Petrochemical Market was valued at USD 419.4 billion in 2015. Rise in demand of petrochemical from end use industries such as consumer goods and manufacturing along with favourable government regulations specifically in Asia Pacific is expected to fuel the market growth over the forecast period.
Petrochemicals are important to
products used in day to day life. Petrochemicals are mainly utilized as
chemical building blocks in a lot of materials and applications. Propylene,
ethylene, benzene are widely used in various end use industries such as
plastics, rubber, electronics and packaging.Major industries such as
automobiles, chemicals, textile and packaging have shifted their manufacturing
base from western countries to countries in Asia Pacific such as India, China,
Thailand and Indonesia owing to low labour cost and favourable government
regulations. This is expected to drive growth for the market.
Request a Sample PDF Copy of This Report @ https://www.millioninsights.com/industry-reports/petrochemical-market/request-sample
The key driving factors responsible for the growth of Petrochemical
market :
Large amount of money spent on
construction in Asia Pacific region for developing commercial and residential
building is projected to drive growth for the industry. Product applications in
construction industry include manufacturing of adhesive, concrete, fibres,
resins and plastics. These materials require products such as polyurethane,
polyethylene, methanol and styrene. Moreover, with high construction spending
particularly in emerging markets of Latin America and Asia Pacific for building
non-residential buildings such as institutions and offices are expected to fuel
growth over the forecast period. Rise in demand of derived products such as
insulation materials and synthetic rubber owing to properties such as
durability, flexibility, light weight and strength are expected to drive growth
for the industry. Insulation materials are made up of polyethylene and
polyurethane and are used in fuel tank manufacturing. Synthetic rubber is used
in tire manufacturing.
Furthermore, with capacity
additions made in Middle Eastern countries such as UAE and Saudi Arabia, the
region is expected to cater to rising demand for petrochemicals emerging from
regions such as Asia Pacific. Middle Eastern countries benefit from low
feedstock prices used for production. India and China due to its proximity to
Middle East and relatively subsidized price of feedstock, import nearly 70% of
their total demand from these countries. However, with the shift in preference
towards bio-based chemicals along with strict government regulations is
projected to hinder market growth. With rise in shale gas exploration in
countries such as China, Canada and US is projected to provide lucrative
opportunities to industry players.
Product Insights
Ethylene was valued over USD 140
billion in 2014 and emerged was the largest product segment. High demand for
polymers such as PVC and Polyethylene from the plastic industry for polymers is
projected to drive demand over the forecast period. Rising shale gas
exploration is projected to be a key driving factor for market penetration.
Propylene is projected to grow at a CAGR of over 3.7% during the forecast
period. It accounted for over 15% of the total volume in 2014. Rise in demand
for propylene derivative along with adoption of lighter steam cracker is
projected to fuel market growth. Propylene is used for production of other
propylene derivatives such as ispropanol, cumene, acrylic acid and propylene
oxide along with copolymerization of propylene.
Methanol is projected to be the
fastest growing product segment at a CAGR of over 7.5% over the forecast
period. Methanol is widely used in manufacture of biodiesel which is safe,
biodegradable and helps reduce air pollution as compared to other fuels.
Moreover, with supporting government initiatives aimed at reducing global
carbon footprint is projected to augment biodiesel demand which in turn is
projected to fuel market growth.
View Full Table of Contents of This Report @ https://www.millioninsights.com/industry-reports/petrochemical-market
No comments:
Post a Comment