Petrochemicals Market - Forecast(2024 - 2030)

Report Code: CMR 1367 Report Format: PDF + Excel

Petrochemicals Market Overview

Petrochemicals market size is forecast to reach US$575.1 billion by 2026, after growing at a CAGR of 4.1% during 2021-2026. Petrochemicals are a set of chemical compounds derived from different chemicals such as hydrocarbon liquids. They are also obtained from different sources such as petroleum, natural gas, coal, and coke among others. Petrochemical companies follow fluid catalytic cracking (FCC) process to manufacture different petrochemical products. The petrochemical industry plays an important role in the economic growth and development of the manufacturing sector. The flourishing industrial and manufacturing sector is the prime growth driver of the petrochemicals market. The growing demand from end-use industries such as aerospace, automotive, construction, and healthcare among others is supporting the market growth between the forecast period. Also, easy availability of raw materials and favorable regulatory policies are anticipated to play a key role in driving the petrochemicals market during the forecast period. However, the increasing environmental concerns over the usage of petrochemicals along with the fluctuating raw material prices are likely to hamper the market growth during the forecast period.

COVID-19 Impact

The COVID-19 pandemic is crippling different industries; one of the few industries that were largely hit to some extent was the chemical industry. Due to the Covid-19, the construction and automotive industry is impacted very badly which further affected the petrochemical industry. The automotive and construction industries are the major end-users of petrochemical products. However, demand from packaging and medical applications is helping the industry positively. The drop in oil prices is one of the major factors negatively impacting the prices of petrochemical materials. The covid-19 impacted the global supply chain of the petrochemicals market. The slowdown in the shipping industry and the drastic decrease in the number of seaborne vessels are the key challenges in the global market.

Report Coverage

The report: “Petrochemicals Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Petrochemicals Industry.

By Source: Crude Petrol, Fossil Fuels (Natural gas, Coal), and Renewable Sources.
By Type: Olefin (Ethylene [Polyethylene, Ethanol, Ethylene Oxide, Vinyl Acetate, and Ethylene Dichloride or 1,2-dichloroethane], Propylene [Isopropyl Alcohol, Acrylonitrile, Polypropylene, Propylene Oxide, Acrylic Acid, and Allyl Chloride], Butylene [Isobutylene, and 1,3-butadiene], Higher Olefins [Polyolefins, Alpha-olefins, and Others]), Aromatics (Benzene [Ethylbenzene, Cumene, Cyclohexane, Nitrobenzene, Alkylbenzene, and Chlorobenzene], Toluene [Toluene diisocyanate, and Benzoic acid], Mixed Xylenes [Ortho-Xylene, Meta-Xylene, and Para-xylene]), and Methanol (Formaldehyde, Gasoline, Acetic acid, MTBE, Dimethyl ether, MTO/MTP, and Other).
By Application: Polymers, Paints & Coatings, Solvents, Rubber, Adhesives & Sealants, Surfactants, Pigments & Dyes, Fibers & Fabrics, and others.
By End-Use Industry: Packaging, Transportation (Automotive, Aerospace, Locomotive, and Marine), Building & Construction (Residential Construction, Commercial Construction, and Infrastructure), Electrical & Electronics, Medical & Healthcare, Textiles & Leather, Food & Beverage, Agriculture, Energy & Power, Pulp & Paper, and others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa).

Key Takeaways

  • The Asia Pacific region will lead the petrochemicals market during the forecast period, owing to the increasing demand from construction and automotive industries. China is expected to be the prominent consumer in the region.
  • Petrochemicals help automobile manufacturers to develop lightweight components. These components developed from petrochemicals offer various properties such as durability, and high strength among others. This, in turn, helps in pollution control. The usage of petrochemicals enables the enhancement of the safety aspects of automobiles. 
  • Furthermore, the development of advanced and new technologies such as light crude and mixed crude is also driving the market growth. 
  • Petrochemicals are obtained from crude oil and natural gas. They are widely preferred as chemical building blocks in different applications.

