Petrochemicals Market

SKU: DMCH5608 | Last Updated On: Aug 11 2022 | Available Formats

Petrochemicals Market Expected to reach a high CAGR of 6% By 2029: DataM Intelligence

Petrochemicals Market is segmented By Type (Aliphatic, Aromatics, Inorganic, Synthesis Gas), By Raw Material (Crude Oil, Natural Gas, Liquids (NGLs), Coal, Others), By Manufacturing Process (Fluid Catalytic Cracking (FCC), Steam Cracking, Catalytic Reforming), By Distribution Channel (B2B, B2C, Others), By Application (Polymers, Solvents, Rubber, Paints & Coatings, Adhesives and Sealants, Surfactants, Dyes and Inks, Elastomers, Packaging, Cosmetics, Others), By End-User (Aerospace, Packaging, Agriculture, Automotive & Transportation, Building & Construction, Consumer & Industrial Goods, Electrical & Electronics, Healthcare, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Petrochemicals market size is estimated to reach USD million by 2029, growing at a CAGR of 6% during the forecast period 2022-2029. Chemical substances, primarily hydrocarbons, are used to make petrochemicals. These hydrocarbons come from natural gas and crude oil. Chemicals made from petroleum or natural gas are known as petrochemicals. As the need for synthetic materials rises steadily and plays a significant role in the economy and society of today, they are a vital component of the chemical industry. The feedstocks for the petrochemical industry are petroleum gases, naphtha, kerosene, and gas oil, among the numerous fractions produced by the distillation of crude oil. 

The other significant feedstock used in the petrochemicals sector includes ethane, propane, and natural gas liquids derived from natural gas. The development of the industrial sector and economic growth depend heavily on the petrochemical industry. The petrochemicals business has a larger value addition than most other industry sectors.

Market Dynamics

The worldwide petrochemicals market is anticipated to increase due to the strong growth of the automotive industry and the rising use of plastics. However, the expansion can be hampered by escalating environmental worries.

The rapidly expanding automotive industry 

Due to their mechanical qualities, petrochemical products are rapidly being used more in the building and automobile industries. Modern components are being used in car construction by automotive manufacturers. Innovative materials are frequently used in the automobile sector to lighten vehicles and improve fuel economy. A 10% reduction in the vehicle's overall weight can increase fuel efficiency by 6% to 8%. In the automotive industry, composite & polymer materials replace iron and steel, bolstering market expansion. 

The automotive industry uses polypropylene and ethylene to make a variety of components. In electrical automobiles, polypropylene is used to balance the weight of the battery, and it is also employed in interior design as an insulating material. The market is benefiting from the strong growth in the automotive and construction sectors throughout Asia-Pacific, Europe, and North America.

The growing usage of plastics

Oil and natural gas are used to develop 99 percent of all polymers. One of the most important petrochemicals used in the manufacture of plastics is naphtha. The production of plastics also uses other petrochemicals, including ethylene and propylene. The plastics market is driven by the shifting consumer lifestyle and the rising need for packaged goods.

Plastics are flexible, lightweight, and extremely durable materials in various industry verticals. The investigation by Plastics Europe indicates that about 370 million tonnes of plastics were produced globally. Production of plastics in Europe came very close to hitting 58 million tonnes. China produced over 30% of the plastics used in the world in 2018.

The rising environmental concerns

One of the well-known industries essential to many manufacturing sectors is the petrochemical one. Petrochemicals, however, generate a variety of chemical gases while being produced. These gases pollute the environment by releasing large amounts of hazardous compounds. The petrochemical industry is the primary source of greenhouse gases that cause global warming. Additionally, these substances are to blame for destroying the ozone layer, acid rain, and air pollution.

COVID-19 Impact Analysis

The COVID-19 epidemic is harming various businesses; the chemical industry was one of the few severely affected. It harmed the automotive and construction sectors, which has had a knock-on effect on the petrochemical sector. The two industries that employ petrochemical products the most are the building and automotive sectors.

