Petroleum Liquid Feedstock Market

Petroleum Liquid Feedstock Market: Growing Demand for Aromatics, Solvents, and Automotive Fuels to Create Significant Growth Opportunities: Global Industry Analysis (2013 - 2018) and Opportunity Assessment (2019 - 2027)

Introduction

The report on the petroleum liquid feedstock market covers comprehensive information and insights about the petroleum liquid feedstock, such as drivers, trends, dynamics, value (US$ Mn) and volume (KT) projections, along with recent and ongoing developments in the global petroleum liquid feedstock market for the study period 2019 to 2027.

The global petroleum liquid feedstock market is estimated to reach a value of over US$ 366.1 Bn by 2027 end, registering a CAGR of 3.9% between 2019 and 2027. Increase in oil & gas prices and the demand for aromatics and growth of the petrochemical industry and automotive fleet are expected to drive the global demand for petroleum liquid feedstock during the forecast period.

Demand for Petroleum Liquid Feedstock to Grow in Tandem with Increase in Oil Prices

After the oil & gas prices plummeted to a new low during 2014-2016, the petroleum refining industry, as well as petroleum liquid feedstock, took a hit, which led to a decline in the revenue of companies. Since 2017, oil prices have recovered to above US$ 70/barrel from the previous low of US$ 40/ barrel and have shown signs of steady improvement.

With the increase in oil & gas prices, the petroleum refining industry is also set to witness increased output to cater to the increased demand for petrochemicals globally. This is expected to drive the petroleum liquid feedstock market over the forecast period.

Growing Petrochemical Industry and Increasing Demand for Aromatics

The petrochemical industry is a key driver for the petroleum liquid feedstock market. The increasing demand for petrochemical products from end-use industries such as, plastic, construction and transportation has been driving the growth of the petrochemical industry, which in turn is contributing to the growth of the petroleum liquid feedstock market

One of the main applications of petroleum liquid feedstock is in the processing and manufacturing of aromatics. The demand for aromatics in chemical and other end-use industries has been increasing due to their application as feedstock for various products. Growth of end-use industry applications is expected to surge the demand for aromatic hydrocarbons, such as benzene, toluene and xylene, during the forecast period. This in turn is expected to create significant demand for petroleum liquid feedstock.

Increasing Automotive Fleet to Create Significant Demand for Petroleum Liquid Feedstock

The growth in automotive fleet is expected to create high demand for petroleum liquid feedstock as it is primarily used in the processing of gasoline and motor fuels. Globally, Asia-Pacific, Europe and ASEAN are experiencing a steady increase in automotive sales, which is expected to drive the petroleum liquid feedstock market in these regions.

ASEAN countries registered a sales growth of 6% during the first three quarters of 2017, while China and Europe witnessed growth of 4.3% and 4%, respectively during the same period. Given the overall growth of the automotive industry in the global market, the petroleum liquid feedstock market is expected to experience significant growth in the coming years.

Increasing Petroleum Liquid Feedstock Production Capacities and Expansion of Production Plants

A large number of countries are increasing their petroleum liquid feedstock (mainly naphtha) production by investing in new plants and expansions. Countries such as Kuwait, Saudi Arabia, Russia and UAE have invested in new naphtha production plants over the past few years.

For example, Novotek, a company based in Russia, recently started a condensate splitter plant to increase its naphtha production by 4 Million metric tons. These strides taken up by different companies in these regions are expected to provide significant growth opportunities in the global petroleum liquid feedstock market.

Asia’s Growing Demand for Heavy Naphtha and Gas-Oil

The growing urban population, coupled with the increase in automotive sales in Asia, has surged the demand for petroleum liquid feedstock in the region. Due to the rapid growth in the Asian market, there still exists a demand-supply gap in the petroleum liquid feedstock market, which has resulted in huge exports from Europe and North America. The demand-supply gap in Asia creates a huge opportunity for global players operating in the petroleum liquid feedstock market.

An Overview of Petroleum Liquid Feedstock Market Structure

The global petroleum liquid feedstock market is highly fragmented with Tier-I players accounting for approximately 25%-35% of the global petroleum liquid feedstock market, while other global players along with several local players account for the remaining market share. Some of the global market leaders in the petroleum liquid feedstock market are BP p.l.c., Exxon Mobil Corporation, TOTAL S.A., Royal Dutch Shell plc, Idemitsu Kosan Co., Ltd., Flint Hills Resources and YPF.

Key Questions Answered in the Petroleum Liquid Feedstock Report

  • How has the petroleum liquid feedstock market evolved in the past four years?
  • What shape is the petroleum liquid feedstock market expected to take in terms of volume and value during the study period?
  • What are some of the prevailing market dynamics in the petroleum liquid feedstock market?
  • What are the competition developments and trends in the petroleum liquid feedstock market?
  • What are some of the underlying macro-economic and industry factors impacting the growth of the petroleum liquid feedstock market?
  • What are the key challenges, opportunities and improvement factors for the petroleum liquid feedstock market players?

Petroleum Liquid Feedstock Market: Segmentation

Type

  • Naphtha
  • Gas-Oil

Application

  • Aromatics
  • Olefins
  • Urea

Region

  • North America
  • Latin America
  • Europe
  • China
  • APEC
  • MEA

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