Industrial Catalyst Market Size, Share, Growth & Industry Analysis, By Type (Homogenous, Heterogeneous), By Material (Metals, Chemical compounds, Organometallic, Zeolites), By Application (Petrochemical, Automotive, Chemical, Food Processing, Others), and Regional Analysis 2024-2031

Industrial Catalyst Market Size

The global Industrial Catalyst Market size was valued at USD 25.06 billion in 2023 and is projected to grow from USD 25.95 billion in 2024 to USD 34.25 billion by 2031, exhibiting a CAGR of 4.05% during the forecast period. Growing use of catalysts in renewable energy applications and rapid adoption of chemical synthesis and conversion processes are propelling the market.

In the scope of work, the report includes services offered by BASF SE, Albemarle Corporation, Evonik Industries AG, LyondellBasell Industries Holdings B.V., Clariant International Ltd, Umicore, Dow, Johnson Matthey, Heraeus Holding GmbH, Topsoe A/S, and others.

The expanding applications of industrial catalysts in emerging sectors, such as green chemicals, biofuels, and wastewater treatment, represent a significant growth opportunity for the industrial catalyst market. These catalysts, traditionally dominant in petrochemical and refining industries, are now vital in supporting sustainability-driven sectors.

For instance, they are being used to produce bio-based chemicals, which are a more sustainable alternative to petrochemicals. Catalysts help convert raw materials like biomass into biofuels in biofuel production, which supports energy transition.

• In January 2023, Albemarle Corporation launched Ketjen, its wholly owned subsidiary, to deliver customized advanced catalyst solutions for the petrochemical, refining, and specialty chemicals segments. Announced as a distinct brand in November 2022, Ketjen is dedicated to assisting clients in their energy transition journeys, covering areas from fluidized catalytic cracking to clean fuels, hydro-processing, and organometallics.

Additionally, the wastewater treatment industry uses catalysts in oxidation processes to break down pollutants, reduce their environmental impact, and enhance water reusability. As companies seek to meet sustainability goals and regulatory compliance, demand for catalysts tailored to these emerging applications is rising.

This shift is fueling investments in research and development to innovate more specialized catalysts, paving the way for efficiency improvements within various processes. With an increased focus on sustainability, the diversification of catalyst applications in these sectors positions companies for future growth and helps meet critical environmental targets.

Industrial catalysts are substances that accelerate chemical reactions without being consumed in the process, which makes them essential in various industrial processes for enhancing efficiency and productivity. These catalysts fall under several types, such as homogeneous and heterogeneous catalysts.

Homogeneous catalysts exist in the same phase as the reactants, commonly used in liquid-phase reactions, whereas heterogeneous catalysts operate in different phases, typically involving solid catalysts interacting with liquid or gas reactants. Based on material, catalysts are further categorized into metal, ceramic, and polymer types.

Precious metals like platinum, palladium, and rhodium are highly effective but costly; they are often used in refining and petrochemical industries. Ceramic catalysts, known for their durability, are widely used across automotive and other industries, particularly in catalytic converters to reduce emissions.

Polymers, while less common, offer benefits in specific applications requiring high selectivity and versatility. Industrial catalysts serve various applications, from fuel refining and chemical production to environmental management and renewable energy sectors, which indicates their adaptability in diverse industries.

Analyst’s Review

In the industrial catalyst market, key players are driving growth by focusing on strategies that align with sustainability goals, technological innovation, and cost-efficiency. Companies are heavily investing in R&D to develop catalysts that meet the demand for eco-friendly solutions across chemical production, energy, and environmental segments.

Sustainability is a primary growth imperative, with companies enhancing their product portfolios to include green catalysts that reduce environmental impact. Innovation in catalyst technology, such as advancements in nano-catalysts and bio-based alternatives, has become a focal point for competitive differentiation.

• For instance, in September 2024, LyondellBasell initiated its sustainable growth strategy by establishing its first catalytic advanced recycling plant at its Wesseling, Germany. Utilizing proprietary MoReTec technology, this facility represents the first commercial-scale, single-train recycling plant capable of converting post-consumer plastic waste into feedstock for new plastic materials, targeting an annual capacity of 50,000 tonnes.

Additionally, partnerships and collaborations are prevalent strategies, allowing companies to pool their resources and knowledge, accelerating the development of customized solutions for niche applications. Many market leaders are expanding their presence in high-growth regions, such as Asia-Pacific, where industrial demand is surging.

However, companies are also facing pressures to manage the high raw material cost, making cost-optimization and alternative sourcing critical. Through these strategies, companies aim to capture market share while meeting both customer and regulatory expectations.

Industrial Catalyst Market Growth Factors

More stringent emissions and environmental regulations worldwide are pushing industries to implement advanced catalytic processes to reduce pollutants and minimize ecological impact. Governments and regulatory bodies are enforcing stringent limits on greenhouse gases, nitrogen oxides, and sulfur emissions, creating a demand for catalysts that ensure cleaner production processes.

