Global Petrochemicals Market Analysis: By Type (C1 Derivatives, C2 Derivatives, C3 Derivatives, C4 Derivatives, Aromatics, Others), By End Use (Packaging and Construction, Fuel and Fuel Additives, Automotive and Consumer Durables, Pharmaceutical and Agrochemicals and Others), By Region, By Company Competition, Forecast & Opportunities, 2015-2025
Global Petrochemical demand stood at 322.45 Million Tonnes in 2020 and is forecast to reach 527.56 Million Tonnes by 2030, growing at a healthy CAGR of 4.95% until 2030. Growing penetration of petrochemical products across plethora of end-use industries such as packaging, automotive, consumer durables, textile and construction sectors is expected to drive the petrochemicals market growth until 2025. Petrochemicals are omnipresent, with their usage increasing across our countless, daily life applications. Increasing demand for Methanol (obtained from C1 stream) for industrial applications like manufacturing formaldehyde, API formulations, dyes & intermediates, agrochemicals etc., and its growing adoption as a clean-burning fuel in transports is likely to spur the global petrochemicals demand in the forecast period. Growing demand for petrochemical products used in plastic packaging for food and other commercial products such as Polyethylene (C2 stream) and Polystyrene (aromatics) due to their inexpensive, lightweight and high-performance characteristics is expected to propel the market growth in the coming years. Excellent barrier properties which allow food to remain fresh for longer durations are expanding the scope of polyethylene plastics over other packaging materials, thereby increasing the petrochemicals consumption across the globe. Moreover, with major economies across the globe making hefty investments to support their passenger and commercial automotive manufacturing, the global demand for rubber tyres, mainly derived from the petrochemical Butadiene (an output from C4 stream) is anticipated to improve in the forecast period. An additional market driver is the growing consumption of petrochemicals-based laundry detergents and textile fibers with ever changing consumer preferences. Supported with growing manufacturing of Benzene-based derivatives, the demand outlook of the industry is likely to turn bullish in the upcoming years.
On the basis of type, C2 & C3 derivatives cumulatively held more than 48% of the global petrochemicals demand share in 2019. The sectoral demand is likely to trigger tremendous growth in the global petrochemicals industry due to their growing consumption across engineered plastics, medical plastics, packaging films and many other end-use industries, backed by intensive research & development initiatives by leading manufacturers across the globe.
Geographically, Asia Pacific dominates the global petrochemical market, followed by North America and Western Europe. Massive capacity addition plans in the coming years and increasing mergers and acquisitions to support the skyrocketing regional demand are the factors propelling the Asian petrochemicals demand. Moreover, several FDI flows from outside Asia looking at the favorable government policies and demographic trends, would further drive the Asian market growth in the forecast period.
The outbreak of the COVID-19 dented the global petrochemicals industry, rendering the global industrial production to remain at standstill during Q2 and Q3 2020. The biggest impact was on demand of downstream derivatives such as clothing and automotive which crashed to historic lows in short term. Unprecedented crash in upstream crude oil as an outcome of the historic oil-price war further hurt the overall refinery run rates. However, soaring demand for personal hygiene products which increased consumer focus over C3 derivative polymers for manufacturing masks, PPE kits and disposable items, kept the sentiments uplifted. In longer terms, it is anticipated that spurt in the global petrochemicals demand as several economies ramp up their refining capacities and invest on latest manufacturing technologies would further accelerate the market growth in the forecast period.
Years Considered for this Report:
Historical Years: 2015 – 2018
Base Year: 2019
Estimated Year: 2020
Forecast Period: 2021 – 2025
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