Petrochemicals Market Growth, Trends And Future Forecast 2022–2028

Petrochemicals are chemical components extracted from hydrocarbons, majorly crude oil and natural gas. They can also be received from various renewable materials such as sugarcane and corn. Petrochemicals are categorized on the basis of their chemical structure, profoundly, olefins, aromatics, and synthesis gas hydrocarbon. Olefin hydrocarbons comprise, toluene, ethylene and propylene, while benzene and xylene belong to the class of aromatic hydrocarbons. Several procedures such as FCC, steam cracking, and catalytic reforming are used in refineries and chemicals plants to get the wanted product. Petroleum products create an integral aspect of routine life and find main needs over several end-use industries. Furthermore, petrochemicals goods find application in several daily use accessories such as automobiles, packaging, clothes, furniture, houses, tooth brush, irrigation, household items, synthetic detergents, electronics, performance products, and clinical tools.

Oversupply of Crude and Subsequent Reduction in Prices Make Favorable Environment for Market Development

Large volume of feedstock or raw substances accessible in the OPEC, and quick growth of shale gas exploration in the North American region, mainly in the U.S. and Canada, is predicted to create a huge conducive surrounding for development of the global petrochemicals market. China is one of the vast consumers of petrochemical goods. Rampant development of several end-use industries is anticipated to propel need for petroleum products, particularly in rising economies of Asia Pacific, such as India and China. As per data published by the U.S. EIA, in 2017, complete liquid fuel usage in Asia Pacific crossed 33.3 million barrels per day with China holding for 80% of the usage in the region. Furthermore, rapid development in the shale gas technology like the hydro fracturing technology is being explored in the U.S. and Canada to derive petroleum. These reasons, are further, predicted to offer huge development adhesion to the global petrochemicals market.

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Global Petrochemicals Market challenges – Variation of raw materials price and shift towards green energy

Natural gas, coal, and crude are main building blocks of petrochemicals industry. While presently the global crude oil manufacture is at an all-time high, the market is exposed to high variation in manufacture and pricing. This instability is a main concern for players in the global petrochemicals market. The market is experiencing a trend of additional supply in feed stock owing to large manufacture volumes by the OPEC and Russia. Besides this, the economic crisis in 2009, has led to quick reduction in need for crude oil in Europe and Japan. Consumer inclination towards green energy from renewable sources such as wind and solar energy, further hinders market development.

Major players in the market are Chevron Phillips Chemical Company LLC , BASF SE, Sinopec Limited, ExxonMobil, LyondellBasell Industries, E. I. du Pont de Nemours and SNPC, The Dow Chemical Company, Shell Chemical Company, SABIC, Total S.A., Sumitomo Chemical Co. Ltd., and INEOS, and Reliance Industries.

Key Developments

1. Key companies in the market are indulged in several development plans such as collaboration and acquisitions, orderly to receive competitive edge in the global market. For example, in January 2019, BASF SE, the German-based chemicals manufacturers, and Adani Group, an Indian conglomerate, partnered to create a joint venture of petrochemical manufacture hub in Gujarat, India.
2. Major players in the market are aiming on several plans such as collaborations and adoptions, orderly to improve their market position. For example, in May 2019, GAIL Limited, a natural gas processing and distribution company, came into an adoption with ExxonMobil, a U.S.-based oil and natural gas company, to distribute natural gas to power and transportation sector in India.

Key companies in the market are assuming several plans such as capacity expansion, orderly to increase their product portfolio and improve their market rank. For example, January 2019, Shell Chemical LP (Shell) started the production of fourth alpha olefins unit in its Louisiana, U.S. chemicals production site.