Oil and Gas Downstream Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Refineries, Petrochemical Plants), By Region, By Competition, 2020-2030F

Market Overview

The Global Oil and Gas Downstream Market will grow from USD 2801.00 Billion in 2024 to USD 3564.65 Billion by 2030 at a 4.10% CAGR. The global oil and gas downstream market primarily involves the intricate processes of refining crude oil into a diverse array of petroleum products, including gasoline, diesel, and jet fuel, as well as processing natural gas into various marketable forms and their subsequent distribution to end-users. Primary drivers supporting sustained market expansion include burgeoning global populations, accelerated urbanization, and robust industrialization, particularly across developing economies, which collectively necessitate increased demand for refined products and petrochemical feedstocks. According to the International Energy Agency (IEA), global oil demand increased by 0.8%, equivalent to 830 thousand barrels per day, in 2024, with demand for petrochemical feedstocks having climbed by over 12% over the preceding five years, significantly contributing to this growth.

A notable impediment to market growth is the increasing stringency of environmental regulations worldwide, which aim to curtail carbon emissions and promote the adoption of alternative energy sources. These regulatory frameworks often necessitate substantial capital expenditures for compliance and operational reconfigurations within the downstream sector, thereby posing a significant challenge to traditional market expansion.

Key Market Drivers

The sustained growth of the global oil and gas downstream market is significantly driven by a combination of expanding worldwide energy requirements and the escalating need for specialized transportation fuels and petrochemical feedstocks. Growing global energy demand fundamentally underpins the market, necessitating higher volumes of refined products to meet consumption across residential, commercial, and industrial sectors. This broad energy requirement translates directly into increased crude oil processing, as nations strive to power economic development and improve living standards. According to the International Energy Agency, in November 2024, the Oil Market Report forecast global oil demand to expand by 920 thousand barrels per day in 2024. Such persistent demand highlights the critical role of the downstream sector in transforming raw hydrocarbons into readily usable energy.

Complementing this broad energy demand is the increasing requirement for transportation fuels and petrochemicals, which represent core outputs of the downstream industry. The proliferation of vehicles globally, alongside the expansion of aviation and maritime logistics, directly fuels the need for gasoline, diesel, and jet fuel. Simultaneously, robust industrial growth, particularly in manufacturing, drives the demand for petrochemicals that serve as essential building blocks for plastics, fertilizers, and a myriad of consumer goods. According to the U.S. Energy Information Administration, in November 2024, the Short-Term Energy Outlook stated that India is expected to account for 25% of total global liquid fuels consumption growth in both 2024 and 2025, driven by rising demand for transportation fuels. Furthermore, direct investments in processing capabilities reflect this trend, with ExxonMobil announcing in November 2024, a $200 million investment to expand its advanced recycling operations in Texas, aiming for a global recycling capacity of 500 million pounds by 2026, demonstrating commitment to high-value product streams. These factors combined necessitate continuous operational efficiency and infrastructure development within the downstream market, a sector where, according to the International Energy Agency, in their November 2024 Oil Market Report, global refinery runs are projected to average 82.8 million barrels per day in 2024.

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Key Market Challenges

The increasing stringency of environmental regulations worldwide directly impedes the growth of the global oil and gas downstream market. These regulatory frameworks, aimed at curtailing carbon emissions and promoting alternative energy sources, impose substantial financial burdens and necessitate significant operational reconfigurations within the sector. Refineries face escalating compliance costs, which directly impact profitability and investment decisions. For instance, according to Argus Media, Europe has experienced a loss of approximately 400,000 barrels per day of refining capacity since early 2024, attributed to factors including high taxes and stringent climate rules.

The requirement to meet stricter environmental standards often demands considerable capital expenditures for upgrades and modifications to existing infrastructure. FuelsEurope, in its Statistical Report 2025, highlights that new standards set by the Refining BREF are extremely challenging and costly for the sector. These investments divert capital that might otherwise be used for traditional market expansion or capacity enhancements, thereby constraining growth. The uncertainty surrounding future regulatory developments further complicates long-term planning and deters new investments in conventional refining assets.

Key Market Trends

The global oil and gas downstream market is currently shaped by a strategic redirection towards petrochemical production and significant shifts in refining capacity across various geographies.

A key trend involves the strategic shift towards petrochemical-integrated refining, where refiners increasingly focus on diversifying their output beyond traditional fuels to meet escalating demand for chemical feedstocks. This integration enhances profitability and resilience by leveraging existing infrastructure for higher-value products. According to the International Energy Agency's (IEA) Oil 2025 – Analysis and Forecast to 2030 report, published in July 2025, petrochemicals accounted for over 95% of the net global oil demand growth from 2019 to 2024, emphasizing their growing importance. Reliance Industries Limited exemplified this trend in its Integrated Annual Report 2024-25, published in August 2025, confirming an investment of up to ₹75,000 crore (approximately US$10 billion) in its Oil-to-Chemicals business, targeting large-scale polyester value chain projects by 2026 at its Jamnagar complex. This strategic pivot enables the downstream sector to optimize resource utilization and create new value streams.

