NEWS RELEASE                                                                                        April 2019

U.S. Petrochemical Industry is a Most Profitable Market (MPM) Opportunity for CFT Providers

The petrochemical industry segment of the Combust, Flow, and Treat (CFT) market will grow faster than the average segment. Suppliers with a strong U.S. presence can take advantage of a market growing at close to 9 percent per year. The rapid growth, potential for innovation, market access and the emphasis on better rather than low priced components make this a Most Profitable Market (MPM) opportunity.

The U.S. will gain market share over the next six years due primarily to the cheap supplies of feedstocks. Just within the last few months the major oil companies have made clear their intention to invest a higher percentage of capital on U.S. shale oil and gas extraction. Chevron believes that it can extract oil at a cost of just $15 per barrel. ExxonMobil believes it can be profitable with $30/bbl oil. Both companies are expecting the U.S. liquids production to be 25 million bl/d by 2025. This compares to IEA and OPEC forecasts for the U.S. production at just half this amount.

The impact on the petrochemical industry will be substantial. The availability of cheap and abundant feedstocks such as ethane make the U.S. Shale Crescent in the East and the Permian basin in the Southwest ideal locations for new production facilities. The U.S. Congress just received a report from the Secretary of Energy which predicts that the Eastern U.S. will become a petrochemical and plastics manufacturing hub. A detailed analysis by the McIlvaine Company built on specific projects and plans concludes that the U.S. petrochemical CFT market will grow by 9%/yr vs 6.5%/yr for the rest of the world.

World Petrochemical Combust, Flow, Treat (CFT) Revenues - $ billions - 2025
Product U.S. ROW Total MPM Total MPM
$ billions % $ billions
APC, Pneumatic Conveying and Gas Treatment Including Compressors and Fans 3 11.3 14.3 50 7.15
Water, Wastewater, Fluid Treatment 2.8 10.5 13.3 60 7.9
Pumps, Valves, 2.3 8.6 10.9 40 4.4
IIoT and Remote O&M 1.9 7.1 9 60 5.4
Heat Exchange, Piping and Other CFT 3.6 13.5 17.1 45 7.7
Total 13.6 51 64.6   32.55
CAGR 2020-25 % 9 6.5 8.8    


The McIlvaine forecast of the CFT market in 2025 includes equipment, services, maintenance and repair parts. There will be a number of technical challenges as shale gases with varying percentages of ethane and other natural gas liquids are converted into ethylene and other petrochemical products. In recent years the CFT market growth in the U.S. has been less than in Asia. This has handicapped CFT suppliers whose primary strengths lie outside Asia. The opportunity to maximize profits in the U.S. market is therefore unique. Many of the CFT markets such as coal fired boilers are mature. This reduces the profit potential because of the emphasis on price to sustain revenues. A growing market is much more likely to result in maximum profits.

Another aspect which identifies this as a most profitable segment is a combination of large customers who are oriented toward purchasing the CFT products with the lowest total cost of ownership. This includes, Dow, Chevron, SABIC, Total, Shell and LyondellBasell.

The McIlvaine Most Profitable Market program identifies the market and individual purchasers and provides a route to present them with products which are validated to show lowest total cost of ownership. Details of the program are linked from the website at . The direct link to the program is found if you Click Here

For answers to your questions contact Bob Mcilvaine at This email address is being protected from spambots. You need JavaScript enabled to view it. or by cell at 847 226 2391.