Future and Growth of Petrochemicals Market by 2030

 

Petrochemicals Industry Overview

The global petrochemicals market size was valued at USD 619.28 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2030.

The demand for the product is attributed to an increase in the demand for downstream products from various end-use industries such as construction, pharmaceuticals, and automotive, which is a major factor driving the growth. Petrochemical is a vital component for many industrial processes and hence forms the backbone of an industrial economy. Some of the products derived from petrochemicals include tires, industrial oil, detergents, plastics, etc. Basic plastic derived from the product act as a building block in the manufacturing of consumer goods.

Gather more insights about the market drivers, restrains and growth of the Petrochemicals Market

End-use industries evaluate the quality of products supplied from time to time and establish procurement agreements with suppliers to purchase petrochemical derivatives in bulk and ensure their stable and seasonal supply. An increasing number of product suppliers in petrochemicals market in U.S. has resulted in the high bargaining power of the buyers.

The industry is significantly affected by the prices of crude oil as it is a basic raw material used for the manufacturing of the product. The volatility in the prices and supply of crude oil has affected the production cost of petrochemicals, which, in turn, makes their production process costly. Factors such as the growing inclination of consumers in developed and developing regions toward environment-friendly products and the volatile prices of raw materials of petrochemicals are likely to hamper the market growth in the coming years.

The steam cracking process is one of the most commonly used processes for manufacturing petrochemicals from natural gas or crude oil. In this process, ethane, a derivative of natural gas or naphtha that is predominantly derived from crude oil, is used for the manufacturing of olefins. A steam cracker has equipment operating at pressure from near-vacuum to 100 atm and operating at temperatures from 100 K to 1400 K.

Moreover, the demand for petrochemicals and their derivatives for use in various applications such as tires, pharmaceuticals, high-tech materials, and paints across the U.S. is led by unprecedented success in the exploration and production of shale gas. The country is a major exporter of petrochemical products to Europe, as well as to countries such as China and India. There has been a significant resurgence in investments and petrochemical capacity expansions in the U.S. since 2014 owing to the reduction in feedstock prices and high demand for petrochemicals in aforementioned applications in the country.

Browse through Grand View Research's Petrochemicals Industry Research Reports.

• The global naphtha market size was valued at USD 189.5 billion in 2023 and is projected to grow at a CAGR of 4.3% from 2024 to 2030.

• The global diesel exhaust fluid market size was valued at USD 36.66 billion in 2023 and is projected to grow at a CAGR of 7.9% from 2024 to 2030.

Key Petrochemicals Market Company Insights

Some of the key players operating in the market include SABIC, ExxonMobil Corporation, and BASF SE.

SABIC, a global leader in petrochemicals, emphasizes on diversified product portfolio ranging from basic chemicals to specialty products. It focuses on innovation, sustainability, and operational excellence. SABIC often invests in R&D to enhance product quality, efficiency, and explore eco-friendly alternatives.

ExxonMobil is a leading player in petrochemical industry, with a focus on integrated downstream operations. Its strategy involves technological innovation, cost leadership, and commitment to sustainability. ExxonMobil continuously invests in advanced technologies to improve efficiency and reduce environmental impact.

Mitsubishi Chemical Holdings Corporation and Formosa Petrochemical Corporation are some of the emerging market participants in petrochemicals market.

Mitsubishi Chemical Holdings Corporation is an emerging player in the global petrochemicals market, emphasizing on innovation and sustainability. The company invests in R&D to create value-added products and reduce environmental impact. It also explores strategic collaborations to enhance its market position in a competitive market.

Formosa Petrochemical Corporation, an emerging player with a strong presence in Asia, focuses on expanding its petrochemical operations. Its strategy involves capacity expansions, technology upgrades, and a commitment to environmental responsibility. Further, it aims to meet increasing demand for petrochemical products in the region.

Key Petrochemicals Companies:

The following are the leading companies in the petrochemicals market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these petrochemicals companies are analyzed to map the supply network.

·         BASF SE

·         Chevron Corporation

·         China National Petroleum Corporation (CNPC)

·         China Petrochemical Corporation

·         ExxonMobil Corporation

·         INEOS Group Ltd.

·         LyondellBasell Industries Holdings B.V.

·         Royal Dutch Shell PLC

·         SABIC

·         Dow

Recent Developments

In November 2023, Dow announced invest of USD 8.9 billion for a net-zero petrochemical plant project in Alberta's Industrial Heartland, Canada. It is projected to produce around 3 million tons of low-emission ethylene and polyethylene derivatives. The construction of the project is set to start construction in 2024.

In July 2023, SABIC introduced its latest PCR-based NORYLTM portfolio to reduce carbon footprint by incorporating bio-based and recycled materials in petrochemical products, a step for making the chemical sector environment friendly.

In July 2023, ExxonMobil Corporation declared its agreement to acquire Denbury Inc. to expand its carbon capture and storage (CCS) solutions, and reduce carbon emissions for the petrochemical and energy industries.

In May 2023, Dow Corporate collaborated with New Energy Blue to produce bio-based ethylene from renewable residues of agriculture. Ethylene is a petrochemical-based raw material, and with its production Dow aims to initiate a sustainable approach to produce plastic.

In April 2023, INEOS Group Ltd. completed the acquisition of Mitsui Phenols Singapore Ltd. to enhance the production of petrochemical products including acetone, cumene, bisphenol A (BPA), phenol, and alpha-methylstyrene.

In March 2023, Chevron USA Inc. announced its collaboration with Bunge and Corteva Inc. to launch winter canola hybrids to produce plant-based oil with low carbon profile. This is an effective contribution to reduce carbon emissions in the energy and petrochemical sectors.

In February 2023, Royal Dutch Shell PLC completed its acquisition of Nature Energy Biogas A/S to create a RNG value chain to provide low carbon offerings to customers. The use of biogas will help Shell to produce renewable natural gas for the petrochemical manufacturing process.

In February 2023, China Petrochemical Corporation, also known as Sinopec, launched the largest green hydrogen-coal chemical project in Inner Mongolia to reduce carbon emissions in the petrochemical industry, and support green energy.

In November 2022, SABIC announced a joint project with Saudi Aramco to convert crude into petrochemicals in Ras Al-Khair, Saudi Arabia. The project is set to have a production capacity of producing 400,000 barrels of crude oil per day. The government initiative is being supported by development of a new port in the industrial city. This would help in efficient export of petrochemicals and help boost the economy as it is a leading petrochemicals producing country.

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