Use in the manufacture of automobile components for functional advantages amplifies growth
Petrochemicals companies in North America gain from the presence of large shale gas reservoirs due to the increasing need to use low-cost gas feedstock over oil-based ones
ALBANY, N.Y., Sept. 8, 2021 /PRNewswire/ -- Transparency Market Research: The role of world's national-level oil companies and international oil companies with large petrochemical assets accounts for a significant share of the petrochemicals market. Monetary investments made by national oil companies are significantly supports growth of the petrochemicals market.
The gradual rise in petroleum prices as most economies around the world slowly gather momentum after COVID-19 is helping to lift several associated business segments, including petrochemicals. This is stimulating the growth of the petrochemicals market after a lean period due to travel restrictions, dwindling oil & gas prices, and production cuts during the peak of the pandemic.
However, extensive disruptions in raw material supply chains during the pandemic, restricted movement of goods, and steep decline in the volume of seaborne transportation have impacted the overall petrochemicals market estimated to display moderate growth in the upcoming years. The petrochemicals market is projected to expand at a CAGR of 4.3% from 2020 to 2030.
China, Emerging Economies Contribute Substantially to Leading Position of Asia Pacific
Asia Pacific held more than 50% share of the petrochemicals market in 2019. China made leading revenue contribution to the regional market due to the extensive demand for petrochemicals from building & construction, automotive, and electronics sectors.
Prior to the outbreak of COVID-19, developing countries in the region contributed significantly in terms of revenue to the petrochemicals market. Petrochemicals are extensively used in the chemical industries that manufacture products for various other end-use industries such as paints & coatings and textiles.
The growth of the building & construction sector in developing countries of the region extended ample opportunities in the petrochemicals market. This, along with persistent demand for petrochemicals from the building & construction sector in other parts of the world, accounted for its leading share among end-use segments in the petrochemicals market in the recent past.
According to estimations of analysts at TMR, the building & construction sector is projected to hold more than 30% share of the petrochemicals market by 2030.
The presence of a sizeable electronics industry wherein petrochemicals are widely used in the petrochemicals market in the region.
Use in Automobile Components for Functional Advantages Fosters Growth
The automobile components manufactured from petrochemicals products offer exceptional benefits such as lightweight that eventually helps with less fuel consumption. This, in turn, helps to control pollution to some extent.
Design flexibility and durability are some other factors that favor the demand for petrochemicals in the manufacture of automobile components. Automobile components such as tires, interiors, parts of the vehicle body, and dashboard are manufactured using petrochemical intermediates.
Automobile components manufactured from petrochemicals have other benefits too. Ease in processing of petrochemicals helps cut down assembling time in the manufacture of automobile components.
The use of petrochemicals is related to improve the safety aspect of automobiles. This stimulates the petrochemicals market.
Ethylene to Stay Leading Product for Use in Numerous Applications
Ethylene is estimated to continue to be the leading product segment in the petrochemicals market. Ethylene is primarily used in the production of ethylene dichloride, ethylene oxide, and ethyl-benzene that are key petrochemical derivatives used in the packaging and building & construction sectors. The growth of the building & construction sector in most parts of the world prior to COVID-19 validates ethylene to be the leading product segment in the petrochemicals market.
Food & beverages, rubber & plastic, and medical are some other key end-use industries of ethylene and its derivatives.
Petrochemicals Market – Growth Drivers
Demand for petrochemicals across an array of end-use industries from manufacturing to consumer goods drives petrochemicals market
Interest of national and international oil companies and money invested to increase the economic value of petroleum stimulate petrochemicals market
Petrochemicals Market – Key Players
Some of the key players operating in the petrochemicals market are BASF SE, DuPont de Nemours Inc., Exxon Mobil Corp., Saudi Arabian Oil Co., BP Plc, Total S.A., China Petroleum & Chemical Corporation, Sumitomo Chemical Co. Ltd., and Dow.
Global Petrochemicals Market: Segmentation
Petrochemicals Market, by Product
Methyl Methacrylate (MMA)
Petrochemicals Market, by End-use Industry
Building & Construction
Consumer & Industrial Goods
Electrical & Electronics
Food & Beverages
Paints & Coatings
Power & Utilities
Pulp & Paper
Textiles & Leather
Others (including Packaging and Fuel)
Petrochemicals Market, by Region
Russia & CIS
Rest of Europe
Rest of Asia Pacific
Rest of Latin America
Middle East & Africa
Rest of Middle East & Africa
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