April 13, 2024
Petrochemicals Market

The Petrochemicals Market Is Harnessing Trends In Renewable Energy Production

The petrochemicals industry encompasses several key products derived from petroleum and natural gas feedstocks including basic chemicals, polymers, synthetic rubbers, and plastic resins. These compounds find applications in a wide range of end-use industries including construction, automotive, packaging, textiles, consumer goods and more owing to their versatility, durability and cost-effectiveness. Rapid urbanization and growing population has been fueling demand for petrochemical products across the globe.

The global petrochemicals market size 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 from 2024 to 2030.

Key Takeaways

Key players operating in the Global Petrochemicals Market Size include 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. The industry is witnessing consolidation as major players are engaging in mergers and acquisitions to expand production capacities and geographical presence.

The demand for petrochemicals is growing across regions owing to burgeoning consuming industries. Asia Pacific dominates the market and is expected to continue its lead during the forecast period. China represents majority of demand attributable to its massive manufacturing sector. Other emerging countries in South Asia and Middle East are also contributing to petrochemicals consumption.

Global capacity additions are expected led by the Middle East region as countries aims to capitalize on their natural gas and crude oil feedstock advantages. Meanwhile, North America and Western Europe are likely to gain from increasing domestic shale gas production which is supporting petrochemical complex construction.

Market key trends

One of the key trends gaining traction in the petrochemicals industry is increasing adoption of renewable energy sources for manufacturing processes. Major petrochemical companies have introduced initiatives to substitute fuel-based energy with solar, wind and other clean energy sources to reduce carbon footprint. Sustainability targets and carbon emission regulations around the world are encouraging investments in green technologies. This shift towards renewable power based production presents lucrative opportunities for key stakeholders in the years to come.

Porter’s Analysis

Threat of new entrants: The petrochemicals industry requires high capital investments for setting up production facilities, R&D infrastructure and distribution networks which acts as a deterrent for new players to enter this market.

Bargaining power of buyers: The buyers have moderate bargaining power in this market as it contains numerous petrochemical product manufacturers. However, branded products enjoy some pricing power.

Bargaining power of suppliers: A few petrochemical raw material suppliers like oil and gas producers enjoy some bargaining power due to their supply control whereas others have limited influence.

Threat of new substitutes: There exist few alternatives to petrochemical products currently hence threat from substitutes is low. However, bio-based chemicals are emerging as potential substitutes.

Competitive rivalry: The market is highly competitive due to presence of numerous global and regional players. Players compete on pricing, product differentiation, production capacities and customer relationships.

Geographical regions: North America currently dominates the global petrochemicals market in terms of value led by the United States owing to robust demand from end-use industries and ample reserves of shale gas.

Fastest growing region: Asia Pacific region is expected to be the fastest growing market for petrochemicals during the forecast period led by countries like China, India and other Southeast Asian nations experiencing rapid industrialization and infrastructure development activities.

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