GVR Report cover Petrochemicals Market Size, Share & Trends Report

Petrochemicals Market Size, Share & Trends Analysis Report By Product (Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol), By Region (North America, Europe, APAC, Latin America), And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-560-1
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 94

Report Overview

The global petrochemicals market size was valued at USD 536.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% in terms of revenue from 2021 to 2028. The market is expected to witness steady growth over the forecast period owing to increasing demand from end-use industries such as construction, industrial, textile, medical, pharmaceuticals, consumer good automotive, and electronics. Products such as ethylene, propylene, benzene are widely used in various end-use industries such as packaging, electronics, plastics, and rubber. Rising shale gas exploration in North American countries such as the Canada and U.S. is expected to further augment market growth.

U.S. petrochemicals market size, by product, 2018 - 2028 (USD Billion)

The dynamics of the market for petrochemicals has a direct impact on a vast number of performance products such as plastic resins, synthetic fibers, rubber products, paints and coatings, adhesives and sealants, lubricants, water treatment products, and industrial chemicals. Economic development coupled with population expansion in emerging economies of Asia Pacific countries including China, India, Japan, and Thailand is expected to drive the market in the predicted years.

Crude oil and natural gas are the major raw materials used for the manufacturing of petrochemical products. The volatile prices of crude oil are a major challenge in the procurement process of crude oil as a raw material for manufacturers. The industry players that are reliant on crude oil as a feedstock for manufacturing are likely to face difficulties in the coming years. However, declining prices of natural gas owing to a rise in its production are expected to augment the growth of the market over the forecast period.

The steam cracking process is one of the most commonly used processes for manufacturing petrochemicals from natural gas or crude oil. In this process, ethane, a derivative of natural gas or naphtha that is predominantly derived from crude oil, is used for the manufacturing of olefins. A steam cracker has equipment operating at pressure from near-vacuum to 100 atm and operating at temperatures from 100 K to 1400 K.

End-use industries evaluate the quality of products supplied from time to time and establish procurement agreements with suppliers to purchase petrochemical derivatives in bulk and ensure their stable and seasonal supply. An increasing number of petrochemicals suppliers in the market has resulted in the high bargaining power of buyers.

Product Insights

Ethylene was the leading product segment and accounted for the largest revenue share of 40.1% in 2020. The segment is expected to witness a CAGR of 6.5% in the coming years. The growth is attributed to ongoing industrialization and flourishing automotive and packaging sectors in emerging economies such as India, Brazil, Vietnam, and Thailand are expected to fuel the consumption of ethylene significantly in these countries in the coming years. Surged use of polyethylene, HDPE, and Low-density Polyethylene (LDPE) is expected to foster the overall growth of the market for petrochemicals.

The methanol segment is predicted to witness the highest CAGR over the forecast period. Methanol is used as a feedstock for producing acetic acid and formaldehyde, which are used in foams, adhesives, foams, solvents, plywood subfloors, and windshield washer fluids. The demand for methanol is predicted to witness growth on account of its high demand in several end-use industries such as construction, paints and adhesives, pharmaceuticals, plastics, and automotive.

Butadiene was the second-largest product segment in 2020 and accounted for 15.1% of the revenue share. It is majorly utilized as a chemical intermediate and a monomer during the production of polymers such as styrene-butadiene rubber (SBR), Polybutadiene Rubber (PBR), Polychloroprene (PBR), and Nitrile Rubber (NR). Butadiene derivatives have witnessed a significant increase in demand specifically in China, India, and other Asian countries owing to the flourishing end-use industries such as automobile, consumer goods, construction, and others.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of more than 45.0% in 2020. A critical factor fueling growth of the market in this region is surged domestic consumption of petrochemicals owing to the rapid growth of end-use industries. Companies in the region are shifting toward natural gas liquids and other non-oil feedstocks to cater to the rising demand for petrochemicals, along with strategizing cost-effective methods to increase sales of the products.

