The fluid loss additives market size is projected to reach USD 376 million by 2024 from USD 315 million in 2019, at a CAGR of 3.6%.Fluid loss additives are water thickening polymers that are added to drilling fluids and cement slurries to reduce fluid loss during wellbore drilling. The rising number of oil drilling activities coupled with the improving performance of fluid loss additives in the high temperature & pressure conditions are driving the growth of the fluid loss additives market
There are three types of fluid loss additives, namely synthetically modified natural, synthetic, and natural additives. The synthetically modified natural segment accounted for the largest share, in terms of value, in 2018. Drilling Fluid Lubricant
Synthetically modified natural additives include PAC and CMC, which are modified using chemical reactions. These are the most common types of fluid loss additives.
The chemical modification in these polymers makes them highly efficient in extreme temperature and pressure. The dominance is attributed to its high performance in high pressure & temperature in the oil & gas industry.
Also, the rising demand from consumers is a factor driving the growth of the fluid loss additives market in synthetically modified natural additives segment.
The drilling fluid segment accounted for the largest share of the market in 2018 due to its high consumption. Drilling fluids help assist in drilling the wellbores of oil & natural gas.
The drilling fluid is pushed down the hollow drill pipe to the drill bit, where it gets out of the pipe, and then is flushed back up the borehole to the surface. Due to the rising shale gas exploration in North America and large investments in unconventional drilling technologies such as horizontal drilling and hydraulic fracturing, the need for drilling fluid is increasing which in turn is fueling the growth of the fluid loss additives market in this application.
North America is estimated to be the largest market for fluid loss additives during the forecast period, in terms of value and volume. There has been a rapid exploration of shale gas and oil reserves in North America, which has significantly augmented the use of fluid loss additives in the recent past.
The US witnesses a high demand for fluid loss additives, which is projected to continue in the future.
Accelerators Schlumberger Limited, Halliburton, Newpark Resources Inc., BASF SE, Clariant, Solvay are the leading manufacturers of fluid loss additives. These players have a strong foothold in the global fluid loss additives market as well as a strong distribution network across the globe.