Petrochemical Market Size Estimated to Reach USD 1,041.79 Billion by 2032

The petrochemical market size is estimated to reach around USD 1,041.79 billion by 2032, increasing from USD 616.65 billion in 2023, According to Precedence Research.

Ottawa, Dec. 08, 2023 (GLOBE NEWSWIRE) -- The global petrochemical market size was valued at USD 584.5 billion in 2022 and growing at a noteworthy CAGR of 6% from 2023 to 2032. Asia Pacific led the global market with the largest market share of 52% in 2022.

The petrochemical market is driven by growing urbanization, increasing innovation in end-use industries, and rising technological advancements.

Petrochemicals are chemical products derived from petroleum or natural gas. These chemicals are typically classified into two main categories including olefins and aromatics. Petrochemicals play a crucial role in the production of a wide range of products that are integral to modern life, including plastics, synthetic fibers, rubber, dyes, detergents, fertilizer, solvents and various industrial chemicals.

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The rising investment by the key players operating in the industry is expected to offer a potential opportunity for market growth during the forecast period. For instance, in September 2023, at its manufacturing plant in Baytown, Texas, ExxonMobil announced the opening of two new chemical production units. ExxonMobil wants to provide higher-value goods from its chemical and refining plants along the U.S. Gulf Coast as part of a long-term growth strategy, which includes the $2 billion expansion. With the launch of these two new lines, ExxonMobil is now providing high-value materials for a range of everyday necessities for society.

  • According to the International Energy Agency, trucks, airplanes, and ships will lag behind petrochemicals, which are predicted to account for more than a third of the increase in oil consumption until 2030 and almost half by 2050. Additionally, by 2030, petrochemicals are expected to need an extra 56 billion cubic meters of natural gas or nearly half of Canada's current gas consumption.

Key Insights:

  • The ethylene segment is expected to dominate the market during the forecast period.
  • The Fluid Catalytic Cracking (FCC) segment is expected to capture a significant market share over the forecast period.
  • The building & construction segment held the largest revenue share in 2022 and is expected to show its dominance during the projected period.

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Regional Stance:

Asia Pacific is expected to hold the dominant position in the market during the anticipated timeframe. The petrochemical industry growth in the region is primarily attributed to the growing investment in infrastructure. Governments in the region are investing heavily in infrastructure development, including transportation, energy and construction projects. These initiatives drive the demand for petrochemical products for applications such as pipes, cables, solar panels, wind turbine blades, battery, thermal insulation for buildings, and electric vehicle parts and components.

  • For instance, to boost employment and clean up the nation's economy, the Indian government has promised to invest USD 4.3 billion in green technologies. The statement highlighted the creation of green hydrogen and solar power from the Ladakh area of the Himalayas.

Furthermore, the growing investment by the major players in China is expected to propel the market growth during the forecast period. For instance, in March 2023, an integrated refinery and petrochemical complex of significant size is set to begin building in northeast China, according to an announcement made by Aramco and its joint venture partners, NORINCO Group and Panjin Xincheng Industrial Group. NORINCO Group (51%) and Panjin Xincheng Industrial Group (19%) have partnered to form Huajin Aramco Petrochemical Company (HAPCO), which is responsible for the development of a complex consisting of a refinery capable of processing 300,000 barrels per day and a petrochemical plant that can produce 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene annually.

North America is expected to grow at a steady rate during the forecast period. The market growth in the region is attributed to the growing presence of major players such as US Petrochemicals, ExxonMobil and others. Moreover, the development of shale gas resources, particularly in the United States, has led to a surge in natural gas production.

This has had a profound impact on the competitiveness of the North American petrochemical industry, as ethane, a component of natural gas, is a key feedstock for ethylene production. For instance, according to projections from the U.S. Energy Information Administration (EIA), the United States produced around 28.6 trillion cubic feet (Tcf) of dry natural gas from shale formations in 2022, which is equivalent to almost 79% of the country's total production of dry natural gas.

Petrochemical Market Scope

Report HighlightsDetails
Market Size in 2023US$ 616.65 Billion
Market Size by 2032US$ 1,041.79 Billion
Growth Rate from 2023 to 2032CAGR of 6%
Base Year2022
Forecast Period2023 to 2032
Segments CoveredProduct, Application, Manufacturing Processes
Regional ScopeNorth America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)

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Report Highlights:

Product Type Insights

The ethylene segment is expected to dominate the market during the forecast period. The segment expansion is attributed to the growing demand for end-use products. Ethylene serves as a precursor for a wide range of products, including polyethylene, ethylene oxide, ethylene glycol and a variety of other chemicals and plastics. Additionally, the increasing investment is another important variable that drives the global petrochemical industry over the forecast period.

In October 2023, at its Verbund facility located in Antwerp, Belgium, BASF increased its production capacity for ethylene oxide and its derivatives. The investment increases BASF's annual manufacturing capacity for the associated products by around 400,000 metric tons. The company's new factories help its customers expand continuously and strengthen their position in the European market. The investment includes extra capacity for alkoxylates, which are ethylene oxide derivatives utilized in a variety of industries like the construction, automobile, and detergent and cleaning sectors.

Manufacturing Processes Insights

The Fluid Catalytic Cracking (FCC) segment is expected to capture a significant market share over the forecast period. The segment growth is attributed to the rising utilization of gasoline production. The FCC process is particularly crucial for gasoline production. Gasoline is a high-demand product in the transportation sector, and the ability to efficiently produce it from heavier crude oil fractions contributes to the economic viability of refining operations.

