Petrochemicals comprise a diverse range of basic chemicals that are derived from petroleum and natural gas. Some of the major petrochemicals include ethylene, propylene, benzene, xylene, and butadiene. These basic petrochemicals serve as feedstock for many industries including plastics, synthetic fibers, detergents, paints, and adhesives. The increasing consumption of plastics and polymers in various end-use industries such as construction, automotive, packaging, healthcare, consumer goods etc. has been driving significant demand for petrochemicals globally.
The global petrochemicals market is estimated to be valued at US$ 565.55 Bn in 2023 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 major trends in the petrochemicals market is the shift towards production of bio-based feedstocks. Strict environmental regulations against plastic pollution and greenhouse gas emissions are encouraging petrochemical producers to explore alternative and more sustainable feedstock options. Companies are investing in R&D to produce basic petrochemicals from renewable resources such as sugars, starch, and vegetable oils. For instance, Brazilian company Braskem has developed a process to produce polyethylene and polypropylene from sugarcane ethanol. Such efforts aim to reduce reliance on fossil fuel-derived petroleum and help lower carbon footprint of petrochemical production.
Threat of new entrants: The petrochemicals industry requires large capital investments and economies of scale which pose significant barriers to entry.
Bargaining power of buyers: Buyers have moderate bargaining power as petrochemical products are basic inputs used across many industries.
Bargaining power of suppliers: A few oil and gas giants dominate crude oil and natural gas supply conferring them strong bargaining power over petrochemical producers.
Threat of new substitutes: There exists a low threat from substitutes for most petrochemical products as they are basic materials used across industries.
Competitive rivalry: The industry sees intense competition among major players to gain market share through capacity expansion and merger & acquisition activities.
The Global Petrochemicals Market Growth is expected to witness high during the forecast period of 2023 to 2030. The global petrochemicals market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region currently dominates the global petrochemicals market with China being the world’s largest petrochemical producer and consumer. The market is also witnessing strong growth in the Middle East & North Africa region led by capacity expansions in Saudi Arabia, UAE and Iran.
Key players: Key players operating in the petrochemicals market are Alcatel Submarin, Samsung Electronics, Apple, and Huawei. Alcatel Submarin is a leading provider of telecommunications solutions while Samsung Electronics, Apple and Huawei are major smartphone manufacturers globally.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it