The scope of our recent study on the "Petrochemicals Market Forecast to 2031 -Global Analysis - by Type, Application, End-Use Industry and Geography" includes the factors fueling the market growth, revenue estimation and forecast, market share analysis, and the identification of significant market players and their key developments.
The petrochemicals market size was valued at US$ 457.57 billion in 2023 and is projected to reach US$ 685.01 billion by 2031; it is anticipated to record a CAGR of 5.2% from 2023 to 2031. Petrochemicals are chemical products derived from petroleum or natural gas. These versatile compounds serve as building blocks for a wide range of materials used in modern society, including plastics, synthetic fibers, rubbers, detergents, and pharmaceuticals. The petrochemical industry refines crude oil and natural gas through various processes such as cracking and reforming to produce basic chemicals like ethylene, propylene, and benzene. These are then further processed into more complex chemicals and materials that form the basis of countless consumer and industrial products. The automotive industry relies on plastics and polymers for manufacturing lightweight components that enhance fuel efficiency and reduce emissions. Technological advancements in petrochemical production processes have also propelled the market growth.
Petrochemical-based polymers such as polyamide, polypropylene, polystyrene, high-density polyethylene, thermoplastic elastomers, polyurethane, polycarbonate, and polyvinyl chloride are widely used in the automotive industry as these polymers offer excellent durability and resistance to corrosion. According to the CDI Products Company, the automotive industry is a significant consumer of polymers. These polymers enhance the longevity of automotive components, including interior parts and exterior body panels, as well as under-the-hood applications. As per the Plastics Europe 2023 report, the global production of plastics increased from 380.4 million tons in 2020 to 400.3 million tons in 2022.
According to the CDI Products Company, the automotive industry has various applications of petrochemical-based polymers, including PTFE seals, O-rings, bearings and thrust bearings, low-drag mudflaps, suspension cylinder seals, sensor covers, diaphragms, rotary seals, custom-made gaskets, wiring harnesses & housing, and battery sealing for pressure valves, among others. The EU registered the production of more than 9 million cars in the first three quarters of 2023, a rise of 14% from the same quarter in 2022, as per the European Automobile Manufacturers' Association. The growing utilization of polymers in the automotive industry, coupled with the developments in the automotive industry, fuels the demand for petrochemicals.
Shell International BV, China Petroleum Corporation, LyondellBasell Industries Holdings BV, Chevron Phillips Chemical Company LLC, SABIC, BASF SE, BP Plc, INEOS, DOW Inc, and Mitsubishi Chemical Corporation are among the prominent players profiled in the petrochemicals market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The petrochemicals market report also includes company positioning and concentration to evaluate the performance of competitors/players in the market.
Based on end-use industry, the market is segmented into packaging, automotive, construction, electrical & electronics, healthcare, agriculture, aerospace & defense, and others. In 2023, the packaging segment held the largest petrochemicals market share. In the packaging industry, polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polyethylene terephthalate (PET), and polystyrene (PS) are among the most commonly used petrochemical-derived polymers. High-density polyethylene (HDPE) and low-density polyethylene (LDPE) are widely used for making films, bags, and bottles due to their flexibility, durability, and moisture resistance. Polypropylene is favored for its high melting point and strength, making it ideal for making containers, caps, and microwaveable packaging. Polyvinyl chloride is used in making different types of packaging such as blister packs and shrink wraps, requiring minimal environmental degradation. Polyethylene terephthalate is extensively used for beverage bottles and food containers due to its excellent strength, thermostability, and barrier properties. Polystyrene, in its rigid and foam forms, is used for disposable cups, trays, and protective packaging.
The global petrochemicals market is segmented into five main regions-North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. Asia Pacific held the largest revenue share of the global petrochemicals market in 2022. The major factor driving the petrochemicals market in Asia Pacific is the growing urbanization and industrialization.
Global Petrochemicals Market Breakdown - by Region
The report includes the segmentation of the global petrochemicals market as follows:
The petrochemicals market report aims to provide an overview of the market with detailed market segmentation. The market is segmented on the basis of type, application, and end-use industry. Based on type, the petrochemicals market is segmented into ethylene, benzene, propylene, xylene, and others. In 2023, the ethylene segment held the largest market share and is expected to register the highest CAGR from 2023 to 2031. Ethylene is a colorless, flammable gas that has an odor and sweet taste. Ethylene can be sourced primarily from two natural sources, including both natural gas and petroleum. It is a crucial industrial chemical derived from petrochemicals. It is produced by either heating natural gas or petroleum to 800