Petrochemical Market Size, Share & Growth Analysis Report By Product Type(Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol), By Manufacturing processes (Fluid Catalytic Cracking (FCC), Steam cracking, Catalytic reforming), By Application (Aerospace, Agriculture, Automotive, Building & Construction, Consumer & Industrial Goods, and Others) - Global Industry Analysis, Trends, Segment Forecasts, Regional Outlook 2024 - 2033

Petrochemical Market Size and Growth

The global petrochemical market size was valued at USD 620.74 billion in 2023 and is anticipated to reach around USD 1,132.80 billion by 2033, growing at a CAGR of 6.2% from 2024 to 2033. 

Petrochemical Market Size 2024 to 2033

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Petrochemical Market Key Takeaways

  • By product, the ethylene segment has captured a revenue share of 40.6% in 2023.
  • The methanol segment is expected to grow at a CAGR of 7.9% between 2024 to 2033.
  • Asia Pacific has dominated the market with a revenue share of 52.14% in 2023.
  • Europe is anticipated to grow at a CAGR of 5.7% during the forecast period from 2024 to 2033. 

Petrochemical Market Size in the Asia Pacific 2024 to 2033

The Asia Pacific petrochemical market size was estimated at USD 323.63 billion in 2023 and is predicted to be worth around USD 606.05 billion by 2033, at a CAGR of 6.5% from 2024 to 2033.

Asia Pacific Petrochemical Market Size 2024 to 2033

The Asia Pacific region has been undergoing rapid industrialization and urbanization, particularly in countries like China and India. This growth drives the demand for petrochemical products, which are essential for various industries, including construction, automotive, and manufacturing. The demand for plastics, a major product of the petrochemical industry, has been consistently rising in the Asia Pacific region. Plastics are widely used in packaging, construction, consumer goods, and automotive applications, contributing to the overall growth of the petrochemical market.

Petrochemical Market Share, By Region, 2023 (%)

Petrochemical Market Size in North America 2023 to 2033

The North America petrochemical market size was calculated at USD 106.77 billion in 2023 and is projected to expand around USD 211.83 billion by 2033, poised to grow at a CAGR of 7.1% from 2024 to 2033.

Year Market Size (USD Billion)
2023 106.77
2024 114.37
2025 122.52
2026 131.23
2027 140.55
2028 150.52
2029 161.19
2030 172.60
2031 184.81
2032 197.87
2033 211.83


Key Market Insights:

Emergence of new applications of petrochemical is predicted to create potential opportunities for the crucial players operating in global market. According to the data published by International Energy Agency in 2018, the manufacturing of thermoplastics will be more than doubles over the period of 2020 to 2050, in order to satisfy the consumer demand worldwide.  Further, major companies of the global petrochemical market are increasing their capacity to enrich position. As per the data by IEA petrochemicals report, almost all regions, will increase manufacturing of primary chemicals to 2050, except Europe.

Petrochemical Market Scope

Report Highlights Details
Growth Rate from 2024 to 2033 CAGR of 6.2%
Market Size in 2023 USD 620.74 Billion
Market Size by 2033 USD 1,132.80 Billion
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Product, By Application, and By Manufacturing Processes
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)


Petrochemical Market Growth Factors

  • Global population growth and urbanization drive demand for a wide range of petrochemical goods, such as chemicals, polymers, and plastics. In emerging nations, petrochemical products are increasingly used in manufacturing, construction, and other industrial processes due to economic growth and industrialization. 
  • Technological developments, especially in petrochemical production processes, can result in lower prices, more efficiency, and the creation of novel and inventive goods.
  • The price and accessibility of raw materials like natural gas and crude oil affect the cost of producing petrochemicals. Areas having easy access to feedstock are frequently at a competitive advantage.
  • Research and development (R&D) investments stimulate growth and innovation in the petrochemical sector by facilitating the creation of new technologies, procedures, and products.
  • The petrochemical sector is encouraged to develop more environmentally friendly and sustainable methods by strict emissions and waste disposal laws and by growing public awareness of environmental issues.
  • The types of petrochemical products in demand can be influenced by shifting consumer trends and preferences, such as the increasing desire for ecologically friendly or biobased products.
  • The petrochemical industry's cost structure can be impacted by fluctuations in global energy prices, particularly those of natural gas and crude oil, which can affect investment decisions and profitability.

