Petrochemicals Market Market Size
:
Petrochemicals Market size was USD 467.65 billion in 2021 and projected to grow from USD 521 billion in 2023 to USD 854.4 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period.
Petrochemicals are generated through sturdy refining processes which include separating and purifying various compounds from crude oil and natural gas. The petrochemicals market is an important component of the global economy, as it supplies the major building blocks for several industries and is influenced by various factors like availability of raw material and prices, altering demand patterns over various end-use industries and advancements in technology. Petrochemicals industry includes many key players, including large MNC’s, independent producers etc.
Market Highlights
Petrochemicals Market is expected to project a CAGR of 5.6% during the forecast period, 2022-2032
Petrochemicals Market is expected to reach USD 854.4 billion, growing at a CAGR of 5.6% during forecast period owing to the increasing demand for these products from various end-use industries like automotive, pharmaceuticals, construction etc. which is expected to drive the growth of the market. Petrochemicals market is an important component for many industrial processes and is a major pillar for the industrial economy. Few products derived from petrochemicals include tires, oil, detergents, plastics, etc.
Petrochemicals Market Segmentation:
Ethylene segment is expected to grow with high CAGR during the forecast period
Petrochemicals Market is classified based on the Product Type into Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol. Ethylene segment is expected to dominate the market in the forecast period owing to the rising consumption of ethylene due to industrialization. The extension of packaging industry is also expected to boost the growth of the segment. The adoption of Ethylene due to its good mechanical properties is also expected to boost the growth of the segment in the market.
Consumer & Industrial Goods segment is expected to grow with high CAGR during the forecast period
Petrochemicals Market is classified based on the End Use into Aerospace, Agriculture, Automotive, Building & Construction, Consumer & Industrial Goods, and Others. Consumer & Industrial Goods segment is expected to dominate the market in the forecast period. The product is utilized in both food and non-food packaging and the new wrapping materials aid in maintaining the food fresh & safe. Petrochemical industry requires specialized equipment to ensure the safety of products packaged.
Market Dynamics:
Growth Drivers
Rise in Use of Plastic is Expected to Boost the Growth of the Market
Most of the petrochemicals produced are used to manufacture plastics like polypropylene (PP), polyethylene (PE) and the demand for plastics is increasing as plastics are used for packaging of food and other products. The struggle in discovery of cost-effective, eco-friendly alternatives to plastics is expected to boost the growth of the market. The usage of plastic is increasing owing to the presence of various advantages. Plastic improves the shelf life of food and the low weight of plastic reduces the consumption of fuel in transporting goods which is expected to boost the usage of plastic and is expected to drive the market growth.
Advancements in Technology is Expected to Boost the Growth of the Market
Many new policies have been developed to focus on the rising environmental concerns, and to initiatiate the production of eco-friendly and sustainable products. Major market players are focusing on upgrading the manufacturing operations to meet new regulations in limiting the pollution and reducing the impact of climate change. Several new advancements in technology had resulted in novel production techniques which conclude in producing recyclable and eco-friendly products which are expected to drive the demand for the growth of Petrochemicals Market.
Restraint
Increasing Environmental Issues by the Products May Hamper the Market Growth
The increasing health and environmental issues due to the usage of petrochemical products may hamper the growth of the market. The harmful effects of petrochemicals like benzene are has carcinogenic effect in humans which may further hamper the market growth. The stringent regulations applied by the health and environmental control organizations may hinder the market growth.
Recent Developments:
- In September 2021, National Petrochemical Company along with the Saudi Industrial Investment Group signed a non-binding merger agreement which would signify further merging in the Saudi petrochemicals sector.
- In June 2021, Abu Dhabi National Oil Company along with Reliance Industries agreed to build a new petrochemical complex in Ruwais, Abu Dhabi.
Petrochemicals Market
Key Players Covered:
- BASF SE
- Chevron Corporation
- INEOS Group Ltd.
- Sinopec
- ExxonMobil Corporation
- Royal Dutch Shell PLC
- SABIC
- LyondellBasell Industries Holdings B.V.
- China National Petroleum Corporation (CNPC)
- Dow
- Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
Regional Analysis
Petrochemicals Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific region dominated the market in 2021 and is expected to dominate the market in the forecast period owing to the development of chemical industry and the growing polymer consumption along with the strategic cost-effective techniques which is expected to boost the saes of the product. The major key players in the region are shifting toward natural gas and various non-oil feedstock to serve increasing necessity of the products which is expected to boost the growth of the market.
Impact of Covid-19 on Petrochemicals Market
The COVID-19 outbreak had resulted in the economic downfall. Several countries had imposed lockdowns and travel bans to control the coronavirus spread. The increased demand for ethylene from the packaging industry had a positive impact on the growth of the market. The demand for polyethylene from various industries had increased like food, sanitary products, and medical industries. The demand from construction and automotive industries had declined and the downfall of crude oil prices also had negative impact on growth of the market. COVID-19 had a slight negative impact on the growth of the Petrochemicals market.
Petrochemicals Market is further segmented by region into:
- North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
- Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
- Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
- Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
- Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA.
Petrochemicals Market Scope and Segments:
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2032 |
|
Base Year |
2022 |
|
Forecast Period |
2022-2032 |
|
Historical Period |
2019-2021 |
|
Growth Rate |
CAGR of 5.6% from 2022-2032 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
Product Type |
|
|
Manufacturing processes |
|
|
Application |
|
|
End Use |
|
|
By Region |
|
Frequently Asked Questions (FAQ):
Petrochemicals Market size was estimated at USD 467.65 billion in 2021 and is expected to reach USD 854.4 billion in 2032.
Petrochemicals are generated through sturdy refining processes which include separating and purifying various compounds from crude oil and natural gas. The petrochemicals market is an important component of the global economy, as it supplies the major building blocks for several industries and is influenced by various factors like availability of raw material and prices etc.
Ethylene and Consumer & Industrial Goods segment accounted for the largest Petrochemicals market share.
Key players: BASF SE, Chevron Corporation, INEOS Group Ltd., Sinopec, ExxonMobil Corporation, Royal Dutch Shell PLC, SABIC, LyondellBasell Industries Holdings B.V., China National Petroleum Corporation (CNPC), Dow and Other Prominent Players are the key players in the Petrochemicals Market
Rise in use of plastic and Advancements in technology are the factors driving the Petrochemicals market.
.png){kind=icon}
