Petroleum Liquid Feedstock Market
Petroleum Liquid Feedstock Market Size, Share & Industry Analysis, By Type (Naphtha, Gas Oil, Others), By Application (Gasoline, Diesel, Jet Fuel, Others), By End-use Industry (Transportation, Petrochemicals, Power Generation, Others), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview:
The Petroleum Liquid Feedstock Market is expected to develop at a 3.8% CAGR from 2024 to 2031. The market value is predicted to rise from XX USD in 2024 to YY USD in 2031. Asia-Pacific currently dominates the market, with key data reflecting robust demand from the petrochemical and transportation industries. The market is steadily growing, owing to rising energy consumption, a developing petrochemical industry, and continued investments in refinery capacity expansion.
Market Dynamics:
Market Trend: Shift towards lighter feedstocks for petrochemical production
The petroleum liquid feedstock industry is seeing a considerable shift towards the use of lighter feedstocks, particularly naphtha, in petrochemical manufacturing. The growing demand for high-value petrochemical products, as well as the necessity for more flexible and efficient production techniques, are driving this change. Lighter feedstocks produce more value products, such as ethylene and propylene, which are fundamental building blocks for many polymers and chemicals. Furthermore, the quantity of light crude oil and natural gas liquids (NGLs) from shale resources has expedited this trend, especially in areas with high shale oil and gas production.
Market Driver: Expanding petrochemical industry fuels demand for petroleum liquid feedstocks
The fast expansion of the worldwide petrochemical sector is a significant driver of the petroleum liquid feedstock market. As economies improve and populations grow, the need for petrochemical products like plastics, synthetic fibres, and rubber rises. According to the International Energy Agency (IEA), petrochemicals will account for more than one-third of global oil demand growth by 2030. This increase in demand is pushing investment in new petrochemical plants, particularly in Asia and the Middle East. For example, China alone is forecast to install more than 20 million tonnes of ethylene capacity between 2024 and 2030, greatly increasing demand for naphtha and other petroleum liquid feedstocks.
Market Restraint: Volatility in crude oil prices impacts feedstock costs and market stability
The petroleum liquid feedstock business faces considerable challenges as crude oil prices remain volatile. Oil price fluctuations have a direct impact on feedstock costs, reducing refinery and petrochemical profitability. Over the last decade, crude oil prices have fluctuated dramatically, ranging from less than $30 per barrel to more than $100 per barrel. This volatility increases market uncertainty, making it harder for businesses to plan long-term investments while maintaining consistent profit margins. A recent industry report found that a 10% shift in crude oil prices can result in a 5-8% change in feedstock costs for petrochemical companies, highlighting the market's vulnerability to oil price swings.
Segment Overview:
Naphtha dominates the market, driven by its versatility in petrochemical production:
Naphtha has emerged as the dominating sector in the petroleum liquid feedstock industry, with a sizable market share. Naphtha's appeal stems from its adaptability as a feedstock for a variety of petrochemical processes, particularly the manufacture of olefins (ethylene and propylene) and aromatic compounds. Naphtha's high output of important petrochemical compounds makes it a popular choice among petrochemical companies.
The increasing demand for plastics, synthetic fibres, and other petrochemical products has fuelled the use of naphtha as a feedstock. According to industry data, naphtha accounts for over 70% of the feedstock used in steam crackers worldwide, emphasising its significance in the petrochemical industry.
Recent technological developments have improved the efficiency of naphtha crackers, increasing output while lowering energy usage. For example, sophisticated process control systems and catalysts have increased ethylene production from naphtha by up to 5% in certain modern plants. This increased efficiency has made naphtha an even more appealing feedstock option, especially in areas with limited access to other feedstocks like ethane.
It is worth mentioning, however, that the industry is facing greater competition from alternative feedstocks, particularly ethane in areas with substantial shale gas supplies. Despite this, naphtha remains the preferred feedstock in many regions of the world, particularly in Asia and Europe, due to its versatility and the existing infrastructure developed for naphtha cracking.
Regional Outlook:
Asia-Pacific leads the Petroleum Liquid Feedstock market, driven by robust petrochemical industry growth and increasing energy demand
Asia-Pacific dominates the worldwide Petroleum Liquid Feedstock market, with the highest market share. This supremacy is due to the region's rapidly developing petrochemical industry, rising energy consumption, and continued expenditures in refinery capacity growth.
China, being the world's largest chemical producer, plays an important role in driving regional market growth. The country's petrochemical industry has steadily expanded, with a special emphasis on expanding domestic production to lessen dependency on imports. The China Petroleum and Chemical Industry Federation predicts that the country's ethylene production capacity would increase to 50 million tonnes per year by 2025, up from 33 million tonnes in 2020, indicating a high need for petroleum liquid feedstocks.
India is another important market in the region, with its fast expanding economy pushing up demand for petrochemicals and transportation fuels. The Indian government's "Make in India" drive, as well as investments in refinery expansion, are driving up demand for petroleum liquid feedstocks.
