The global petrochemicals market is expected to grow at a significant rate in the next few years to come. According to a report by Transparency Market Research, the global petrochemical market will be witnessing modest competition in the coming years. To lead and dominate the market, the key players in the market are focusing on mergers and collaboration with various small size and regional companies. Some of the leading companies operating in the global petrochemicals market are Sinopec Limited, Chevron Phillips Chemical Company LLC, E.I. du Pont de Nemours and Company, Shell Chemical Company, Total S.A., Sumitomo Chemical Co. Ltd., SABIC, LyondellBasell Industries, ExxonMobil, The Dow Chemical Company, and BASF SE.
The global petrochemical market is anticipated to rise at a significant CAGR of 6.80% during the forecast period of 2014 to 2020. The global market is expected to reach valuation worth US$885.1 bn by the end of the forecast period. The global petrochemical product segment is led by ethylene segment and is expected to lead during the forecast period. Geographically, Asia pacific is leading the market due to substantial contribution of China. This region will be dominating the market as it holds major shares of the global petrochemical market.
Rise in End User Consumption to Encourage Global Petrochemicals Market
The global petrochemical market is expected to rise significantly due to increasing demand for product portfolio and the expanding application areas. Emerging economies are demanding petrochemicals for various applications thus, leading to rise in demand in the global market. Rise in construction industry will boost the market growth. Automotive sector is also showing significant rise in the consumption of petrochemicals. Rising demand from various end users for petrochemicals are supplementing the global market. Favoring government policies are acting as a key player in the global petrochemicals market. Raw materials required in the production of petrochemicals are abundantly available in several nations in the Middle East thus, accelerating the growth in market.
Since petrochemicals are a wide range of chemicals derived from petroleum feedstock, it has various applications in human life. These increased consumption from end user segments are likely to boost the market during the forecast period. Ethylene is majorly used in the manufacturing of polyethylene. This accelerates the demand for global petrochemicals market. Methanol used in mixtures of fuel is also anticipated to increase consumption of petrochemicals in the market. Use of methanol for cleaning fuel combustion to reduce the environmental damage will prove very beneficial in the coming years.
Rising Environment Awareness to Hamper Market Growth
The global petrochemicals market will be facing certain restrains which might hamper the growth of the market during the forecast period. Rise in awareness among consumers and manufacturers regarding environmental issues is one of the leading factor for the down fall of the market. There is a potential shift to bio based chemicals thus, hampering the growth of the global market. Manufacturing of these petrochemicals can seriously affect the nature and human life therefore, there are strict regulations implemented by government that can affect the global petrochemicals market during the forecast period.