Growth and Trends in Petrochemicals Market - WorldOfChemicals

Petrochemicals Market:Growth and Trends

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

In 2018, the global petrochemicals market was approximately USD 540 billion and is expected to grow with a CAGR of 8.5% to USD 975 billion by 2025. The petrochemicals market is being driven by the increasing demand from end user industries like chemical intermediate manufacturing, construction and automobile. Ethylene is the most demanded petrochemical in terms of its sheer volume and value in the above-mentioned end user industries.

 

Growth and Trends

Since 2014, there has been an upturn in investment as well as petrochemicals’ capacity expansion. The growth of the petrochemicals industry is accredited by the shale revolution, which has brought down the prices of feedstocks. There is an increasing demand for sustainable and bio-based petrochemicals. The market will be affected by the environmental regulations for products based on the environmental concerns.

 

The big players from the petrochemical industry are working on the development of sustainable petrochemicals plants. This has forced the smaller, older and inefficient plants to shut down. An imbalance has been created in the demand and supply, particularly for the smaller downstream petrochemical derivatives. This is due to the modifications in the coproducts’ production and costs as well as feedstocks’ replacement.

 

Leading Derivatives

The petrochemicals market is dominated by the polyethylene segment. There is an increasing demand for high density polyethylene (HDPE). It finds varied applications such as injection molding and blow molding for household goods, drums and containers. Polypropylene is expected to bethe leading derivative during the forecast period. Applications of propylene include plastics, foams, films and fibers.

 

Regional Markets

The Asia Pacific region is expected to drive majority of global petrochemical demand, due to its high economic growth and rising regional consumption. The largest consumer of petrochemical products is China, due to its favorable export-oriented policies and presence of big production plants. There is a bottleneck situation for demand and supply in Asia because of factors like uncertainty in upstream and downstream investments as well as crude oil price fluctuations.

The growth and expansion of the manufacturing segments in countries like India, UAE, Saudi Arabia, Thailand and Malaysia, has increased the demand for polymers and base chemicals. The presence of big chemical companies is expected to benefit market expansion. However, the European marker is anticipated to have surplus in the methanol market and low demand for butadiene. Steady growth is expected to prevail in Western Europe due to its market saturation.

 

Scope

The petrochemical industry players are working on the advancement of technologies to produce bio based sustainable petrochemicals. The factors affecting the competition involve manufacturing technologies, feedstock supply and pricing structure. The big petrochemical giants such as SABIC and INEOS have effectively integrated their operations, such that they produce both primary petrochemicals as well as their derivatives.

Petrochemical companies are also involved in capacity expansions to make the most from future opportunities. The big companies are also planning to set up manufacturing units by investing in developing regions of South America and Asia Pacific. Some of the key petrochemical players are Saudi Aramco, SABIC, ExxonMobil, INEOS, Royal Dutch Shell, PetroChina, Qatar Petroleum, Dow Chemical and LyondellBasell Industries.