For example, catalytic converters in the automotive industry help reduce exhaust emissions, while selective catalytic reduction (SCR) technologies are widely adopted in industrial facilities to curb nitrogen oxide emissions. This regulatory pressure is prompting companies to innovate and adapt by developing catalysts that achieve higher efficiency with lower energy consumption, enabling compliance without sacrificing productivity.

• In July 2023, BASF successfully carved-out its mobile emissions catalysts and precious metal services to create BASF Environmental Catalyst and Metal Solutions (ECMS). Announced in December 2021, this transition positions ECMS as a global leader in emissions catalysts, producing solutions for various vehicles and applications, while also serving as a top recycler of precious metals from spent automotive catalysts.

Additionally, sectors such as refining, petrochemicals, and power generation are increasingly utilizing tailored catalytic processes to enhance reaction selectivity and conversion rates, which, in turn, lowers waste generation and operational costs.

With environmental compliance becoming a crucial part of business sustainability strategies, the adoption of advanced catalytic solutions is not just a regulatory response but a proactive step toward building a more sustainable industry landscape.

The high cost of raw materials, especially metals like platinum, palladium, and rhodium, is a significant challenge in the industrial catalyst market as they impact the overall production cost and profitability. These precious metals, essential for catalytic efficiency, often experience volatile pricing due to their limited global supply and high demand across multiple sectors, including automotive, electronics, and industrial manufacturing.

For instance, platinum-based catalysts are widely used due to their superior catalytic properties but incur considerable expenses, which can limit their accessibility and affordability for manufacturers. This challenge drives companies to explore cost-effective alternatives and recycling strategies to mitigate the impact of material costs.

Many industry players are investing in R&D to develop catalysts that rely on less expensive materials or even non-metal alternatives, such as enzyme-based or bio-catalysts, which maintain performance without the price volatility. By exploring diversified sourcing, sustainable raw material management, and recycling initiatives, companies can reduce dependency on high-cost metals and maintain profitability even amid price fluctuations.

Industrial Catalyst Industry Trends

The demand for green catalysts is on the rise as industries increasingly prioritize sustainable practices to minimize environmental impact. Green catalysts, often derived from bio-based materials or designed to function in milder, eco-friendly conditions, reduce the generation of hazardous by-products and lower energy consumption.

Sectors like chemical production, pharmaceuticals, and energy are leading this shift by adopting green catalysts to support eco-friendly processes, such as biofuel production and carbon capture. These catalysts play a pivotal role in lowering the environmental footprint by enabling efficient reactions under milder conditions, reducing the need for harsh solvents or high temperatures.

• In August 2024, Clariant's EnviCat Green deoxygenation catalyst was chosen for a significant green ammonia project in China. This catalyst will facilitate the removal of trace oxygen from green hydrogen before it is transformed into green ammonia, significantly lowering the environmental impact of ammonia production, which is crucial for fertilizer and energy transition applications.

Driven by stringent environmental regulations and the growing consumer demand for sustainable products, companies are investing heavily in R&D to develop more efficient and scalable green catalyst solutions. Furthermore, the rising popularity of green catalysts presents opportunities for market differentiation, enabling companies to shwcase their commitment to environmental responsibility.

By adopting these solutions, businesses comply with regulatory standards and enhance their appeal to eco-conscious consumers.

Segmentation Analysis

The global market has been segmented on the basis of type, material, application, and geography.

By Type

Based on type, the market has been divided into homogenous, and heterogeneous. The heterogeneous catalyst segment captured the largest share of 62.33% in 2023, largely due to its widespread application across numerous industrial processes and inherent advantages.

Heterogeneous catalysts, typically solid in form and used with liquid or gas reactants, offer distinct benefits in terms of ease of separation, reusability, and stability. These attributes make them highly cost-effective and efficient for large-scale operations.

Their robust performance in petrochemical refining, pharmaceuticals, environmental applications, and automotive sectors positions them as indispensable in catalyzing reactions that demand high efficiency and selectivity. In petrochemical and refining industries, for instance, heterogeneous catalysts are essential for cracking processes and help optimize fuel and chemical production.

The ease of separation after reaction further minimizes waste and operational complexity, allowing companies to achieve higher throughput with lower costs. Moreover, these catalysts often exhibit superior durability, enabling them to withstand harsh reaction environments without degradation.

By Material

Based on material, the industrial catalyst market has been classified into metals, chemical compounds, organometallic, and zeolites. The chemical compounds segment is projected to reach the highest revenue of USD 12.34 billion by 2031. This growth is largely attributed to the increasing demand across numerous industries for efficient synthesis and transformation processes.

Catalysts in chemical compounds play a crucial role in speeding up reaction rates, allowing companies to meet the rising demand for products such as polymers, specialty chemicals, and pharmaceuticals.

As industries shift toward sustainable production practices, there is a growing emphasis on using catalysts that facilitate eco-friendly processes, such as greener solvents and renewable feedstocks, without compromising reaction efficiency.

