Petrochemicals are chemical building blocks used to make plastics, synthetic fibers, rubber, and other products. Key petrochemicals include ethylene, propylene, benzene, xylene, butadiene and methanol. The demand for petrochemical-based plastics and polymers is rapidly growing across industries like packaging, consumer goods, construction and automotive due to their lightweight and durable properties.
The Global petrochemicals Market is estimated to be valued at US$ 651.52 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the petrochemicals market are 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 demand for petrochemicals is increasing at a rapid pace driven by growth in end-use industries like plastics, packaging, automotive, consumer goods and construction. Key players are investing in capacity expansions and new plants to cater to the rising demand. Technological advancements in refining and cracking processes have improved the yield and efficiency of petrochemical production.
Market Trends
One of the key trends in the Global Petrochemicals Market Size is shifting feedstock sources. With depletion of crude oil reserves, natural gas is increasingly being used as an alternate feedstock due to its availability and relatively lower energy intensity. Another major trend is the rising preference for sustainability and bio-based feedstocks. Strict environmental regulations regarding plastic waste have boosted RD towards producing bio-based petrochemicals from biomass feedstocks.
Market Opportunities
The growing demand for plastics from emerging economies in Asia and Africa due to rising disposable incomes and industrialization creates significant opportunities for petrochemical companies. Development of innovating recycling technologies also presents an opportunity to address sustainability and create value from plastic waste. Petrochemical companies investing renewable energy sources like solar in their operations can capitalize on opportunities in sustainable development.
Impact of COVID-19 on Petrochemicals Market
The COVID-19 pandemic impacted the petrochemicals market substantially. Nationwide lockdowns imposed globally led to a slowdown in industrial and commercial activities, disrupting supply chains and lowering demand. Companies witnessed declines in revenue, especially in 2020 and the earlier parts of 2021. Slow transportation and lack of raw materials further hampered production levels across various petrochemical sub-sectors like polymers, aromatics, inorganic chemicals, etc. The shutdown of many end-user industries like automotive, construction, and textiles also reduced offtake from petrochemical producers. Governments imposed restrictions on non-essential exports further exacerbating challenges.
However, with mass vaccination drives globally and the reopening of economies post lockdowns, the petrochemicals market has started recovering from mid-2021. Demand from industries like packaging and healthcare has risen owing to changed consumer habits amid the pandemic. Production levels are also scaling up in line with improving demand. The petrochemicals industry is adapting to the new normal and implementing measures to ensure business continuity. Increased focus on safety, digitalization, flexible supply chains and sustainability are probable future strategies that can help navigate uncertainties better. While challenges remain, the long-term outlook appears positive, backed by increasing polymer requirements of various growing sectors.
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