North America accounted for the second-largest revenue share in the market in 2020 and is anticipated to witness a CAGR of 6.6% in the predicted years. Growing consumption of ethylene specifically in anti-freezing/cooling applications in the automotive industry is projected to drive the growth of the ethylene segment in North America. Moreover, the surging demand for ethylene from the packaged food industry is also anticipated to contribute to its demand.

Global petrochemicals market share, by region, 2020 (%)

Ethylene is primarily utilized to produce polyethylene, which is a widely used consumer plastic in several end-use industries. Increasing ethylene production in key countries, such as Germany, France, and the U.K., of the region, has led to the surged demand for petrochemicals from manufacturers to produce various industrial chemicals.

Key Companies & Market Share Insights

Companies engaged in manufacturing petrochemical products continuously undergo acquisitions and mergers, and joint ventures with governments and other key players that are already in the field of oil and gas. By these operational integrations, companies seek to expand their reach to potential customers at optimum distribution cost.

Recently, China National Petroleum Corporation signed an agreement with the Republic of Benin to construct a pipeline from Niger to the Atlantic coast in Benin to strengthen its crude oil business footprint in Africa. LyondellBasell Industries Holdings B.V and the China Petroleum and Chemical Corporation announced a 50-50 joint venture to produce Propylene Oxide (PO) and Styrene Monomer (SM) in China.

The competitive rivalry among producers of petrochemicals is high as the market is characterized by the presence of a large number of global players with strong distribution networks. Top players have been dominating the market for the past few years owing to increasing investments in R&D activities related to new product development and manufacturing processes. Some of the prominent players in the petrochemicals market include:

  • BASF SE

  • Chevron Corporation

  • China National Petroleum Corporation (CNPC)

  • China Petrochemical Corporation (SINOPEC)

  • ExxonMobil Corporation

  • INEOS Group Ltd.

  • LyondellBasell Industries Holdings B.V.

  • Royal Dutch Shell PLC

  • SABIC

  • Dow

Petrochemicals Market Report Scope 

Report Attribute

Details

Market size value in 2021

USD 556.1 billion

Revenue forecast in 2028

USD 860.8 billion

Growth rate

CAGR of 6.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in million tons, revenue in USD billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East; Africa

Country scope

U.S.; Canada; Germany; U.K.; Belgium; Netherlands; France; China; India; Japan; South Korea; Indonesia; Brazil

Key companies profiled

BASF SE; Chevron Corporation; China National Petroleum Corporation (CNPC); China Petrochemical Corporation (SINOPEC); ExxonMobil Corporation; INEOS Group Ltd.; LyondellBasell Industries Holdings B.V.; Royal Dutch Shell PLC; SABIC; Dow

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global petrochemicals market report on the basis of product and region:

  • Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2017 - 2028)

    • Ethylene

      • Polyethylene

      • Ethylene oxide

      • EDC

      • Ethyl benzene

      • Other (including alpha olefins, vinyl acetate, etc.)

    • Propylene

      • Polypropylene

      • Propylene oxide

      • Acrylonitrile

      • Cumene

      • Acrylic acid

      • Isopropanol

      • Other

    • Butadiene

      • SB Rubber

      • Butadiene rubber

      • ABS

      • SB latex

      • Other (nitrile rubber, mechanical belts, etc.)

    • Benzene

      • Ethyl benzene

      • Phenol/cumene

      • Cyclohexane

      • Nitrobenzene

      • Alkyl benzene

      • Other (including alkyl benzene, maleic anhydride)

    • Xylene

    • Toluene

      • Benzene

      • Xylenes

      • Solvents

      • TDI

      • Others (including pesticides, drugs, nitro toluene, etc.)

      • Vinyl

      • Styrene

    • Polystyrene

      • EPS

      • ABS

      • SB latex

      • UPR

      • SB rubber

      • Other

    • Methanol

      • Formaldehyde

      • Gasoline

      • Acetic acid

      • MTBE

      • Dimethyl ether

      • MTO/MTP

      • Other

  • Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • Belgium

      • Netherlands

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Indonesia

    • Latin America

      • Brazil

    • Middle East

    • Africa

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