Global Petrochemicals Market by Product (Benzene, Toluene, Xylene, Methanol, Propylene, Butadiene, Ethylene) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global petrochemicals market was forecast at USD 441.0 billion by 2019. It is expected to grow at a 5.0% CAGR over the forecast period. The rising demand for downstream products in end-use industries, and the increase in base chemical production will drive the growth of the petrochemicals market.

Because it supplies raw materials for many products, the petrochemical sector is an important component of many industrial processes. It can be used in construction, automotive, and manufacturing. Tires, detergents and industrial oil are just a few of the many products that petrochemicals can produce. These basic chemicals and plastics are used to build many non-durable or durable consumer goods.

Since 2013, the United States has invested more than USD 217 trillion in its petrochemical downstream operations. The shale gas revolution has driven significant industry growth and led to a decline in feedstock prices. Ethane consumption grew significantly in the United States, surpassing other petroleum products like gasoline and jet fuel. The capital investments in the U.S. Petrochemical Industry rose from USD 97 Billion in 2013 to USD 317 Billion by 2017.

It is anticipated that the development of new technologies based upon feedstocks like light crude and mixed crude will have a positive impact on the supply. Manufacturers will increasingly adopt Crude Oil to Chemical Technology, (COTC), as it offers high yields of between 40% and 45%. COTC technology is being used to build industrial complexes in China and the Middle East. These facilities are expected to be operational by 2020. Companies will be able to produce chemicals at a large scale through the development of these technologies.

In 2015 and 2016, the profit margins of petrochemical companies fell sharply, but they have been increasing at a moderate rate since 2017. Rebound in crude oil prices and an increase in gross refining margins are the main factors behind the improvement in profit margins. Stabilization in raw material prices is one of the main factors that affects operational costs. Operating margins have been affected by the high research and development expenses associated with downstream products, as well as regulatory clearances.

A possible economic slowdown in 2020 will have a significant impact on petrochemical manufacturing. In the beginning, a slower demand could lead to lower capacity utilization. This can lead to projects being delayed or scrapped. Combining all of these problems can lead to lower profit margins and companies struggling to balance their product portfolio.

Product Insights

The petrochemicals market can be divided by product into propylene and butadiene, benzene and xylene. Polyethylene, ethylene oxide and polypropylene are the most important applications. Ethylene was the most popular product segment, accounting for 33% market volume in 2019.

Ethylene is used as a feedstock in many sectors, including construction, packaging and transportation. It is used in the production of many derivatives, including polyethylene, ethylene oxide (EDC), ethylene dichloride(EDC), and styrene. Consumption is expected to rise due to rapid industrialization and the expansion of the automotive-packaging sectors in emerging countries.

Because of its excellent mechanical properties and moldability, polypropylene is widely used in the automotive industry. It is expected to see a volume-based CAGR (or 4.0%) between 2020 and 2027. The electronics industry will see a significant increase in demand for injection-molded polypropylene. It can also be used in household products, such as bottle caps, luggage, and houseware. Propylene is used to make acrylic fibers and a range of elastomeric plasticmers.

Benzene will see increased demand due to the increasing demand for paints, inks and rubber as well as adhesives and paints. The market dynamics for petrochemicals has been significantly altered by the advent of the shale gas. This has had a significant impact on the supply of benzene, as there is less light cracking and ethane available. This has led to increased dependence on imports from China, and other Asian countries.

Regional Insights

The U.S. and Canada will be increasing shale gas exploration activities, which is expected to boost the North American petrochemicals market. Together, the two countries accounted for more than 90% of North American shale gas production in 2018. Shale gas has the advantage of replacing conventional feedstocks like crude oil and natural gas to produce various petrochemicals. North American shale gas boom has changed the landscape of the industry. It is now a low-cost producer of petrochemicals, and resins. The market for petrochemicals will continue to grow due to the steady increase in demand from the construction and automotive industries, as well as significant capacity expansions.

Major industry players such as BASF, Shell Chemicals and INEOS are a major factor in Europe's petrochemicals market. Market saturation is likely to cause stagnant growth in Western Europe. Due to fluctuations in demand, the European petrochemical sector will see more outages at crackers as well as polymer plants over the next few years. The market for petrochemicals will grow due to rising ethylene production in countries like Germany, France and the U.K.

