The Petrochemicals Market Size was valued at USD 565.55 Billion in 2023. The Petrochemicals industry is projected to grow from USD 588.02 Billion in 2024 to USD 1178.20 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.26% during the forecast period (2024 - 2032). Petrochemicals are chemical products derived from petroleum or natural gas. They are typically used as raw materials for the production of a wide range of consumer goods and industrial products, such as plastics, fertilizers, pharmaceuticals, and synthetic fibers. Petrochemicals are produced through a process called cracking, which involves breaking down the hydrocarbons in crude oil or natural gas into smaller molecules that can be used as feedstock for the production of various chemicals. The petrochemical industry is a major global industry, with significant economic and environmental impacts.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Plastics used in the packaging sector are produced using petrochemicals as basic ingredients. Ethylene may be converted into polyethylene, which comes in hard, soft, and pliable forms. Flexible packaging, which is frequently used for packing and storing a broad variety of items, is frequently made using soft and malleable polyethylene as a raw material. However, rigid packaging is made from hard polyethylene. The need for ethylene is anticipated to rise in the next years due to the rise in rigid and flexible packaging requirements, which would subsequently raise demand for petrochemicals.
The market segmentation, based on Type, includes Ethylene, Propylene, Butadiene, Benzene, Toluene, Xylene, and Methanol. The Ethylene segment may dominate the market. This is attributed to a rise in ethylene demand across many sectors, including building, packaging, and transportation. During the projected period, it is anticipated that the consumption of ethylene in rising economies such as India, Brazil, Vietnam, and Thailand would increase due to the nations' ongoing modernization and thriving automotive and packaging industries.
Based on Application, the global market segmentation includes Polymers, Paints and Coatings, Solvents, Rubber, Adhesives and Sealants, Surfactants, Dyes, Other. The Polymers application is holding the largest market. Polymers are long chains of molecules that are made up of repeating units, and they can be produced from a variety of petrochemical feedstocks, such as ethylene, propylene, and styrene. These materials are used to produce a wide range of products, including plastics, synthetic fibers, elastomers, and other polymeric materials.
Figure 2: Petrochemicals Market, by Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The largest share markets were in the Asia-Pacific region. Manufacturers may expand in the Asia-Pacific market, which is expected to have the greatest CAGR by 2030. Increased government spending, increased manufacturing capacity, cooperation among important regional companies, and strong demand from end-use sectors are the major causes of this rise. The major producer and user of petrochemicals, in addition, is China. China has made a significant investment in on-purpose propylene processes and coal-to-chemicals manufacturing.
Figure 3: PETROCHEMICALS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America was the second-largest market. The expansion in the North American petrochemical industry is largely related to the shale gas discoveries in the US and Canada, which has greatly expanded the availability of natural gas liquids, changing North America into a low-cost location for the manufacture of chemicals. Also, several multinational corporations have plans to develop new facilities and grow in the area.
Growth in Europe may be credited mostly to technical advances, a well-developed petrochemical industry, and a significant number of complex refineries.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Petrochemicals industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Petrochemicals industry to benefit customers and expand the market sector. Major market players, including BASF SE, Sumitomo Chemical Company, Reliance Industries Limited, DowDuPont, Royal Dutch Shell, and others, are attempting to increase market demand by funding R&D initiatives.
BASF produces and sells intermediates, performance materials, petrochemicals, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. The conducts its operations through six business segments: Nutrition and Care, Chemicals, Industrial Solutions, Materials, Surface Technologies, and Agricultural Solutions. The company serves electronics, transportation, construction, energy and resources, consumer goods, health and nutrition, and agriculture industries.
A chemical firm is Sumitomo Chemical. It offers substances including cyclohexanone, alumina, resorcinol, methanol, etc. as well as chemical intermediates. The firm works in a variety of industries, including those linked to IT, health and crop sciences, essential chemicals and plastics, energy and functional materials, pharmaceuticals, logistics, engineering, and other industries.
September 2021: SABIC announced a merger agreement with the National Petrochemical company. The merger would signify further consolidation in the Saudi petrochemicals sector.
Petrochemicals Type Outlook
Petrochemicals Application Outlook
Petrochemicals Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 565.55 Billion |
| Market Size 2024 | USD 588.02 Billion |
| Market Size 2032 | USD 1178.20 Billion |
| Compound Annual Growth Rate (CAGR) | 9.26% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF, SABIC, TOTAL, Indian Oil Corporation Limited, Chevron Phillips Chemical Company, BP PLC, Sumitomo Chemical Company, Reliance Industries Limited, DowDuPont, Royal Dutch Shell |
| Key Market Opportunities | · Increasing use of polymers in the packaging and automotive industries |
| Key Market Dynamics | · Adoption of novel technologies |
Petrochemical Market Highlights:
Frequently Asked Questions (FAQ) :
The global Petrochemical market size was valued at USD 565.55 Billion in 2023.
The global market is projected to grow at a CAGR of 9.26% during the forecast period, 2024-2032
Asia Pacific had the largest share of the Global Petrochemicals Market.
The key players in the market are BASF, SABIC, TOTAL, Indian Oil Corporation Limited, Chevron Phillips Chemical Company, BP PLC, Sumitomo Chemical Company, Reliance Industries Limited, DowDuPont, and Royal Dutch Shell.
The Ethylene category dominated the market in 2023.
Polymers had the largest share in the global market for Petrochemicals.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
