They are commonly used in the manufacturing of a variety of plastic and chemical goods. Key petrochemicals include ethylene, propylene, benzene, xylene, and butadiene among others. They find wide applications in industries such as packaging, construction, automotive, healthcare, and consumer goods due to their useful properties like durability, flexibility and resistance to chemicals. With rising global population and economic development, the demand for polymer products made using petrochemicals is surging. This is fueling investments towards capacity expansion of petrochemical facilities worldwide.
The global petrochemicals market is estimated to be valued at US$ 651.52 billion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period of 2024 to 2030.
Key Players: Key players operating in the petrochemicals market are Alcatel Submarine Networks, SubCom, LLC, ABB, Huawei Marine Networks Co., Ltd., NEC Corporation, NEXANS NORWAY AS, FUJITSU, Prysmian Group, Saudi Ericsson, HENGTONG GROUP CO., LTD., ZTT, Corning Incorporated, NKT A/S, Hellenic Cables Group. The Okonite Company, Apar Industries Ltd., JDR Cable Systems Ltd., AFL, Hexatronic Cables & Interconnect Systems, and LEONI Special Cables GmbH.
Growth in end-use industries like packaging, automotive, and construction due to rising global consumption represents a major opportunity for petrochemical companies. In addition, expansion in the Asia Pacific region fueled by rapid industrialization and infrastructure development provides lucrative prospects.
Global Expansion: Leading petrochemical manufacturers are engaged in strategic expansion initiatives to meet the growing worldwide demand. For instance, numerous projects have been announced in the Middle East, China and US Gulf Coast region to raise petrochemical production capacities over the next five years.
Increasing Demand for Polymer Products: Polymers derived from Global Petrochemicals Market Size such as polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, and polystyrene are in huge demand across various end-use industries. This rising consumption of polymer goods is fueling growth in the global petrochemicals market.
Capacity Expansions by Major Players: To capitalize on market opportunities, large petrochemical companies are heavily investing in capacity expansions especially in high growth regions. For example, China and the Middle East are building large grassroots petrochemical complexes.
Volatility in Crude Oil and Naphtha Prices: Raw material costs account for a significant portion of the overall petrochemical production costs. Unstable prices of crude oil and naphtha used for cracking negatively impact the profitability of petrochemical makers.
Stringent Environmental Regulations: Production and disposal of petrochemicals pose hazards to the environment. Strict norms pertaining to emissions, effluents, and recycling are restraining the industry growth to some extent.
The petrochemicals market is dominated by the plastics sub segment. Plastics accounted for over 60% of the global petrochemical market share in 2023. This is because plastics have widespread applications across industries like packaging, construction, automotive etc. The demand for plastics is mainly driven by its versatility and durability. Consumer goods packaging and plastic products for daily use form the largest application segment for plastics.
The other major sub segments in the petrochemicals market include organic chemicals, synthetic rubbers, synthetic fibers and films, and petrochemical gases. Organic chemicals like methanol and ethylene glycol are widely used as raw materials in various end use industries like pharmaceuticals. Synthetic rubbers find applications in tire manufacturing and other industrial products.
Asia Pacific is projected to be the fastest growing as well as the dominant region in the global petrochemicals market during the forecast period. This is due to high demand from emerging economies like China and India which are located in the region. China dominates the global petrochemical industry because of strong domestic demand and presence of key players. Supportive government policies aimed at boosting the manufacturing sector have also propelled the growth of the petrochemical industry in the country. North America and Europe are also significant markets driven by established end use industries. However, their growth is expected to be moderate compared to the Asia Pacific region.
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