Petrochemicals Market Forecasts to 2028 – Global Analysis By Product (Benzene, Xylene), Application (Surfactants, Solvents, Polymers), End User, and By Geography

Petrochemicals Market Forecasts to 2028 – Global Analysis By Product (Benzene, Xylene), Application (Surfactants, Solvents, Polymers), End User, and By Geography

According to Stratistics MRC, the Global Petrochemicals Market is accounted for $469.73 billion in 2021 and is expected to reach $815.52 billion by 2028 growing at a CAGR of 8.2% during the forecast period. Petrochemicals are chemical substances made mainly from natural gas, coal, and oil. Petrochemical is a vital component for many industrial processes, and hence forms the backbone of an industrial economy. Products such as propylene, ethylene, benzene, and xylene are used in packaging, plastics, rubber, and electronics.

Market Dynamics:

Driver:

Increasing plastic consumption in developing economies

The main part of petrochemicals produced is consumed to manufacture plastics. The demand for such plastics increased for food and other commercial products, particularly in major end-use industries. The development will continue rising during the forecast period, particularly in developing countries. Plastic extends the shelf life of food, decreases food waste, and its low weight decrease fuel consumption when transporting goods. It offers economic benefits and can help in resource optimization, which is important in the growth of emerging economies. Consumer product demand is likely to increase in developing economies, due to the rising purchasing power of a major population segment. This is likely to increase plastic consumption, which will drive market growth.

Restraint:

Harmful effects caused by petrochemical products

Increasing health and environmental concerns over hazardous products in daily life may hamper the market growth. Because of the availability of information, the number of environmentally conscious consumers across the globe is rising. This is likely to support industries to offer environmentally sound consumer products. Petrochemicals such as benzene are not only toxic to the environment but have also been found to be carcinogenic in humans. Short-term exposure to this feedstock can cause narcosis, eye irritation, and skin irritation, while long-term exposure can cause serious health problems. Microplastics, which are formed because of the breakdown of macroscopic plastics, have a wide range of environmental impacts. This is likely to result in stricter health and environmental regulations limiting hazardous products.

Opportunity:

Increasing demand from the automotive industry

The usage of petrochemical products in the automotive sector is increasing owing to their mechanical properties. Automotive manufacturers are adopting advanced components in vehicle manufacturing. The automotive sector is continuously using innovative materials to reduce vehicle weight and achieve better fuel efficiency. Iron and steel are replaced by polymer and composite materials in the automotive sector which is further driving the market growth. Ethylene and polypropylene are used for manufacturing different components in the automotive industry. Polypropylene is used for neutralizing battery weight in electrical vehicles and is also used as an insulating material in interior design use. The growth in automotive and construction industries across many countries is positively impacting the market.

Threat:

Capital intensive environment

The cost of production is influenced by the availability and cost of raw materials, including coal and natural gas, as well as freight costs, capital costs, and government policies. The production of methanol using any carbon-based source is a capital-intensive process. The players must first identify the raw material to secure economical and uninterrupted supply for a long period. The construction of the plant also needs huge investments. The post phases, such as maintenance and installation of technology, among others, also require considerable capital. There are some political and environmental challenges as well, which are hindering market growth, such as exploitation of natural gas reserves in different regions and environmental issues associated with methanol when used as fuel.

The methanol segment is expected to be the largest during the forecast period

The methanol segment is estimated to have a lucrative growth owing to the high demand in several end-use industries such as construction, paints and adhesives, pharmaceuticals, plastics, and automotive. Methanol is utilized as a feedstock for producing acetic acid and formaldehyde, which are used in foams, adhesives, foams, solvents, plywood subfloors, and windshield washer fluids.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period due to the modern automobile industry highly dependent on petrochemicals for developing and manufacturing modern and efficient vehicles and significant properties such as flexibility, lightweight, and durability driving the usage of petrochemicals in the automotive industry.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to rapid growth in the infrastructural and automotive sector in the region, rapid industrialization along with the presence of developing nations, rising demand for construction products made up of plastics, growing health awareness applications, improving standards of living and competitive manufacturing costs.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period owing to the ongoing recovery of the overall manufacturing sector, increasing ethylene production in key countries, such as Germany, France, and the U.K. has led to the surged demand for petrochemicals from manufacturers to produce various industrial chemicals.

Key players in the market

Some of the key players profiled in the Petrochemicals Market include Mitsubishi Chemical Corporation, Total SA, China National Petroleum Corporation (CNPC), SABIC, Royal Dutch Shell PLC, Maruzen Petrochemical Co., Ltd, LyondellBasell Industries Holdings B.V., INEOS Group Ltd, Formosa Plastics, ExxonMobil Corporation, Dow Chemical Company, Reliance Industries Limited, Chevron Corporation, BASF SE, Sinopec Ltd and LG Chem.
Key Developments:

In June 2020, INEOS Group Ltd acquired BP’s global Aromatics & Acetyls business. INEOS is already one of the world’s leading petrochemical companies and this acquisition will extend both the portfolio and the geographic reach of the business.

In Aug 2019, China National Petroleum Corporation (CNPC) signed an agreement with the government of Benin for a crude oil pipeline from Agadem in Niger to Sèmè port in Benin. The more than 1,900km pipeline, including 687km in Benin, is the largest cross-border crude pipeline invested by CNPC in Africa.

Sources Covered:
• Fossil Fuels
• Renewable Sources
• Crude Petroleum

Type of Polymers Covered:
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)
• Polypropylene (PP)
• Polyethylene (PE)
• Polyester (PET)
• Acrylonitrile Butadiene Styrene (ABS)

Manufacturing Processes Covered:
• Catalytic Reforming
• Fluid Catalytic Cracking (FCC)
• Steam Cracking

Products Covered:
• Benzene
• Butylene
• Propylene
• Ethylene
• Xylene
• Toluene
• Styrene
• Methanol

Applications Covered:
• Paints and Coatings
• Surfactants
• Rubber
• Pigments and Dyes
• Fibers and Fabrics
• Adhesives and Sealants
• Solvents
• Polymers

End Users Covered:
• Transportation
• Building & Construction
• Textiles & Leather
• Pulp & Paper
• Energy & Power
• Packaging
• Medical & Healthcare
• Food & Beverages
• Electrical & Electronics
• Consumer & Industrial Goods
• Agriculture
• Power & Utilities
• Marine

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances