Petrochemicals Industry Overview

The global petrochemicals market was valued at USD 619.28 billion in 2023 and is projected to experience a compound annual growth rate (CAGR) of 7.3% from 2024 to 2030. This anticipated growth is primarily driven by an increase in demand for downstream products across various end-use industries, including construction, pharmaceuticals, and automotive. Petrochemicals serve as vital components in numerous industrial processes, establishing them as the backbone of the industrial economy. Key products derived from petrochemicals include tires, industrial oils, detergents, and plastics. Basic plastics, in particular, are essential building blocks in the manufacturing of consumer goods.

End-use industries frequently assess the quality of the products supplied to them and often establish procurement agreements with suppliers to purchase petrochemical derivatives in bulk, ensuring a stable and seasonal supply. The increase in the number of product suppliers in the petrochemicals market in the United States has led to higher bargaining power for buyers, allowing them to negotiate better terms and prices.

However, the industry faces significant challenges due to the fluctuations in crude oil prices, which serve as a fundamental raw material for petrochemical production. Volatility in crude oil prices and supply directly impacts the production costs of petrochemicals, making the production process more expensive. Additionally, growing consumer preferences for environmentally friendly products, coupled with the unstable prices of raw materials used in petrochemicals, are likely to hinder market growth in the coming years.

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

Regional Insights:

Asia Pacific Petrochemicals Market Leadership (2023): Asia Pacific held the largest share of the global petrochemicals market, accounting for over 51.0%.

• Key Growth Factors:
  • Flourishing Chemicals Industry: The region benefits from a strong chemicals sector, supporting increased petrochemical production.
  • Rising Polymer Consumption: Growing demand for polymers across various applications, including packaging and automotive, drives market growth.
  • Shift to Non-Oil Feedstock: Companies are increasingly adopting natural gas liquids and other non-oil feedstocks to meet the rising demand while reducing costs.
  • Cost-Effective Sales Strategies: Producers in the region are implementing cost-efficient strategies to boost product sales and expand market reach.

India’s Petrochemicals Market: The petrochemicals industry in India is experiencing robust growth.

• Drivers of Growth:
  • Industrial and Manufacturing Sector Expansion: Rapid industrialization and growth in manufacturing drive increased demand for petrochemicals.
  • Investment in Capacity Expansion: Leading companies are investing heavily in expanding production capacity and upgrading technologies to meet rising demand.

North America’s Petrochemicals Market: Shale gas exploration in the U.S. and Canada is expected to drive growth in the North American petrochemicals industry.

• Shale Gas Production: Increasing shale gas production in North America offers an alternative to conventional feedstocks, supporting the production of various petrochemicals.
• Capacity Additions: Significant capacity expansions in the U.S. and Canada are projected to fuel market growth over the forecast period.

Europe’s Projected Growth (CAGR 6.8%): Europe’s petrochemicals market is anticipated to grow at a CAGR of 6.8% during the forecast period.

• Growth Factors:
  • Manufacturing Sector Recovery: The ongoing recovery in manufacturing post-global pandemic is strengthening demand for petrochemicals in the region.
  • Expansion of Oil & Gas Capacity: New additions to oil and gas production capacity are expected to boost the petrochemicals sector.
• Regional Trends:
  • Western Europe’s Growth Stagnation: Western Europe faces market saturation, leading to slower growth.
  • Increasing Ethylene Production: Countries like Germany, France, and the U.K. are seeing higher ethylene production, driving demand for petrochemicals for industrial chemical manufacturing.

UAE’s Petrochemicals Market: The UAE petrochemicals market plays a significant role in both the Middle Eastern and global petrochemical supply.

• Economic Diversification: The UAE’s petrochemical sector is pivotal in the country’s efforts to diversify its economy.
• Strategic Advantages:
  • Location and Resources: The UAE’s strategic location and vast hydrocarbon resources make it a key global petrochemical hub.

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

• The global shale gas market size was valued at USD 68.3 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 8.5% from 2020 to 2027.
• The global recycled plastics market size was estimated at USD 51.70 billion in 2023 and is projected to grow at a CAGR of 9.5% from 2024 to 2030.

Key Petrochemicals 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

Order a free sample PDF of the Petrochemicals Market Intelligence Study, published by Grand View Research.