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2023

Modular Refineries Market

Modular Refineries Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Capacity, by End Use : Global Opportunity Analysis and Industry Forecast, 2023-2032

EP : Equipment and Devices

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Author's: Chakshu Kasturi | Eswara Prasad
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Modular Refineries Market Research, 2032

The global modular refineries market was valued at $2.2 billion in 2022, and is projected to reach $3.6 billion by 2032, growing at a CAGR of 5.7% from 2023 to 2032. 

A modular refinery is a type of prefabricated crude oil processing plant which is designed for the distillation of crude oil into naphtha, kerosene, diesel, residual fuel oil and off gas. The modular refineries are available in capacities ranging from 1,000 to 30,000 barrels per day (bpd). A modular refinery can be constructed entirely on skid mounted structures. Modular refinery structure contains a portion of the entire process plant which are linked through interstitial piping and other components which makes the refining process easily manageable. Modular refineries are delivered in prefabricated modules, shipped, and installed at site to reduce cost and construction time frame.

Modular Refineries Market

The report includes the study of the modular refineries market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the modular refineries industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth. Oil firms can benefit from modular refineries in a number of ways, including the cost-effective production of higher-quality fuel products which boosts its demand in the market.

In addition, modular refineries have several benefits such as lower investment costs, shorter schedule, and possibility for future relocation which is expected to support the escalate modular refineries market share in the coming years. Modular refineries are best solution to increase the production capacity for oil producers at remote locations. This boosts the growth of the global modular refineries market size during the forecast period.

The gradual rise in the requirement of oil and the limited resource for refining crude oil in traditional refinery is challenging for both developed and developing countries. The adoption of modular refineries in oil production sites helps to overcome the environmental and production capacity issues with traditional refineries which drives the growth of the global modular refineries market size in near future. Modular refinery has been identified as a viable alternative to the current systems of refining oil market. Furthermore, modular refineries can be joined with the traditional refinery plant at site to increase the production of petroleum products effectively.

In addition, countries around the world are finding new ways to increase fuel supply security in future. As per modular refineries market forecast, the future of modular refineries systems looks promising as modular refineries provide the security of oil supply. Refinery sector is focusing on investing in solutions which are smarter, faster, and more adaptable to the ever-changing demand scenarios in future. Modular refineries are a source of rapid production of primary fuel products and raw materials for petrochemical downstream industries which boost the modular refineries market share during the forecast period.

Modular refinery systems are gaining popularity in low- and middle-income countries which hold a greater number of oil reserves. In addition, oil companies are showing interest in the adoption of modern oil refining equipment which boosts the global modular refineries market trend in near future. Modular refineries can be deployed in remote locations which is creating opportunities for public-private partnerships in the modular refineries industry during the forecast period. Similarly, governments and other organizations are accelerating the adoption of modular refineries products through tax cuts and subsidies which is creating favorable opportunity for modular refineries market growth in the near future.

Beside diverse advantages, the modular refineries face several challenges such as regulatory uncertainties, security problems, infrastructural deficit, shortage of feedstock which impact modular refineries market growth rate. Damaged pipelines, shallow channels and the absence of an effective logistics are some of the factors projected to restrain the global modular refineries market growth during the forecast period. Modular refinery companies and several governments of different countries are coming up with new reforms and technology advancements in the refinery industry to overcome the associated challenges.

Industrialization in the developing countries boost the demand for petroleum products. All the machinery and equipment in industries operate on different types of petroleum products. Increase in demand for petroleum products boosts the growth of the modular refineries market.  Modular refineries are capable of producing petrol, diesel, jet fuel, kerosene, naphtha, paraffin and others from crude oil in different quantities and are able to fulfil the demand in the market. Moreover, several countries are involved in the import of crude oil and petroleum products which are used in industry sector or transport sector which drives the modular refineries at different locations.

