The global Petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Petrochemicals are a widely used class of organic chemicals derived from petroleum, natural gas and coal that serve as building blocks or raw materials for various industrial products. They include industrial chemicals such as ethylene, propylene, benzene, xylene used to make plastics, synthetic fibers, lubricants etc.
Market key trends:
One of the key trends influencing the growth of the petrochemicals market is the increasing usage of plastics. Plastics production is growing rapidly owing to their lightweight, low cost and versatility. Plastics such as polyethylene and polypropylene are primarily used for packaging, consumer goods, automotive, construction and clothing. Global plastic production has increased from 245 million metric tons in 2016 to worldwide plastic production reaching 360 million metric tons in 2021. This growing demand for plastic from various end-use industries directly contributes to the increasing consumption of petrochemicals raw materials.
Market key trends:
The petrochemicals market has been witnessing increasing consumption of petrochemical derivatives such as plastics and polymers. There has been a rise in demand for plastics from the packaging industry. Polymers find wide application in manufacturing of various products such as consumer goods, automotive components, construction materials, etc. Rapid urbanization and growth in disposable income levels in developing economies are driving the sales of products and services that use petrochemical derivatives.
SWOT Analysis
Strength: Petrochemical industry provides raw materials to many crucial manufacturing sectors. Availability of crude oil and natural gas reserves globally gives competitive advantage.
Weakness: Volatility in crude oil prices poses challenge in planning and operations. Stringent environmental regulations raise production costs.
Opportunity: Growing polymers market presents major opportunity. Rising GDP and population in Asia Pacific and Middle East boost demand.
Threats: Shift toward green and sustainable chemicals threatens fossil fuels-based petrochemicals. Substitutes and alternative raw materials act as threats.
Key Takeaways
The global Petrochemicals Market Share is expected to witness high growth, exhibiting CAGR of 9.2% over the forecast period, due to increasing consumption of plastics and polymers across industries. Asia Pacific dominates the global petrochemicals market, driven by China and India with rapidly growing economies and manufacturing hubs. Key players operating in the petrochemicals market are BASF, SABIC, TOTAL, Indian Oil Corporation Limited, Chevron Phillips Chemical Company, BP PLC, Sumitomo Chemical Company, Reliance Industries Limited, DowDuPont, Royal Dutch Shell. The market size for 2023 is estimated to be US$ 565.55 Bn.
Key players such as Reliance Industries and Indian Oil are expanding capacities to leverage rising domestic demand from end use industries. China dominates the Asia Pacific region due to presence of large petrochemical complexes and shifting of production capacities from developed nations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it