Petrochemical refers to chemical products obtained from natural gas and crude oil and they play a vital role in overall chemical industry. Petrochemical market is highly fragmented with about 20% of the market is controlled by top 3 companies such as BASF, Sinopec, and ExxonMobil.
Petrochemicals are primarily used in agriculture, automotive, construction, packaging and electrical & electronics industries. Petrochemicals are majorly divided into two types: Olefin and aromatics. Olefin includes ethylene, propylene and others that are used in plastics, fibres, lubricants, resins, elastomers and gels. Aromatics include benzene, xylene and toluene isomers. Olefins and aromatics both forms the basis for solvents, adhesives and detergents.
Based on product segment, the global petrochemical market is segmented into ethylene, butadiene, xylene, vinyl, methanol, propylene, benzene, toluene and styrene. Ethylene dominates the global petrochemicals product market and it is mainly used to manufacture polypropylene and propylene oxide. Increasing demand for polyethylene in several industries such as packaging is expected to raise the global demand for ethylene segment. Methanol is anticipated to be the fastest growing segment due to growing use in gasoline blending.
The global petrochemical market is driven by growth in end user industries along with the abundant availability of raw materials, especially in Asia Pacific and the Middle East. Growing demand from plastic industry in order to produce polymers such as polyethylene is projected to drive petrochemicals demand. However, rapidly depleting oil reserves presents a major challenge to the industry. Additionally, factors such as growing environmental concerns and shift towards bio-based chemicals are expected to be the major deterrents to the market.
The global petrochemical industry is going through a transition. Large companies, especially from the Middle East, are focusing on adding more commodities to their product portfolios and expanding their manufacturing base by acquiring domestic companies. Favourable government regulations and low labour cost are luring the petrochemical companies to shift their manufacturing units to Asia Pacific and Middle East countries.
ASDReport.com has a collection of reports on petrochemical companies market covering various topics related to petrochemical companies, mergers & acquisitions and others.