Petroleum Liquid Feedstock Market Forecasts to 2030 – Global Analysis By Type (Gas Oil, Heavy Naphtha, Light Naphtha and Other Types), Product (Naphthalene, Benzene, Hexane, Propylene, Ethylene and Other Products), Application and By Geography

Petroleum Liquid Feedstock Market Forecasts to 2030 – Global Analysis By Type (Gas Oil, Heavy Naphtha, Light Naphtha and Other Types), Product (Naphthalene, Benzene, Hexane, Propylene, Ethylene and Other Products), Application and By Geography According to Stratistics MRC, the Global Petroleum Liquid Feedstock Market is accounted for $313 billion in 2023 and is expected to reach $477 billion by 2030 growing at a CAGR of 6.2% during the forecast period. A crude resource called petroleum liquid feedstock is utilized in the industrial process to produce energy. It alludes to liquid raw materials that are processed into more valuable goods at petrochemical plants and refineries. The production of petroleum liquid feedstock involves refining oil, coal, and wood to obtain a mixture of highly unstable and flammable hydrocarbons.

Market Dynamics:

Driver:

Growing demand for energy globally

Due to population growth, urbanization, and industrialization, energy consumption is constantly increasing, especially in developing economies. The production of petroleum liquid feedstocks, such as crude oil and its derivatives, is essential for supplying the world's growing demand for energy. These raw materials are employed in a variety of industrial operations, including power production, and transportation fuels. Demand for petroleum liquid feedstocks is driven by the expanding world's energy requirements.

Restraint:

Price volatility for crude oil

Due to factors like supply-demand inconsistencies, global economic conditions, and geopolitical tensions, crude oil prices are subject to substantial swings. The profitability and investment choices of businesses operating in the petroleum liquid feedstock industry may be impacted by the volatility in crude oil prices. Price patterns that are uncertain can discourage long-term investments and undermine market stability.

Opportunity:

Technological developments

Exploration, extraction, and refining procedures have advanced technologically, making it feasible to find and produce petroleum liquid feedstocks from unconventional sources. Drilling innovations like horizontal drilling and hydraulic fracturing (fracking) have expanded the supply of petroleum liquid feedstocks by unlocking large quantities of shale gas and oil. These scientific developments help the market for petroleum liquid feedstock expand.

Threat:

Policies and Regulations of the Government

Governments across the world are enacting laws and policies to cut carbon emissions, support renewable energy, and make the switch to cleaner energy sources. Stricter emission limits, requirements for renewable energy, carbon pricing schemes, and subsidies for alternative energy sources can all be part of these rules. Such regulations may affect the market for petroleum liquid feedstocks and encourage businesses to look into alternate energy sources.

Covid-19 Impact:

Due to lower demand in the first quarter of 2020 as a result of COVID-19's outbreak, the oil and gas industry has suffered. There is less movement and significantly less interest in oil and gas when countries are in lockdown. Due to social distance policies that caused a disruption in transportation services, the market's value chain has been broken. The proliferation of the coronavirus has hampered the demand and supply markets.

The light naphtha segment is expected to be the largest during the forecast period

Light Naphtha segment is expected to be the largest during the forecast period. At refineries, light naphtha is directly incorporated into gasoline. Its paraffin content is higher than that of heavy naphtha, and its boiling point ranges from 35 to 130 degrees Celsius. It also contains a lot of naphthenes and aromatics. Additionally, the Light Naphtha contains heavy paraffinic naphtha, which cannot be reformated. Steam crackers use light naphtha as a petrochemical feedstock to create ethylene, which is ultimately used to create plastics. In this application, it competes as a feedstock with ethane and propane.

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

Industrial solvents segment is estimated to witness lucrative growth over the projection period. Industrial solvents can cause air pollution and pose threats to human health and the environment, especially those that include volatile organic compounds (VOCs). Solvent VOC emissions have prompted regulatory actions intended to limit their release into the atmosphere. The use of solvents with lower VOC content has been encouraged by governments and businesses, which have also explored alternatives, including water-based or solvent-free formulations.

Region with largest share:

North America commanded the largest share over the forecast period. The region's demand for petroleum liquid feedstock is rising as a result of the increase. The rise of the petrochemical sector has been fueled by an increase in the usage of petrochemical products in end-use industries including construction, plastics, transportation, and other areas. The production and processing of aromatics is one of the main uses of petroleum liquid feedstock. Due to their increased use as feedstock for several products, aromatic products like xylene, benzene, and toluene are in high demand from a variety of end-use sectors including the chemical industries.

Region with highest CAGR:

Asia Pacific is witnessed to have highest CAGR. In this region, the transportation industry primarily drives the demand for petroleum liquid feedstock. While state and federal regulations in India continued to support the use of biofuels in 2020, the proportion of biofuels in the country's total supply of liquid transportation fuels is still very small. Additionally, the market for petroleum liquid feedstock grows in industrialized regions due to the rise of electric vehicles.

Key players in the market

Some of the key players in Petroleum Liquid Feedstock market include Idemitsu Kosan Co., Ltd, Reliance Industries, Chevron Phillips Chemical Company, Royal Dutch Shell Plc, British Petroleum, Flint Hills Resources, China Petroleum And Chemical Corporation, Exxon Mobil Corporation, Total S.A., China National Petroleum Corporation and Shell.

Key Developments:

In August 2023, Reliance Industries may invest around Rs 14,000 crore in subsidiaries, JVs in FY24. RIL proposes to provide support to Alok Industries (AIL) through investment in securities, loans & advances and guarantees from time to time to enable AIL to meet its funding requirement, the Mukesh Ambani-promoted company mentioned in its report on material related party transactions.

Types Covered:
• Gas Oil
• Heavy Naphtha
• Light Naphtha
• Other Types

Products Covered:
• Naphthalene
• Benzene
• Hexane
• Propylene
• Ethylene
• Other Products

Applications Covered:
• Adulterant to Petrol
• Cleaning Fluids
• Industrial Solvents
• Other Applications

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 2021, 2022, 2023, 2026, and 2030
- 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