Government is coming up with the new investment plans to mitigate the fuel security issues by deployment of modular refineries in the oil production units. Higher authorities are investing in new modular refineries which can fulfil the local demand timely and is also capable for the production of finished products for export. Similarly, developing countries are investing in modular refineries to lower the dependency on other counties for finished products which increase the growth of the modular refineries market. Countries with the financial ability are investing in modular refineries to decrease the risk of fuel supply which creates modular refineries market opportunities in near future.

High fluctuation in the raw material price is projected to impact the stability and profitability of modular refineries industry for both long and short term. Modular refineries are type of equipment which utilize crude oil as a raw material for the production of finished products such as petrol, diesel, kerosene and others. The rise in crude oil prices has coincided with both higher and lower profitability in the downstream sector. Unexpected fluctuations in crude cost are destabilizing supply chains and making it difficult for oil producers to maintain profitability which restrain the global modular refineries market growth in the coming years.

The report further outlines the details about the revenue generated through the sale of modular refineries across North America, Europe, Asia-Pacific, and LAMEA. Major players operating in the modular refineries market include Honeywell International Inc., Pyramid E&C, Peiyang Chemical Equipment Co., Ltd., Axens, Propak Systems Ltd., Brahms Oil Refineries Ltd., VFuels, LLC, Refinery Equipmenr of Texas, LLC , AIPCC Energy Ltd. and Plant Process Group, LLC.

The modular refineries market is segmented into type, capacity and end use.

Modular Refineries Market by Type

By type, the market is classified into crude oil distillation unit, topping unit, hydroskimming refinery, full conversion refinery, bitumen refinery and carbon black refinery. In 2022, the crude oil distillation unit segment dominated the market owing to easy installation of unit. The energy production capacity of crude oil distillation unit can easily increase according to the according to the demand for fuel products in local area. The key factors influencing the rise in demand for crude oil distillation unit are affordability, better efficiency, and government support.

Modular Refineries Market by Capacity

By capacity, the market is classified into 200 – 10000 BPD, 10001 - 20000 BPD and 20001 - 30000 BPD. In 2022, the 200 – 10000 BPD segment dominated the market as 200 – 10000 BPD are cost effective and occupy less space at oil production site. The small capacity refineries are easy to shift from one place to another which drives the demand for 200 – 10000 BPD capacity modular refineries in the market.

Modular Refineries Market by End Use

By end use, the market is classified into government refinery and private refinery. In 2022, the government refinery segment dominated the market as governments are focusing on new infrastructure oil projects and new policies for adoption of modular refineries at oil production site and remote locations. Manufacturers are developing well-designed modular refineries to operate continuously with different grade of crude oil in refineries, which is driving the growth of the government refineries segment.

Modular Refineries Market by Region

By region, the market is classified into North America, Europe, Asia-Pacific and LAMEA. In 2022, North America dominated the modular refineries market owing to increase in oil extraction and refinery projects in the region. In U.S., a total of 11.3 million barrels of crude oil is produced on daily basis which creates huge market for modular refineries in the North America region. Several countries in Middle East and Africa are investing in the oil exploration and oil reserve projects which is projected to create opportunity for the modular refineries market during the forecast period.

The conflict between Russia and Ukraine has a significant impact on the oil sector. Russia's invasion of Ukraine has created shock waves in the global oil market, leading to price volatility, supply shortages, and security issues. The war further affected oil production activities due to the economic sanctions and foreign policy directives issued by Western countries. A global disruption in oil and gas supply due to the Russia-Ukraine war affected not only the prices of oil commodities but also impacted several economic activities.

For instance:

  • The price of crude oil in the global market skyrocketed from around $76 per barrel at the start of January 2022 to over $110 per barrel on March 4, 2022
  • In February 2022, the U.S. government signed an executive order banning imports of Russian oil, natural gas and coal on March 8, 2022
  • European Union (EU) countries have committed to reducing gas imports from Russia by two-thirds. EU countries stopped seaborne imports of Russian oil. Refined oil products from Russia to Europe

Oil producer and refineries are hesitant to invest in the modular refineries equipment due to increase in instability factors for manufactures in the EU region. The war can significantly decline the growth of refinery industry of Europe. The Russia-Ukraine war has a major impact on the global oil industry and refineries market. Production has decreased sharply, while demand has also declined.

