Crude to chemicals Market Analysis

Global Crude-to-Chemicals Market Overview

Crude-To-Chemicals Market Size was valued at USD 19,470 million in 2023. The Crude-to-Chemicals industry is projected to grow from USD 20,870 million in 2024 to USD  36,410 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.20% during the forecast period (2024 - 2032). The Crude-To-Chemicals Market is expanding because of Increasing use of crude-to chemicals technology for production of paraxylene and other chemicals. The need for lightweight and fuel-efficient automobiles is continuously increasing, resulting in an increase in the usage of polymers in automotives, especially in EVs. Along with declining gasoline demand in the forecast can potentially benefit the crude oil to chemicals market growth by reducing competition for crude oil as a feedstock, leading to increased availability and potentially lower prices for the chemicals industry. As a result of the increased emphasis on lightweight and reduced carbon emissions, demand for olefins for applications delivering lightweight automotive components is increasing, boosting the market. However, variable raw material costs are likely to upset the Crude-To-Chemicals Market's expansion throughout the forecast period.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Crude-to-Chemicals Market Trends

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  INCREASING DEMAND FOR ELECTRIC VEHICLES IN AUTOMOBILE INDUSTRY

  
  

The automobile industry is at the forefront of this trend, with total global demand expected to rise in the coming years and then begin a gradual decline. Because gasoline is mostly used for light-duty passenger cars and the market for them is transitioning towards electric vehicles, gasoline will be the most severely impacted. These cars are also susceptible to changes in consumer mobility preferences and efficiency improvements.

The need for petrochemical feedstock, on the other hand, will increase with time. Ethane, liquid petroleum gas (LPG), and naphtha are the three main petrochemical feedstocks generated from crude oil. These are mostly employed in the creation of synthetic fibres, plastic polymers, and other petrochemical intermediates. With increased global income, demand for these items will only continue to rise. By boosting their output of naphtha, propylene, and reformate, the building blocks of other petrochemicals, for example, forward-thinking refiners are already searching for chances to tweak or alter their production modes to meet growing petrochemical demand. For, instance, the demand for lightweight and fuel-efficient vehicles is growing rapidly. The importance by the government on carbon emission and efficiency is boosting the adoption of lightweight and efficient automotive vehicles. Polymers such as polypropylene (PP), polycarbonates, polyethylene, polypropylene, and others offer lightweight bodies to the vehicle and have pertinency in vehicle roof, engine, fuel tank, lighting, seating, and others, thereby reducing the fuel consumption and carbon emissions. Thus, with rising emphasis on lightweight and reduction in carbon emissions, the demand for olefins for applications offering lightweight vehicle components is growing, thereby driving the market. The growing use of polymers such as polycarbonates, polyethylene, polypropylene, and many other polymers in the automobile industry has significantly impacted market growth.

A brand-new "push-pull" model in the energy sector is what's driving this innovation. The market is "pulling" the oil sector in a new direction because changes in transportation are expected to slow the growth of the fuel-based demand for crude oil. The oil refiners are trying to "push" barrels of oil (displaced and new) into the chemical markets since they understand an opportunity to transform low value oil into high value chemicals. Since there are so many technologies being created, crude oil to chemicals is one of the most profoundly disruptive technology categories. As refiners prepare for future demand for gasoline and fuel output to decline owing to regulations for low-carbon emissions and higher vehicle fuel efficiency, this method is both transformational in terms of its potential and timely which ultimately drives the electric vehicles market.

Crude-to-Chemicals Market Segment Insights

Crude-to-Chemicals by Technology Insights

The Crude-To-Chemicals Market segmentation, based on Technology has been segmented as cracking technology, hydrocracking technology, and others. Among these, the food is projected to dominate the Crude-To-Chemicals Market revenue through the projected period. Steam cracking is a vital technology used in the process of converting crude oil into chemicals. It involves the thermal decomposition of hydrocarbon molecules in the presence of steam, leading to the production of valuable petrochemicals. The process begins by feeding the preheated hydrocarbon feedstock into the furnace. Inside the furnace, the raw material reacts with high-temperature steam, which results in the breakdown of larger hydrocarbon molecules into smaller ones. This cracking process yields a variety of chemical intermediates such as ethylene, propylene, butadiene, and benzene. These intermediates serve as building blocks to produce plastics, synthetic rubber, detergents, and other basic chemicals, contributing to the growth of various industries. Steam cracking technology plays a key role in converting crude oil into valuable chemical products.

Crude-to-Chemicals by End-Use Insights

The Crude-To-Chemicals Market has been categorized based on End-Use Industry into packaging, automotive & transportation, construction, electrical & electronics, healthcare, and others. The packaging segment accounted for the largest market share of 33.09% in 2022 and is expected to exhibit a CAGR of 20.95% during the forecast period. The automotive and transportation segment follows the packaging segment in terms of market size and is expected to register a high CAGR of 23.17% by value during the forecast period.