COVID-19 Impact on Global Petrochemical Market

Outbreak of COVID-19 has affected most of industries operating across the globe. Most of the leading countries across the world announced their lockdowns that has resulted into the disruption of supply chain of companies. Irregular supply of raw materials, and leap in their off-premise sales has affected the production of petrochemical. Also, the COVID-19 has affected on the demand and prices of oil. Further decreased demand of petrochemical components from end-use industries hampered growth of the global petrochemical market in 2022.

Future of Global Petrochemical Market

Leading players operating in the global petrochemical industry are focusing on increasing production of petrochemical to enhance their position and to get competitive edge in the global market. Asia Pacific, United States, and Middle East regions are heavily investing in order to fuel the processing capacity of petrochemical for satisfying the customer demand. As per the data published by Hydrocarbon Processing’s Construction Boxscore, from years 2016 to 2018, around 280 new petrochemical projects were announced which represents the year-over-year increase of 42%. That can have huge impact on the growth of the petrochemical industry.

Petrochemical Market Dynamics


A decrease in demand for fuel drives interest in Petrochemicals

The fuel industry across various regions is declining, which leads to an increase in demand for petrochemicals. As per a survey, the need for gasoline is anticipated to be lower by 15% from 2018 to 2035. Similarly, the demand for diesel will decrease by 6%. The factors which are contributing to the decline are continuous improvement in technology, autonomous vehicles, renewable substitution, connected and shared vehicles, as well as changing demographics. The demand for petrochemicals is anticipated to expand 3 to 6 times. The need is expected to grow due to the rising middle class in developing countries. To boost the profitability of those investments, expansion into petrochemicals will be incorporated. A refiner is able to opt to cut crude capacity or diversify into higher-value petrochemicals to offset the predicted decline in US fuel consumption and dwindling export markets. The former would result in stranded capacity and reduced refining margins. Modification into petrochemical manufacturing allows the preservation of crude capacity and results in a considerably better margin than simply generating fuels.

The novel supply-demand relationship for the chemical sector is contributing to enhancing the global competition in the market. Owing to the shale gas resolution, the United States have again gained its position as a low-cost area for production of chemicals after many decades of decline. Presently, the United States manufactures approximately 40% of the global ethane-based petrochemical. Followed by U.S., Middle East led by Iran and Saudi Arabia remains the low-cost region for various petrochemicals, with various projects planned across globe. Europe and China accounts for approximately 1/4th of the global capacity for high value chemicals which are naphtha-based and have minor share of capacity.

Government Initiatives and PCPIRs Development

In April 2007, the Government of India (GoI) announced the Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) program to encourage investment in the CPC sector and position India as a manufacturing powerhouse for domestic and international markets. PCPIRs are now being created in Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), and Odisha (Paradeep). Hindustan Petroleum Corporation Limited (HPCL) Rajasthan Refinery Limited is developing a new petrochemical cluster in Rajasthan's Barmer district. The government is actively working to reform the former PCPIR policy. Priority is given to completing all existing projects and streamlining processes to smooth out obstacles.

Market Restraints

Environmental Concerns and Regulations

The petrochemical sector witnesses rising scrutiny due to environmental factors such as greenhouse gas emissions, air pollution, and plastic waste. Strict regulations as well as carbon reduction targets are able to require significant investments in emission control technologies, sustainability practices, and waste management, along with potentially increasing production costs.

