Petrochemical Market size was over USD 620.37 billion in 2023 and is anticipated to reach USD 1.56 trillion by 2036, growing at around 7.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of petrochemical is assessed at USD 657.1 billion. The growth of the market can be attributed to the increasing demand for petrochemical in commercial applications and the automotive industry. Furthermore, petrochemical products are used for other umpteen applications, such as, medical equipment, paints, detergent, textiles, and adhesives. According to the data released by the United Nations Principles for Responsible Investment, approximately 99% of plastics are derived from petrochemical products. It is estimated that the global plastic industry will value at USD 751 billion by 2028. Hence, the high usage of petrochemicals in the production of plastic, is estimated to boost the global petrochemical market growth during the forecast period. Furthermore, petrochemical products are extensively utilized in paint and coatings, which are applied on cars and building walls. According to the data published by the Observatory of Economic Complexity (OEC), non-aqueous paints were among the 240 top traded products in 2020, with a total trade of USD 14.1 billion. The escalating demand for paints and coating is further estimated to drive the growth of the global market over the forecast period. Moreover, synthetic rubber is a prominent component in making tires for trucks, cars, and bicycles and is made from petrochemical, butadiene. It is estimated that in the year 2020, 64 million cars were sold in 2020, which rose to 67 million in 2021. On the back of increasing sales of vehicles, the global petrochemical market is estimated to grow significantly over the forecast period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
7.4% |
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Base Year Market Size (2023) |
USD 620.37 billion |
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Forecast Year Market Size (2036) |
USD 1.56 trillion |
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Regional Scope |
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The market is segmented by end-user into aerospace, agriculture, automotive, construction and others. Out of these, the automotive segment is anticipated to hold the largest share in the global petrochemical market over the forecast period on account of exponentially increasing demand for vehicles. Furthermore, the huge demand for plastic to make the body and other parts of vehicles is also expected to elevate the global market growth during the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Products |
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By End-User |
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By Application |
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Regionally, the global petrochemical market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. Asia Pacific industry is anticipated to hold largest revenue share by 2036, propelled by rapid economic development in the region. Various companies in the region are investing in the petrochemical industry. Furthermore, governments of the countries are also pursuing policies of petrochemical self-sufficiency, which is the reason the global market is projected to grow during the forecast period in the region.
The global market in the North America region is expected to grow over the forecast period owing to the rising demand for plastic, fertilisers, synthetic rubber and detergents. The data released by American Fuel & Petrochemical Manufacturers state that petrochemical manufacturers have invested USD 185 billion to meet the growing demand for petrochemicals, which is the reason the global petrochemical market is projected to grow over the forecast period.
Author Credits: Rajrani Baghel
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