Global Petrochemicals Market: Highlights

  • In terms of value, the global petrochemicals market is anticipated to expand at a CAGR over 4.0% from 2019 to 2027, and surpass the value of US$ 7 trillion by 2027.
  • The prominence of petrochemicals is estimated to expand at a robust pace in the next decade. Petrochemicals have been a crucial driver of global oil demand in the past decade. As per the projections by the International Energy Agency (IEA), petrochemicals are likely to contribute to over a third of the growth in oil demand by 2030.
  • China and The Middle East are likely to contour the future of petrochemicals market. Integration of fuels and chemicals production are likely to impact the economics of the downstream industry during forecast period. For instance, over 60% of expected investment in Chinese projects is in integrated capacity.
  • GCC petrochemical investments in 2019 exceeded US$ 140 Bn. A new era in industrial diversification is underway in Saudi Arabia with downstream growth figuring prominently. GCC producers are altering their refining and petrochemicals portfolios, with a focus on enhanced integration throughout the downstream value chain.
  • Of late, the switch to lighter chemical feedstocks has impacted the production of C4 chemicals and aromatics including: benzene, butadiene, and paraxylene. Several crude-oil-to-chemicals complexes are coming up in China by 2022 which are expected to focus heavily on producing aromatics.
global petrochemicals market

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Global Petrochemicals Market: Key Drivers and Restraints

  • Petrochemical producers are increasingly diversifying their portfolios, investing in new products and moving away from traditional commodity polymers towards specialties such as engineering plastics and elastomers.
  • With continued volatility in oil prices and the benefits from cheap feedstocks declining, petrochemical producers have had to explore new strategies and opportunities. As a result, they are likely to transition towards higher margin value added specialty chemicals during forecast period. 
  • The implementation of IMO bunker fuel regulations is expected to cast deeper impacts on the demand of petrochemicals by 2027.
  • Factors such as vehicle electrification and increased fuel efficiencies in new vehicles are likely to decrease petrochemical fuel demand. The strengthening regulatory frameworks by the governments across the globe to increase vehicle fuel efficiency and reduce carbon dioxide emissions are likely to pose significant challenges to global petrochemicals consumption by 2027.
  • Significant rise in the environmental issues is predicted to restrict the growth of the petrochemicals market in the near future. In addition to this, the increasing shift towards the development of the bio-based chemicals is another key factor projected to hamper the growth of the market in the coming years. Nevertheless, the rising use of coal and shale gas as one of the key feedstock for the production of petrochemicals is expected to encourage the growth of the global market in the next few years.

Global Petrochemicals Market: Key Segments

  • Based on product, the global petrochemicals market is broadly segregated into: ethylene, propylene, butadiene, benzene, xylene, toluene, vinyls, styrene and methanol
  • Ethylene is one of the largest-volume petrochemicals worldwide. Polyethylene, and ethylene oxide were the two largest outlets for ethylene in 2018, and are anticipated to follow the similar trend throughout the forecast period. Rise in demand for polyethylene is expected to be a key factor driving the demand ethylene by 2027. Ethylene oxide accounted for nearly 15% of the ethylene market in 2018.
  • Propylene is an important raw material for the production of organic chemicals such as polypropylene, acrylonitrile, propylene oxide, and oxo-alcohols. Demand for propylene is likely to expand at a CAGR close to 5% from 2019 to 2027.
  • Demand for C4 chemicals and aromatics segments such as benzene, xylene, and toluene is estimated to expand substantially during forecast period.

Asia Pacific Expected to be a Highly Lucrative Region of Global Petrochemicals market

  • In terms of value and volume, Asia Pacific constituted a major share of the global petrochemicals market in 2018 and the trend is projected to continue during the forecast period
  • Uncertainties brought about by an escalating trade dispute between the US and China, as well as economic and security concerns in certain regions, have cast a shadow over the global economy.
  • However, China alone is projected to account for a large share of new petrochemicals demand anticipated through 2027.
  • Middle East is expected to remain the low cost regime in the Industry 4.0 era for key petrochemicals. As per Saudi Vision – 2030, Saudi Arabia aims to reduce its reliance on oil and diversify its economy, which is believed to be a crucial opportunity to invest in domestic petrochemicals business.

