Petrochemicals are derived from petroleum-based feedstocks through cracking and other processes and are mainly used as raw materials or intermediates in the production of numerous chemical and plastic goods. Some of the major petrochemicals produced globally include ethylene, propylene, benzene, xylene, and toluene. These petrochemicals impart properties such as durability, heat resistance, impact resistance, barrier protection, and moldability to the materials processed or manufactured.
The Global top 15 petrochemicals market is estimated to be valued at US$ 583.78 tons in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the top 15 petrochemicals market are Chevron Phillips Chemical Company LLC, BASF SE, ExxonMobil, Shell Chemical Company, TotalEnergies SE, Sumitomo Chemical Co. Ltd., Reliance Industries Limited, Indian Oil Corporation, Bharat Petroleum Corporation Limited, and SABIC.
Key opportunities: The increasing demand for packaged food and beverages due to the busy lifestyle of consumers especially in developing nations provides huge opportunities for petrochemical manufacturers and suppliers. Moreover, the growing global population and construction activities are expected to propel the demand for petrochemicals.
Global expansion: Leading petrochemical manufacturers are expanding their production facilities globally especially in Asia Pacific and Middle East regions to cater to the rising local demand. Geographical expansion helps these companies to improve access to raw materials and markets.
Market drivers: The rising demand for petrochemicals from packaging, automotive, construction, healthcare, and consumer goods industries is the major market driver. These industries extensively use petrochemical-based plastics, Polymers, fibers, rubber, and other materials in their products and manufacturing activities. Additionally, the growing population and rapid urbanization are fueling the growth of end-use markets.
PEST Analysis
Political: The Top15petrochemical Market Size industry is regulated by various environmental laws pertaining to pollution control and waste management. Changes in government policies around trade barriers and import/export duties could impact the demand-supply dynamics.
Economic: A stable macroeconomic environment leading to higher disposable incomes positively influences the demand for end-use applications of petrochemicals like plastics. Volatility in crude oil prices is a key factor affecting production costs.
Social: Rising population and urbanization drives the demand for petrochemical-derived commodities in various sectors like packaging, construction, automotive, etc. Changing consumer preferences towards sustainable/biodegradable options could impact certain product segments.
Technological: Advancements in refining technologies help improve crude conversion efficiencies. Continuous R&D to develop newer petrochemical synthesis routes focusing on efficiency and reduced environmental footprint helps stay competitive.
The North American region represents the largest market for top 15 petrochemicals in terms of value, owing to the presence of major refineries and low domestic natural gas prices conferring raw material cost competitiveness. Asia Pacific is the fastest growing regional market driven by China, India, and other developing Asian countries experiencing strong economic growth and higher consumption of end-use plastics and polymers.
The Chinese petrochemical industry is concentrated along the east coast near major port cities with established infrastructure for import and export logistics. The Middle Eastern region is also a significant market led by Saudi Arabia, which is leveraging its oil resources and implementing downstream integration plans.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile