by The petrochemicals industry involves the conversion of petroleum or natural gas into various valuable chemicals, plastics, and other products. Petrochemical products such as polyethylene, polypropylene, and polyvinyl chloride are used to produce a wide range of plastic products like plastic bags, bottles, automobile parts and more. Polyester fibers derived from petrochemicals are majorly used in textiles, clothing, home furnishings like curtains and upholstery fabrics. The rising demand for polyester clothing due to its durability and low maintenance has propelled the growth of the petrochemical industry.
The global petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for polyester fibers: Abundant availability of raw materials from fossil fuel reserves and the growing demand for polyester fabrics from the textiles industry is driving the global petrochemicals market. Polyester fibers offer strength, crease resistance, quick drying and are affordable as compared to natural fibers like cotton. Thus, the surging polyester fiber production owing to rising cotton prices and technological advancements will boost the petrochemical industry.
Growing plastics consumption: Increasing disposable income and changing lifestyles globally have increased plastic consumption, particularly in emerging countries. Petrochemical-derived plastics like polyethylene find applications in packaging, construction and automotive industries. Moreover, shifting trend towards lightweight vehicles employing plastics instead of heavier metals also supports petrochemical demand.
Segment Analysis
The Petrochemicals Market Size is dominated by two main segments: basic petrochemicals and intermediate petrochemicals. Basic petrochemicals include polymers, ethylene, propylene and benzene. This segment accounts for around 40% of the total market share primarily due to high demand for polymers from various end-use industries like packaging, construction, automotive etc. Intermediate petrochemicals include chemicals required to manufacture other specialty chemicals like solvents, surfactants, additives etc. These chemicals are used to manufacture paints, coatings, cosmetics and lubricants among others. This segment holds around 35% share owing to the growth of specialty chemicals market.
PEST Analysis
Political: Regulations around carbon emissions and climate change are positively impacting the demand for renewable chemicals. However, geopolitical risks around crude oil supply could impact petrochemical feedstock availability.
Economic: Strong GDP growth in developing economies is driving demand from end-use industries like packaging, consumer goods etc. Recovery of industrial production post pandemic is also supporting market growth.
Social: Increasing health awareness and demand for sustainable products is boosting bio-based and recycled content petrochemicals. Rapid urbanization is augmenting packaging consumption.
Technological: Adoption of new technologies like coal-to-chemicals and gas-to-liquid is helping overcome feedstock constraints. Developments in crude-oil cracking are improving production efficiencies.
Key Takeaways
The global petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
The global Petrochemicals market is expected to witness high growth over the forecast period supported by ongoing capacity additions and expansion of end-use industries especially in Asia Pacific region. Regional analysis shows that the Asia Pacific region holds around 55% value share of the global market primarily driven by China, India, South Korea and Japan.China dominates the region accounting for over 35% value share. This can be attributed to presence of a large chemicals industry and rapidly expanding downstream industries like automotive, FMCG etc.
Key players operating in the petrochemicals market are Alcatel Submarin, Saudi Arabian Oil Co., Daelim Industrial Co Ltd, SK Geo Centric Co. Ltd., Hanwha Group. Key players are focusing on capacity expansions, acquisition and partnerships to cater growing demand and strengthen their position in high growth markets of Asia and MEA regions. Adoption of cleaner fuels and technologies for petrochemical production is expected to be a key trend among players to meet sustainability goals.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
