Petrochemicals Market Is Estimated To Witness High Growth Owing To...

Petrochemicals Market Is Estimated To Witness High Growth Owing To rising petroleum demand & increasing shale gas production

Posted 2023-10-31 05:29:26

Market Overview:

Petrochemicals are basic and intermediate chemicals that are derived from petroleum and natural gas. They serve as feedstock or building blocks for the production of a wide range of chemicals and plastics products. Key petrochemicals include ethylene, propylene, butadiene, benzene, xylene and methanol that are used in applications such as packaging, transportation, construction, healthcare etc.

Market Dynamics:

Petrochemicals market is driven by rising petroleum demand from various end-use industries globally. Rapid industrialization and urbanization along with increasing disposable income is contributing to the demand for petroleum products in emerging economies. Additionally, technological advancements in extraction of shale gas have increased supply of natural gas which is supporting the production of petrochemicals in the market. Rising shale gas production is one of the major factors expected to fuel the growth of petrochemicals market over the forecast period. Furthermore, increasing consumption of plastics in various applications such as packaging, construction and automotive due to its lightweight and durable properties is expected to propel the demand for petrochemicals during the forecast period.

The global Petrochemicals Market Share is estimated to be valued at US$ 584.50 Billion in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

SWOT Analysis

Strength: Petrochemicals market has high global demand. Petrochemicals are used to manufacture wide range of industrial and consumer products. Petrochemical companies have huge financial resources and manufacturing capabilities.

Weakness: Petrochemical industry is highly capital intensive in nature requiring massive investments. Dependency on crude oil prices increases volatility in profits. Stringent environmental regulations increases compliance costs.

Opportunity: Growing demand for petrochemical products from packaging, construction and automotive industries presents major growth opportunities. Asia Pacific region offers biggest growth prospects due to rising investments in China, India and Middle East.

Threats: Substitution threat from bio-based chemicals. Volatility in crude oil prices remains a major threat. Trade wars and geopolitical issues can disrupt supply chains. Stringent environmental regulations in various regions.

Key Takeaways

The global petrochemicals market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand for plastics, polymers and chemicals from various end-use industries. The market size is projected to reach US$ 1 trillion by 2030 from US$ 584.50 billion in 2023.

Regional analysis

Asia Pacific dominates the global petrochemicals market with over 50% share, led by China, India, Japan, and South Korea. The region is expected to continue its dominance during the forecast period due to rapid industrialization, growing population, rising disposable income and increasing investments in petrochemical projects. The Middle East is the second largest and fastest growing regional market driven by exports from Saudi Arabia, Iran and UAE.

Key players

Key players operating in the petrochemicals market are BASF SE, Sinopec Limited, ExxonMobil, The Dow Chemical Company, Shell Chemical Company, SABIC, LyondellBasell Industries, Total S.A., Sumitomo Chemical Co. Ltd., Chevron Phillips Chemical Company LLC and E. I. du Pont de Nemours and SNPC, INEOS, and Reliance Industries. The key players are focusing on capacity expansion projects, partnerships, and mergers & acquisitions to strengthen their positions in the market.

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