Petrochemicals Market Research Report Information By Type (Ethylene, Propylene, Butadiene, Benzene, Tolune, Xylene, Methanol, Others) Application (Adhesives and Sealants, Polymers, Paints and Coatings, Dyes, Surfactants, Rubber, Solvents, Others) End-Use Industry (Packaging, Automotive and Transportation, Building and Construction, Electrical and Electronics, Healthcare, Others) Forecast 2030

Petrochemicals Market Overview

The global petrochemicals market size is anticipated to reach USD 953.4 billion by 2030 at a CAGR of 8.06% during the forecast period.

The increasing use of polymers in the packaging and automotive industries is one of the major factors driving the growth of the global petrochemicals market. The rising demand for methanol across various end-use industries also ensures a stable revenue source in the global petrochemicals market. Additionally, the increasing demand for paints & coatings across various end-use industries is also contributing to the product market demand. In addition, the abundant availability of raw materials in the Middle East is supporting the global petrochemicals market to a significant extent. Moreover, the shift towards novel technologies such as coal to olefin process and methanol to olefin process is anticipated to create lucrative opportunities for the global manufacturers.

COVID-19 Impact on the Petrochemicals Market:

The rapid spread of COVID-19 is causing significant disruption to a wide range of industries across the globe. Some of the major petrochemical end-users include the packaging, automotive & transportation, building & construction, and electrical & electronics industries. As these industries come under essential services, the impact of COVID-19 was not as worse as other industries.

The outbreak of COVID-19 has significantly impacted the chemicals & materials supply chains, mining operations, international trade, and manufacturing processes across the world. As a result of a lockdown across geographies, the production facilities have faced disruptions. The market players have had to shut production facilities or operate the facilities below the optimal production capacities to prevent the spread of COVID-19. Plastics, the most well-known group of petrochemical goods, have outperformed all other bulk materials in terms of demand (such as steel, aluminum, or cement). More than half of ammonia is turned to urea, which is primarily utilized as a fertilizer to raise agricultural yields and food production worldwide. The industry value pool fell in 2019 due to major capacity increases and slower demand growth. The pandemic, which began in 2020, has accelerated this decline. The crucial need for developing the effective treatment for COVID-19 during the year 2020 resulted in high demand for chromatographic techniques, thus, having a positive impact on the global market.

In contrast, polyethylene players (which make products such as plastic containers for milk, motor oil, and shampoos) remained robust. On the other hand, several chemical manufacturers modified their existing factories to satisfy the rising demand for isopropyl alcohol and ethanol.

Market Dynamics

Drivers

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  Increasing use of polymers in the packaging and automotive industries: Petrochemicals are used as raw materials in the manufacturing of plastics in the packaging industry. The polyethylene that is produced from ethylene can be hard, soft, and pliable. Soft and pliable polyethylene is commonly used as a raw material for flexible packaging, which is often used for packaging and storing a wide range of products. However, hard polyethylene is used as a material for rigid packaging. With the increase in demand for flexible and rigid packaging, the demand for ethylene is expected to increase in the coming years, consequently boosting the demand for petrochemicals.

  
  

Restraints

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  Increasing environmental concern: Petrochemicals, when released into the environment, have a significant negative impact. These materials are usually olefins, aromatic compounds, alcohols, or hydrocarbon chains. Although petrochemicals are used as raw materials in innumerable products, they are hazardous to the ecosystem. Aromatic compounds present in the petrochemicals are the major source of environmental pollutants that may be introduced into the environment through industrial waste products, natural oil seeps, emissions, accidental spills from oil tankers, oil storage and coal tar processing waste, and petrochemical industrial effluents. Opportunity

  
  

Opportunities

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  Adoption of novel technologies: The petrochemical manufacturers across the globe are adopting novel technologies, such as coal to olefins (CTO), methanol to olefin (MTO), and shale gas technology, for producing olefins, instead of using valuable products such as naphtha as a raw material. CTO technology uses low-cost feedstock such as coal, which is a residue of the crude oil refining process, to derive olefins such as ethylene or propylene. MTO technology uses methanol, which is either derived from natural gas or coal, to produce olefins.

  
  

Challenges

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  Volatile raw material prices: The brent crude oil prices have risen notably between 2016–2021. Over the last 25 years, a sharp increase and decrease in prices have periodically affected the global crude oil market.

  
  

Segmentation

By Type

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  Ethylene

  
  


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  Propylene

  
  


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  Butadiene

  
  


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  Benzene

  
  


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  Tolune

  
  


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  Xylene

  
  


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  Methanol

  
  


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  Others

  
  

By Application

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  Adhesives and Sealants

  
  


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  Polymers

  
  


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  Paints and Coatings

  
  


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  Dyes

  
  


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  Surfactants

  
  


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  Rubber

  
  


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  Solvents

  
  


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  Others

  
  

By End-Use Industry

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  Packaging

  
  


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  Automotive and Transportation

  
  


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  Building and Construction

  
  


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  Electrical and Electronics

  
  


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  Healthcare

  
  


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  Others

  
  

By Region

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  North America

  
  


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  Europe

  
  


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  Asia-Pacific

  
  


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  Latin America

  
  


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  Middle East & Africa

  
  

Regional Analysis

The global petrochemicals market is projected to reach USD 953.4 billion by 2030 at a CAGR of 8.06%. The Asia-Pacific market accounted for the largest share, by value and volume, followed by the North America and Europe markets in 2021. The market in Asia-Pacific offers opportunities for growth to manufacturers and is slated to register the highest CAGR by 2030. This growth can be mainly attributed to the increase in government investments, expansion of production capacity, a collaboration of key players in the region, and high demand from end-use industries. Further, China emerged as one of the largest producers and consumers of petrochemicals. China’s investment has been majorly focused on coal-to-chemicals production and on-purpose propylene processes.

North America accounted for the second-largest market with a market share in 2021.  The growth in the North America petrochemical market is mainly attributed to the shale gas discoveries in the US and Canada, which has significantly increased the supply of natural gas liquids, transforming North America into a low-cost region for the production of chemicals. Furthermore, a large number of global companies are planning to expand and build new facilities in the region.

In Europe the growth can be mostly attributed to technological advancements, a well-developed petrochemical industry, and a large number of sophisticated refineries.

Competitive Landscape

Petrochemicals market is expected to register healthy growth throughout the forecast period. The market represents strong numbers in terms of consumption and is expected to grow year on year. Petrochemicals market is highly fragmented, with presence of numerous tier-1, tier-2, and unorganized players.

Some of the petrochemical industry companies are BASF SE (Germany), SABIC (Saudi Arabia), TOTAL (France), Indian Oil Corporation Limited (India), Chevron Phillips Chemical Company (US), BP PLC (UK), Sumitomo Chemical Company (Japan), Reliance Industries Limited (India), DowDuPont (US), Royal Dutch Shell PLC (The Netherlands).

Report Overview:

The Petrochemicals market is segmented by Type, application, End-Use industry, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Petrochemicals business and fast-growing segments, regions, and countries.

Objectives of the Study

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  To get a comprehensive overview of the global petrochemicals market

  
  


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  To get wide-ranging information about the key factors driving the market and market opportunities

  
  


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  To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments

  
  


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  To gain insights about the key country/region in which the market is growing

  
  

Intended Audience

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  Industrial sector

  
  


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  Chemical sector

  
  


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  Pharmaceutical industries

  
  


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  Agrochemical industries