Global Petrochemical Market Size By Product Type (Ethylene, Propylene), By Manufacturing Processes (Fluid Catalytic Cracking, Steam Cracking), By Application (Aerospace, Agriculture), By Geographic Scope And Forecast

Petrochemical Market Size And Forecast

Petrochemical Market size was valued at USD 587.13 Billion in 2022 and is projected to reach USD 907.92 Billion by 2030, growing at a CAGR of 5.60% from 2024 to 2030.

As new technologies are created to enhance the effectiveness of processes and the quality of the end products, the petrochemical sector is continually evolving. New polymerization methods have produced new plastics with improved characteristics, while improvements in catalytic cracking technology have enabled refiners to extract more valuable compounds from lower-quality feedstocks. Other factors that contribute to this rise include the expanding middle class in developing nations, the rising transportation industry, and the rising global energy demand. In the upcoming years, there will likely be a major rise in the need for energy on a global scale. Additionally, when firms grow and customers buy more goods and services, economic growth will result in increased energy consumption. Technology that consumes a lot of energy is anticipated to grow in the upcoming years.

Global Petrochemical Market Definition

Petrochemicals are chemicals made from crude oil or natural gas. They are frequently utilized as raw materials for the creation of a vast array of consumer goods and industrial items, including plastics, fertilizers, medications, and synthetic fibers. Cracking, a technique used to create petrochemicals, involves dissolving the hydrocarbons in crude oil or natural gas into smaller molecules that can be utilized as feedstock for the creation of different chemicals. With enormous effects on the economy and environment, the petrochemical sector is a large global business.

Global Petrochemical Market Overview

Petrochemicals are chemicals made from petroleum. Ethylene, propylene, and benzene are examples of petrochemical goods. They also include source monomers for synthetic rubbers. Due to their affordability and stability in the economy, these items have become more and more popular in recent years. Petrochemicals play a significant role in the production of synthetic materials, making them an essential part of the chemical industry. Petrochemical-based goods are now essential to modern life. These are utilized in a wide range of products, including tires, textiles, digital devices, medical equipment, detergents, fertilizers, and packaging.

Additionally, it can be found in a variety of modern energy systems components, such as solar panels, batteries, thermal insulation for buildings, wind turbine blades, and electric automobile parts. The International Energy Agency (IEA) projects that petrochemicals would contribute more than 7 million barrels of oil per day by 2050, accounting for more than half of the increase in world oil consumption by 2030. Furthermore, they are on schedule to use an additional 56 billion cubic meters of natural gas by 2030 and 83 billion by 2050. Petrochemicals are increasingly in demand across a range of sectors, including the pharmaceutical, automotive, and industrial processes. This has led manufacturers to increase their production capacity.

Petrochemical materials are being utilized more frequently in the automobile sector due to their advantages in terms of vehicle weight reduction, fuel efficiency, reduced pollution, and safety. To create the ideal ecosystem for the sustainable use and reuse of petrochemicals, businesses, policymakers, visionaries, industries, and end users must collaborate. Manufacturers should concentrate on taking a more deliberate approach to capacity expansions in order to take advantage of additional opportunities and increase their revenue streams. Manufacturers should concentrate on taking a more deliberate approach to capacity expansions in order to take advantage of additional opportunities and increase their revenue streams.

Global Petrochemical Market Segmentation Analysis

The Global Petrochemical Market is segmented on the basis of Product Type, Manufacturing Processes, Application, And Geography.

Petrochemical Market, By Product Type

• Ethylene
  1. Polyethylene
  2. Ethylene oxide
  3. EDC
  4. Ethyl benzene
  5. Others
• Propylene
  1. Polypropylene
  2. Propylene oxide
  3. Acrylonitrile
  4. Acrylic acid
  5. Others
• Benzene
  1. Ethyl benzene
  2. Phenol/cumene
  3. Cyclohexane
  4. Others
• Methanol
  1. Formaldehyde
  2. Gasoline
  3. Acetic acid
  4. MTBE
  5. Dimethyl ether
  6. Others
• Others

Based on Product Type, the market is classified into Ethylene, Propylene, Benzene, Methanol, and Others. Due to rising ethylene demand from a variety of industries, including building, packaging, and transportation, ethylene dominates the market. The consumption of ethylene in rising nations like Brazil, India, Vietnam, and Thailand is anticipated to increase over the course of the projected period due to the economies’ ongoing industrialization and thriving automotive and packaging industries. The market for petrochemicals is predicted to rise overall due to the increased use of High-density Polyethylene (HDPE), polyethylene, and Low-density Polyethylene (LDPE).

