The global petrochemical market is projected to reach $758.3 billion by 2022. All of this should mean more business for tank truck carriers and tank container operators.
Increasing demand for petrochemical products in industries including transportation and construction is expected to drive growth over the next seven years. Furthermore, infrastructure development coupled with transportation industry growth in BRIC nations is expected to propel demand over the forecast period.
Growing demand for petrochemical products is attributed to the presence of abundant raw materials in Middle East and Africa. Furthermore, rising shale gas exploration in North America coupled with exploration and production in China is expected to propel growth. However, fluctuating crude oil and naphtha prices due to political instability in OPEC nations and supply-demand gap is expected to hinder industry growth.
Ethylene accounted for over 25.0% of total share in 2014 and was the leading product segment. Increasing use of polyethylene in the packaging industry is projected to drive demand for ethylene over the forecast period.
Propylene accounted for over 15% of the market share in 2014. The product is widely used across industries such as packaging, rubber, electronics and plastics. Increasing use of propylene derivatives along with adoption of improved technologies such as light steam cracker is expected to have a positive impact on growth.
Methanol is poised to be the fastest growing segment in terms of revenue, growing at a CAGR of over 15.0% over the forecast period. Growing methanol to olefins industry is expected to further propel use of methanol over the forecast period. Moreover, its widespread use in manufacturing bio diesel is expected to drive the demand over the forecast period. In addition, government initiatives to reduce carbon emission are further projected to augment the biodiesel demand which is expected to propel its use going forward till 2022.
China was the leading consumer of petrochemicals in 2014. Increasing use for plastic products such as polypropylene, polyethylene terephthalate, polyethylene and engineering plastics from flourishing industries such as packaging, automotive and construction industry is expected to drive growth over the forecast period. China is projected to witness highest growth of over 10.0% over the period of seven years.
North America accounted for over 20.0% market share in 2014. Rising shale gas exploration activities in United States and Canada is projected to drive growth in the region. In addition, rising use of benzene and xylene from industries including lamination and packaging is expected to further bolster the growth over the forecast period.