Petrochemical Market is Estimated to Grow at a CAGR of 5.9% from 2022 to 2028
As stated in our extensive report; the Global Petrochemical Market accounted for USD 552.3 Billion in 2021.
Increasing demand for downstream goods from various end-use sectors, including construction, pharmaceuticals, and automotive, is a significant factor driving the Petrochemicals market. In addition, many manufacturing procedures rely on Petrochemical products, making them indispensable to an industrial economy. Tires, industrial oil, detergents, and plastics are just a few of the many valuable items that may be made from Petrochemicals. The product’s basic plastic is used as a raw material in numerous industries. To ensure a steady and seasonal supply of Petrochemical derivatives, end-use industries regularly assess the quality of provided goods and enter into procurement agreements with suppliers. Due to the plethora of available options, consumers are in a strong negotiating position.
The Global Petrochemical Market is segmented based on Type, End-Use Industry, and Region. The market is segmented based on Type: ethylene, propylene, methanol, and xylene. Based on the End-Use Industry, the market is segmented into Packaging, Electronics, Construction, Automotive, and Others. Region-wise, the Global Petrochemical Market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Many Petrochemicals are used to make plastics like polyethylene, polypropylene, and polystyrene. Such polymers, such as plastic packaging for food and other commercial products, have seen a significant increase in demand over the past few decades, particularly in key end-use sectors. During the predicted time period, the trend will continue to rise, notably in the economies of developing nations in Latin America, the Asia-Pacific, and Africa. It is becoming increasingly challenging to discover cost-effective and environmentally benign alternatives to Petrochemical-based plastics to satisfy the significantly expanding worldwide consumption rate, despite growing efforts to promote recycling and prevent single-use plastics.
According to the International Energy Agency, the plastics industry has tremendous room for growth because the United States, Europe, and other developed nations consume up to 20 times as much plastic as Indonesia, India, and other developing countries. The lightweight nature of plastic decreases transportation costs and makes it possible to store and carry food for longer periods without it doesn’t go good.
In addition, it has direct monetary rewards and can aid in resource optimization, both of which are essential to developing economies. Demand for consumer goods is forecast to rise in developing economies as the spending power of the people as a whole rises. It is expected that this will lead to higher plastic usage, which will fuel the market.
Asia Pacific Region to Take Over the Market
During the forecast period, the Petrochemical Market in Asia Pacific is anticipated to develop at the quickest rate.The rapid growth of economies in places like China, India, and other Asia Pacific countries has increased demand for Petrochemical goods, including plastics, fertilizers, packaging, clothes, electrical devices, medical equipment, detergents, and tires. China, as the leading economic power in the region, is spending heavily on the switch from coal-to-chemical manufacture to using alternative feedstock, such as naphtha and natural gas, for Petrochemical production.
In addition, the region’s crude oil refining capacity has increased dramatically during the past decade, and this growth is anticipated to continue. As a result, demand for consumer goods is anticipated to increase along with the general upward trend in people’s purchasing power. New Petrochemical complexes are expected to be built in the area in response to rising demand from the consumer goods sector, which will benefit the region and boost the market.
Increasing demand for downstream goods from various end-use sectors will favor the overall Petrochemical Market.
Some of the key players in the Global Petrochemical Market include- BP PLC (UK), Total Energies S.A. (France), Exxon Mobil Corp. (US), BASF SE (Germany), Sumitomo Chemical Co. Ltd. (Japan), Dow Chemical’s (US), Chevron Phillips Chemical Company (US), Saudi Arabian Oil Co. (Saudi Arabia) and others.