Global Petrochemicals Market: Concerns Regarding Environmental Hazards of Petroleum-based Products to Drive Development of Bio-based Products, says TMR
The global petrochemicals market features a highly fragmented vendor landscape and is intensely competitive, with the top three vendors, namely BASF SE, Sinopec Limited, and The Dow Chemical Company collectively accounting for a mere 20% of the market in 2013, observes Transparency Market Research in a recent report. Operations of these top vendors are spread across the entire value chain in order to gain economies of scale and undertake production at low costs to sustain in the highly competitive market.
International firms are adopting the strategy of acquiring the several small manufacturers producing petrochemical derivatives in Asia Pacific and are expanding their existing production and operation bases in the region. ExxonMobil has recently increased the production capacity of its olefins and aromatic units in Singapore. BASF and Sinopec have also invested heavily in Asia Pacific through frequent joint ventures and mergers and acquisitions in the past few years.
Transparency Market Research estimates that the global petrochemicals market will exhibit a healthy single-digit growth rate over the report’s forecast period and expand from a valuation of US$635.9 bn in 2015 to US$885.1 bn by 2020.
China to Continue to be Leading Regional Market for Petrochemicals
Geographically, china emerged as the leading petrochemicals consumer and accounted for nearly 27% of the global market in 2013. The vast initiatives taken by the Chinese government and the healthy growth in end-use industries are expected to significantly drive the China petrochemicals market during the forecast period as well. Apart from being the leading consumer, China is also the market to witness the most significant growth for the petrochemicals industry, expanding at a CAGR of close to 7% over the forecast period.
Of the key products in the global petrochemicals market, the segment of ethylene presently leads, accounting for a massive chunk of revenues of the global market and is expected to continue to command a prominent position in the market over the forecast period as well. The segment of methanol will lead in terms of growth rate over the forecast period and witness a vast rise in its share in the global market by the end of the forecast period.
Mounting Demand from End-use Industries and Slew of Government Initiatives in Asia Pacific to Drive Market
Petrochemicals and their derivatives find extensive usage across industries such as packaging, construction, chemicals, automotive, and textiles. Emerging economies across Asia Pacific are leading to vast demand for products and services provided by these industries owing to improved standards of living and rise in disposable incomes of the population.
Apart from this factor, the market for petrochemicals is driven in the region owing to the vast initiatives taken by governments across countries such as India and China to encourage development in the petrochemicals industry. In India, for instance, Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) have been established to promote the growth of the country’s petrochemicals industry in domestic as well as international markets. Under this, special economic zones, export oriented units, industrial parks, free-trade, and warehousing zones have been established in the country.
Rising Global Demand for Environment-friendly Bio-based Chemicals to Arrest Market Growth
Rising concerns regarding the environmental hazards associated with petroleum-based petrochemicals is a key factor expected to hamper the overall development of the global petrochemicals market in the next few years. In addition to this, the volatile prices of petroleum-based petrochemicals have also compelled petrochemical companies to seek viable alternatives. The scenario has driven development across the bio-based petrochemicals sector in the past few years. Advancements in the field of biotechnology have also significantly enriched the field of bio-based chemicals and many new and highly viable bio-based chemicals have entered the global market.
Increased preference to these environment-friendly and economical alternatives will have a significant negative impact on the growth prospects of the global petrochemicals market in the next few years.
This review of the market is based on a Transparency Market Research report, titled “Petrochemicals Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014–2020.”
For the study, the market has been segmented as follows:
Petrochemicals Market: Product Segment Analysis
Petrochemicals Market: Regional Analysis
- North America
- Rest of Asia Pacific
- Middle East & Africa
- Latin America
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