Hydrocracking is a process that is conducted in two steps in a petroleum refinery for converting heavy oil feedstock into high quality lighter fuel products such as diesel, gasoline, kerosene, and naptha. A variety of feedstock are processed in hydrocrackers such as atmospheric gas oils, vacuum gas oils, deasphalted oil, and thermally cracked gas oils.
Technological Progress Makes North America Market Leader
North America holds a sway over the global hydrocracker market and is slated to continue the dominance in the upcoming years on the back of fast-paced technological progress and increasing focus on research and development. Vis-à-vis growth rate Asia Pacific is slated to overtake all other regions in the next couple of years due to the growing number of refineries in the emerging economies of India and China. Europe would likely see a lackluster growth due to weak demand from the region. France, Russia, and UK are expected to generate in maximum demand in Europe.
Less Amount of Coke as By-product Aids Take-up
The global market for hydrocracking is slated to witness robust growth in the next couple of years on account of solid demand for middle and light distillates such as jet fuel, kerosene, diesel, and gasoline, particularly from emerging economies of South East Asia and BRICS. The capability of hydrocrackers to transform gas and crude oil into smaller components with lesser amount of coke as a by-product is expected to further propel the market. The excess of oil and gas inventory worldwide coupled with greater refinery capacities, technological advancements, and strong focus on research and development is also expected to have a positive impact on the market.
Steep Initial Capital Hobbling Market
Countering the growth in the market is the high initial capital required and ongoing operating expenses. Further, technological problems relating to hydrocracker temperature control and catalyst replenishment system is hobbling the manufacturing process. A difficult licensing process is also a major bottleneck for the global market for hydrocracking. However, going forward, the market spells good opportunities as demand for petroleum products is increasing quite fast.