Global Olefins and Aromatics Market, By Product (Ethylene, Propylene, Xylene, Benzene, Toluene, and Butadiene), Vertical (Packaging, Building and Construction, Automotive, Electronics and Electricals, Household, Healthcare, Agriculture, and Others) - Industry Trends and Forecast to 2031.
Olefins and Aromatics Market Analysis and Size
Growing demand for olefins in various end-use industries and rise in demand for aromatic compounds by the paints & coatings industry are some of the driving factors expected to propel the market growth. Some of the major restraints that may negatively impact the market growth are the volatility in raw material prices and the easy availability of substitutes. The advancements and innovations in production technologies and methods and the rising focus on sustainable solutions are expected to create opportunities for the market growth. Compliance with stringent regulations and standards and health and safety concerns owing to hazardous nature of various chemicals are projected to challenge the market growth.
Data Bridge Market Research analyzes that the global olefins and aromatics market is expected to reach USD 899.46 billion by 2031 from USD 617.56 billion 2023, growing with CAGR of 4.94% during forecast period of 2024-2031.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Product (Ethylene, Propylene, Xylene, Benzene, Toluene, and Butadiene), Vertical (Packaging, Building and Construction, Automotive, Electronics and Electricals, Household, Healthcare, Agriculture, and Others)
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Countries Covered
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U.S., Canada, Mexico, China, India, Japan, South Korea, Thailand, Indonesia, Malaysia, Philippines, Singapore, Australia and New Zealand, Myanmar, Brunei, Cambodia, Laos, rest of Asia-Pacific, Germany, Italy, Russia, France, Spain, Poland, U.K., Belgium, Netherlands, Turkey, Luxemburg, rest of Europe, Brazil, Argentina, rest of South America, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, and rest of Middle East and Africa
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Market Players Covered
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Exxon Mobil Corporation, Shell plc, Repsol, SABIC, PTT Global Chemical Public Company Limited, INEOS, Braskem, Sasol, Dow, NOVA Chemicals Corporate, Idemitsu Kosan Co.,Ltd., PJSC SIBUR Holding, PETRONAS Chemicals Group, Chevron Phillips Chemical Company LLC, LyondellBasell Industries Holdings B.V., ORLEN, Mitsubishi Chemical Group Corporation, Gadiv Petrochemical Industries (A subsidiaries of Bazan Group), Evonik Industries AG, and TPC Group among others
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Market Definition
Olefins are unsaturated hydrocarbons with a double bond between carbon atoms. They are used in making plastics, synthetic fibers, and rubber. Common olefins include ethylene and propylene. Ethylene is crucial for producing polyethylene, while propylene is used in polypropylene.
Aromatics are hydrocarbons with a ring structure and alternating double bonds, such as benzene and toluene. They are essential in producing dyes, detergents, and solvents. Benzene is used to make nylon and synthetic fibers, while toluene is important for paint thinners and adhesives. Both olefins and aromatics are key in petrochemical industries for creating a wide range of products.
Global Olefins and Aromatics Market Dynamics
Drivers
- Growing Demand for Olefins in Various End-Use Industries
The olefins market has witnessed substantial growth due to increasing demand across a multitude of end-use industries. Olefins, which include ethylene, propylene, and butadiene, are critical building blocks in the chemical industry, used to manufacture a wide array of products. This growing demand is driven by key industrial sectors such as automotive, packaging, construction, and consumer goods.
In addition, the shift towards Electric Vehicles (EVs) and advancements in automotive technology further boost the demand for polypropylene. EVs require lightweight materials to enhance battery efficiency and overall vehicle performance. As manufacturers strive to reduce vehicle weight and improve fuel efficiency, the need for high-performance polymers such as polypropylene increases.
- Rise in Demand for Aromatic Compounds by the Paints & Coatings Industry
The rapidly expanding paints and coatings industry is a significant driver of the global olefins and aromatics market. Aromatic compounds, such as benzene, toluene, and xylenes, are essential in producing a range of products used in paints and coatings. The rise in demand for these compounds is driven by various factors, including the growth of the construction and automotive sectors, technological advancements, and increased emphasis on performance and sustainability.
In summary, the rise in demand for aromatic compounds in the paints and coatings industry is driven by factors such as construction and infrastructure development, automotive sector requirements, technological advancements, and regulatory standards. As these factors continue to evolve, the demand for aromatic chemicals is expected to grow, supporting innovation and market expansion in the coatings industry.
Opportunity
- Advancements and Innovations in Production Technologies and Methods
Traditionally advancements and innovations in production technologies present significant opportunities for growth and efficiency in the global olefins and aromatics market. The evolution of production methods can enhance operational efficiencies, reduce costs, and improve product quality. With increasing demand for olefins and aromatics driven by various industrial applications, technological innovations are crucial for maintaining competitive advantage and meeting market needs.