Application Insights

The building & construction segment held the largest revenue share in 2022 and is expected to show its dominance during the projected period. The petrochemical industry plays a crucial role in the building and construction sector by providing a variety of materials that are essential for construction activities. Petrochemical products are used in the production of construction materials, insulation, and various components necessary for building infrastructure. Thus, the growing construction activities across the globe will offer an attractive opportunity for industry growth.

For instance, in January 2022, the Indian government gave its approval for the construction of 21 new airports. In the upcoming years, the Ministry of Civil Aviation plans to construct 21 more airports throughout India. At an estimated cost of USD 338 million, the Airports Authority of India (AAI) intends to build new airports as well as extend and renovate several existing airports over the next four to five years. This includes building new terminals, enlarging and modifying existing ones, and bolstering or expanding runways, technical blocks, aprons, and control towers for airport navigation services.

Market Dynamics:


Rising demand for polypropylene

Polypropylene is a versatile thermoplastic polymer with a wide range of applications due to its favorable combination of properties, including high chemical resistance, low density, good impact strength and excellent processability. It is used in a variety of applications including packaging materials, textiles, automotive components and others. In the automotive sector, it is used in the production of automotive bumpers and various interior components such as door panels, instrument panels, and storage compartments. Additionally, it is used in the textile industry for the production of carpets, upholstery, geotextiles, and non-woven fabrics. Thus, the growing utilization of polypropylene in several end-use industries is expected to propel the petrochemical industry over the projected period.        


Environmental concerns

The petrochemical industry is often associated with environmental challenges, including air and water pollution, greenhouse gas emissions, and the generation of plastic waste. Increasing awareness of environmental issues has led to regulatory pressures and a growing demand for sustainable practices, impacting industry operations. For instance, according to secondary sources, it is anticipated that by 2030, the chemical and petrochemical sector will produce over 2.8 billion metric tons of carbon dioxide equivalents (MtCO2e).


Growing collaboration           

The increasing collaboration is expected to fuel the market growth during the forecast period. In September 2023, one of the top integrated energy and chemicals companies in the world, Aramco, and Jiangsu Eastern Shenghong Co., Ltd. signed a partnership deal to begin discussions about Aramco potentially buying Jiangsu Shenghong Petrochemical Industry Group Co., Ltd. 10% equity. Shenghong Petrochemical, through its wholly-owned subsidiaries, owns and runs a 320 MBD integrated refinery and petrochemicals complex, a methanol-to-olefins and derivatives complex, and a purified terephthalic acid manufacturing plant. The Xuwei Petrochemical Industrial Park in Jiangsu Province is home to both complexes. It is envisaged that Aramco would provide Shenghong Petrochemical with crude oil and maybe additional feedstocks by the partnership deal. Additionally, Aramco and Shenghong Petrochemical plan to collaborate on the development of a significant expansion project.

Related Reports:

  • Benzene Market: The global benzene market size was estimated at USD 36.55 billion in 2022 and is anticipated to hit around USD 63.32 billion by 2032, poised to grow at a CAGR of 5.7% during the forecast period from 2023 to 2032.
  • Butadiene Market: The global butadiene market size was exhibited at USD 10.5 billion in 2022 and is expected to reach around USD 25.43 billion by the end of 2032, poised to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2032.
  • Toluene Market: The global toluene market size was valued at USD 25.1 billion in 2022, and it is expected to reach around USD 44.32 billion by the end of 2032, poised to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2032.

Recent Developments:

  • In July 2023, Indian Oil Corporation Limited (IOCL) granted McDermott a project management consulting (PMC) and engineering, procurement, and construction management (EPCM) contract for the Naphtha Cracker Expansion (Phase II) polypropylene expansion and new ethylene derivative plant project. The Panipat Refinery and Petrochemical Complex, which is situated 62 miles (100 kilometers) from New Delhi, India, is the site of the project.

Market Key Players:

  • BP Plc
  • Total S.A.
  • Exxon Mobil Corp.
  • Sumitomo Chemical Co., Ltd.
  • Dow
  • Chevron Phillips Chemical Company
  • Saudi Arabian Oil Co.
  • DuPont de Nemours, Inc.
  • China Petroleum & Chemical Corporation

Market Segmentation

By Product Type

  • Ethylene

    • Polyethylene
    • Ethylene Oxide
    • EDC
    • Ethyl Benzene
    • Others
  • Propylene

    • Polypropylene
    • Propylene oxide
    • Acrylonitrile
    • Cumene
    • Acrylic acid
    • Isopropanol
    • Others
  • Butadiene

    • SB Rubber
    • Butadiene Rubber
    • ABS
    • SB Latex
    • Others
  • Benzene

    • Ethyl Benzene
    • Phenol/cumene
    • Cyclohexane
    • Nitrobenzene
    • Alkyl Benzene
    • Others
  • Xylene
  • Toluene

    • Benzene
    • Xylenes
    • Solvents
    • TDI
    • Others
  • Methanol

    • Formaldehyde
    • Gasoline
    • Acetic Acid
    • MTBE
    • Dimethyl Ether
    • MTO/MTP
    • Others

By Manufacturing Processes

  • Fluid Catalytic Cracking (FCC)
  • Steam Cracking
  • Catalytic Reforming

By Application

  • Aerospace
  • Agriculture
  • Automotive
  • Building & Construction
  • Consumer & Industrial Goods
  • Others

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