Concurrently, a notable geographic shift in refining capacity towards emerging markets is underway, reflecting evolving energy demand patterns and economic development. These regions are becoming central to the expansion of global refining capabilities. According to OPEC's World Oil Outlook, published in November 2024, approximately 5.8 million barrels per day (mb/d) of new refining capacity is projected to come online globally, with over 90% of these additions by 2030 concentrated in the Asia-Pacific (3.2 mb/d), Africa (1.2 mb/d), and the Middle East (1 mb/d). This relocation of refining assets allows for closer proximity to rapidly growing end-user markets and often benefits from competitive operational costs, thereby supporting continued global economic expansion.

Segmental Insights

The refineries segment is currently the fastest-growing area within the global oil and gas downstream market, driven by several interconnected factors. A persistent global increase in demand for refined petroleum products, including transportation fuels and essential petrochemical feedstocks, is particularly propelled by rapid industrialization and urbanization in emerging economies. This necessitates substantial strategic investments in both expanding new refining capacities and upgrading existing facilities with advanced technologies to enhance operational efficiency and yield cleaner fuels. Furthermore, the growing integration of refining with petrochemical production allows companies to capitalize on robust chemicals markets, aligning with evolving global energy consumption patterns. These developments are also influenced by environmental regulations promoting cleaner fuel production.

Regional Insights

The Asia Pacific region stands as the leading force in the global oil and gas downstream market, driven by rapid industrialization, robust economic expansion, and burgeoning populations across key economies such as China and India. This confluence of factors fuels substantial energy demand for transportation fuels and a growing need for petrochemicals, which are essential for various industries. The region’s dominance is further solidified by significant ongoing investments in expanding and modernizing refining capacities, alongside strategic government support and evolving regulatory frameworks aimed at meeting this increasing demand.

Recent Developments

• In November 2025, ExxonMobil launched its new ExxonMobil Signature Polymers portfolio brand, aimed at enhancing service and partnerships within the polymers industry. This initiative unifies ExxonMobil’s polyolefin products under a single brand, streamlining portfolio navigation. Concurrently, the company collaborated with Windmöller & Hölscher (W&H) to develop a commercially viable, non-laminated mono-material machine direction oriented (MDO) PE freezer pouch. This breakthrough product and partnership underscore ExxonMobil's focus on innovative, recyclable materials and advanced solutions for the downstream petrochemical market.

• In January 2025, Shell announced a final investment decision for the expansion of its CSPC petrochemicals joint venture with CNOOC in Dia Bay, China. This development is a key part of Shell's strategy to strengthen and upgrade its downstream portfolio, particularly in the chemicals sector. The investment underscores the company's commitment to delivering more value through integrated operations and meeting growing demand for petrochemical products in Asia. This collaboration highlights ongoing efforts to advance large-scale downstream projects globally.

• In November 2024, Saudi Arabian Oil Company (Aramco) signed a Memorandum of Understanding with China Petroleum & Chemical Corporation (Sinopec) to explore various collaboration opportunities in Saudi Arabia. This agreement encompasses assessing refining and petrochemical integration projects, engineering, procurement, and construction services, alongside developing upstream and downstream technologies. The cooperation also extends to carbon capture and hydrogen processes, indicating a strategic alignment towards enhancing operational efficiency and exploring advanced solutions within the global oil and gas downstream sector. This initiative strengthens the long-standing relationship between the two companies.

• In July 2024, ADNOC Gas awarded engineering, procurement, and construction contracts valued at $550 million (AED2 billion) for the subsequent phase of the UAE's sales gas pipeline network enhancement project, known as ESTIDAMA. These contracts were granted to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates. The project aims to extend the natural gas pipeline network operated by ADNOC Gas, enabling the transportation of increased volumes of natural gas to customers in the Northern Emirates. Approximately 70% of the contract value is projected to contribute to the UAE economy.

Key Market Players

• ExxonMobil Corporation
• Royal Dutch Shell plc
• Chevron Corporation
• BP plc (British Petroleum)
• Total Energies SE
• China Petroleum & Chemical Corporation (Sinopec)
• Phillips 66 Company
• Valero Energy Corporation
• Marathon Petroleum Corporation
• Reliance Industries Limited

Report Scope:

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

• Oil and Gas Downstream Market, By Type:

o   Refineries

o   Petrochemical Plants

• Oil and Gas Downstream 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 presents in the Global Oil and Gas Downstream Market.

Available Customizations:

Global Oil and Gas Downstream Market report with the given market data, TechSci 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).

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