Market Revenue Petrochemical Industry Competitive Situation | Página 2

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.
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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.
Regional Insights
China had a valuation of over USD 120 billion in 2014 and hence was the largest regional market. It is expected
to witness strong growth owing to a strong demand from end use industries including packaging, construction
and transportation. Growing commercialization and rapid industrialization is expected fuel growth.