Various challenges faced by petrochemicals are climate, water pollution, and air quality. Along with this, petrochemical products provide advantages, such as the rising number of applications in various advanced technologies. However, the use, production, and disposal of petrochemical products act as a challenge that needs to be addressed. Though the chemical industry consumes a larger amount of energy than the cement and steel sector, it emits less amount of CO2. The rising demand for bio-based alternatives and renewable alternatives to petrochemical products, like bio-based polymers or biodegradable materials, are expected to impact the market growth potential.

Market Opportunities

Use of Machine Learning and Artificial Intelligence in chemical manufacturing and data mining

Machine learning techniques are processes that are able to mimic human thinking ability and are able to detect patterns and mine data. They are also capable of evaluating context and conflicting evidence at a faster pace than humans. These technologies are used to assist in the prediction of the outcome of a process or reaction, help in developing hypotheses, and determine gaps in existing scientific literature. A continued trend in the chemical production sector embraces AI, IoT, and machine learning. These advanced technologies are used to enhance efficiency and productivity, as well as decrease energy loss and risk.

Product Insights

The ethylene segment holds the largest share in the petrochemical market. The primary process used to manufacture ethylene is the steam cracking of hydrocarbons derived from natural gas or crude oil, such as ethane, propane, and naphtha. The competitiveness of ethylene production is impacted by the cost and availability of feedstocks, particularly ethane from shale gas, in areas like the United States. There are several uses for the adaptable chemical ethylene. It is an essential raw ingredient used in manufacturing textiles, resins, polymers, and other industrial chemicals. The expansion of end-use sectors such as consumer products, packaging, buildings, and automobiles affects the demand for ethylene. Global economic conditions, feedstock pricing, and supply-demand balance are some factors affecting ethylene prices.

Numerous businesses use ethylene-based products to keep up with the increasing demand for ethylene worldwide, the petrochemical industry frequently invests in ethylene production facilities and expands its capacity. Technological developments, market trends, and regulatory frameworks are observed to impact investment decisions. 

Manufacturing Insights

The fluid catalytic cracking segment holds the largest share in the petrochemical market. The primary goal of FCC is to convert heavy, high-boiling-point hydrocarbons from crude oil into lighter, more valuable products. By using a catalyst and a fluidized bed of catalyst particles, FCC makes it easier for giant hydrocarbon molecules to break down into smaller, more usable ones. Gasoline, diesel, and light olefins (such as propylene and butylene), crucial ingredients in synthesizing numerous petrochemicals, are the principal products acquired through the FCC. The FCC industry has grown in size and significance due in part to the rising demand for refined goods, including gasoline. Global energy demand, regulatory restrictions, and crude oil prices are some elements that impact the FCC industry.

In the FCC process, catalysts are essential because they encourage the right chemical reactions. The goal of ongoing research and development in catalyst technology is to improve selectivity and conversion efficiency. Zeolite-based catalysts are active and selective, making them a popular choice for FCC units. FCC units are made to comply with emission requirements and lessen their adverse effects on the environment as environmental rules get stricter. FCC unit operators are concentrating on integrating modern emission control technology and catalyst regeneration processes—demand for particular refined products and regional expansions of refining capacity impact the FCC segment. The rise of FCC units is primarily due to emerging nations with rising energy needs, especially in Asia and the Middle East.

Application Insights

The building and construction segment heavily influences the petrochemical market since petrochemical products are widely used in various construction-related applications. Petrochemicals are essential raw materials for manufacturing building materials, chemicals, and goods. They are obtained from petroleum or natural gas. Plastics are widely used in building materials like pipes, cables, insulation, roofing, and flooring, and their manufacture requires petrochemicals. These polymers are frequently utilized in construction applications such as fittings and pipes. In the construction sector, petrochemical-based adhesives and sealants are used to join and seal various materials, extending the life and durability of structures.

