Petrochemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol), By Application (Aerospace, Agriculture, Automotive, Building & Construction, Consumer & Industrial Goods, and Others), By Region and Competition, 2019-2029F

  • Industry : Chemicals
  • Pages : NA
  • Published Date : NA
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Summary

Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 534.24 Billion

Market Size (2029)

USD 711.89 Billion

CAGR (2024-2029)

4.86%

Fastest Growing Segment

Building & Construction

Largest Market

Asia Pacific

Market Overview

Global Petrochemicals Market was valued at USD 534.24 billion in 2023 and is anticipated to project steady growth in the forecast period with a CAGR of 4.86% through 2029. The increasing demand for the product can be attributed to a substantial rise in the demand for downstream products from various end-use industries such as construction, pharmaceuticals, and automotive. This surge in demand is a major factor driving the growth of the industry. Petrochemicals, being a vital component for many industrial processes, form the backbone of an industrial economy.

Petrochemicals play a crucial role in the manufacturing of various products such as tires, industrial oil, detergents, plastics, and more. In fact, basic plastics derived from petrochemicals act as fundamental building blocks in the production of consumer goods. This highlights the significant impact and widespread application of petrochemical derivatives across industries.

To ensure a stable and seasonal supply of petrochemical derivatives, end-use industries closely monitor and evaluate the quality of products supplied. They establish procurement agreements with suppliers to purchase these derivatives in bulk, thereby leveraging their bargaining power in the market. The presence of a growing number of product suppliers has also contributed to the high bargaining power of buyers.

The industry is highly influenced by the prices of crude oil, which serves as a basic raw material for the manufacturing of petrochemicals. The volatility in crude oil prices and supply directly affects the production cost of petrochemicals, making their production process relatively expensive. The market growth of petrochemicals may face challenges due to factors such as the growing consumer inclination towards environment-friendly products in developed and developing regions. Additionally, the volatile prices of raw materials used in petrochemical production are likely to impact the market in the coming years.

Key Market Drivers

Growing Demand of Petrochemicals in Automotive Industry

Petrochemicals are chemical products derived from petroleum and other hydrocarbons like natural gas. They undergo various refining processes to obtain different compounds that are used in a wide array of applications in the automotive industry. These versatile substances play a crucial role in manufacturing synthetic materials, rubber tires, plastics, solvents, lubricants, and fuels.

In the realm of automotive manufacturing, petrochemicals have emerged as integral components in producing lightweight, durable, and high-performance automotive parts. Take plastics, for example, which are extensively used in vehicle interiors, exteriors, and under-the-hood components. These plastics, derived from petrochemicals, not only contribute to weight reduction but also enhance fuel efficiency. Additionally, synthetic rubber, another significant product of petrochemicals, plays a crucial role in manufacturing tires that offer superior performance and longevity on the road.

The demand for petrochemicals in the automotive industry has been steadily increasing, driven by several factors. Firstly, the continuous rise in global vehicle production to meet the growing consumer demand necessitates an increased supply of petrochemical products. Secondly, the automotive industry's ongoing pursuit of vehicle light weighting to enhance fuel efficiency and reduce greenhouse gas emissions has led to a surge in the utilization of petrochemical-derived plastics and composites.

Also, the shift towards electric vehicles (EVs) has also had a positive impact on the petrochemicals market. EVs require a higher proportion of plastic components compared to conventional cars due to their battery systems and lighter overall weight requirements. As a result, the demand for petrochemical products used in the manufacturing of these components has witnessed a significant upswing. Petrochemicals have become indispensable in the automotive industry due to their diverse applications and contributions to light weighting, fuel efficiency, and overall performance. The industry's growth, coupled with the increasing demand for sustainable and innovative automotive solutions, further emphasizes the vital role that petrochemicals play in shaping the future of automotive technology.

Growing Demand of Petrochemicals in Agriculture Industry

Petrochemicals are chemical products derived from petroleum and other hydrocarbons, such as natural gas. In the agriculture sector, they play a crucial and multifaceted role in improving crop yields and overall farm productivity. Their key applications include the production of fertilizers, pesticides, herbicides, and agricultural plastics, which contribute to various aspects of modern farming practices.

Fertilizers produced from petrochemicals, such as nitrogenous and phosphate fertilizers, are essential for promoting plant growth and enhancing soil fertility. By providing essential nutrients to plants, these fertilizers ensure optimal growth and help replenish nutrient-depleted soils, resulting in healthier and more abundant harvests.

