by The petrochemicals market consists of various essential chemical components that are derived from petroleum and natural gas. Petrochemical products find widespread applications in industries such as construction, automotive, medical, transportation and more. Some of the key petrochemicals petrochemicals include ethylene, propylene, butadiene, benzene, xylene, toluene and others that serve as basic raw materials for the production of numerous consumer and industrial goods. With the increasing usage of submarine telecom cables that can extend to depths of over 10,000 km under the sea, the demand for specialized petroleum feedstock and intermediates for insulation and protection of such cables is anticipated to significantly drive the growth of the global petrochemicals market.
The Global petrochemicals Market is estimated to be valued at US$ 651.52 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period from 2024 to 2030.
Petrochemical intermediates derived from petroleum are crucial components utilized in the manufacturing of insulating materials for newly developed submarine telecommunication optic cables that can be deployed at extreme ocean depths for connectivity across continents.
Key Takeaways
Key players: Operating in the petrochemicals market are Alcatel Submarine Networks, SubCom, LLC, ABB, Huawei Marine Networks Co., Ltd., NEC Corporation, NEXANS NORWAY AS, FUJITSU, Prysmian Group, Saudi Ericsson, HENGTONG GROUP CO., LTD., ZTT, Corning Incorporated, NKT A/S, Hellenic Cables Group. The Okonite Company, Apar Industries Ltd., JDR Cable Systems Ltd., AFL, Hexatronic Cables & Interconnect Systems, and LEONI Special Cables GmbH.
Key opportunities: Rising demand for petroleum intermediates from deep-sea telecom cable manufacturers presents lucrative opportunities for petrochemical companies. Additionally, advancements in ultra-deepwater exploration and production of oil and gas will further support the market growth over the forecast period.
Technological advancements: Development of specialized petroleum-based insulation materials that can withstand pressures exceeding 1,000 bars and temperatures below 0°C enable manufacturing of next-gen submarine telecom cables that can operate at depths beyond 10,000 meters.
Market drivers:
Rapid globalization and the proliferation of internet penetration are fueling the need for extensive international bandwidth through expansion of submarine cable networks. The development of longer submarine telecom cables that require sophisticated insulating materials will drive the demand for petrochemical intermediates in the coming years.
Current Challenges in Global Petrochemicals Market Size
The petrochemicals market is facing serious challenges related to sustainability and environmental concerns. stricter environmental norms regarding carbon emissions and waste disposal have increased compliance burden and costs for petrochemical companies. Additionally, the ongoing Russia-Ukraine conflict has disrupted global supply chains and feedstock availability. Spiraling energy and raw material costs due to inflationary pressures are also negatively impacting profit margins. Subdued demand from the pandemic aftermath continues to hamper volume growth. Innovation in green technologies for producing bio-based chemicals is opening up new opportunities but also requires heavy R&D investments.
SWOT Analysis
Strength: Petrochemicals are essential inputs for various industries. Established supply chains and global presence of major players.
Weakness: High capital intensive nature of operations. Vulnerable to volatility in oil prices and economic cycles.
Opportunity: Rising demand for plastics and polymers from developing markets in Asia Pacific and Middle East. Emerging opportunities in e-mobility and renewable sectors.
Threats:stringent environmental regulations. Shift towards green alternatives can impact volumes. vulnerabilities in the geopolitical environment.
Geographical Regions
North America accounts for the largest share of the global petrochemicals market, both in terms of production and consumption. The region also has an extensive Polymer pipeline distribution system. China is the second largest and fastest growing regional market due to massive domestic demand from its manufacturing industry. The Middle East region, led by Saudi Arabia and UAE, is also a major producer, exporter and Hub for petrochemical trade owing to easy availability of oil and gas feedstock.
Fastest Growing Region
Asia Pacific region excluding Japan and China is projected to be the fastest growing regional market during the forecast period. Countries like India, Indonesia, Vietnam, Malaysia and Thailand are driving the growth due to rising expenditures on infrastructure, housing & construction activities along with rapid industrialization. Establishment of import-substituting petrochemical complexes will help meet the growing local demand while also supporting exports to other Asian markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
