Petrochemicals Market Share, Size, Trends, Industry Analysis Report, By Product (Methanol, Propylene, Benzene, Ethylene, Butadiene, Xylene, Toluene, Styrene, Vinyls and Others); By End-use; By Region; Segment Forecast, 2024 - 2032
- Published Date:Apr-2024
- Pages: 116
- Format: PDF
- Report ID: PM1062
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
Petrochemicals Market size was valued at USD 617.07 billion in 2023. The market is anticipated to grow from USD 652.24 billion in 2024 to USD 1,162.92 billion by 2032, exhibiting the CAGR of 7.5% during the forecast period
Industry Trends
Chemicals made from natural gas or petroleum are known as petrochemicals. Typically, they serve as raw materials for the manufacturing of numerous industrial and consumer goods, including synthetic textiles, plastics, fertilizers, and medications this is driving the demand for petrochemicals market growth. The process of cracking, which breaks down the hydrocarbons in natural gas or crude oil into smaller molecules that can be utilized as feedstock for the synthesis of other chemicals, is how petrochemicals are made. The petrochemical sector is a large, international enterprise that has a big impact on the environment and the economy.
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- For instance, in November 2023, Dow announced the investment of about USD 8.9 billion in a net-zero plant project for a petrochemical in Alberta's Industrial Heartland of Canada. About 3 million tons of low-emission ethylene and polyethylene derivatives are expected to be produced. Construction on the project is planned to begin in 2024.
Throughout the projected period, the Middle East's abundance of raw materials is anticipated to propel the market further. Favorable regulatory rules in the Asia-Pacific region and an increase in government initiatives and support are other drivers propelling the market. The market's expansion is anticipated to be hampered, meanwhile, by the rising demand for bio-based chemicals and the volatility of natural gas and crude oil prices. The usage of petrochemicals is raising environmental concerns, which is predicted to impede industry expansion. In the upcoming years, there could be plenty of growth prospects due to the rising demand from emerging nations.
The coronavirus had varying effects on the demand for petrochemicals throughout value chains; the need for packaging, particularly for food, sanitary products, and medical applications, remained strong while demand for petrochemicals fell off sharply in the automotive and construction sectors. The latter is due, among other things, to the pandemic-related stockpiling, an increase in the provision of services, and heightened activity centered around healthcare. Industry participants have handled the short-term effects of the shutdown of a few plants in specific regions quite effectively, and they are currently making plans for the medium term.
Key Takeaways
- Asia Pacific dominated the market and contributed to more than 49.5% of share in 2023
- By product category, the ethylene segment is projected to be dominant during the projected period
- By end-use category, the packaging segment accounted for the significant market revenue share.
What are the market drivers driving the demand for petrochemicals market?
Rising population, disposable income and urbanization is projected to spur the product demand.
The growing demand for petrochemical products around the world is likely to drive significant expansion in the petrochemical market in the next years. The demand for products based on petrochemicals is being driven by factors like population increase, rising disposable income, urbanization, and industrialization in emerging economies. The burgeoning middle class in nations like China and India is driving up demand for cars, building supplies, and consumer products, which is driving up the petrochemical sector.
New age technological innovations such as process optimization are boosting the demand for petrochemicals market.
The petrochemical sector is being shaped by technological breakthroughs that facilitate the creation of novel goods and procedures. Catalysis, sophisticated refining methods, and process optimization are examples of modern technologies that are increasing the sustainability and efficiency of petrochemical manufacturing. Furthermore, advances in feedstock conversion are becoming more and more popular, opening doors for sustainable petrochemical manufacturing. Examples of these breakthroughs include the use of biomass and the recycling of plastics.
Which factor is restraining the demand for Petrochemicals?
Price fluctuation of crude oil is major restraint for demand of petrochemicals.
Crude oil is a basic raw resource utilized in product manufacturing, hence changes in price have a big impact on the industry. Petrochemical production costs are impacted by fluctuations in the price and availability of crude oil, which therefore raises the cost of the production process. The market's growth is anticipated to be hampered in the upcoming years by factors including the shifting preferences of customers in developed and emerging countries for environmentally friendly products and the unstable costs of petrochemical raw materials.
Report Segmentation
The market is primarily segmented based on product, end-use, and region.