Petrochemical-based pesticides and herbicides are integral to protecting crops from pests and weeds. By effectively combating harmful insects, diseases, and unwanted vegetation, these products safeguard the health and well-being of crops, leading to higher quality yields.

Agricultural plastics, another valuable product of petrochemicals, find extensive use in various farming practices. They are employed in the creation of greenhouse covers, mulch films, and irrigation systems, which contribute to improved crop quality, increased agricultural productivity, and efficient water usage. These plastics help create controlled farming environments, shielding crops from adverse weather conditions, optimizing temperature and humidity, and promoting optimal growth conditions.

The demand for petrochemicals in the agriculture industry has been steadily growing, driven by several factors. Firstly, the continuous growth of the global population has led to increased food demand, necessitating more efficient and productive farming practices. Petrochemical products enable farmers to optimize their operations and achieve higher yields to meet these growing food requirements.

Climate change and its impact on crop yields have prompted farmers to embrace advanced farming techniques that often rely on the use of petrochemicals. Agricultural plastics, for instance, are increasingly employed to create controlled environments that can withstand extreme weather conditions, safeguarding crops and ensuring their optimal growth. There is a growing awareness about sustainable farming practices, leading to the development and use of more efficient and environmentally friendly petrochemical products. This includes the development of bio-based alternatives derived from renewable resources, as well as innovations in recycling and waste management within the petrochemical sector. Petrochemicals play a vital role in modern agriculture, facilitating efficient and sustainable farming practices. From fertilizers and pesticides to agricultural plastics, these products contribute to higher crop yields, increased productivity, and improved farm efficiency, ultimately supporting global food security efforts.


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Key Market Challenges

Volatility in Price of Raw Materials

Petrochemicals are primarily derived from crude oil and natural gas, which serve as the key raw materials. These hydrocarbons undergo a series of complex chemical processes to yield a vast array of products, encompassing plastics, fertilizers, detergents, resins, and more.

The cost of these raw materials constitutes a significant portion of the overall production expenditure within the petrochemical industry. Consequently, any fluctuation in their prices directly impacts the cost of production, overall profitability, and ultimately even the pricing strategies adopted for petrochemical products.

The price of raw materials, particularly crude il and natural gas, is influenced by a multitude of factors. Geopolitical tensions, shifts in governmental policies, fluctuations in supply and demand, natural disasters, and economic conditions all contribute to significant variations in prices. Geopolitical issues in oil-producing regions can disrupt the supply chain, leading to sudden surges in prices. Conversely, during an economic downturn, reduced industrial activity can result in decreased demand and subsequent price drops.

Also, the ongoing transition towards renewable energy sources and the drive for sustainable and eco-friendly alternatives have added another layer of complexity to the price dynamics of these raw materials. The inherent volatility in the price of raw materials poses several challenges for the petrochemicals market. Increased costs of raw materials can significantly squeeze profit margins, especially for companies that are unable to pass on these cost increases to their customers.

Price volatility also introduces obstacles in financial planning and forecasting, resulting in uncertainties in investment decisions and expansion plans. Additionally, it can disrupt the entire supply chain, affecting not only petrochemical producers but also downstream industries reliant on petrochemical products. Market instability can arise from price volatility, influencing the competitive dynamics within the industry and potentially leading to market consolidation or the exit of smaller players unable to cope with the constant fluctuations in prices.

Key Market Trends

Surge in Petrochemicals and Plastics Recycling

Petrochemicals play a fundamental role in the production of a wide array of products, and plastics stand out as one of the most prominent examples. The advent of plastics has revolutionized countless aspects of modern life, offering convenience and versatility like never before. However, the rampant use of plastics and the inadequate practices of disposal have given rise to a growing environmental crisis that spans the globe. Each year, millions of tons of plastic waste find their way into our oceans and landfills, wreaking havoc on marine life, ecosystems, and even human health.

In response to the mounting challenge of plastic waste, the petrochemicals industry is increasingly turning its attention towards recycling. This involves the collection and processing of used plastic products to create new materials, thereby reducing the volume of waste that ends up in landfills and the natural environment.

The momentum behind the recycling of petrochemicals and plastics stems from several factors. Firstly, there is a growing public awareness and concern about the profound environmental impact of plastic waste. This heightened awareness has resulted in an increased demand from consumers for sustainable products and practices, thereby compelling companies within the petrochemicals market to adopt recycling strategies.

