Global petrochemical market to reach $791 billion by 2018, says research report

According to study conducted by Transparency Market Research, the world wide petrochemical market is estimated to touch $791.05 billion in the next five years

WASHINGTON (Scrap Monster) : According to study conducted by Transparency Market Research, the world wide petrochemical market is estimated to touch $791.05 billion in the next five years.

The research indicates that the petrochemicals market would grow at a CAGR of 6.7% per annum. The global petrochemical consumption is expected to grow at a CAGR of 5.4% to reach 627.51 million tons by 2018. The major industries that are likely to contribute to the growth are construction, packaging, textile, plastics and healthcare.

Petrochemical market is expected to see significant growth in Middle East and Asia Pacific region. Government initiatives in India and China to set up petrochemical complexes in the region are also expected to fuel the market growth. In particular, China is expected to grow at a CAGR of 6.7% from 2012 to 2018. China is expected to grow faster than its regional counterparts owing to its considerable downstream processing capacity. It must be noted that China accounted for 25% of the global petrochemical consumption. Also Asia Pacific nations including China accounted for nearly 45% of the global consumption.

According to Transparency Market Research, methanol is expected to be fastest growing petrochemical at an estimated CAGR of 10.3% from 2012 to 2018.

The research report also identifies several key challenges to the industry going forward. The first and foremost among these is the high volatility in raw material prices. Growing environmental concerns with regard to production and usage of various petrochemicals is another key challenge being faced by the market players across the globe.