Petrochemicals market in MENA to grow at a CAGR of around 6%

25-Jan-16

The petrochemicals market in MENA is predicted to register CAGR of around 6%, in terms of volume, as per Research and Markets. The increased demand for petrochemical products from the automotive industry is the primary driver for the growth of this market. The automotive sector accounts for more than 15% consumption of the overall petrochemicals produced globally, with the MENA region accounting for 20% of the global production. The growing awareness towards greener environment and the increased focus towards vegetation as a replacement for chemical feedstock is expected to deter the market growth during the forecast period. Bio-based chemicals are replacing the traditional petroleum-based production of chemicals due to the reducing crude oil reserves and fluctuating prices. Ethylene dominated the petrochemicals market in MENA during 2014, with a market share of 38%. This segment is expected to continue its leadership until the end of 2019, growing at a rate of 7%. The increased use of ethylene for the production of ethylene glycol is driving the growth of this segment. Ethylene glycol is used extensively across the world for the production of polyethylene terephthalate and polyester fibers for use in packaging and fabric industries. Polymer production accounted for 50% of the market share during 2014 and is expected to grow at a CAGR of 6% during the forecast period. The increased demand for polymers, especially polyethylene and polypropylene-based thermoplastics and elastomers, from the automotive industry, is driving the growth of this segment. Polymers are used in the automotive industry as a replacement for traditional heavy metals resulting in weight reduction and fuel optimization in vehicles.