ID: MRFR/CnM/2286-CR | February 2021 | Region: Global | 241 pages
According to MRFR, the Petrochemicals Market is poised to mature at a CAGR of 8.06% to reach around USD 943.5 Billion by the end of 2030. The petrochemical market's growth will be driven by the demand from the end-use industries for downstream products and by capacity additions in the base chemical industry.
Many companies in many industries rely on these products to operate. For example, in spite of all of the advances in terms of hybrid and electric cars and motor vehicles, most vehicles still operate using gasoline. The by-products of petrochemicals are also used in tires, detergents, industrial oils, plastics, fertilizers, and medical equipment/devices.
COVID-19 is to the 21st century what the Bubonic Plague and the Black Death were to the 5th and 14th centuries A.D. respectively - a dangerous game and destiny changer. The Bubonic Plague single-handedly pushed the world into the dark and middle ages. The Black Death pushed the world into the modern age. COVID-19 is rapidly pushing the world into the post-modern digital age.
Most people who got COVID-19 recovered just fine. It was a small minority of the people who got it that needed to be hospitalized and died from it. Governments realized this early on and this is why they imposed lockdowns and quarantines to try to stop the spread of the disease. This was temporary since they didn’t really work. Many companies in many industries were forced to either halt operations or slow production down dramatically. This negatively affected many companies in many industries.
The companies in the global petrochemical industry were no exception. They were forced to shut down production. Well, they were already facing a slowdown but the global lockdowns and quarantines that COVID-19 brought about only exacerbated this. Then there is the fact that more and more people are relying on renewable energy. This reduces the demand for petrochemical products. It is unclear if production levels will ever resume to pre-pandemic levels
The global petrochemicals industry is highly competitive. There are many reasons for this. One is because the market has a high CAGR. The second is because companies can see that there is a lot of money to be made in this market. That’s why many larger companies are entering the industry every year. They are not deterred by the high capital investment and other formidable barriers to entry. The larger companies have huge treasuries that can offset all of this.
In any case, companies are finding that they have to resort to intensive investments in research and development if they want to continue to stay competitive and profitable. The investments in research and development will allow them to develop and market better and petrochemicals products that are friendlier for the environment and have more innovative applications.
Companies are also finding that they can create a sustainable competitive advantage by entering into strategic partnerships with other successful companies. They can also merge with and acquire other successful companies. This increases the resources that they have to develop new products through extensive research and development.
DowDuPont is a major successful American company in the global petrochemicals industry. It has managed to survive and remain profitable by developing a sustainable competitive advantage through intensive research and development. This has allowed it to become an industry leader in many ways by allowing it to develop many newer products that are friendlier for the environment and have more innovative and useful applications. It can also justify charging higher prices for these new products.
There are certain petrochemical market trends that are driving growth. One of these is the growth in the companies in the base chemical sector that use petrochemical products for downstream products and capacity adds. More and more new technologies are being developed and used to process light crude oil and mixed crude oil. This will definitely increase the supply of various petrochemical products.
Also, the price of the raw materials needed to process various petrochemical products has stabilized. This is also expected to be a major growth driver.
Many end-user industries need advanced petrochemical products that are friendlier for the environment and have more innovative applications. The same is true for the rapidly expanding base chemical field. Some end-use industries that have more of a need for improved petrochemical products include aviation, building and construction, agriculture, food and beverage, electrical and electronics, healthcare, and automotive.
This is prompting many petrochemicals processors to develop new technologies to process the petrochemicals better into newer products that are easier on the environment and have more innovative and useful applications.
Many companies around the world are worried about the short and long-term effects that making and using plastic products will have on the environment. They are looking into alternative materials. Thus, the demand for plastics products has dropped considerably in recent years. The recession of 2020 only exacerbated this.
One of the biggest challenges that the global petrochemicals industry faces lie in dwindling supplies in the traditional and primary suppliers of petrochemicals products - North America and the Middle East.
The CAGR for the global petrochemicals industry is projected to be 8.06% by 2030. The global petrochemical market value is expected to be USD 943.5 billion by 2030.
DowDuPont is a major American player in the global petrochemicals industry. It has managed to become an industry leader by creating a sustainable competitive advantage through intensive investments in research and development. This allowed it to create a new generation of petrochemicals products with newer applications. These products were also friendlier for the environment.
The global petrochemicals industry can be grouped into the following sub-segments based on type:
The ethylene sub-segment currently has the greatest petrochemical market share. It was 26% in 2017. This is a petrochemical market trend that is expected to continue for the long term as well as the short term.
The global petrochemicals industry can be grouped into the following sub-segments based on application:
The polymers sub-segment currently has the greatest petrochemical market share in 2017. Its CAGR is projected to exceed 8% by 2027.
The global petrochemicals industry can be grouped into the following sub-segments based on end-use industry:
The packaging sub-segment had the greatest petrochemical market share at 32% in 2017. What’s largely accounting for this is the fact that the global packaging industry is using more petrochemicals products.
The global petrochemicals industry can be grouped into the following regions:
The Asia-Pacific region has the highest growth rate of all of the regions in the world. It also has the highest market share at 51.5% in 2017. What is largely accounting for this is the fact that most economies in the region are rapidly developing and urbanizing. Most notably, the economies of India and China are experiencing rapid urbanization and industrialization. Both India and China are among the world’s largest manufacturers and exporters of various petrochemicals products.
There are two major reasons why the petrochemicals sector is expanding rapidly in India and China. The first is because the transportation sectors in these two nations are developing at breakneck speed. The second is because the electrical and electronics sectors are growing rapidly, especially in China.
The building and construction industries are seeing rapid growth. This is mainly because there is rapid economic growth and industrialization in these two nations. Both industries will need to use more petrochemicals products as they expand rapidly.
North America has huge petrochemical reserves, especially in the United States of America. This is expected to drive significant growth and increase the market value substantially during the period that this report covers. Also, several end-use industries have a voracious appetite for petrochemical products. This is also expected to drive growth in the industry.
The European Union will also see significant growth. The reason for this is because various industries are starting to use petrochemicals products much more often. These industries include food and beverages, automotive, building and construction, and healthcare.
The Middle East and North Africa will see substantial growth because many of its industries have a growing demand for petrochemical products. Also, the world’s major oil reserves are in this region.
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||BASF SE (Germany), SABIC (Saudi Arabia), LyondellBasell Industries Holdings B.V. (The Netherlands), TOTAL (France), Indian Oil Corporation Limited (India), Chevron Phillips Chemical Company (US), BP PLC (UK), Sumitomo Chemical Company (Japan), Reliance Industries Limited (India), China National Petroleum Corporation (China), DowDuPont (US), Royal Dutch Shell PLC (The Netherlands), China Petroleum & Chemical Corporation (China)|
|Key Market Opportunities||Adoption of Petrochemicals in Numerous End-Use Industries Boosts the Market|
|Key Market Drivers||Growing Technological Advancements Drives the Market Growth|
Frequently Asked Questions (FAQ) :
The Asia-Pacific region
BASF SE (Germany), SABIC (Saudi Arabia), LyondellBasell Industries Holdings B.V. (The Netherlands), TOTAL (France), Indian Oil Corporation Limited (India), Chevron Phillips Chemical Company (US), BP PLC (UK), Sumitomo Chemical Company (Japan), Reliance Industries Limited (India), China National Petroleum Corporation (China), DowDuPont (US), Royal Dutch Shell PLC (The Netherlands), China Petroleum & Chemical Corporation (China)