Oil Downstream Products Market Report 2026

The oil downstream products market size has grown steadily in recent years. It will grow from $3.48 trillion in 2025 to $3.63 trillion in 2026 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to growth in transportation fuel demand, expansion of refining capacity, industrial fuel consumption, development of petrochemical industries, urban infrastructure growth.

The oil downstream products market size is expected to see steady growth in the next few years. It will grow to $4.37 trillion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to rising demand for cleaner fuels, growth of aviation and logistics sectors, increasing lubricant consumption, investments in refinery upgrades, diversification into specialty products. Major trends in the forecast period include rising demand for refined petroleum products, growing consumption of petrochemical feedstocks, increasing focus on high-value distillates, expansion of lubricants and specialty products, modernization of refining facilities.

The rising demand for petroleum products is anticipated to drive the growth of the oil downstream products market in the future. Petroleum products, which are fuels derived from crude oil and the hydrocarbons present in natural gas, hold commercial value as bulk products. These products are used to refine crude oil into consumable goods, which are then marketed to industrial or retail customers. For example, in July 2023, the International Energy Agency, a France-based autonomous intergovernmental organization, reported a global demand for diesel or gasoil of 1.5 million barrels per day. Thus, the increasing demand for petroleum products is a key factor propelling the growth of the oil downstream products market.

Leading companies in the oil downstream products market are focusing on innovations such as advanced hydrocracking units and high-performance base stock technologies to enhance refining efficiency and product quality. Hydrocracking units are sophisticated refinery processes that use hydrogen and catalysts under high pressure and temperature to convert heavy crude fractions into lighter, higher-value products like diesel and naphtha, providing deeper conversion and improved yields compared to traditional thermal cracking. For example, in July 2025, PJSC TATNEFT n.a. V.D. Shashin, a Russia-based vertically integrated oil and gas company headquartered in Almetyevsk, commissioned a new hydrocracking unit at its TANECO refinery. This downstream investment is designed to process approximately 1.2 million metric tons of vacuum gas oil annually into low-sulfur Euro-6 diesel and naphtha, enhancing product quality and ensuring compliance with stricter global fuel standards.

In March 2025, Varo Energy AG, a Switzerland-based petroleum refining and fuel production company, acquired Preem AB for an undisclosed sum. Through this acquisition, Varo Energy aims to expand its refining presence in Europe and enhance its downstream fuel production capabilities, encompassing both conventional and renewable fuels. Preem AB, based in Sweden, operates major refineries producing refined petroleum products and renewable fuels.

Major companies operating in the oil downstream products market are Saudi Arabian Oil Company, PetroChina Company Limited, Exxon Mobil Corporation, China National Petroleum Corporation, China Petroleum & Chemical Corporation (Sinopec), Shell Chemical LP, Royal Dutch Shell, TotalEnergies SE, BP p.l.c., Chevron Corporation, Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66, Indian Oil Corporation Limited, Rosneft Oil Company, Reliance Industries Limited, Gazprom Neft, Bharat Petroleum Corporation Limited, The Dow Chemical Company, LyondellBasell Industries N.V., Hindustan Petroleum Corporation Limited, LUKOIL, HollyFrontier Corporation, PBF Energy Inc., Mangalore Refinery and Petrochemicals Limited, Chennai Petroleum Corporation Limited, Essar Oil Limited, Numaligarh Refinery Limited, Nayara Energy Limited, Bharat Oman Refineries Limited, Braskem S.A., Sasol Limited.

Asia-Pacific was the largest region in the oil downstream products market in 2025. North America was the second largest region in the oil downstream products market. The regions covered in the oil downstream products market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the oil downstream products market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The oil downstream products market consists of sales of liquefied natural gas, gasoline, heating oil, synthetic rubber, plastics, lubricants, and antifreeze. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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