Advancements and innovations in production technologies offer significant opportunities for the global olefins and aromatics market. By embracing technological improvements, companies can achieve cost reductions, increased production capacity, and enhanced product quality.
Restraint/Challenge
- Compliance with Stringent Regulations and Standards
The global olefins and aromatics market operates under a complex web of regulations and standards that vary across regions and jurisdictions. Compliance with these stringent regulations is a significant challenge for companies within this sector. These regulations cover a broad spectrum, including environmental protection, worker safety, product quality, and market fairness. Environmental regulations are among the most stringent that the olefins and aromatics industry must adhere to governments worldwide have implemented policies to limit emissions, manage waste, and ensure sustainable resource use.
Recent Developments
- In July 2024, Shell Overseas Holdings Limited, a subsidiary of Shell plc (Shell), signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquefied natural gas (LNG) project in Abu Dhabi, acquiring a 10% participating interest. The Ruwais LNG project will feature two 4.8 million metric tons per annum (mmtpa) LNG liquefaction trains, totaling a capacity of 9.6 mmtpa. Additionally, Shell, through its subsidiary Shell International Trading Middle East Limited FZE, has agreed to offtake 1 mmtpa of LNG produced by the project. The facility will incorporate an electric-powered liquefaction system and access to renewable power, supporting lower operational emissions compared to traditional gas-powered LNG facilities
- In September 2023, Exxon Mobil Corporation announced the start-up of two new chemical production units at its Baytown, Texas, facility. The USD 2 billion expansion was part of ExxonMobil’s long-term growth strategy to produce higher-value products from its U.S. Gulf Coast refining and chemical facilities. The new linear alpha olefins unit will produce 350,000 tons per year of Elevexx-branded products, marking ExxonMobil’s entry into the market. Linear alpha olefins are used in plastic packaging, high-performance engine and industrial oils, and other applications. They also serve as building blocks for surfactants, which reduce surface tension for cleaning and industrial uses, and drag-reducing agents, which improved crude flow through pipelines. The new facilities support ExxonMobil's long-term growth strategy, improving efficiency and competitiveness in its U.S. Gulf Coast operations
Global Olefins and Aromatics Market Scope
The global olefins and aromatics market is segmented into two notable segments based on product and vertical. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Product
- Ethylene
- Propylene
- Xylene
- Benzene
- Toluene
- Butadiene
On the basis of product, the global olefins and aromatics market is segmented into ethylene, propylene, xylene, benzene, toluene, and butadiene.
Vertical
- Packaging
- Building and Construction
- Automotive
- Electronics and Electricals
- Household
- Healthcare
- Agriculture
- Others
On the basis of vertical, the global olefins and aromatics market is segmented into packaging, building and construction, automotive, electronics and electricals, household, healthcare, agriculture, and others.
Global Olefins and Aromatics Market Regional Analysis/Insights
The global olefins and aromatics market is segmented into two notable segments based on product and vertical.
The countries in the global olefins and aromatics market are U.S., Canada, Mexico, China, India, Japan, South Korea, Thailand, Indonesia, Malaysia, Philippines, Singapore, Australia and New Zealand, Myanmar, Brunei, Cambodia, Laos, rest of Asia-Pacific, Germany, Italy, Russia, France, Spain, Poland, U.K., Belgium, Netherlands, Turkey, Luxemburg, rest of Europe, Brazil, Argentina, rest of South America, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, and rest of Middle East and Africa.
Asia-Pacific region is expected to dominate the market. China is dominating in the region due to its large-scale industrial production, rapid economic growth, and high demand for petrochemical products. Major production facilities and robust manufacturing sectors in countries such as China and India drive the region's leading market position.
U.S. is dominating in North America region due to its advanced production technologies, significant chemical industry presence, and high demand for petrochemical products. The region benefits from well-established infrastructure and a strong base of industrial and consumer applications.
Germany is dominating in Europe region due to its established chemical industry, strong regulatory framework, and high demand for advanced materials. The region has significant production capacity and a diverse range of applications across various sectors.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Olefins and Aromatics Market Share Analysis
The global olefins and aromatics market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the global olefins and aromatics market.
Some of the prominent participants operating in the global olefins and aromatics market are Exxon Mobil Corporation, Shell plc, Repsol, SABIC, PTT Global Chemical Public Company Limited, INEOS, Braskem, Sasol, Dow, NOVA Chemicals Corporate, Idemitsu Kosan Co.,Ltd., PJSC SIBUR Holding, PETRONAS Chemicals Group, Chevron Phillips Chemical Company LLC, and LyondellBasell Industries Holdings B.V., ORLEN, Mitsubishi Chemical Group Corporation, Gadiv Petrochemical Industries (A subsidiaries of Bazan Group), Evonik Industries AG, and TPC Group, among others.
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