The polyacrylamide market is estimated to reach USD 3.85 billion by 2021, at a CAGR of 6.8% from 2016 to 2021.
In recent years, the Enhance Oil Recovery (EOR) technology is being rapidly adopted by many countries, due to the shortage of current oil resources and difficulties in finding new oil fields that has resulted in energy crises. In the EOR technology, surfactant polymers are injected into a reservoir to reduce interfacial tension between oil and water that helps wipe out trapped oil from the reservoir rock.
This consequently leads to increased oil production. Thus, the growing demand for enhanced oil recovery is expected to fuel the growth of the polyacrylamide market, as polyacrylamide is the most commonly used polymer in this application. However, the requirement of high capital expenditure for establishing polyacrylamide production plant creates high entry barriers for the small players, which may restrain the growth of the market.
Rising demand for enhanced oil recovery in emerging markets in Asia-Pacific is one of the major factors expected to drive the polyacrylamide market. Asia-Pacific was the largest market for polyacrylamide in 2015. Increasing demand for polyacrylamide in China and India is expected to drive the growth of the polyacrylamide market in Asia-Pacific.