Petrochemicals market to expand at register CAGR of 6.8% uptil 2020, to be worth US$885 bln

The global petrochemicals market will expand at a healthy 6.8% CAGR between 2014 and 2020 and rise to a valuation of US$885.07 bn by 2020, as per Transparency Market Research. The dynamic growth of key end-use industries such as packaging, automobile, and construction is the chief factor driving the overall petrochemicals market, states the report. The abundant availability of raw material in the Middle East, one of the world’s largest producers and exporters of natural gas and crude oil, is also a reason why the petrochemicals market is flourishing on a global level. The market is also driven by government initiatives in China and India that are promoting the establishment of petrochemical complexes. However, an increasing shift towards biobased chemicals and environmental concerns related to the use of a variety of petrochemicals are certain factors that will hamper the market’s growth to a certain extent. The report segments the global petrochemicals market based on two broad criteria: product type and geography. Based on type of product, the market is segmented into ethylene, propylene, butadiene, toluene, benzene, xylene, methanol, styrene, and vinyls. Geography-wise, the market is segmented into North America, China, Europe, Rest of Asia Pacific, Latin America, and the Middle East and Africa.Ethylene, one of the key product types studied in the report, had a 25% share in the global petrochemicals market in 2013. Demand for ethylene was followed by propylene. Over the report’s forecast period, demand for methanol is expected to grow at the fastest pace owing to its rising use in methanol to olefins processes and gasoline blending. On a regional level, the market is expected to be driven by China, which had a 25% share in the global market, owing to the growth of end-use industries. The report also presents a detailed overview of the competitive landscape of the global petrochemicals market. The report states that the market is highly fragmented. Top multinational companies in the petrochemicals market are constantly striving to acquire smaller companies so as to expand their reach and widen their product portfolios. Shifting production bases to countries in Asia Pacific is a highly popular trend currently seen in the global petrochemicals market. The cheap costs of labor and raw materials in Asia Pacific as compared to those in developed countries are the key factors attracting petrochemicals companies. The report presents business profiles of some of the key businesses operating in the global petrochemicals market, which include The Dow Chemical Company, SABIC, BASF SE, Shell Chemical Company, LyondellBasell Industries, Sumitomo Chemical Co. Ltd., ExxonMobil, Total S.A., Sinopec Limited, E. I. du Pont de Nemours and Company, and Chevron Phillips Chemical Company LLC.