Petrochemicals include organic chemicals produced from fossil fuels including oil, coal and natural gas. They find application in construction industry, packaging sector, automotive industry, chemical industry among others. Petrochemicals are essential raw materials for plastic and rubber production. Rapidly growing demand for plastic and rubber from consumer goods, automotive and construction industries is expected to boost the consumption of petrochemicals.
The global Petrochemicals Market is estimated to be valued at Us$ 565.55 Bn in 2024 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the growth of the petrochemicals market is increased plastic demand. Plastics find application across various industries owing to their desirable properties such as durability, lightweight and resistance to corrosion. Rapid urbanization along with rising disposable incomes in developing countries is propelling the demand for packaged and processed food, which in turn is increasing plastic consumption. Growing plastic production is anticipated to boost consumption of petrochemical feedstock. According to statistics, global plastic production has increased from around 245 million tons in 2017 to approximately 370 million tons in 2020. This substantial rise in plastic demand will continue to provide a boost to the petrochemicals market over the forecast period.
Segment Analysis
Petrochemicals are synthetic materials made from petroleum and natural gas. The petrochemicals market is dominated by organic chemicals which account for over 40% of the market share. Organic chemicals like polyethylene, polypropylene, benzene, ethylene oxide, methanol, and xylene see widespread application in plastics, fibers, rubber products and solvents. With plastics being the biggest end-use segment, polymers and plastics account for the lion's share of the organic chemicals segment. Their use across industries like packaging, consumer goods, construction, automotive has been steadily rising, driving the demand for organic chemicals.
Key Takeaways
The Global Petrochemicals Market Demand is expected to witness high growth over the forecast period. The global Petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
Regional analysis:
Asia Pacific currently dominates the global petrochemicals market with over 50% share. China leads demand in the region owing to its large manufacturing sector and continued government support for infrastructure development. Other Asian countries like India and Southeast Asian nations are also rapidly industrializing which is boosting petrochemical consumption.
Key players analysis:
Key players operating in the petrochemicals market are Alcatel, SABIC, Shell Nederland Raffinaderij BV, Exxon Mobil Corporation, BASF SE, LyondellBasell Industries Holdings B.V., INEOS AG, Sumitomo Chemical Co. Ltd., and Dow. These companies are investing in expanding production facilities as well as acquiring other petrochemical companies to grow their market reach. Collaboration and mergers along the value chain have also increased with companies integrating operations across areas such as refining, chemical production and product manufacturing. This is helping players improve efficiencies and better serve consumer demand.
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