Petrochemicals Market Report

Petrochemicals Market Analysis By Product (Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Vinyls, Styrene, Methanol) By Region (North America, Europe, China, Middle East, Africa, Latin America) And Segment Forecasts, 2014 - 2025

Published: October 2016  |  110 Pages  |  Format: PDF  |  Report ID: 978-1-68038-560-1

Industry Insights

The global petrochemicals market was valued at USD 419.4 billion in 2015. The industry’s future growth trajectory is determined by high demand for its derivatives in automotive, textile, construction, industrial, medical, pharmaceuticals, electronics and consumer goods industries.

In addition, regulatory policies by Asian governments that are aimed at incentivizing chemicals manufacturing will also play a significant role in attracting investments from overseas companies. Primarily produced chemicals such as ethylene, styrene, and butadiene have registered considerable amount of usage in rubber, plastics, and solvents production.

North America petrochemicals market revenue, by product, 2014 - 2025 (Million Tons)

North America petrochemicals market

Rising shale gas exploration in North American countries such as the U.S. and Canada is expected to further compliment growth. The industry dynamics have a direct impact on vast number of performance products such as plastic resins, synthetic fibers, rubber products, paints & coatings, adhesives & sealants, lubricants, water treatment products, and industrial chemicals.

Entities investing the industry tend be vary of domestic environment and availability of feedstock. In North America, corporations are looking to leverage the advent of low cost natural gas, for producing ethylene, propylene and methanol, rather availing crude oil as a source. In comparison, Saudi Arabia is witnessing capital inflows in the downstream sector development.

Key end-use industries such as insulation and tire manufacturing use derivatives such as polyurethane, polyethylene and synthetic rubber on wide scale. These derived products are perceiving significant increase in demand due to superior characteristics such as nimble weight, robustness, tractability, and strength.

Volatility in raw material prices coupled with shale gas evolution in North America are expected to change the dynamics of the global market over the forecast period. Moreover, emergence of bio-based substitutes is anticipated to further pressurize petrochemicals prices in the near future.

Product Insights

Ethylene was the dominant product segment and accounted for nearly 30% of the overall volume in 2015. Abundant, low cost ethane availability from shale gas in the U.S., have fueled investments in huge integrated cracking projects. On the other side, Middle Easter and Asian producers are focusing on integrated steam cracker and refinery projects as well as high value products through diversification of product sales.

In terms of revenue, Propylene’s consumption was valued at over USD 65 billion in 2015. It is used in production of wide variety of chemicals including propylene oxide, acrylonitrile, cumene, butyraldehyde and acrylic acid. Polypropylene and its alloys are being increasingly preferred as a polymer in automobiles and accounts for over one-third of plastics used in the industry.

Styrene is expected to grow at a steady CAGR of 6.2% from 2016 to 2025. Styrene derivatives including polystyrene, latex, ABS, and SB rubber fins wide application in automotive, packaging and medical industry. The product segment is expected to exhibit high growth rate owing to growth of afore mentioned industries in Asia Pacific, Latin America and Middle East.

Benzene market volume by derivative, 2015

Benzene market

Regional Insights

China emerged as the dominant region accounting for over 25% of the volume in 2015. China is projected to grow significantly over the forecast period owing to increasing urbanization coupled with rapid industrialization in the country. Favorable government regulations along with advent of increasing shale gas exploration are likely to further drive demand over the next seven years.

North America petrochemicals demand is expected to grow at an estimated CAGR of 4.4% from 2016 to 2025. Growing shale gas exploration activities in the U.S. and Canada is a key trend driving growth in the region. Both the countries accounted for above 90% of shale gas production in 2014. The development of shale gas provides an advantage of substituting conventional feedstock such as crude oil and natural gas for producing various petrochemicals in order to reduce reliance.

Increasing demand in countries such as India, Indonesia, Thailand and Vietnam is anticipated to boost consumption in Rest of Asia. Initiatives such as PCPIR (Petroleum, Chemical and Petrochemicals Investment Region) by the Government of India to promote petrochemical infrastructure in the country by giving subsidies to the participating companies is anticipated to positively influence regional industry growth.

Competitive Insights

The major industry participants include BASF AG, British Petroleum PLC, Chevron Corporation, China National Petroleum (CNPC), SINOPEC, E.I. du Pont de Nemours & Company, INEOS Group Ltd. and Lyondell Basell Industries Inc.Other prominent players operating in the market include SABIC, The Dow Chemical Company, Royal Dutch Shell PLC, and ExxonMobil Corp.

Key feedstock suppliers include PetroChina, Saudi Aramco, Qatar Petroleum and few players such as ExxonMobil, Royal Dutch Shell, etc. have integrated their operations forward to produce petrochemicals via extraction and refining of crude oil.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historic data

2014 & 2015

Forecast period

2016 - 2025

Market representation

Revenue in USD Million & CAGR from 2016 to 2025

Regional scope

North America, Europe, China, Rest of Asia Pacific, Middle East, Africa, Latin America

Country scope

Customizable as per requirement

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth at global and regional levels, and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the petrochemicals market on the basis of product and region:

  • Product Outlook (Volume, Million Tons; Revenue, USD Billion; 2014 - 2025)
    • Ethylene

    • Propylene

    • Butadiene

    • Benzene

    • Xylene

    • Toluene

    • Vinyls

    • Styrene

    • Methanol

  • Regional Outlook (Volume, Million Tons; Revenue, USD Billion; 2014 - 2025)
    • North America

    • Europe

    • China

    • Rest of Asia

    • Middle East

    • Africa

    • Latin America

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