The global petrochemicals market size was valued at USD 584.50 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2030. The demand for the product is attributed to an increase in the demand for downstream products from various end-use industries such as construction, pharmaceuticals, and automotive, which is a major factor driving the growth. Petrochemical is a vital component for many industrial processes and hence forms the backbone of an industrial economy. Some of the products derived from petrochemicals include tires, industrial oil, detergents, plastics, etc. Basic plastic derived from the product act as a building block in the manufacturing of consumer goods.
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 product suppliers in the market has resulted in the high bargaining power of the buyers.
The industry is significantly affected by the prices of crude oil as it is a basic raw material used for the manufacturing of the product. The volatility in the prices and supply of crude oil has affected the production cost of petrochemicals, which, in turn, makes their production process costly. Factors such as the growing inclination of consumers in developed and developing regions toward environment-friendly products and the volatile prices of raw materials of petrochemicals are likely to hamper the market growth in the coming years.
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.
Moreover, the demand for petrochemicals and their derivatives for use in various applications such as tires, pharmaceuticals, high-tech materials, and paints across the U.S. is led by unprecedented success in the exploration and production of shale gas. The country is a major exporter of petrochemical products to Europe, as well as to countries such as China and India. There has been a significant resurgence in investments and petrochemical capacity expansions in the U.S. since 2014 owing to the reduction in feedstock prices and high demand for petrochemicals in aforementioned applications in the country.
Ethylene dominated the market with a revenue share of 40.7% in 2022. This is attributed to the increasing demand for ethylene from various industries such as construction, packaging, and transportation. 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 in the countries over the forecast period. Surged use of polyethylene, High-density 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 of 8.8% over the forecasted 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 2022 and accounted for 14.9% 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.
Asia Pacific region dominated with a market share of 49.1% in 2022. This is attributed to the flourishing chemicals industry and the increase in polymer consumption. Companies in the region are shifting toward natural gas liquids and other non-oil feedstock to cater to the rising demand for the product, along with strategizing cost-effective methods to increase sales of the products.
The growing shale gas exploration activities in the U.S. and Canada are expected to fuel the growth of the North America petrochemicals industry. The rising shale gas production in these countries provides an opportunity for replacing conventional feedstock with shale gas for producing various petrochemicals. Major capacity addition in U.S. and Canada are expected to lead the growth over the forecast period.
Europe is anticipated to witness a CAGR of 6.4% over the forecasted period. This is attributed due to the ongoing recovery of the overall manufacturing sector from the global pandemic in Europe coupled with the addition to oil & gas capacity in the region is anticipated to drive the industry’s growth. Western Europe is anticipated to witness stagnant growth owing to market saturation. Increasing ethylene production in key countries, such as Germany, France, and the U.K., of the region, has led to a surged demand for petrochemicals from manufacturers to produce various industrial chemicals.
The rising demand for petrochemicals in various applications such as automobiles, packaging, household goods, and medical equipment is a key factor encouraging manufacturers to increase their production capacity. Petrochemical product manufacturers continuously undergo acquisitions and mergers, and joint ventures with governments and other key players that are already in the field of oil and gas. Through these operational integrations, companies seek to expand their reach to potential customers at optimum distribution costs.
The 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 & Chemical Corporation announced a 50-50 joint venture to produce propylene oxide (PO) and styrene monomer (SM) in China.
Moreover, in August 2021, SABIC announced a joint venture with China's Fujian Petrochemical Industrial Group Co., Ltd to build a mega petrochemical complex in China. The facility would be built at Gulei Industrial Park in Zhangzhou city, eastern China's Fujian Province with an investment of around USD 6.18 billion. It will have a capacity of producing 1.5 million tons of ethylene, including two polyethylene units, two polypropylene units, a mono-ethylene glycol unit, and one polycarbonate unit. Some prominent players in the global petrochemicals market include:
BASF SE
Chevron Corporation
China National Petroleum Corporation (CNPC)
China Petrochemical Corporation
ExxonMobil Corporation
INEOS Group Ltd.
LyondellBasell Industries Holdings B.V.
Royal Dutch Shell PLC
SABIC
Dow
Report Attribute |
Details |
Market size value in 2023 |
USD 619.3 billion |
Revenue forecast in 2030 |
USD 1002.45 billion |
Growth rate |
CAGR of 7.0% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2022 |
Forecast period |
2023 - 2030 |
Quantitative units |
Volume in million tons, revenue in USD billion and CAGR from 2023 to 2030 |
Report coverage |
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; UK; Belgium; Netherlands; France; China; India; Japan; South Korea; Indonesia; Brazil; Argentina |
Key companies profiled |
BASF SE; Chevron Corporation; China National Petroleum Corporation (CNPC); China Petrochemical Corporation; 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 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global petrochemicals market report based on product and region:
Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)
Ethylene
Polyethylene
Ethylene oxide
EDC
Ethylbenzene
Others(including alpha olefins, vinyl acetate, etc.)
Propylene
Polypropylene
Propylene oxide
Acrylonitrile
Cumene
Acrylic acid
Isopropanol
Other
Butadiene
SB Rubber
Butadiene rubber
ABS
SB latex
Others (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, nitrotoluene, etc.)
Vinyl
Styrene
Methanol
Formaldehyde
Gasoline
Acetic acid
MTBE
Dimethyl ether
MTO/MTP
Other
Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Europe
Germany
UK
France
Belgium
Netherlands
Asia Pacific
China
India
Japan
South Korea
Indonesia
Latin America
Brazil
Middle East
b. The global petrochemicals market size was estimated at USD 584.50 billion in 2022 and is expected to reach USD 619.28 billion in 2023.
b. The global petrochemicals market is expected to grow at a compound annual growth rate of 7.0% from 2023 to 2030 to reach USD 1,002.45 billion by 2030.
b. The Asia Pacific dominated the petrochemicals market with a share of over 49.1% in 2022. This is attributable to favorable regulatory policies in the Asia Pacific and focuses on the development of the manufacturing sector.
b. Some key players operating in the petrochemicals market include BASF SE, British Petroleum Plc, Chevron Corporation, China National Petroleum Corporation (CNPC), China Petrochemical Corporation (SINOPEC), ExxonMobil Corporation, INEOS Group Ltd., LyondellBasell Industries Inc., Royal Dutch Shell PLC, and SABIC.
b. Key factors that are driving the petrochemicals market growth include rising demand for downstream products from end-use industries and capacity additions in the base chemical industry.
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The COVID-19 outbreak has significantly affected the petrochemical production output and supply chain across the world. The lockdown and travel restrictions in China have resulted in the declined consumption of petrochemical products in the country. China has also reduced the production output of petrochemicals as well as its downstream products such as polymers and synthetic rubbers due to a shortage of workforce and limited inventory. The reduced demand for oil and petrochemicals from China has resulted in a price decline of these products, thereby providing opportunities for countries such as India to procure oil at discounted prices. The updated report will account for COVID-19 as a key market contributor.
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