Petrochemicals Market Size, Share & Trends Analysis Report By Product (Ethylene, Propylene, Butadiene), By Region (North America, Europe, Asia Pacific, Latin America, Middle East, Africa), And Segment Forecasts, 2023 - 2030

Report Overview

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.

Product Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Recent Developments

• In July 2023, SABIC introduced its latest PCR-based NORYL^TM portfolio to reduce carbon footprint by incorporating bio-based and recycled materials in petrochemical products, a step for making the chemical sector environment friendly

• In July 2023, ExxonMobil Corporation declared its agreement to acquire Denbury Inc. to expand its carbon capture and storage (CCS) solutions, and reduce carbon emissions for the petrochemical and energy industries

• In May 2023, Dow Corporate collaborated with New Energy Blue to produce bio-based ethylene from renewable residues of agriculture. Ethylene is a petrochemical-based raw material, and with its production Dow aims to initiate a sustainable approach to produce plastic

• In April 2023, INEOS Group Ltd. completed the acquisition of Mitsui Phenols Singapore Ltd. to enhance the production of petrochemical products including acetone, cumene, bisphenol A (BPA), phenol, and alpha-methylstyrene

• In March 2023, Chevron USA Inc. announced its collaboration with Bunge and Corteva Inc. to launch winter canola hybrids to produce plant-based oil with low carbon profile. This is an effective contribution to reduce carbon emissions in the energy and petrochemical sectors

• In February 2023, Royal Dutch Shell PLC completed its acquisition of Nature Energy Biogas A/S to create a RNG value chain to provide low carbon offerings to customers. The use of biogas will help Shell to produce renewable natural gas for the petrochemical manufacturing process

• In February 2023, China Petrochemical Corporation, also known as Sinopec, launched the largest green hydrogen-coal chemical project in Inner Mongolia to reduce carbon emissions in the petrochemical industry, and support green energy

• In November 2022, LyondellBasell Industries Holdings BV collaborated with Audi to create automotive plastic parts from mixed automotive plastic waste. This is a huge contribution in the field of petrochemicals with the aim to recycle plastic waste, and produce new plastics for automotive applications

• In September 2022, BASF SE partnered with ARCUS Greencycling Technologies GmbH to use pyrolysis oil from mixed plastic waste production. This is an initiative to use recycled raw materials that are derived from petrochemicals

Petrochemicals Market Report Scope

Global Petrochemicals Market Report Segmentation

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.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Belgium

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Latin America

    • Brazil

  • Middle East

  • Africa