Governments around the world are implementing stricter regulations on plastic waste management, encouraging industries to invest in recycling technologies and infrastructure. These regulations serve as catalysts for change and incentivize companies to find innovative solutions for dealing with plastic waste. Advancements in recycling technologies are making the process more efficient and economically viable. One promising approach is chemical recycling, which breaks down plastics into their original monomers for reuse. This breakthrough holds great promise for addressing the challenge of recycling hard-to-recycle plastics, further strengthening the case for a more sustainable petrochemicals industry.

The surge in petrochemicals and plastics recycling is shaping the global petrochemicals market in several significant ways. It not only presents new opportunities for companies to innovate and create sustainable products but also allows them to enhance their brand image, attract environmentally conscious customers, and gain a competitive edge in the market. Additionally, the focus on recycling is driving investments in recycling technologies and infrastructure, fostering further innovation and technological advancement within the industry.

As the world continues to grapple with the environmental consequences of plastic waste, the petrochemicals industry's shift towards recycling represents a crucial step towards a more sustainable future. By embracing recycling and fostering a circular economy, we can mitigate the environmental impact of plastic waste and pave the way for a greener and more resilient world.

Segmental Insights

Application Insights

The building & construction segment is projected to experience rapid growth during the forecast period. The construction industry is experiencing rapid growth, driven by the increasing population in both developed and emerging economies worldwide. This growth is expected to positively impact the segment in the near future.

Moreover, the automotive application segment is projected to expand at a significant compound annual growth rate (CAGR) during the forecast period. This can be attributed to the rising demand for petrochemical products from the automotive industries in developing countries across the globe, thus fueling the growth of this segment. The interplay between these factors highlights the dynamic nature of the industry and the potential for further expansion and development in the coming years.

 

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Regional Insights

Asia Pacific emerged as the dominant region in the Global Petrochemicals Market in 2023, holding the largest market share in terms of value. This is attributed to the flourishing chemicals industry and the increase in polymer consumption. Companies in the region are strategically shifting toward natural gas liquids and other non-oil feedstock to cater to the rising demand for the product. In addition, they are implementing cost-effective methods such as optimizing production processes and enhancing marketing strategies to increase sales of these products. By adopting these measures, companies are capitalizing on the opportunities presented by the growing market and ensuring long-term success in the industry.

Recent Development

  • In May 2023, Idemitsu Kosan Co., Ltd., KUMHO Petrochemical Co., Ltd., and Sumitomo Corporation entered into a Memorandum of Understanding (MOU) to establish a long-term collaboration aimed at advancing and expanding the sustainable polymers and chemicals market in Asia. Under this initiative, Idemitsu, Japan's largest producer of Styrene Monomer (SM), will employ the mass balance method to produce bio-based SM. Meanwhile, KUMHO, South Korea's leading manufacturer of synthetic rubber, will utilize bio-based SM to produce bio-Solution Styrene Butadiene Rubber (SSBR), a key component in high-performance tires. Sumitomo Corporation will oversee coordination of the collaboration and facilitate the development of the bio-material market. Production of the biopolymer is slated to commence in 2024. The bio-SM will be derived from bio-naphtha, a bio-based raw material sourced from waste and residues. Traditionally, naphtha, extracted from crude oil, has been extensively used in the production of fundamental chemical components like ethylene and butadiene. By increasing the utilization of bio-SM derived from bio-naphtha, the companies anticipate a reduction in carbon and greenhouse gas (GHG) emissions, thereby enhancing their environmental, social, and governance (ESG) management practices.

Key Market Players

  • BASF SE
  • BP Plc.
  • DuPont de Nemours, Inc.
  • TotalEnergies SE
  • Exxon Mobil Corp.
  • China Petroleum & Chemical Corporation
  • Saudi Arabian Oil Co.
  • Sumitomo Chemical Co., Ltd.
  • The Dow Chemical Company
  • Chevron Phillips Chemical Company LLC

By Product

 By Application

By Region
  • Ethylene
  • Propylene
  • Butadiene
  • Benzene
  • Xylene
  • Toluene
  • Methanol
  • Aerospace
  • Agriculture
  • Automotive
  • Building & Construction
  • Consumer & Industrial Goods
  • Others
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa

Report Scope:

In this report, the Global Petrochemicals Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Petrochemicals Market, By Product:

o Ethylene

o Propylene

o Butadiene

o Benzene

o Xylene

o Toluene

o Methanol

  • Petrochemicals Market, By Application:

o Aerospace

o Agriculture

o Automotive

o Building & Construction

o Consumer & Industrial Goods

o Others

  • Petrochemicals Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Petrochemicals Market.

