Growing demand of petrochemicals from key industries including construction, transportation, packaging, textile, transportation, plastics, healthcare coupled with favorable operating conditions anticipated to drive global market growth for petroleum market. The Global Petrochemicals Market is expected to witness significant growth with a CAGR of approximately 6.7% over the forecast period of 2017-2023 and reach US$1075.19 bln by 2023, as per Market Research Future.
Petrochemicals are organic compounds derived from hydrocarbons. Some other chemical compounds made from petroleum are also made from other fossil fuels, such as coal, or natural gas, or renewable sources such as corn or sugar cane. Olefins and aromatics are two most common lasses of petrochemicals and are produced in oil refineries by fluid catalytic cracking of petroleum fraction. Aromatics are produced by catalytic reforming of naphtha, whereas, olefins are produced by steam cracking of natural gas liquids. Key players of the global petrochemicals market are BASF SE, ExxonMobil Corporation, The Dow Chemical Company, Shell Chemical Company, SABIC, Sinopec Limited, Lyondell Basell Industries, Total S.A., Sumitomo Chemical Co. Ltd., Chevron Phillips Chemical Company LLC and E. I. du Pont de Nemours and Company.
Asia Pacific is the dominating market for petrochemicals, and accounted for over 50% of market shares in terms of volume followed by North America and Europe in 2015. China and India collectively led the APAC petrochemical market and will contribute majorly in the dominance of this region throughout forecast period. Favorable government regulations in China as well other counties across APAC likely to encourage growth in this market. Owing to increasing urbanization coupled with rapid industrialization has made china leading contributor in the growth of APAC market by accounting 25% regional shares in terms of volume. In addition, increasing demand from countries such as, Indonesia, Thailand, and Vietnam is anticipated to boost consumption in Rest of Asia Pacific market. India expected to register progressive growth over the forecast period. This is due to initiatives such as PCPIR (Petroleum, Chemical and Petrochemicals Investment Region) by Indian government to promote petrochemical infrastructure in the country giving subsidies.
North America is the strong region in global petrochemicals market and holds second position including countries such as U.S. and Canada. Growth in this region is highly attributed to the shale gas exploration activities in U.S. and Canada. Both of the countries collectively accounted for 90% of the shale gas production and led the North American petrochemicals market. Also, development of shale gas provides an advantage to substitute conventional feedstock such as crude oil and natural gas for producing various petrochemicals in order to reduce degree of dependency.
Europe is the third largest petrochemicals market including countries such as Germany, France, UK, Italy, and rest of the Europe. The region anticipated to witness moderate growth over the forecast period of 2017 to 203. This is because of market drivers are constantly changing in European market owing to high importance given to green economy. Middle East and Africa is an emerging region for petrochemical market. This region will play a crucial role in the development of overall petrochemical market development as it is considered as leading producer of petrochemical. Easy availability of petroleum has made this region most emerging and have rapid gains over forecast period.