Opportunities For The Basic Petrochemical Industry To Cross US$603 Bln By 2021

Opportunities for the basic petrochemical industry to cross US$603 bln by 2021

21-Feb-17

The future of the global basic petrochemical industry looks good with opportunities in construction, transportation, agriculture, textile, industrial, electronics, healthcare and consumer goods industries, according to a market report published by Lucintel. The global basic petrochemical industry is expected to reach an estimated US$603.2 bln by 2021 and is forecast to grow at a CAGR of 4.9% from 2016 to 2021. The major growth drivers for this market are growing demand for basic petrochemicals in end use industries. Technological innovations aimed at improving manufacturing processes to increase product yield with higher quality are expected to have a positive impact on the petrochemical industry.

In this market, ethylene, propylene, and ammonia are some of the major segments of basic petrochemicals. Ethylene is expected to remain the largest segment due to increasing demand from various end use applications such as packaging and construction. Lucintel predicts that the demand for ethylene is likely to experience the highest growth over the forecast period due to the growth in the polyethylene film for the food and non-food packaging applications. Asia Pacific is expected to remain the largest region and is expected to witness above average growth over the forecast period due to economic expansion in India and China and increasing usage of chemicals in different sectors, such as healthcare, automotive, construction, and others.

For business expansion, the report suggests innovation to improve oils to chemicals conversion rate and develop new crude cracking processes to reduce energy cost and environmental footprint. The report further suggests the development of partnerships to create win-win situations and the development of low-cost solutions for end users.
Emerging trends, which have a direct impact on the dynamics of the market, include capacity migration to low cost locations and US shale gas boom has renewed competitive advantage to the sector. Saudi Basic Industry Corporation, LyondellBasell, Exxon Mobil, and Royal Dutch Shell are among the major suppliers of basic petrochemicals.