essential.

Opportunities for growth exist due to technological advancements in catalyst design. According to BASF, modern refinery catalysts have been designed to meet specific needs associated with certain feedstocks and refinery configurations by improving catalyst activity, selectivity, and resistance to deactivation. As a result of innovations such as new zeolite structures, improved metal dispersion, and better Catalyst Supports, refineries are able to produce higher yields of valuable products such as propylene and ultra-low sulphur fuels. In addition, longer run times and greater efficiency associated with regenerative capabilities (i.e., the ability to regenerate or recover USED catalyst materials) result in lower operating costs for refiners. Finally, the movement toward high-performance customized catalytic systems opens up value-added growth opportunities not only through volume expansion but also through higher margins.

Catalyst deactivation presents an ongoing challenge for refinery operation. According to technical documents from BASF, vanadium, and nickel are examples of contaminants that can be found in a number of heavy feedstocks; both can have significant negative effects on catalyst activity while increasing the incidence of coke formation. The result is lower efficiency, more frequent regeneration cycles, and/or increased capital and operating costs. Catalyst deactivation negatively impacts selectivity resulting in undesirable byproducts such as dry gas. As more and more refineries process heavier crude slates, the likelihood that these refineries will experience catalyst poisoning continues to rise. Therefore, determining durability and resistance are two of the most critical performance characteristics.