Crude-to-Chemicals such as ethylene, propylene, butylene are used to manufacture polymers and plastics (polyethylene, polypropylene) and some chemical intermediates styrene and urethane, which are later utilized used to form a polymer. They are used substantially across various end-use industries, such as automotive & transportation, building & construction, electrical & electronics, healthcare, and food & beverages, and the renewable energy sector. Market participants that use innovation to acquire a competitive edge and expand their presence will boost market revenue growth even further.

Crude-to-Chemicals Regional Insights

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

By Region, the study segments the Crude-to-Chemicals market into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.The Asia-Pacific region has emerged as the largest market for petroleum and chemical products, demonstrating its dominance in the global chemical industry. This dynamic market spans many countries, including China, India, Japan, South Korea, and several Southeast Asian countries. The region's rapid economic growth, growing population and robust industrial sector have pushed its position from primary consumer of oil to chemical products. One of the key factors contributing to its dominance in Asia Pacific is its vast manufacturing base. There has been a significant shift in production capacities in the region, with major industries such as petrochemicals, plastics, textiles, and footwear setting up their production facilities here. This has created a massive demand for raw to chemical products that serve as vital raw materials for these industries. In addition, the region's large population and rising disposable incomes have fueled demand for consumer goods. This in turn has increased the need for various chemicals used in the manufacture of products such as packaging materials, personal care items and automotive components. In addition, government initiatives promoting industrialization and infrastructure development have further increased the demand for crude chemical products in Asia Pacific. Countries such as China and India have implemented policies to support domestic production, leading to increased investment in the chemical sector. Asia Pacific's dominance as the largest market for raw and chemical products is likely to continue for the foreseeable future. With growing industrial sectors, an expanding middle class and favorable government policies, demand for these products is expected to remain strong. This presents lucrative opportunities for domestic and international players in the raw materials and chemical industry, shaping the region's chemical landscape and supporting economic growth.

Crude-to-Chemicals Key Market Players & Competitive Insights

The Crude-To-Chemicals Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Rapid advancements in processes, manufacturing, and the growing application of Crude-to-Chemicals in end-use industries are the key factors that affect global market growth. The vendors compete based on cost, product quality, availability, and reliability of the products. The vendors must provide cost-effective and high-quality Crude-to-Chemicals to compete in the market. The competitive scenario is fragmented between tier-1 and tier-2 companies.

The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Saudi Arabian Oil Co., Shell Global, Exxon Mobil Corporation, Sabic, TotalEnergies and PetroChina Company Limited are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider product development as their key strategy in the global Crude to Chemicals market. Additionally, the companies are following both organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationship. Additionally, companies are also investing in the development of new and advanced systems with more safety measurements.

Saudi Arabian Oil Co.: Saudi Arabian Oil Co. aspires to be one of the world's greatest integrated energy and chemicals corporations, offering societal and economic advantages to people and communities throughout the world that rely on the crucial energy supplied by the company. The company is dedicated to taking the lead in the energy transition. The company operates with the duty of assisting the world in achieving a net-zero economy, and its employees are working hard to assist in resolving the world's sustainability concerns. For their clients, the company is a preferred supplier, and for their shareholders, the company creates long-term value. Aramco's objective is to offer reliable, affordable, and more sustainable energy to communities around the world.

ExxonMobil: ExxonMobil's integrated business model encompasses activities across the entire energy value chain, including exploration, production, refining, chemicals, and marketing. This integration increases efficiency, operational synergies, and value creation. The company focuses on solving environmental problems and reducing its carbon footprint. ExxonMobil aims to manage emissions, increase energy efficiency, and explore technologies to mitigate environmental impacts. ExxonMobil strategically manages its global resource portfolio to ensure access to diverse hydrocarbon reserves. This includes exploring new reserves, optimizing production from existing assets and ensuring reliable supplies to meet global energy demand. 

Key Companies in the Crude-to-Chemicals Market includes.

• Saudi Arabian Oil Co.


• Shell Global


• Sabic


• TotalEnergies


• Exxon Mobil Corporation


• PetroChina Company Limited

Crude-to-Chemicals Industry Developments

June 2023: Saudi Aramco and TotalEnergies have signed contracts to construct an $11bn petrochemicals facility in Jubail. The facility is due to start operations in 2027.

March 2023: IOC to invest Rs 61,077 crore in petrochemical complex at Paradip: will invest Rs 61,077 crore in building a petrochemical complex at Paradip in Odisha - its largest ever investment at a single location - as it doubles down on its transition plan.

August 2023: Reliance to spin off oil-to-chemicals with $25billion loan: Reliance Industries Ltd. has started carving out its new oil-to-chemicals operation into an independent unit with a $25 billion loan from the parent.

Crude-to-Chemicals Market Segmentation

Crude-to-Chemicals Technology Outlook

• Steam Cracking Technology


• Hydrocracking Technology


• Others (De-asphalting Technology, Vacuum Residue, etc)

Crude-to-Chemicals Application Outlook

• Adhesives & Sealants


• Polymers


• Paints & Coatings


• Dyes


• Surfactants


• Rubber


• Solvent


• Others

Crude-to-Chemicals End-Use Industry Outlook

• Packaging


• Automotive & Transportation


• Building & Construction


• Electricals & Electronics


• Healthcare


• Others

Crude-to-Chemicals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America