The global petrochemicals market is expected to expand at a CAGR of 4% from forecast period 2020 to 2027 and to attain valuation around US$ 674 billion by 2027.
The market growth can be primarily attributed to the entry of new market players in developing regions, dwindling prices of crude oil prices, and growing demand for petrochemicals from various end-use industries. However, the evolving regulatory landscape, along with rising environmental concerns is anticipated to play a key role in influencing the growth of the petrochemicals market during the forecast period. Market players are projected to focus on their value-creation strategies to solidify their presence in the current market landscape.
Petrochemicals are an important part of commodities that are used in daily lives. Petrochemical products are used in various end-use industries, ranging from manufacturing to consumer goods. These chemical compounds are derived from petroleum as well as other hydrocarbons, which are obtained from natural gas and crude oil. Petrochemical products are primarily used as chemical building blocks in various applications and materials. Various organic chemicals are manufactured in the petrochemicals industry. These include methanol, ethylene, butadiene, propylene, benzene, xylene, and toluene. Ethylene, butadiene, and propylene, along with butylene, are collectively called olefins. These belong to a class of unsaturated aliphatic hydrocarbons with chemical formula CnH2n. Benzene, xylene, and toluene are commonly referred to as aromatics. These are unsaturated cyclic hydrocarbons containing multiple rings. Olefins, methanol, and aromatics are precursors to various chemical products; and are generally referred to as primary petrochemicals.
Side Effects of Magnesium Stearates to Hamper Petrochemicals Market
Significant steps are being taken around the world to move from the current fossil-based economy toward a more sustainable economy based on biomass. The transition to a bio-based economy has multiple drivers: need to develop environmentally, economically, and socially sustainable global economy; anticipation that oil, gas, coal, and phosphorus would reach peak production in the near future and prices would rise; global issue of climate change; and the need to reduce atmospheric greenhouse gas (GHG) emissions. A large part of the world is slowly transitioning from a fossil fuel dependent economy to one that is more environmentally sustainable, centered around biomass. Countries are striving to manufacture bio-based chemicals from various biomass sources in order to achieve this. The U.S. Department of Energy (DoE) has highlighted a dozen platform or base chemicals that could possibly replace fossil or petroleum-based building blocks in value-added chemicals. These include carboxylic acids, isoprene, ethanol, amino acids, vitamins, and industrial enzymes. Thus, rise in use of bio-based chemicals as alternatives to petrochemicals is expected to hamper the petrochemicals market in the near future.
Ethylene to Offer Lucrative Opportunities for Petrochemicals Market
In terms of product, the global petrochemicals market has been divided into methanol, ethylene, propylene, c4 stream, benzene, toluene, and xylene. Ethylene is projected to be a highly lucrative segment of the global petrochemicals market during the forecast period. It is likely to expand at a CAGR of 3.8% from 2020 to 2027. Ethylene is a key petrochemical used in the production of various derivatives and end-use products. The three key chemical processes in ethylene production are dehydration of ethanol, steam cracking of oil and gas-based feedstock, and methanol-to-olefins. Ethylene is employed in a wide range of end-use industries and applications such as chemical, food & beverages, medical, and rubber & plastics. This can be ascribed to high usage of petrochemicals as raw materials in the manufacture of products mentioned above. This is expected to boost the global petrochemicals market from 2020 to 2027.
Building & Construction End-use Industry to Dominate Petrochemicals Market
In terms of end-use industry, the global petrochemicals market has been segregated into aerospace, agriculture, automotive, building & construction, consumer & industrial goods, electrical & electronics, food & beverages, healthcare, marine, paints & coatings, power & utilities, pulp & paper, textiles & leather, and others. The building & construction segment is anticipated to dominate the global petrochemicals market during the forecast period. The building & construction segment accounted for a major share of the global petrochemicals market in 2019. In terms of volume, the segment is anticipated to expand significantly during the forecast period. The segment is projected to account for more than 24% share of the global petrochemicals market by 2027. This is estimated to boost the global petrochemicals market in the near future.
Asia Pacific to be Key Region of Petrochemicals Market
The global petrochemicals market has been split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific dominated the global petrochemicals market in 2019. The trend is projected to continue during the forecast period. The demand for petrochemicals is high in Asia Pacific, particularly in China, owing to increase in consumption of petrochemicals in automotive, electrical & electronics, and building & construction industries in the region. China is a prominent consumer of petrochemicals in Asia Pacific. The expansion of the building & construction industry is a major factor propelling the petrochemicals market in the country. Asia Pacific is anticipated to remain a highly lucrative region of the global petrochemicals market during the forecast period, owing to increase in production of various petrochemical-based products in countries such as China and India in the region.
Competition Landscape of Petrochemicals Market
The global petrochemicals market is highly fragmented. BASF SE, BP Plc, DuPont de Nemours, Inc., Total S.A., Exxon Mobil Corp., China Petroleum & Chemical Corporation, Saudi Arabian Oil Co., Sumitomo Chemical Co., Ltd., and Dow cumulatively held more than 50% share of the global petrochemicals market in 2019. Leading players have taken initiatives to expand their presence in the global petrochemicals market through acquisitions, increase in production capacities, and strategic partnerships.
Other key manufacturers operating in the global petrochemicals market are Chevron Phillips Chemical Company, LyondellBasell Industries NV, Mitsubishi Chemical Corporation, INEOS, PetroChina Company Limited, Saudi Basic Industries Corp., Idemitsu Kosan Co., Ltd., Reliance Industries Limited, Royal Dutch Shell Plc, Indian Oil Corp. Ltd., and Formosa Petrochemical Corporation.
Global Petrochemicals Market: Segmentation
Petrochemicals Market, by Product
Petrochemicals Market, by End-use Industry
Petrochemicals Market, by Region
Scope of the Report
Transparency Market Research’s recent report on the global petrochemicals market provides readers with an assessment of the landscape of the market with the help of a comprehensive outlook. This study on the global petrochemicals market analyzes the market for the period from 2020 to 2027, wherein 2020 is the base year. The report enables readers to make important decisions regarding their business, with the help of a wealth of information enclosed in the study.
This VRR study on the global petrochemicals market also provides data on developments made by important players and stakeholders in the market, along with competition analysis. The report also provides understanding of drivers, restraints, opportunities, and market trends.
This study also discusses the underlying trends and the impact of various factors that are driving the global petrochemicals market, along with their influence on growth of the market.
This study also offers Porter’s Five Forces analysis and value chain analysis of the global petrochemicals market in order to elaborate on crucial growth strategies of players operating in the regional market.
Key Questions Answered in Petrochemicals Market Report
This report answers these questions about the global petrochemicals market, aiding major stakeholders and key players in making correct decisions and strategizing for expansion of their business.
This TMR report on the global petrochemicals market is based on a complete and comprehensive evaluation of the market, supported by secondary and primary sources. The competition scenario of the global petrochemicals market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the global petrochemicals market arrived at predictions and estimations and calculated the market forecast.
This report uses an analytical triangulation method to estimate the global petrochemicals market by using bottom-up and top-down approaches.
This detailed assessment of the global petrochemicals market, along with an overview of the market, is provided on the basis of a careful examination of growth opportunities. Analysts’ conclusions on how the global petrochemicals market is set to expand are based on carefully vetted primary and secondary sources.
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