The booming world economy has caused exponential population growth and increased demand for oil products. Oil production companies are ready to invest in modern technology to increase the production capacity of fuel products which boosts the modular refineries market trends. Companies are focussing on expansion and entering into agreement and contract to remain competitive in the global modular refineries market.

Key Strategies

  • In June 2022, Honeywell International Inc. decided to enter into contract with Alexandria National Refining and Petrochemical Company to modernize Egypt refinery. Company will upgrade their existing naphtha complex using Honeywell UOP engineering services to increase the production of gasoline. This development helps the company to increase revenue
  • In February 2021, Axens company decided to enter into contract with Numaligarh Refinery Limited (NRL), a subsidiary of Bharat Petroleum Corporation Limited (a public sector undertaking under the Ministry of Petroleum and Natural Gas, India) to supply advanced technologies in gasoline block for its Numaligarh Refinery Expansion Project (NREP). This development helps the company to increase revenue in near future

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the modular refineries market analysis from 2022 to 2032 to identify the prevailing modular refineries market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the modular refineries market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global modular refineries market trends, key players, market segments, application areas, and market growth strategies.

Modular Refineries Market Report Highlights

Aspects Details
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Market Size By 2032

USD 3.6 billion

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Growth Rate

CAGR of 5.7%

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Forecast period

2022 - 2032

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Report Pages

250

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By Type
  • Crude Oil Distillation Unit
  • Topping Unit
  • Hydroskimming Refinery
  • Full Conversion Refinery
  • Bitumen Refinery
  • Carbon Black Refinery
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By Capacity
  • 200 – 10000 BPD
  • 10001 - 20000 BPD
  • 20001 - 30000 BPD
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By End Use
  • Government Refinery
  • Private Refinery
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Russia, Germany, Italy, UK, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Saudi Arabia, Nigeria, Brazil, UAE, Rest of LAMEA)
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Key Market Players

Brahms Oil Refineries Ltd., Axens, Honeywell International Inc., Pyramid E&C, VFuels, LLC, Plant Process Group, LLC., AIPCC Energy Ltd., Refinery Equipment of Texas, LLC, Peiyang Chemical Equipment Co., Ltd., Propak Systems Ltd.

Analyst Review

The CXOs of major corporations claim that the spread of COVID-19 caused a considerable and quick reduction in the global economic activity. Pandemic had a detrimental effect on the market. Pandemic consequences include fluctuation in crude oil price, negative net income and revenue of oil refineries, which impact the growth of the modular refineries market. . There has been a decrease in the demand for fuel products during the period of severe economic disruption. Post COVID-19, the demand for fuel rises at extremely high rate which helps the refinery industry to cover up the losses. Manufacturers of modular refineries are anticipated to enhance their manufacturing capacity and mergers to broaden their customer base and global presence.

Furthermore, rise in investment in the oil excavation projects and refinery technologies drives the modular refineries market growth in near future. Government support and investment plans to increase oil production capacity is projected to boost the growth of the global modular refineries market. Hence, long term adoption of the modular refineries in the oil refinery sector helps to lower the income risk for producer and expand the production of modular refineries in the near future.

Author Name(s) : Chakshu Kasturi | Eswara Prasad
Frequently Asked Questions?

Surge in demand for petroleum products in industry sector is the driving factor for Modular Refineries Market in the world.

Government refineries is the leading application of Modular Refineries Market.

North America is the largest regional market for Modular Refineries and LAMEA is growing with highest CAGR.

Honeywell International Inc., Pyramid E&C, Peiyang Chemical Equipment Co., Ltd., Axens, Propak Systems Ltd are the top companies to hold the market share in Modular Refineries.

The global modular refineries market was valued at $2.2 billion in 2022, and is projected to reach $3.6 billion by 2032.

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Modular Refineries Market

Global Opportunity Analysis and Industry Forecast, 2023-2032