Figure: Asia Pacific Petrochemicals Market Revenue, 2020-2026 (US$ Billion)

Petrochemicals Market Revenue

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Petrochemicals Market Segment Analysis - By Type

Based on the type analysis, the market is categorized into olefins, aromatics, and methanol. The ethylene segment of olefins will be the dominating type in the global market and is estimated to grow at a significant CAGR of 3.8% during the forecast period. Ethylene is widely used in the synthesis of various derivatives such as ethylene oxide, ethylbenzene, and ethyl dichloride. These derivatives are majorly preferred in the construction, and packaging industries. The growing demand for lightweight plastics and lightweight components in the automotive sector is positively supporting the ethylene type. Ethylene is a primary compound used for manufacturing plastic. They are extensively used to develop food packaging, bottles, bags, and other plastics-based goods. The propylene segment will register a significant share during the forecast period, owing to its superior mechanical properties and moldability. Injection-molded polypropylene is extensively used in the electronics manufacturing industry. Propylene finds its applications in housewares, bottle caps, toys, and luggage among others. Propylene is used in making acrylics, rubbing alcohol, epoxy glue, and carpets among others.

Petrochemicals Market Segment Analysis - By End-Use Industry

Based on the end-use industry, the market is segmented into packaging, transportation, building & construction, electrical & electronics, medical & healthcare, and food & beverage among others. The building & construction segment accounted for 25% of the market share in 2020 and is estimated to grow significantly during the forecast period. The rapid growth in construction activities in emerging economies are driving the market growth Growing preference for modern paints & coatings among builders is boosting the market growth. According to the data published by U.S. Census Bureau, construction spending in 2019 topped US$1.3 trillion. The Indian government allocated approximately US$24.27 billion in the Union budget 2020-2021 for the development of transport infrastructure. The automotive and aerospace segments also hold a significant share in the global market. The modern automobile industry is highly dependent on petrochemicals for developing and manufacturing modern and efficient vehicles. The significant properties such as flexibility, lightweight, and durability are driving the usage of petrochemicals in the automotive industry. The chemicals offer various advantages in the automotive industry including, reduction in vehicle weight, fuel-efficient, low pollution rate, high safety, and cutting down assembly time among others. Petrochemical composites are used in body parts, tires, interiors, and dashboards.

Petrochemicals Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the petrochemicals market in 2020 up to 50%, owing to the rapid growth in the infrastructural and automotive sector in the region. Rapid industrialization along with the presence of developing nations in the region are also supporting the market growth for petrochemicals. Reliance Industries Ltd, China Petrochemical Corp, and Indian Oil Corp Ltd are the top three companies involved in the production of petrochemicals in the region. Based on the research analysis China and India are two the major countries that occupy the maximum share in petrochemicals production. According to the Department of Chemicals & Petrochemicals of India, the demand for plastics in India is growing at an average rate of 8.9%. It is also expected to reach 24 Million Ton by 2022-23 and 35 Million Ton by 2027-28. They also mentioned that there are approximately 50,000 processing units with 1,53,500 plastics processing machines in India.

Petrochemicals Market Drivers:

Growing demand from the automotive industry

The usage of petrochemical products among the automotive and construction sectors are increasing gradually due to their mechanical properties. Automotive manufacturers are adopting advanced components in vehicle manufacturing. The automotive industry is constantly using innovative materials to reduce vehicle weight and achieve better fuel efficiency. Approximately 10% reduction in total vehicle weight can improve fuel economy by 6%-8%. Iron and steel are replaced by polymer and composite materials in the automotive sector which is further supporting the market growth. Ethylene and polypropylene are used for manufacturing different components in the automotive industry. Polypropylene is used for neutralizing battery weight in electrical vehicles and is also used as an insulating material in interior designing use. The significant growth in automotive and construction industries across the Asia Pacific, Europe, and North America is positively impacting the market. According to a research paper, in 2020 approximately 71 million motor vehicles were manufactured globally. China occupied 1st position in the global passenger car manufacturing and manufactured approximately 21 million passenger cars in 2020. The European Union exported EU 110 billion worth of passenger cars between January and November 2020. 

Growing usage of plastics

99% of all plastics are developed from oil and natural gases. Naphtha is one of the most important of all the petrochemicals used in the production of plastics. Other petrochemicals such as ethylene, propylene are also used in the manufacturing process of plastics. The changing lifestyle along with the growing demand for packaged goods are driving the market for plastics. Plastics is a versatile, lightweight, flexible, and highly durable material used among different industry verticals. According to the PlasticsEurope analysis, the global plastics production reached 360 million tonnes in 2018 and the European plastics production reached 62 million tonnes. In 2018 China occupied approximately 30% of the world's plastics production. 

