Potassium formate, also known as potassium salt of formic acid is a white solid powder, which forms brine solution and low crystallization temperature. This is a non-hazardous element, which has a pH score of 8.5 in a 10% solution. It offers various performance benefits over other traditional divalent brine solutions as potassium formate is non-corrosive fluid. Moreover, it reduces its chance of forming precipitates when it is in contact with reservoir water. Furthermore, it is a biodegradable element with extremely low toxicity to marine organisms. It also reduces the formation of carbonates and bicarbonates. Although potassium formate is compatible with hardware tools and elastomers, it shows tiny corrosiveness toward ferrous-based metals. Potassium formate finds applications in the oil and gas industry, and also for de-icing, drilling muds, drilling fluids, completion fluids, and more.
Global potassium formate market size was valued at US$ 380 million in 2018, and is expected to register a CAGR of 2.1% during the forecast period (2019-2027). Growing application of potassium formate in the oil and gas industry is expected to increase its demand and thereby accelerate the market growth in the near future. Increasing demand for crude oil and natural gas is expected to increase the demand for potassium formate and hence, it is expected to support growth of the market. Furthermore, potassium formate has been studied as the potential deicing agent on roads and airports. Deicing is a massive task in winters and hence potassium formate is massively used, as it reduces the freezing point of water significantly making it an effective runway deicing agent. Increasing demand for runway deicing agents across the globe is expected to drive the market growth during the forecast period.
Over-reliance on the oil economy is expected to create ample opportunities for market players in the global potassium formate market during the forecast period.
Market Regional Analysis
Asia Pacific is expected to hold a significant share in the global potassium formate market during the forecast period. This is owing to increasing oil and gas drilling projects in the region, which is expected to increase the demand for potassium formate. Potassium formate has a strong foothold in oil and gas industry, due to its environmental feasibility and useful properties. Moreover, North America and Latin America are expected to account for major market share, owing to increasing oil and gas drilling activities in the Gulf of Mexico.
Key players operating in the global potassium formate market are Hangzhou Focus Chemical Co., Ltd, Tetra Chemicals Europe in Helsingborg Sweden, Cabot Corporation, Banners Chemical Group, Hengtong Chem, and Addcon
Key players are adopting in-organic growth strategies such as production capacity expansion, new product launches and product development, merger and acquisition scenario in order to gain market share in the global potassium formate market. For instance, in 2013, Oxea a chemical company in Germany expanded its production capacity site in Bishop, Texas especially to increase production of potassium formate and trimethylolpropane (TMP). Oxea is a global manufacturer of alcohols, polyols, carboxylic acids, speciality esters, and amines. With this expansion company wants to enter in the Texas potassium formate market.