Chemicals products which are derived from petroleum are called petrochemicals. The other name for petrochemical is petroleum distillates. Fossil fuels like coal or natural gas and renewable resources like corn or sugarcane can derive same chemicals components as phytochemicals but still they are not included in petrochemicals industry.
The market is segmented into propylene, butadiene, Toluene, styrene, xylene, benzene, methanol, ethylene and vinyl. On the basis of region the market is segmented into North America, Europe, China, Middle East & Africa and Latin America. Petrochemicals are the end-users of various industries like- automobile, packaging and construction. The market is fragmented by many multinational corporations.
According to the report, “Petrochemicals Market Global Report 2017”, in 2016, with around 66% market share, Asia has been observed to account for the largest region in the petrochemical market. Robust manufacturing industry has led Asia to become the largest market as a major user of petrochemicals. China and Southeast Asia have been the prominent regions to use petrochemicals. With around 18% market share, Europe has become the second largest region all over the globe and with about 13% market share; America followed the third largest region in the market of petrochemicals.
Asian government is looking for incentivizing the petrochemical manufacturing market so that the companies of petrochemical can invest without fear. There are various trends in the petrochemical market that are being witnessed. There has been an encouragement for regulatory policies as the demand of propylene products has increased. Increase in growth and investment opportunity has been noticed due to utilization of coal and shale gas in the petrochemical market.
BASF SE, Exxon Mobil, Shell Chemical Company, The Dow Chemical Company, and Chevron Phillips Chemical Company are some of the top players in petrochemicals market globally.
In the forecast period, the key driver of petrochemical industry would be the increase in demand from packaging industry as the global demand for plastic packaging has been increasing strongly. Packaging market has been the leading end-user for numerous petrochemicals around the globe and the industry has shown considerable growth in terms of revenue and will continue to increase in future as well. In terms of technology and designs, the packaging industry is growing rapidly and touching heights.
However, growing environmental concerns would act as major challenges to be faced by manufacturers especially. The use of petrochemicals is expected to decline in future because of rapidly growing global warming and population. Also, depleting crude oil reserves is foreseen to be a big challenge. Anyhow, due to increasing awareness regarding environment safety and use of bio-based chemicals, a growth has been registered in this market and is expected to occur at an ameliorated pace in future years as well.
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