The Middle East market will be driven by abundant natural gas and oil supply. The region is gaining strength in petrochemicals, particularly in ethylene and its derivates like polyethylene (PE), and ethylene glycol. Manufacturers face two major risks: the increasing popularity of naphtha feedstocks, and rising political tension.

Market Share Insights & Key Companies

To increase their market presence, petrochemical companies are considering acquisitions and mergers as well as joint ventures with key players. These operational integrations allow companies to reach the largest possible customer for the lowest cost. China National Petroleum Corporation and the Republic of Benin signed an agreement in 2019 to build the pipeline that will connect Niger with the Atlantic coast of Benin. This was to expand its crude oil business in Africa. LyondellBasell purchased A. Schulman, Inc in August 2018 to increase its presence in high-margin markets like construction materials, packaging, and automotive.

Market competition will be affected by technological integration throughout the value chain. Technology adoptions such as drones and the Internet of Things (IOT), robots, blockchain, artificial Intelligence, cloud computing, and robotics are expected to revolutionize petrochemical manufacturing. It will improve safety monitoring as well as reliability and efficiency throughout the supply chain.

Petrochemicals Market Report Scope

The Report Covers Certain Segments

This report predicts revenue growth at the global, regional and country-levels and offers an analysis of industry trends in each sub-segment from 2016 to 2027. Grand View Research has divided the global petrochemicals market by product and region.

• Product Outlook (Volume: Million Tons; Revenue USD Million, 2016-2027)

  • Ethylene

    • Polyethylene

    • Ethylene oxide

    • EDC

    • Ethyl benzene

    • Other (including vinyl acetate and alpha olefins)

  • Propylene

    • Polypropylene

    • Propylene oxide

    • Acrylonitrile

    • Cumene

    • Acrylic acid

    • Isopropanol

    • Other

  • Butadiene

    • SB Rubber

    • Butadiene rubber

    • ABS

    • SB latex

    • Other (nitrile rubber and mechanical belts, among others)

  • Benzene

    • Ethyl benzene

    • Phenol/cumene

    • Cyclohexane

    • Nitrobenzene

    • Alkyl benzene

    • Other (including alkyl benzene, maleic anhydride)

  • Xylene

  • Toluene

    • Benzene

    • Xylenes

    • Solvents

    • TDI

    • Others (including pesticides, drugs, nitro toluene, etc.)

  • Methanol

    • Formaldehyde

    • Gasoline

    • Acetic acid

    • MTBE

    • Dimethylether

    • MTO/MTP

    • Other

• Regional Outlook (Volume: Million Tons; Revenue USD Million, 2016-2027)

  • North America

    • U.S

    • Canada

  • Europe

    • Germany

    • The U.K.

    • Belgium

    • France

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

  • Africa

These are the most frequently asked questions about this report

b. Global petrochemicals market was valued at USD 441.0 billion in 2019, and is forecast to grow to USD 476.2 billion by 2020.

b. Global petrochemicals markets are expected to grow at 5.0% compound annual growth rate between 2020 and 2027, to reach USD 651.1 million by 2027.

b. Asia Pacific was the dominant market for petrochemicals in 2019, with a share exceeding 50.0%. This is due to the favorable regulatory policies in Asia Pacific, and the focus on developing the manufacturing sector.

b. Among the key players in the petrochemicals industry are BASF SE and British Petroleum Plc.

b. The market growth is driven by the rising demand for downstream products in end-use industries, and the addition of capacity in the base chemical sector.

Up Market Research published a new report titled “Petrochemicals Market research report which is segmented by Product (Benzene, Toluene, Xylene, Methanol, Propylene, Butadiene, Ethylene), By Players/Companies China Petrochemical Corporation (SINOPEC), British Petroleum Plc, Chevron Corporation, BASF SE, ExxonMobil Corporation, China National Petroleum Corporation (CNPC), LyondellBasell Industries Inc, Royal Dutch Shell PLC, SABIC, INEOS Group Ltd”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Petrochemicals Market Report Segments:

The market is segmented by Product (Benzene, Toluene, Xylene, Methanol, Propylene, Butadiene, Ethylene).

Petrochemicals Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Petrochemicals Market

Overview of the regional outlook of the Petrochemicals Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Petrochemicals Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Petrochemicals Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Benzene

                2. Toluene

                3. Xylene

                4. Methanol

                5. Propylene

                6. Butadiene

                7. Ethylene

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Petrochemicals Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Petrochemicals Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.