Petrochemical Market Outlook:
Petrochemical market was valued at USD 672.5 billion in 2025 and is projected to reach USD 1.15 trillion by the end of 2035, rising at a CAGR of 5.6% during the forecast period, i.e., 2026-2035. In 2026, the industry size of the petrochemical is estimated at USD 716.7 billion.
The market is currently undergoing substantial growth, driven by heightened demand for petrochemical derivatives in critical sectors such as packaging, agriculture, automotive, and consumer goods manufacturing. With record natural gas production, U.S. ethane production increased 9% to an average of 2.6 million barrels per day (b/d) in 2023, reflecting an increase in downstream production efforts. A significant shift towards gas-based feedstocks in North America and the Middle East, aided by favorable policy incentives, has improved both cost efficiency and supply chain security. Considerable investments in steam crackers and derivative production units are modernizing infrastructure to cater to the increasing global demand for essential chemicals like ethylene and propylene. Additionally, trade agreements and zero-tariff frameworks in the Asia-Pacific have been enhanced, enabling manufacturers to expand their global distribution channels and counteract volatility related to crude oil prices.
Sourcing raw materials, especially naphtha, natural gas liquids (NGLs), and refinery byproducts, is crucial for production economics. In the United States, almost all ethane is extracted at natural gas processing plants that extract ethane and other natural gas plant liquids (NGPL) from raw natural gas. The Texas Inland and New Mexico refining districts, which make up the Permian Basin, accounted for 61% of all U.S. ethane output in 2023. Average production levels in these two districts were approximately 1.6 million b/d in 2023, which is essentially the same as in 2022. Domestic consumption of ethane, measured as product supplied, grew 5% to 2.1 million b/d in 2023. Ethane in the United States is nearly exclusively consumed as a feedstock in the petrochemical industry.
