The petrochemicals refer to distinct chemicals made from refined petroleum or liquid hydrocarbons that are used for commercial purposes. The petrochemicals are also made from other fossil fuels, such as coal, natural gas, and renewable sources such as maize, sugar cane, or palm fruit.
The main types of petrochemicals are ethylene-petrochemicals, propylene-petrochemicals, benzene-petrochemicals, xylene, styrene-petrochemicals, toluene, cumene, and other types of petrochemicals. Xylene is an aromatic hydrocarbon existing in three isomeric forms, all three being colorless flammable volatile liquids used as solvents and for the manufacturing of synthetic resins, dyes, and insecticides such as dimethylbenzene. The applications are polymers, paints and coatings, solvents, rubber, adhesives and sealants, surfactants, pigments and dyes, fibers and fabrics, and other applications. The end-user industries are construction, packaging, automotive and transportation, healthcare, electrical and electronics, and other end-user industries.
The global petrochemicals market is segmented -
1) By Type: Ethylene-Petrochemicals, Propylene-Petrochemicals, Benzene-Petrochemicals, Xylene, Styrene-Petrochemicals, Toluene, Cumene, Other Petrochemicals
2) By Application: Polymers, Paints & Coatings, Solvents, Rubber, Adhesives & Sealants, Surfactants, Pigments & Dyes, Fibers & Fabrics, Other Applications
3) By End User Industry: Construction, Packaging, Automotive & Transportation, Healthcare, Electrical & Electronics, Other End-User Industries
The global petrochemicals market grew from $671.57 billion in 2022 to $693.3 billion in 2023 at a compound annual growth rate (CAGR) of 3.2%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The petrochemicals market is expected to grow to $786.74 billion in 2027 at a CAGR of 3.2%.
The petrochemicals market is expected to benefit from growth in the automobile industry during the forecast period. There is a drive for the production of automobiles, which is leading to an increase in demand for petrochemical products that are used in the manufacturing of brake parts, radiators, and other components. For instance, according to an estimation by Goldman Sachs, a US-based investment banking company, the global sales of new cars in emerging markets is expected to increase from 68 million in 2020 to 78 million by 2025. Thus, the growth of automobiles is expected to increase the demand for petrochemicals during the forecast period.
Major companies in the petrochemicals market include JXTG Holdings Inc., Saudi Basic Industries Corporation (SABIC), Sinopec Limited, Royal Dutch Shell, Reliance Industries Limited, LG Chem Ltd., Guardian Industries LLC, Odebrecht Engenharia E Construcao Sa, Mitsubishi Chemical Holdings Corp, and BASF SE.
Oil price volatility is likely to have a negative impact on the petrochemicals market as significant declines and increases in oil prices negatively impact government and consumer spending. The decline in oil prices is having a negative impact on government spending in countries such as Saudi Arabia, Nigeria, and the UAE (United Arab Emirates), which are largely dependent on revenues generated through crude oil exports, whereas a significant increase in oil prices has resulted in a spurt in inflation, current account deficit, and fiscal deficit in countries such as India and China, which predominantly import oil. For instance, the Saudi government is expected to cut down its spending from 1.05 trillion riyals ($280 billion) in 2019 to 1.02 trillion riyals ($270 billion) in 2020 and to 955 billion riyals ($255 billion) by 2022 due to a significant decline in revenues generated from oil exports, thereby affecting the market. This -high volatility in the oil process is further expected to negatively impact the market going forward.
Many petrochemical manufacturers are adopting IoT (Internet of Things) technologies to connect equipment and smart devices to obtain real-time insights and identify inefficiencies in the manufacturing process. The data obtained is processed, analyzed, and interpreted by plant managers and senior-level management to improve quality and achieve optimum production levels. For example, smart systems give information on the working condition and performance of chemical reactors with embedded software and analytics tools to notify plant operators and managers of possible machine breakdowns.
Asia-Pacific was the largest region in the petrochemicals market in 2022. Middle East was the second largest region in the petrochemicals market. The regions covered in the petrochemicals report market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the petrochemicals market are Argentina, Australia, Austria, Bangladesh, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Iran, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, Ukraine, USA, and Vietnam.
The petrochemicals market consists of the sales of aliphatic compounds, aromatic compounds, inorganic compounds, and synthesis gas. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The petrochemicals market research report is one of a series of new reports from The Business Research Company that provides petrochemicals market statistics, including petrochemicals industry global market size, regional shares, competitors with a petrochemicals market share, detailed petrochemicals market segments, market trends and opportunities, and any further data you may need to thrive in the petrochemicals industry. This petrochemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.