Available Customizations:

Global Petrochemicals Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Global Petrochemicals Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]  

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    Impact of COVID-19 on Global Petrochemicals Market

5.    Global Petrochemicals Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Product (Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol)

5.2.2.     By Application (Aerospace, Agriculture, Automotive, Building & Construction, Consumer & Industrial Goods, and Others)

5.2.3.     By Region

5.2.4.     By Company (2023)

5.3.  Market Map

6.    Asia Pacific Petrochemicals Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Product

6.2.2.     By Application

6.2.3.     By Country

6.3.  Asia Pacific: Country Analysis

6.3.1.     China Petrochemicals Market Outlook

6.3.1.1.         Market Size & Forecast

6.3.1.1.1.             By Value

6.3.1.2.         Market Share & Forecast

6.3.1.2.1.             By Product

6.3.1.2.2.             By Application

6.3.2.     India Petrochemicals Market Outlook

6.3.2.1.         Market Size & Forecast

6.3.2.1.1.             By Value

6.3.2.2.         Market Share & Forecast

6.3.2.2.1.             By Product

6.3.2.2.2.             By Application

6.3.3.     Australia Petrochemicals Market Outlook

6.3.3.1.         Market Size & Forecast

6.3.3.1.1.             By Value

6.3.3.2.         Market Share & Forecast

6.3.3.2.1.             By Product

6.3.3.2.2.             By Application

6.3.4.     Japan Petrochemicals Market Outlook

6.3.4.1.         Market Size & Forecast

6.3.4.1.1.             By Value

6.3.4.2.         Market Share & Forecast

6.3.4.2.1.             By Product

6.3.4.2.2.             By Application

6.3.5.     South Korea Petrochemicals Market Outlook

6.3.5.1.         Market Size & Forecast

6.3.5.1.1.             By Value

6.3.5.2.         Market Share & Forecast

6.3.5.2.1.             By Product

6.3.5.2.2.             By Application

7.    Europe Petrochemicals Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Product

7.2.2.     By Application

7.2.3.     By Country

7.3.  Europe: Country Analysis

7.3.1.     France Petrochemicals Market Outlook

7.3.1.1.         Market Size & Forecast

7.3.1.1.1.             By Value

7.3.1.2.         Market Share & Forecast

7.3.1.2.1.             By Product

7.3.1.2.2.             By Application

7.3.2.     Germany Petrochemicals Market Outlook

7.3.2.1.         Market Size & Forecast

7.3.2.1.1.             By Value

7.3.2.2.         Market Share & Forecast

7.3.2.2.1.             By Product

7.3.2.2.2.             By Application

7.3.3.     Spain Petrochemicals Market Outlook

7.3.3.1.         Market Size & Forecast

7.3.3.1.1.             By Value

7.3.3.2.         Market Share & Forecast

7.3.3.2.1.             By Product

7.3.3.2.2.             By Application

7.3.4.     Italy Petrochemicals Market Outlook

7.3.4.1.         Market Size & Forecast

7.3.4.1.1.             By Value

7.3.4.2.         Market Share & Forecast

7.3.4.2.1.             By Product

7.3.4.2.2.             By Application

7.3.5.     United Kingdom Petrochemicals Market Outlook

7.3.5.1.         Market Size & Forecast

7.3.5.1.1.             By Value

7.3.5.2.         Market Share & Forecast

7.3.5.2.1.             By Product

7.3.5.2.2.             By Application

8.    North America Petrochemicals Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Product

8.2.2.     By Application

8.2.3.     By Country

8.3.  North America: Country Analysis

8.3.1.     United States Petrochemicals Market Outlook

8.3.1.1.         Market Size & Forecast

8.3.1.1.1.             By Value

8.3.1.2.         Market Share & Forecast

8.3.1.2.1.             By Product

8.3.1.2.2.             By Application

8.3.2.     Mexico Petrochemicals Market Outlook

8.3.2.1.         Market Size & Forecast

8.3.2.1.1.             By Value

8.3.2.2.         Market Share & Forecast

8.3.2.2.1.             By Product

8.3.2.2.2.             By Application

8.3.3.     Canada Petrochemicals Market Outlook

8.3.3.1.         Market Size & Forecast

8.3.3.1.1.             By Value

8.3.3.2.         Market Share & Forecast

8.3.3.2.1.             By Product

