Potassium Formate Market in Numbers
- The global potassium formate market is projected to reach the revenues worth US$ 835 Mn in 2019.
- The market for potassium formate is assessed to develop at a healthy CAGR of 5.1% and will signify a considerably high overall incremental opportunity in the global potassium formate market, during the forecast period, 2019-2029.
- The potassium formate market in North America is foreseen to maintain significant value shares through 2029, further trailed by Europe.
Competition Dashboard – Potassium Formate Market
The report delivers valued actionable insights in its competitive landscape section that discusses the overall contribution of key players in the global potassium formate market, their relative global position, and business strategies.
The market for potassium formate is estimated to grow over the forecast period as the contenders in the potassium formate market are increasing in number, and the intensity of market competition is likely to rise over the next decade.
Prominent manufacturers are prioritizing strategic developments, such as material processing, capacity expansion, product innovation, collaborations, and acquisitions, to better their foothold in the global marketplace.
The resultant consolidation of the competition structure of the market will create room for innovation, thereby accelerating the manufacturers’ move towards exploring untapped industrial application areas.
In particular, demand for brine delivery form for potassium formate is increasing steadily in industries and several de-icing operations. The brine solution delivery form in potassium formate market created lucrative opportunities during the forecast period and held ~71% in 2018, according to Fact.MR’s research.
Looking at continued preference for potassium formate over other salts, for application in drilling and de-icing, key market players are prioritizing potassium formate manufacturing capacity expansion.
SynaTek Solutions introduced a range of airport de-icing solutions in 2017, with BASF’s potassium formate. Recently, Evonik entered a collaboration for potassium formate manufacturing.
Apart from de-icing and drilling, several potassium formate manufacturers are eying opportunities arising in the heat transfer fluids sector. Strategic distribution partnerships and joint ventures will also be among the preferred developmental strategies among leading market players.
Growing Demand for Safety, Agility, and Efficacy to Develop Potassium Formate as Durable Agent
End-users of the drilling industry are under constant pressure to reduce operational costs, maintain quality and increase productivity. This pressure reaches up to the value chain wherein manufacturers of drilling fluids are constantly engaged in R&D to accommodate consumer demand.
Among the divergent needs, safety, agility, and efficacy of the drilling fluids are the prominent requirements generated from the end-users’ end. Among the changes that are actively integrated into the drilling process, development of smooth fluids and incorporation of high chemical strength are trending.
Demand for the former feature entails from the end-user sentiment for hazardous outcomes due to snowfall and that of latter from the ongoing applications for deicing on airports.
Application-specific developments are also being incorporated. For instance, the development of potassium formate brine solutions for removing snow from aircraft surface, wherein delicate yet flexible handling of a wide range of temperature as compared to its alternatives present in the market.
Profitability in Procuring Raw Material Presents Big Gains for Potassium Formate Manufacturers
Formic acid has been witnessing a remarkable growth on account of the growing demand for preservatives and feed additives. Improving living standards internationally has resulted in the increasing consumption of meat, thereby boosting the demand for formic acid in animal feeds and silage preservatives.
The high-quality nature of formic acid coupled with the global environmental acceptability is one of the major influencing factors creating an upsurge in demand in the industry. The rise in the production of formic acid is also anticipated to be one of the key influencing elements for the growth of potassium formate with an increased emphasis.
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Lucrative Applications in Drilling Fluids Point to Positive Prospects
The demand for drilling fluids is estimated to grow at a significant rate. These drilling fluids segment is projected to create an incremental opportunity of more than 192 Mn by 2029 end.
While the demand for potassium formate for drilling fluid applications held a third of revenue shares in 2018, the application for de-icing has been growing at a relatively lower rate. Gradual growth in the de-icing application area has been attributed to infringement from other applications, as its usage falls under weather conditions pertaining to the amount of winter snowfall.
Key Challenges Facing Manufacturers of Potassium Formate
- The consumption volume of potassium formate remains highly influenced by seasonal fluctuations, including low winter snowfall.
- Widespread availability of competitively priced alternatives of potassium formate will continue to limit sales to a certain extent.
- Volatility of the prices of raw materials utilized in the manufacturing of potassium formate is another strong factor restraining the manufacturers participating in the potassium formate market. While stakeholders in market are facing upward pricing pressure as a result of the tightening supply scenario, a significant dip in the consumption of formic acid that has been observed in the past couple of years will also remain a significant factor posing a negative impact on market growth.
- The report identifies growing stringency of environmental scrutiny over the potassium formate and formic acid industries, particularly in China. The market has thus witnesses the exit of some of the active players from global marketplace. However, tightening regulations and inspections on the production of formic acid, potassium formate, and other similar chemicals in the series, will be an indispensable benefit for the market in terms of long-term growth.
An Adaptive Approach to Modern-day Research Needs
The report offers an in-depth assessment on the potassium formate market, which is based on a tested & proven research methodology that involves comprehensive primary and secondary research approaches. These research methods have helped in arriving at important numbers for the potassium formate market.
Data collected on the potassium formate market by these researches go through several validation funnels, examination and re-examination, prior to their inclusion in the report.
Credibility of the statistics evaluated and data acquired on the potassium formate market, bases itself on unique nature of Fact.MR’s research methodology, which ensures greater accuracy and provision of authentic data.
Intelligence obtained from opinion leaders and industry experts in the potassium formate market have been extrapolated. Meanwhile, the contemplation of the data has allowed analysts to develop this analytic and insightful report on the potassium formate market.
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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