Furthermore, the growing global population and industrialization in emerging economies are fueling the demand for basic and specialty chemicals used in packaging, construction, healthcare, and electronics. Innovations in catalyst technologies, including high selectivity catalysts that reduce by-products and energy consumption, are propelling their adoption in chemical manufacturing.

By Application

Based on application, the market has been divided into petrochemical, automotive, chemical, food processing, and others. The automotive segment is anticipated to grow at a significant CAGR of 4.62% through the forecast period. This expansion is mainly propelled by rising global automotive production and increasingly stringent emission standards.

Catalysts in the automotive industry are critical for emission control, with catalytic converters effectively reducing harmful pollutants such as carbon monoxide, nitrogen oxides, and hydrocarbons from exhaust systems. As governments implement stricter environmental regulations, demand for automotive catalysts is growing rapidly to meet compliance standards, particularly in key markets such as the U.S., Europe, and China.

Additionally, the rising shift toward hybrid and electric vehicles, which require specialized catalytic solutions for efficient powertrain operation, is fueling the growth of the segment. Advances in catalyst technology, including durable, cost-effective materials and nano-catalysts for improved reaction efficiency, are enhancing performance in automotive applications.

Industrial Catalyst Market Regional Analysis

Based on region, the global market has been segmented into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America industrial catalyst market accounted for a substantial share of 32.43% and was valued at USD 8.13 billion in 2023. This dominance is largely attributed to the region's advanced industrial infrastructure, particularly in the petrochemical, refining, and automotive sectors, which drive the majority of catalyst demand.

The United States, a major region in petrochemical production, benefits significantly from investments in refining capacity expansions and advancements in catalytic processes.

• For instance, in July 2024, scientists from Argonne National Laboratory, the University of Chicago, Northern Illinois University, and Valparaiso University unveiled a new family of catalysts that efficiently convert CO2 into valuable chemicals such as ethanol, acetic acid, and formic acid. These compounds, extensively produced in the U.S., are integral to various commercial products, including ethanol, used in household items and as a gasoline additive.

Additionally, stringent environmental regulations across North America prompt companies to adopt catalyst technologies that reduce emissions and improve process efficiency. The automotive industry further contributes to this demand as regulatory pressures on emissions compel manufacturers to implement efficient catalytic converters and SCR (Selective Catalytic Reduction) systems.

Moreover, the U.S. and Canada foster significant research and development in advanced catalyst technologies, particularly green and bio-based catalysts, strengthening North America’s leading position in sustainable production practices.

Asia-Pacific industrial catalyst market is projected to grow at the highest CAGR of 4.17% in the forthcoming years. This expansion is mainly driven by rapid industrialization, urbanization, and increasing environmental regulations in emerging economies. Countries such as China and India are witnessing substantial growth in their refining and petrochemical industries, creating the demand for high-performance catalysts.

• For instance, in October 2024, LyondellBasell announced that China Energy Group Ningxia Coal selected its Hostalen Advanced Cascade Process (Hostalen ACP) technology for a new high-density polyethylene (HDPE) plant with an annual capacity of 300 kilotons in Yinchuan City, Ningxia Hui Autonomous Region, China. The facility aims to utilize Avant Z501 and Avant Z509-1 catalysts to manufacture a comprehensive range of multi-modal HDPE products.

The region’s expanding automotive industry further contributes to this growth, as nations actively adopt stricter emissions standards to combat urban pollution. Additionally, Asia-Pacific’s notable shift toward renewable energy sources and green technologies is spurring the adoption of advanced catalytic processes that enhance efficiency and sustainability.

Government initiatives supporting industrial modernization and the adoption of cleaner production methods are creating favorable conditions for catalyst manufacturers. Further investment in R&D by both local and multinational companies in the region underscores the potential for innovation and cost-effective production of catalysts tailored to the specific needs of Asia-Pacific industries.

Competitive Landscape

The global industrial catalyst market report provides valuable insights, highlighting the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as the expansion of services, investments in research and development (R&D), the establishment of new service delivery centers, and optimization of their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Industrial Catalyst Market

• BASF SE
• Albemarle Corporation
• Evonik Industries AG
• LyondellBasell Industries Holdings B.V.
• Clariant International Ltd
• Umicore
• Dow
• Johnson Matthey
• Heraeus Holding GmbH
• Topsoe A/S

Key Industry Developments

• July 2024 (Collaboration): Clariant expanded its strategic partnership with KBR to enhance ammonia production capabilities. This collaboration seeks to address traditional ammonia projects and advancing low-carbon and carbon-free “green ammonia” applications. By integrating Clariant’s AmoMax ammonia synthesis catalysts with KBR’s K-GreeN technologies, the partnership aims to optimize economics and energy efficiency in ammonia production.

The global industrial catalyst market has been segmented:

By Type

• Homogenous
• Heterogeneous

By Material

• Metals
• Chemical compounds
• Organometallic
• Zeolites

By Application

• Petrochemical
• Automotive
• Chemical
• Food Processing
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America