Petrochemicals Market Challenges:

Growing environmental concerns

The petrochemical industry is one of the prominent industry plays a vital role in various manufacturing sectors. However, petrochemicals release various chemical gases during the manufacturing process. These gases release a high quantity of toxic substances into the environment and polluting nature. The petrochemical industry is the major source of the greenhouse gases responsible for global warming. These chemicals are also responsible for ozone layer depletion, acid rain, and air pollution.

Petrochemicals Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the petrochemicals market. Major players in the petrochemicals market are BASF SE, Petro China Company Limited, Total S.A, DuPont de Nemours, Inc, Saudi Arabian Oil Co, Exxon Mobil Corp, Chevron Phillips Chemical Company, China Petroleum & Chemical Corporation., Mitsubishi Chemical Corporation, Sumitomo Chemical Co., Ltd., INEOS, Dow, and LyondellBasell Industries NV among others

Acquisitions/Technology Launches

  • In February 2021, INEOS acquired BP’s global Aromatics & Acetyls business for USD 5 billion.
  • In 2019, China National Petroleum Corporation signed an agreement with the Benin government to construct a pipeline from Niger to Benin.

Relevant Reports

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1.  Petrochemicals Market - Overview
    1.1 Definitions and Scope 
2. Petrochemicals Market - Executive Summary
    2.1 Key Trends By Source
    2.2 Key Trends by Type
    2.3 Key Trends by Application
    2.4 Key Trends by End Use Industry
    2.5 Key Trends by Geography
3. Petrochemicals Market – Comparative analysis 
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Petrochemicals Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Petrochemicals Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Petrochemicals Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes 
7. Petrochemicals Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies 
8. Petrochemicals Market – By Source (Market Size -$Million/Billion)
    8.1 Crude Petroleum
    8.2 Fossil Fuels
        8.2.1 Natural Gas
        8.2.2 Coal
    8.3 Renewable Sources
9. Petrochemicals Market – By Application (Market Size -$Million/Billion)
    9.1 Polymers
    9.2 Paints & Coatings
    9.3 Solvents
    9.4 Rubber
    9.5 Adhesives & Sealants
    9.6 Surfactants
    9.7 Pigments & Dyes
    9.8 Fibers & Fabrics
    9.9 Others 
10. Petrochemicals Market – By Type (Market Size -$Million/Billion)
    10.1 Olefins
        10.1.1 Ethylene
   Ethylene Oxide
   Vinyl Acetate
   Ethylene Dichloride or 1,2-dichloroethane
        10.1.2 Propylene
   Isopropyl Alcohol
   Propylene Oxide
   Acrylic Acid
   Allyl Chloride
        10.1.3 Butylene
        10.1.4 Higher Olefins
    10.2 Aromatics
        10.2.1 Benzene 
        10.2.2 Toluene
   Toluene diisocyanate 
   Benzoic acid
            10.2.3 Mixed Xylenes
    10.3 Methanol
        10.3.1 Formaldehyde
        10.3.2 Gasoline
        10.3.3 Acetic acid
        10.3.4 MTBE
        10.3.5 Dimethyl ether
        10.3.6 MTO/MTP
        10.3.7 Other
11. Petrochemicals Market – By End Use Industry (Market Size -$Million/Billion)
    11.1 Packaging
    11.2 Transportation
        11.2.1 Automotive
        11.2.2 Aerospace
        11.2.3 Locomotive
    11.2.4 Marine
    11.3 Building & Construction
        11.3.1 Residential Construction
        11.3.2 Commercial Construction
        11.3.3 Infrastructure
    11.4 Electrical & Electronics
    11.5 Medical & Healthcare
    11.6 Textiles & Leather
    11.7 Food & Beverage
    11.8 Agriculture
    11.9 Energy & Power
    11.10 Pulp & Paper
    11.11 Others 
12. Petrochemicals Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
   Saudi Arabia
   Rest of the Middle East
        12.5.2 Africa
   South Africa
   Rest of Africa
13. Petrochemicals Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Petrochemicals Market – Market Share Analysis Premium 
    14.1 Market Share at Global Level - Major companies
    14.2 Market Share by Key Region - Major companies
    14.3 Market Share by Key Country - Major companies
    14.4 Market Share by Key Application - Major companies
    14.5 Market Share by Key Product Type/Product category - Major companies
    14.6 Company Benchmarking Matrix - Major Comapnies 
15. Petrochemicals Market – Key Company List by Country Premium Premium 
16. Petrochemicals Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more