June 25, 2024

Petrochemicals Market Driven By Rising Construction Activities Globally Is Estimated

Petrochemicals are derived from petroleum and natural gas sources and are crucial feedstock for producing numerous industrial and consumer goods. Petrochemical products such as ethylene, propylene and aromatics form basic building blocks that are further processed to manufacture plastic materials, synthetic fibers, synthetic rubbers, detergents, paints and coatings to name a few. The wide applications of petrochemical derivatives in various end-use industries such as construction, packaging, automotive have propelled the growth of the global petrochemicals market over the recent years. The construction industry consumes large volumes of petrochemical derivatives like polyethylene, polypropylene and polyvinyl chloride for manufacturing pipes, fittings, packaging films, insulation materials, wood-plastic composites and others. Resurgence in construction activities across both developed and developing regions on account of rapid urbanization has thus been a key factor fueling the demand for petrochemicals.

The global Petrochemicals Market is estimated to be valued at Us$ 565.55 Bn in 2023 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends shaping the petrochemicals market has been the shift towards green petrochemical production processes. With rising environmental consciousness among stakeholders, petrochemical manufacturers are investing in developing renewable feedstocks and clean production technologies in a bid to reduce their carbon footprint. For instance, many companies are exploring potential of producing value-added petrochemicals from bio-based feedstocks such as biomass, municipal solid waste and agricultural residues. The transition to sustainable feedstock is expected to drive innovation and support the bio-based petrochemicals market over the coming years.

Porter’s Analysis

Threat of new entrants: High capital requirements and economies of scale pose barriers to entry. Regulations also add to entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. However, differentiated products increase switching costs.

Bargaining power of suppliers: Suppliers have high bargaining power given dependence on crude oil price fluctuations and limited alternatives. Integration across value chain increases power.

Threat of new substitutes: Threat is moderate as petrochemicals have few direct substitutes though alternatives in base chemicals exist.

Competitive rivalry: Intense competition exists among established players. Market share gains occur through innovations, expansions and acquisitions.

Key Takeaways

The Global Petrochemicals Market Demand is expected to witness high growth. The global petrochemicals Market is estimated to be valued at US$ 565.55 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.

Regional analysis comprises Asia Pacific dominates and is expected to maintain lead through 2030 owing to strong demand from China, India construction and other industries.

Regional analysis related content comprises Key players operating in the petrochemicals market are Alcatel, BASF, Dow Chemical, ExxonMobil, SABIC.

Key players related content comprises Alcatel, BASF, Dow Chemical, ExxonMobil, SABIC are some major players in the petrochemicals market. The players are focusing on capacity expansions and strategic collaborations to strengthen their foothold in the market.

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