Petrochemicals Market Size, Growth, Demand, Share, Forecast To 2033

(MENAFN- Straits Research) Introduction

Chemicals made from petroleum are known as petrochemicals . Though many of the same chemical compounds can also be made from biomass, other fossil fuels, such as coal and natural gas, and renewable sources like corn, sugar cane, and biomass. Oil and associated petroleum gas must undergo several processing stages to make petrochemicals. The petrochemical industry uses petroleum oil refinery byproducts as important raw materials. Petrochemicals make benzene, propylene, and ethylene, as well as the source monomers for synthetic rubbers and the building blocks for technical carbon. Several refinement procedures result in converting crude oil into secondary products like petrochemicals and petroleum goods.

Market Dynamics Rising Demand for Petrochemicals in Electronics and Electrical Industry Drives the Global Market

In the electronics and electrical industries, new materials are frequently the foundation for new product development and technological advancements. The current electronics and electrical sector heavily relies on petrochemical products to produce electronics and electrical goods. Commonplace items such as CD players, telephones, radios, computers, and televisions are mass-produced thanks to petrochemical industry support. This is done so that the electronic sector, dependent on the petrochemical industry's production and provision of specific commodities, can develop.

Additionally, petrochemical materials used in the electronics industry have advantages over traditional materials in terms of electrical insulation, safety, data storage, ease of assembly, and significant miniaturization capacity. Petrochemicals are used to produce microchips, which are an essential component of computers. The demand for petrochemical services is expected to rise in the near future as the global electronics sector expands.

Increasing Production of Petrochemical by Major Players Creates Tremendous Opportunities

The primary petrochemical companies are increasing petrochemical production to improve their position and gain a competitive edge in the global market. For example, thanks to an agreement between The Abu Dhabi National Oil Company and Reliance Industries, a new petrochemical complex will be built in Ruwais, Abu Dhabi. Furthermore, the Middle East, the United States, and Asia-Pacific are investing heavily in petrochemical processing capacity to meet client demand. According to Hydrocarbon Processing's Construction Boxscore, approximately 280 new petrochemical projects were announced between 2016 and 2018, representing a 42% increase over the previous year. This could significantly impact the petrochemical industry's expansion rate, creating market growth opportunities over the forecast period.

Regional Analysis

Asia-Pacific is the most significant global petrochemical market shareholder and is estimated to exhibit a CAGR of 7.1% during the forecast period. This is due to increased demand from the consumer goods sector. The rapid economic expansion in emerging economies such as China, India, and other ASEAN nations increased demand for petrochemical goods such as plastics, fertilizers, packaging, clothes, electronics, medical equipment, detergents, and tires. China, the region's dominant player, has made aggressive investments in transitioning to alternate feedstock for petrochemical production, such as naphtha and natural gas, rather than relying on coal-to-chemical manufacturing to supply raw materials to its sizable domestic industrial base. The region has also added a lot of crude oil refining capacity over the last ten years, which is expected to continue during the projected period.

Key Highlights

• The global petrochemicals market size was valued at
  USD 645.55 billion in 2024
  and is projected to reach from
  USD 681.06 billion in 2025
  to
  USD 1045.21 billion by 2033, growing at a CAGR of
  5.50%
  during the forecast period (2025-2033).

• Based on the product, the petrochemicals market is bifurcated into ethylene, propylene, butadiene, benzene, xylene, toluene, and methanol. The ethylene segment owns the highest market share, with a revenue share of 41.17% in 2022.
• Asia-Pacific is the most significant global petrochemical market shareholder and is estimated to exhibit a CAGR of 7.1% during the forecast period.

Competitive Players

Basf SE

Chevron Corporation

China Petrochemical Corporation

ExxonMobil Corporation

INEOS Group Ltd

LyondellBasell Industries Holdings B.V.

Royal Dutch Shell PLC

SABIC

Dow

Recent Developments

Recent Developments

• March 2023 - The International Energy Agency (IEA) released a report on the future of petrochemicals. The report projects that global petrochemical demand will grow by 50% between 2020 and 2050. The IEA also forecasts that China will be the leading driver of growth in the petrochemicals market, followed by India and Southeast Asia.
• February 2023 - Saudi Aramco announced plans to invest USD 50 billion in petrochemical production over the next five years. The company plans to build new facilities and expand existing ones to increase its production of polyethylene, polypropylene, and other petrochemicals.
• January 2023 - ExxonMobil announced plans to invest USD 10 billion in petrochemical production in the United States. The company plans to build new facilities and expand existing ones to increase its ethylene, propylene, and other petrochemical production.

Segmentation

By Product

Ethylene

Propylene

Butadiene

Benzene

Xylene

Toluene

Methanol

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