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Category Wise Insights
By Product Insights
Based on a product analysis, the market is segmented on the basis of methane, propylene, benzene, ethylene, butadiene, xylene, toluene, styrene, and vinyl. The ethylene segment has dominated the petrochemicals industry owing to revenue share in 2023. This is explained by the rising need for ethylene from a number of sectors, including the building, packaging, and transportation industries. Throughout the projection period, rising industrialization and the thriving automotive and packaging sectors in emerging economies like Vietnam, Thailand, India, and Brazil are likely to drive up ethylene demand in those nations. Expanded usage of polyethylene, Low-density Polyethylene (LDPE), and High-density Polyethylene (HDPE) is anticipated to facilitate the general expansion of the petrochemical market.
The methanol segment is expected to experience the highest CAGR over the petrochemical market forecast period. Acetic acid and formaldehyde, which are utilized in foams, adhesives, foams, plywood subfloors, and windshield washer fluids, are produced using methanol as a feedstock. Due to its strong demand in a number of end-use industries, including construction, paints and adhesives, medicines, plastics, and the automotive industry, methanol demand is expected to increase.
By End-Use Insights
Based on the end-use analysis, the market of petrochemicals is segmented on the basis of electronics, construction, automotive, and packing. In 2023, the packaging industry held the largest proportion of the global petrochemical market. The growing consumer products sector, the quick development of e-commerce, and the requirement for strong, lightweight packing materials all support the product demand in the packaging space. The food business is a leading factor in the growing demand for plastic packaging, which could lead to segment expansion.
The petrochemical substance is primarily utilized in pipes, adhesives, and coatings for various construction industry applications, including wiring, flooring, insulation, pipes, and structural elements. The demand for the product is also anticipated to increase due to the expanding need for housing and infrastructure.
Regional Insights
Asia Pacific
The Asia Pacific region dominated the global market with the largest market share in 2023 and is expected to maintain its dominance over the anticipated period. The growth of the segment market can be largely attributed to the expanding industry of chemicals and simultaneous growth in consumption of polymer. The corporations from the Asia Pacific region are focusing on non-oil feedstock and gas liquids, which are found naturally. The huge market growth for petrochemicals in the region can be expected by working on cost-effectiveness as this petrochemicals industry is too capital intensive market, as this pricing can be strategized, which can result in exponential growth in the sales of products. Indian market of petrochemicals is experiencing huge growth due to the nation's development and robust expansion in the manufacturing and business sectors by deploying capital for improving its capacity and upgradation in the technology by giant petrochemical corporations from private ventures and public sector undertakings.
North America
The North American region is expected to boom with the growth of the petrochemicals market by exploring the activities of shale gas exploration in countries such as Canada and the U.S. These nations' increasing shale gas production offers the chance to use shale gas instead of conventional feedstock to produce a range of petrochemicals. Over the projection period, significant capacity additions are anticipated to drive growth in the United States and Canada. Additionally, North America offers low-cost locations for settling up the manufacturing units for the petrochemicals market; this attracts corporations from multiple nations to invest and plan for developing new facilities and contributing to the growth of the area.
Europe
The Europe region is expected to be the fastest growing region with a healthy CAGR during the projected period, owing to the growing recovery for expansion of the oil and gas business in the region, along with the general industrial sector affected by the worldwide pandemic in Europe, is expected to propel industry growth. Due to market saturation, slow growth is predicted for Western Europe. The region's major nations, Germany, France, and the United Kingdom, are producing more ethylene, which has increased demand for petrochemicals from producers of different industrial chemicals.
Competitive Landscape
The petrochemicals market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- SABIC
- ExxonMobil Corporation
- BASF SE
- Mitsubishi Chemical Holdings Corporation
- Formosa Petrochemical Corporation
- Chevron Corporation
- China National Petroleum Corporation (CNPC)
- China Petrochemical Corporation
- INEOS Group Ltd.
- LyondellBasell Industries Holdings B.V
- Dow
Recent Developments
- ·In July 2023, SABIC introduced the latest PCR-based portfolio, NORYLTM, which will decrease the carbon footprint by utilizing recycled and biobased resources in petrochemical products, a step toward environmental sustainability in the chemical industry.
Report Coverage
The petrochemicals market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, product, end-use and their futuristic growth opportunities.
Petrochemicals Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 652.24 billion |
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Revenue forecast in 2032 |
USD 1,162.92 billion |
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CAGR |
7.5% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Product, By End-use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The key companies in Petrochemicals Market are SABIC, ExxonMobil Corporation, BASF SE, Mitsubishi Chemical Holdings Corporation
Petrochemicals Market exhibiting the CAGR of 7.5% during the forecast period
Petrochemicals Market report covering key segments are product, end-use, and region.
The key driving factors in Petrochemicals Market Rising population, disposable income and urbanization is projected to spur the product demand.
Petrochemicals Market Size Worth $ 1,162.92 Billion By 2032.
