Global Petrochemical Market Highlights Over 2022 – 2031
The global petrochemical market is estimated to garner ~6% CAGR over the forecast period, i.e., 2022 – 2031. The growth of the market can be attributed to the increasing demand for petrochemical in commercial applications and the automotive industry. Furthermore, petrochemical products are used for other umpteen applications, such as, medical equipment, paints, detergent, textiles, and adhesives. According to the data released by the United Nations Principles for Responsible Investment, approximately 99% of plastics are derived from petrochemical products. It is estimated that the global plastic industry will value at USD 751 billion by 2028. Hence, the high usage of petrochemicals in the production of plastic, is estimated to boost the global petrochemical market growth during the forecast period. Furthermore, petrochemical products are extensively utilized in paint and coatings, which are applied on cars and building walls. According to the data published by the Observatory of Economic Complexity (OEC), non-aqueous paints were among the 240 top traded products in 2020, with a total trade of USD 14.1 billion. The escalating demand for paints and coating is further estimated to drive the growth of the global petrochemical market over the forecast period. Moreover, synthetic rubber is a prominent component in making tires for trucks, cars, and bicycles and is made from petrochemical, butadiene. It is estimated that in the year 2020, 64 million cars were sold in 2020, which rose to 67 million in 2021. On the back of increasing sales of vehicles, the global petrochemical market is estimated to grow significantly over the forecast period.
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The market is segmented by end-user into aerospace, agriculture, automotive, construction and others. Out of these, the automotive segment is anticipated to hold the largest share in the global petrochemical market over the forecast period on account of exponentially increasing demand for vehicles. Furthermore, the huge demand for plastic to make the body and other parts of vehicles is also expected to elevate the global petrochemical market growth during the forecast period.
Major Macro-Economic Indicators Impacting the Market Growth
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for investment in businesses in Asia Pacific countries in the upcoming years.
Global Petrochemical Market Regional Synopsis
Regionally, the global petrochemical market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific region is estimated to witness modest growth over the forecast period, on the back of rapid economic development in the region. Various companies in the region are investing in the petrochemical industry. Furthermore, governments of the countries are also pursuing policies of petrochemical self-sufficiency, which is the reason the global petrochemical market is projected to grow during the forecast period in the region.
The global petrochemical market in the North America region is expected to grow over the forecast period owing to the rising demand for plastic, fertilisers, synthetic rubber and detergents. The data released by American Fuel & Petrochemical Manufacturers state that petrochemical manufacturers have invested USD 185 billion to meet the growing demand for petrochemicals, which is the reason the global petrochemical market is projected to grow over the forecast period.
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The global petrochemical market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of the Middle East and Africa) Market size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook
Our in-depth analysis of the global petrochemical market includes the following segments:
- C4 Stream
- Paints & Coatings
- Adhesive & Sealants
- Pigments & Dyes
- Soaring Plastic Demand across the Globe
- High Consumption of Petrochemicals in Manufacturing Industry
- Increasing Demand for Fertilisers and Paints
- Growing Environmental Concerns
Top Featured Companies Dominating the Market
- Reliance Industries Limited
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- BASF SE
- Exxon Mobil Corporation
- Sumitomo Chemical Co., Ltd.
- LyondellBasell Industries Holdings B.V
- Mitsubishi Chemical Holdings Corporation.
- Formosa Petrochemical Corporation
- Idemitsu Kosan Co.,Ltd.
- Chevron Phillips Chemical Company LLC.
- INEOS Capital Limited