8.3.3.2.2.             By Application

9.    South America Petrochemicals Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Product

9.2.2.     By Application

9.2.3.     By Country

9.3.  South America: Country Analysis

9.3.1.     Brazil Petrochemicals Market Outlook

9.3.1.1.         Market Size & Forecast

9.3.1.1.1.             By Value

9.3.1.2.         Market Share & Forecast

9.3.1.2.1.             By Product

9.3.1.2.2.             By Application

9.3.2.     Argentina Petrochemicals Market Outlook

9.3.2.1.         Market Size & Forecast

9.3.2.1.1.             By Value

9.3.2.2.         Market Share & Forecast

9.3.2.2.1.             By Product

9.3.2.2.2.             By Application

9.3.3.     Colombia Petrochemicals Market Outlook

9.3.3.1.         Market Size & Forecast

9.3.3.1.1.             By Value

9.3.3.2.         Market Share & Forecast

9.3.3.2.1.             By Product

9.3.3.2.2.             By Application

10.  Middle East and Africa Petrochemicals Market Outlook

10.1.              Market Size & Forecast

10.1.1.  By Value

10.2.              Market Share & Forecast

10.2.1.  By Product

10.2.2.  By Application

10.2.3.  By Country

10.3.              MEA: Country Analysis

10.3.1.  South Africa Petrochemicals Market Outlook

10.3.1.1.      Market Size & Forecast

10.3.1.1.1.           By Value

10.3.1.2.      Market Share & Forecast

10.3.1.2.1.           By Product

10.3.1.2.2.           By Application

10.3.2.  Saudi Arabia Petrochemicals Market Outlook

10.3.2.1.      Market Size & Forecast

10.3.2.1.1.           By Value

10.3.2.2.      Market Share & Forecast

10.3.2.2.1.           By Product

10.3.2.2.2.           By Application

10.3.3.  UAE Petrochemicals Market Outlook

10.3.3.1.      Market Size & Forecast

10.3.3.1.1.           By Value

10.3.3.2.      Market Share & Forecast

10.3.3.2.1.           By Product

10.3.3.2.2.           By Application

11.  Market Dynamics

11.1.              Drivers

11.2.              Challenges

12.  Market Trends & Developments

12.1.              Recent Developments

12.2.              Product Launches

12.3.              Mergers & Acquisitions

13.  Global Petrochemicals Market: SWOT Analysis

14.  Porter’s Five Forces Analysis

14.1.              Competition in the Industry

14.2.              Potential of New Entrants

14.3.              Power of Suppliers

14.4.              Power of Customers

14.5.              Threat of Substitute Product

15.  PESTLE Analysis

16.  Competitive Landscape

             16.1.                BASF SE

16.1.1.  Business Overview

16.1.2.  Company Snapshot

16.1.3.  Products & Services

16.1.4.  Financials (As Reported)

16.1.5.  Recent Developments

16.2.              BP Plc.

16.3.              DuPont de Nemours, Inc.

16.4.              TotalEnergies SE

16.5.              Exxon Mobil Corp.

16.6.              China Petroleum & Chemical Corporation

16.7.              Saudi Arabian Oil Co.

16.8.              Sumitomo Chemical Co., Ltd.

16.9.              The Dow Chemical Company

16.10.            Chevron Phillips Chemical Company LLC

17.  Strategic Recommendations

18.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the Global Petrochemicals Market is estimated to be USD534.24 billion in 2023.

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BASF SE, BP Plc., DuPont de Nemours, Inc., TotalEnergies SE, Exxon Mobil Corp., China Petroleum & Chemical Corporation were the top key players in the Global Petrochemicals Market.

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Volatility in Price of Raw Materials and Environmental Concerns and Regulations are the major challenges which restrict the growth of the Global Petrochemicals Market.

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Growing demand of petrochemicals in automotive and agriculture industries are the major drivers for the Global Petrochemicals Market.

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Sakshi Bajaal

Business Consultant
Press Release

Petrochemicals Market to Grow with a CAGR of 4.86% Globally through 2029

Feb, 2024

Growth in research and development activities is expected to drive the Global Petrochemicals Market growth in the forecast period, 2025-2029.

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