April 12, 2024
Petrochemicals Market

Petrochemicals is Expected to be Flourished by Growing Demand for Plastics and Polymers

Petrochemicals are raw materials that are derived from petroleum and natural gas. They are utilized as feedstocks or basic building blocks to produce a wide range of finished products, including plastics, fibers,rubber products, solvents, adhesives, coatings, and lubricants.Petrochemicals find major applications across industries like packaging, construction, automotive, and healthcare. Some key petrochemical derivatives include ethylene, propylene, butadiene, benzene, toluene,xylene, ethanol, and methanol. Ethylene and propylene are the largest petrochemical commodities, which are mainly used for production of polyethylene, polypropylene, vinyl polymers, ethylene oxide, and styrene.

The global petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Petrochemicals is Expected to be Flourished by Growing Demand for Plastics and Polymers

The key driver stated in the heading is growing demand for plastics and polymers. Plastics have become an integral part of daily-life applications owing to properties like flexibility, durability,light weight, and resistance to corrosion. Rapid urbanization and rising disposable incomes in emerging economies have fueledthe demand for packaged foods, beverages, personal care products which relies on plastics packaging. Polymers also find wide use in electronics, automotive, construction industries. Polyethylene and polypropylenecommand a major share of polymer demand globally. With risingpopulation and economic activities, their consumption is expectedtogrow substantially over the forecast period thereby driving petrochemicals market growth.

Additionally, expansion of end-use industries like healthcare and pharma bolsters market opportunities. Petrochemical-derived materials are crucial components in manufacturing medical devices,pharmaceutical packaging, hospital equipment and supplies. Growing healthcare spending especially in Asian countries and advancements in drug delivery systems are other factors propelling petrochemical needs.

Segment Analysis
The global petrochemicals market is dominated by organic chemicals sub-segment, accounting for over 40% of the market share in 2023. Petrochemicals like ethylene, benzene, propylene etc which are used to manufacture numerous organic chemicals dominate the organic chemicals sub-segment. These basic petrochemicals find wide applications in the manufacturing of plastic resins, fibers, elastomers and other industrial chemicals which sees huge demand from end use industries like packaging, consumer goods, construction etc driving the larger share of organic chemicals sub segment.

PEST Analysis
Political: The petrochemical industry is significantly influenced by government policies around crude oil production and import/export of petrochemical products. Changes in trade policies across regions impacts competitiveness.
Economic: A strong economy favors investments in end use industries that drive petrochemical demand like packaging, consumer goods etc. However, volatility in crude oil prices poses risks.
Social: Rising population and disposal incomes in developing nations support growth in end use industries and demand for petrochemical products. Concerns around plastic waste management impact certain product segments.
Technological: Innovation in cracking and production technologies helps reduce costs and drive efficiencies. Advancements in recycling improves sustainability.

Key Takeaways
The Global Petrochemicals Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising demand from end use industries globally.

Regional analysis: The Asia Pacific region dominated the global market in 2023 accounting for over 40% share led by China. China remains the largest consumer and producer of petrochemicals globally driven by a strong manufacturing sector. Key players: Key players operating in the petrochemicals market are Lionbridge, TransPerfect, SDL plc, LanguageLine Solutions, Telelanguage, Straker Translations, GlobaLexicon, Day Translations, GLOBO Language Solutions, Language Services Associates (LSA), Language Connect, CSOFT International, WordExpress Corporation, The Geo Group Corporation, Vocalink Global.

Key players: Key players in the global petrochemicals market are expanding manufacturing capacities, especially in Asia and Middle East regions to capture the growing demand. mergers and acquisitions remain important strategies for large multinational petrochemical corporations to gain access to new technology and markets.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it