Despite being established markets, Japan and South Korea remain important players in the region's petroleum liquid feedstock sector. These countries have advanced petrochemical industries that focus on high-value speciality chemicals, which drives demand for certain feedstocks.
According to recent industry research, the Asia-Pacific region will account for more than 45% of the worldwide petroleum liquid feedstock market by 2023. This dominance is likely to last during the forecast period, owing to continuous industrialisation, urbanisation, and the region's expanding middle class, which is driving demand for petrochemical products and transportation fuels.
Competitive Intelligence:
Several large integrated oil and gas firms, national oil companies, and individual refiners dominate the Petroleum Liquid Feedstock industry. To preserve their competitive advantage, market leaders prioritise vertical integration, technical advancements, and strategic collaborations.
ExxonMobil Corporation, Royal Dutch Shell plc, Saudi Aramco, Chevron Corporation, and BP plc are among the market's leading companies. These companies have a significant global presence and provide a diverse range of petroleum products and petrochemicals.
In terms of market share, the top five competitors control almost YY% of the worldwide Petroleum Liquid Feedstock market. ExxonMobil Corporation has an estimated market share of YY%, closely followed by Royal Dutch Shell plc at YY%.
Recent industry trends indicate a growing emphasis on combining refining and petrochemical operations to maximise value development. Saudi Aramco, for example, purchased a 70% share in SABIC in 2020 with the goal of building one of the world's largest integrated energy and chemicals firms.
Investing in improved refining technologies has also been an important strategy for market participants. Many corporations are updating their refineries to process a broader spectrum of crude oils and generate more valuable products. For example, ExxonMobil recently announced a multibillion-dollar investment in its Singapore refinery to improve production capacities and enhance output of higher-value products.
The competitive landscape is changing with the arrival of new firms, particularly from emerging markets. Chinese and Indian enterprises are gaining traction in the global market as domestic demand grows and the government supports industrial expansion.
Analyst Opinion:
The petroleum liquid feedstock market is expected to rise steadily in the next years, fuelled by the expanding petrochemical sector and rising energy demand, particularly in emerging economies. However, the market faces challenges from the ongoing energy transition and the growing emphasis on sustainability.
One unique development to monitor is the use of renewable feedstocks into traditional petroleum-based processes. Some top corporations are developing methods to co-process bio-based feedstocks with petroleum feedstocks in order to lower their products' carbon impact. This trend may affect the market in the long run, as demand to decrease greenhouse gas emissions grows.
Major Players:
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ExxonMobil Corporation
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Royal Dutch Shell plc
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Saudi Aramco
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Chevron Corporation
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BP plc
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TotalEnergies SE
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China National Petroleum Corporation (CNPC)
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Sinopec Group
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Marathon Petroleum Corporation
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Valero Energy Corporation
Key Developments:
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March 2023: Saudi Aramco announced intentions to increase crude oil production capacity to 13 million barrels per day by 2027, potentially increasing the supply of petroleum liquid feedstocks.
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In January 2024, ExxonMobil completed a substantial expansion of its Jurong refinery in Singapore, expanding its capacity to process a wider range of feedstocks and generate more high-value products.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. ExxonMobil Corporation
5.2. Royal Dutch Shell plc
5.3. Saudi Aramco
5.4. Chevron Corporation
5.5. BP plc
5.6. TotalEnergies SE
5.7. China National Petroleum Corporation (CNPC)
5.8. Sinopec Group
5.9. Marathon Petroleum Corporation
5.10. Valero Energy Corporation (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift towards lighter feedstocks for petrochemical production
6.1.2. Integration of refining and petrochemical operations
6.1.3. Growing focus on high-value specialty chemicals
6.2. Market Drivers
6.2.1. Expanding petrochemical industry fuels demand for petroleum liquid feedstocks
6.2.2. Increasing energy demand in emerging economies
6.2.3. Ongoing investments in refinery capacity expansion
6.3. Market Restraints
6.3.1. Volatility in crude oil prices impacts feedstock costs and market stability
6.3.2. Growing environmental concerns and shift towards renewable energy sources
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Naphtha
7.1.1. Light Naphtha
7.1.2. Heavy Naphtha
7.2. Gas Oil
7.2.1. Light Gas Oil
7.2.2. Heavy Gas Oil
7.3. Others
7.3.1. Condensates
7.3.2. Residual Fuel Oil
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Gasoline
8.2. Diesel
8.3. Jet Fuel
8.4. Others
8.4.1. Lubricants
8.4.2. Petrochemical Feedstocks
9. BY END-USE INDUSTRY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Transportation
9.1.1. Automotive
9.1.2. Aviation
9.1.3. Marine
9.2. Petrochemicals
9.2.1. Olefins Production
9.2.2. Aromatics Production
9.3. Power Generation
9.4. Others
9.4.1. Residential & Commercial
9.4.2. Industrial
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
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Naphtha
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Gas Oil
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Others
By Application:
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Gasoline
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Diesel
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Jet Fuel
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Others
By End-use Industry:
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Transportation
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Petrochemicals
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Power Generation
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Others
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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