Global Petrochem Market to Grow by 6.8%

Global Petrochem Market to Grow by 6.8%  Global Petrochem Market to Grow by 6.8%

Global petrochemical markets are estimated to grow at a rate of 6.8% per year from 2014 to 2020, Arabian Oil & Gas reported.

The rise is due to an increase in consumption of petrochemicals from major end use industries that include construction, packaging, textile, plastics, healthcare, transportation, and others. Growth is expected in the Asia Pacific region as the Indian and Chinese government's plan initiatives to build petrochemical complexes.

It is expected that propylene will drive the petrochemicals market during 2014 to 2020. However, due to capacity addition in the Middle East and Asia Pacific, the expanding gap between demand and supply is expected to put a worldwide pressure on ethylene prices. The propylene market is expected to make up to $172.05 billion in terms of revenue by 2020 and is set to grow at an estimated rate of 10.3% per year, between 2012 and 2018.

Methanol is likely to be growing at a faster rate compared to others in terms of volume. The development of methanol is extensively driven by its growing usage in gasoline blending and changing it to olefins (MTO). Increased usage of butadiene in acrylonitrile butadiene styrene and styrene-butadiene rubber is expected to push the demand for butadiene in rest of Asia-Pacific region.