Global petrochemicals market to cross US$885 bln by 2020, at a CAGR of 6.8%

The global petrochemicals market was valued at US$558.61 bln in 2013 and is anticipated to reach US$885.07 bln by 2020, expanding at a CAGR of 6.8% from 2014 to 2020, as per Transparency Market Research. Petrochemicals are widely used in various end-use industries such as construction, automobile and packaging. Hence, growth in these end-use industries is one of the major factors driving the global petrochemicals market. Abundant availability of raw materials in the Middle East - the region is one of the largest producers and exporters of crude oil and natural gas in the world - is another factor boosting the petrochemicals market. Government initiatives in India and China for establishing petrochemical complexes are also expected to drive the market for petrochemicals. However, shift towards bio-based chemicals coupled with environmental issues arising due to usage of various petrochemicals is projected to hamper market growth during the forecast period. Ethylene was the leading petrochemical product, accounting for over 25% of the global petrochemicals market in 2013. Ethylene was followed by propylene, which is primarily used in the manufacture of polypropylene and propylene oxide. Methanol is projected to be the fastest growing segment from 2014 to 2020. Growth of methanol is directly related to its increasing usage in gasoline blending and methanol to olefins (MTO) processes. Other petrochemicals such as butadiene, benzene, xylene, toluene, vinyls and styrene accounted for a significant portion of the global petrochemicals market share in 2013. China was the leading consumer of petrochemicals, accounting for over 25% of the global market share in 2013. Initiatives taken by the government of China to boost the petrochemicals market coupled with growth in end-use industries in the region is likely to drive the market during the forecast period. Rapid development of shale gas as an alternative feedstock for petrochemicals is reshaping the chemicals industry in North America. Europe emerged as the third-largest petrochemicals market in 2013. The petrochemicals market in the region is estimated to grow at a sluggish rate during the forecast period. High demand for petrochemicals in the Middle East & Africa is primarily ascribed to rapid capacity additions in the region. The global market for petrochemicals is highly fragmented in nature. It is dominated by top multinational corporations that operate across the value chain.