Petrochemical Market Recent Developments

  • In June 2023, the chairman of Thai conglomerate Siam Cement Group told Reuters on Monday that Long Son Petrochemicals, owned by SCG Chemicals, will begin commercial production at its petrochemical facility in southern Vietnam in September. On the fringes of an industry gathering, Roongrote Rangsiyopash of Siam Cement Group stated that the company is testing every functioning unit at the site.
  • In March 2023, as part of the multitrillion-dollar Belt and Road initiative, China and Saudi Arabia established a joint venture for an integrated refinery and petrochemical complex for raw materials and fine chemicals. According to the Chinese Daily Global Times, the $12.2 billion project between China and Saudi Arabia, known as a green and low-carbon initiative, was unveiled in Panjin city in the northeastern Liaoning province.

Petrochemical Market Companies

  • 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

Segments Covered in the Report

By Product Type

  • Ethylene
    • Polyethylene
    • Ethylene oxide
    • EDC
    • Ethyl benzene
    • Other (including alpha olefins, vinyl acetate, etc.)
  • Propylene
    • Polypropylene
    • Propylene oxide
    • Acrylonitrile
    • Cumene
    • Acrylic acid
    • Isopropanol
    • Other
  • Butadiene
    • SB Rubber
    • Butadiene rubber
    • ABS
    • SB latex
    • Other (nitrile rubber, mechanical belts, etc.)
  • Benzene
    • Ethyl benzene
    • Phenol/cumene
    • Cyclohexane
    • Nitrobenzene
    • Alkyl benzene
    • Other (including alkyl benzene, maleic anhydride)
  • Xylene
  • Toluene
    • Benzene
    • Xylenes
    • Solvents
    • TDI
    • Others (including pesticides, drugs, nitro toluene, etc.)
  • Methanol
    • Formaldehyde
    • Gasoline
    • Acetic acid
    • MTBE
    • Dimethyl ether
    • MTO/MTP
    • Other

By Manufacturing Processes

  • Fluid Catalytic Cracking (FCC)
  • Steam cracking
  • Catalytic reforming

By Application

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

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • United Kingdom
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

What is the current size of the global petrochemical market?
The global petrochemical market size surpassed at USD 620.74 billion in 2023 and is expected to reach USD 1,132.80 billion by the end of 2033.
What is the growth rate of global petrochemical market?
The global petrochemical market is growing at a remarkable CAGR of 6.2% during the forecast period 2024 to 2033.
Which major factors driving the growth of petrochemical market?
Increasing usage of petrochemical in industrial applications including construction, automotive, aviation, food, electricals, paint and coatings, paper and pulp is major factor driving growth of the global petrochemical market. Additionally, capacity expansion of petrochemical by the major operating players is another factor expected to boost growth of the target market in the coming years.
Which product type segment was dominated latest market revenue share in the petrochemical market?
Among the product type segment, ethylene segment is dominated the overall market in 2023 with more than 25% share in terms of revenue, owing to its wide applications in various end use industries including transportation, construction and packaging.
Which application segment accounted for the significant share in the petrochemical market?
Among the application building & construction segment accounted for the significant share.
Which major companies functioning in the worldwide petrochemical market?
The major companies functioning in the worldwide petrochemical market include China Petroleum & Chemical Corporation, Exxon Mobil Corp., Chevron Phillips Chemical Company, Sumitomo Chemical Co., Ltd. BASF SE, Saudi Arabian Oil Co. DuPont de Nemours, Inc. Dow, BP Plc, Total S.A. among others.
What is petrochemical?
Petrochemical is an essential part of the chemical industry due to its increased adoption for synthetic material production. Petrochemicals are majorly produced from hydrocarbons like butane, ethane, propane, and other components of natural gas or petroleum.
What are the uses of petrochemical?
Thousands of end use products are manufactured using petrochemicals such as wind turbines, solar power panels, furniture, cosmetics, medicines, electronics, and plastics among others.


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