Global Petrochemicals market: Competition Landscape

  • Major players operating in the global petrochemicals market include:
    • BASF SE
    • Shell Chemical Company
    • DuPont
    • Total S.A.
    • ExxonMobil
    • Sinopec Limited
    • Saudi Arabian Oil Co.
    • Sumitomo Chemical Co. Ltd.
    • Dow Inc.
    • Chevron Phillips Chemical Company LLC
    • LyondellBasell Industries.
  • The global petrochemicals market was highly fragmented in 2018 and the trend is projected to continue throughout the forecast period. The role of fostering partnerships across the entire value chain is likely to enhance the competitiveness of the global petrochemical market in the near future.

Global Petrochemicals Market: Overview

TMR’s recent publication on the global petrochemicals market provides audiences with an overall market outlook, with the help of comprehensive assessment of the global market scenario. TMR’s study on the global petrochemicals market analyzes the market with respect to the historical and current market scenario and offers forecast for the period from 2019 to 2027.

Report readers are able to make important decisions pertaining to their business with a wealth of information and exclusive insights on the global petrochemicals market enclosed in the study. The report on the global petrochemicals market also provides in-depth understanding of key market trends and advancement made by companies. This TMR report is divided into different sections to allow readers to gain individual understanding of the global petrochemicals market.

Key Queries Addressed in Report

  • How much revenue is expected to be generated in the global petrochemicals market by the products during the forecast period?
  • What are key growth indicators and market dynamics that are expected to drive the global petrochemicals market in the next five years?
  • Which regions are estimated to provide lucrative opportunities to the global petrochemicals market during the forecast period?
  • What are the essential strategies adopted by key players operating in the global petrochemicals market in order to expand their geographical presence?

The first section of the TMR’s report on the global petrochemicals market begins with a premise that includes report scope, market segmentation, and research highlights. This is followed by the executive summary that highlights aspects of the global petrochemicals market covered in the study. This section provides brief understanding of market elements and enables readers to understand the aspects covered in the study. The report also includes market dynamics on petrochemicals that offer understanding of market drivers, restraints, and opportunities.

The next section includes segmentation analysis of the global petrochemicals market. This evaluation includes segmentation of the global petrochemicals market based on product and region. Further, each product segment is bifurcated by its derivatives from 2018 to 2027. Furthermore, analysis of key segments, year-on-year growth projection, and basis point share analysis are included in the report. These help readers identify promising areas for growth of the market.

The TMR’s study on the global petrochemicals market offers assessment of the geographical landscape of the market. The regional study helps market competitors make important decisions pertaining to their business. Individualized, region-wise, and segment-wise analysis helps readers decipher the growth potential for the market across various geographies. Supported by year-on-year growth projection and global market value and volume share, this section is a vital part of the petrochemicals report.

The study on the global petrochemicals market offers a holistic competitive value judgment, with details of leading as well as emerging market players. The dashboard view of competitors operating in the global petrochemicals market allows readers to understand business strategies of these players along with their performance.

Global Petrochemicals Market: Research Methodology

The TMR’s report on the global petrochemicals market is based on detailed estimation of the market, with the inclusion of comprehensive primary and secondary research inputs. Detailed investigation of the global petrochemicals market, in terms of competition scenario, is supported by individual-level examination of different avenues related to the market. Furthermore, for secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the required understanding of the global petrochemicals market. This helps TMR’s analysts derive crucial predictions and forecast of the global petrochemicals market. Readers can access the study of the global petrochemicals market to gain projected market analysis for the period from 2019 to 2027.

Global Petrochemicals Market: Segmentation

Products

Ethylene

Propylene

Butadiene

Benzene

Xylene

Toluene

Vinyls

Styrene

Methanol

Region

North America

Europe

Asia Pacific

Latin America

Middle East & Africa

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