However, the business is benefiting from demand for packaging and medicinal uses. One of the main elements that harm the cost of petrochemical materials is the decline in oil prices. COVID-19 influenced the petrochemicals market's worldwide supply chain. The global market's main issues are the slowdown in the shipping sector and the sharp decline in the number of seagoing vessels.

Petrochemicals Market Scope

Metrics

Details

Market CAGR

6%

Segments Covered

By Type, By Raw Material, By Manufacturing Process, By Distribution Channel, By Application, By End-User, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Segment Analysis

By end-user, the petrochemicals market is segmented into aerospace, packaging, agriculture, automotive & transportation, building & construction, consumer & industrial goods, electrical & electronics, healthcare, and others. 

The constant evolution of the automotive industry 

It is estimated that the automotive and transportation sector accounts for a sizeable portion of the global market. Petrochemicals are a key component of the current automotive industry's development and production of cutting-edge, energy-efficient vehicles. Petrochemicals are used a lot in the automobile sector because of their important qualities like flexibility, lightweight, and durability.

The compounds provide several benefits for the automobile sector, including lighter, more fuel-efficient, low-pollution, high-safety, and quicker assembly vehicles. Petrochemical composites are utilized in dashboards, interiors, tires, and body sections.

Geographical Analysis

The rapid growth of various end-use industries in Asia-Pacific

Due to the region's significant growth in the automotive and infrastructure sectors, Asia-Pacific is predicted to hold the highest share of the global petrochemicals market. The presence of emerging countries in the area and rapid industrialization are driving the expansion of the petrochemicals market. The biggest three businesses producing petrochemicals in the area are Reliance Industries Ltd, China Petrochemical Corp, and Indian Oil Corp Ltd. 

China and India are the two primary nations anticipating to produce the most petrochemicals. The Department of Chemicals & Petrochemicals of India estimates that India's plastics market is expanding at an average annual pace of 8.9 percent. By 2022–2023 and 2027–2028, it is anticipated to reach 24 million and 35 million tonnes, respectively. Additionally, they said that India has 1,53,500 plastic processing machines spread throughout 50,000 processing facilities.

Competitive Landscape 

Petrochemical product manufacturers frequently get into mergers, acquisitions, and joint ventures with powerful parties already active in the oil and gas industry. Companies hope to increase their consumer base at the lowest possible distribution cost through these operational linkages. A deal to build a pipeline from Niger to Benin was struck in 2019 by China National Petroleum Corporation and the government of Benin.

Major global petrochemicals market companies include BASF SE, Sinopec Shanghai Petrochemical Company Limited, INEOS, Formosa Plastics Corporation, LG CHEM, Mitsubishi Chemicals, Air Liquide S.A, PetroChina Company Limited, Evonik Industries, and Reliance Industries.

INEOS

Overview: An international chemical company is INEOS. The organization consists of 36 enterprises with 194 locations in 29 different nations. Along with several consumer brands, INEOS runs 36 distinct business units that serve the chemical and oil & gas industries. Several major financial groups have joined our chemical operations, including INEOS Group, INEOS Styrolution, INOVYN, and INEOS Enterprises.

Product Portfolio: With its divisions INEOS Acetyls and INEOS Aromatics, INEOS is already among the top global producers of petrochemicals.

With six locations, INEOS Aromatics is a world leader in PTA (Purified Terephthalic Acid) and PX (Paraxylene) technology and provides the polyester industry worldwide, which includes polyester fiber, film and PET packaging.

From its 9 locations, INEOS Acetyls produces acetic acid and various derivatives for various downstream sectors, including food, pharmaceuticals, paints, adhesives, and packaging.

Key Development: One of the biggest manufacturers in the world, INEOS, completed the US$5 billion acquisition of BP's global Aromatics and Acetyls businesses in January 2021. The purchase includes 15 locations (10 top joint ventures) spread across the globe (5 in the Americas, 2 in Europe, and 8 in Asia).

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