Over the foreseeable period, the methanol category is expected to experience the highest growth. Acetic acid and formaldehyde are made from methanol and are used in the manufacture of solvents, adhesives, and windscreen washer fluids. The high demand for methanol in a number of end-use sectors, including paints and adhesives, construction, plastics, pharmaceuticals, and automotive, is expected to drive expansion in the market. Butadiene is primarily used in the synthesis of polymers like polychloroprene, styrene-butadiene rubber, polybutadiene rubber, and nitrile rubber as chemical intermediaries and monomers. (NR). Due to the booming end-use industries, including the automotive, consumer goods, construction, and other sectors, butadiene derivatives have seen a major rise in demand, particularly in China, India, and other Asian nations.

Petrochemical Market, By Manufacturing Processes

• Fluid Catalytic Cracking
• Steam Cracking
• Catalytic Reforming

Based on Manufacturing Processes, the market is classified into Fluid Catalytic Cracking, Steam Cracking, and Catalytic Reforming. Due to the expanding adoption of this process for the manufacturing of petrochemicals, the Fluid Catalytic Cracking (FCC) segment accounted for the greatest revenue share in 2021.

Olefin gases, petrol, and other petroleum products are produced in petroleum refineries using the FCC process, which transforms high-boiling-point. Transforming a low-value refinery stream into high-value products that can be used in integrated processes, enables refineries to produce petrochemicals from heavy oils. The majority of the world’s propylene is produced via ethylene steam cracking of feedstocks such as light hydrocarbons and naphtha, which currently account for 30% of the total production of the chemical.

Petrochemical Market, By Application

• Aerospace
• Agriculture
• Automotive
• Building & Construction
• Consumer & Industrial Goods
• Others

Based on Application, the market is classified into Aerospace, Agriculture, Automotive, Building & Construction, Consumer & Industrial Goods, and Others. Over the anticipated period, the building & construction application segment is anticipated to dominate in terms of revenue. It is anticipated that the construction sector will experience rapid expansion in the near future due to the rising global population in both developed and emerging economies. Additionally, the automotive application category will grow at a noteworthy CAGR over the course of the projection period. The expansion of the market is being accompanied by an increase in petrochemical demand from the global automobile industries in developing nations.

Petrochemical Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Geography, the Global Petrochemical Market is classified into North America, Europe, Asia Pacific Asia, Rest of the World. Pacific currently holds the largest market share in the Global Petrochemical Market and is predicted to continue to do so during the projected period. China’s increased use of petrochemical products in the production of various end-use products for industries including electrical and electronics, automotive, building and construction, consumer and industrial goods, and food and beverage production, are accelerating the industry demand. Due to the shale gas boom, which has revitalized the U.S.’s domestic petrochemical industry, North America is the main market for petrochemicals.

The nation has managed to rank among the top ethylene producers in the world because of cheap, easily accessible shale gas feedstock. Due to the increase in petrochemical applications across a range of end-use sectors, the Middle East and Africa are predicted to be appealing locations for petrochemicals. Due to investments in additional downstream processing capacity, particularly in the manufacturing of petrochemicals, the Petrochemical Market in the Middle East and Africa is anticipated to expand. The region has a significant cost advantage in producing ethylene, and several nations are now building or have plans to build mixed-feed crackers, ammonia/urea, ethylene derivatives, and other petrochemical facilities.

Key Players

The “Global Petrochemical Market” study report will provide valuable insight with an emphasis on the global market including some of the major players of the industry are BASF SE, SABIC, Total S.A., BP Plc, Exxon Mobil Corp., Sumitomo Chemical Co., Ltd., Chevron Phillips Chemical Company, Indian Oil Corp Ltd, Formosa Petrochemical Corporation, DuPont de Nemours, Inc., and China Petroleum & Chemical Corporation.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In 2019, ExxonMobil, an American oil and gas company, and GAIL Ltd., the industry leader, engaged in a contract. This cooperation aims to supply natural gas to India’s power and transportation sectors.
• In 2019, In its U.S. facility, Shell Chemical LP began producing its fourth alpha olefins unit.
• In August 2021, SABIC announced a joint venture to construct a massive petrochemical complex in China with Fujian Petrochemical Industrial Group Co., Ltd. of China. The plant would be constructed at Gulei Industrial Park in Zhangzhou, in the Fujian Province of eastern China, for an estimated USD 6.18 billion. It will be able to produce 1.5 million tonnes of ethylene and will include two polyethylene units, two polypropylene units, one polycarbonate unit, one mono-ethylene glycol unit, and two polypropylene units.
• In July 2022, The Al-Hejailan Group of Saudi Arabia and the American chemical corporation Dow joined forces to create a Methyl Diethanolamine (MDEA) factory in Jubail, Saudi Arabia. Dow and Al-Hejailan would collaborate to fulfill the rising demand for natural gas purification in Saudi Arabia and the Middle East.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Petrochemical Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. The porter’s five forces model can be used to assess the competitive landscape in the Global Petrochemical Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

Report Scope

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