Petrochemicals market in MENA to register CAGR of 6% in terms of volume, between 2015 and 2019

26-Nov-15

Petrochemicals market in MENA is estimated to register a CAGR of around 6% in terms of volume, between 2015 and 2019, as per Technavio. The augmented demand for petrochemical products from the automotive industry is the primary driver for the growth of this market. The automotive sector occupies more than 15% consumption of the overall petrochemicals produced globally, while the MENA region accounts for 20% of the total global petrochemicals production. Saudi Arabia, Qatar, UAE, Algeria, and Egypt are the major petrochemicals producing nations in the MENA region. “The petrochemical market in MENA is estimated to witness sluggish growth, owing to the sharp decline in the volume of petrochemicals being exported from the region. Much of the market’s decline in this region is due to introduction of gas-to-liquids (GTL) technology and the recent shale gas boom in the US, which has resulted in the increased availability of cheap petrochemicals, especially ethylene, to the end-users,” says Sriram Mohan, Lead Analyst, Chemicals & Materials, Technavio Research. Ethylene dominates the petrochemicals market in, occupying around 38% of the total market share. 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.