Petrochemicals Market Report 2026

The petrochemicals market size has grown steadily in recent years. It will grow from $726.17 billion in 2025 to $762.28 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to growth of plastics and polymer industry, expansion of automotive and construction sectors, long term availability of fossil fuel feedstocks, rising demand for synthetic materials, industrialization across developing regions.

The petrochemicals market size is expected to see strong growth in the next few years. It will grow to $970.32 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing demand for lightweight materials, growth of electric vehicles and batteries, rising investments in petrochemical capacity, expansion of packaging and consumer goods, increasing focus on high value petrochemical derivatives. Major trends in the forecast period include growing demand for polymer based products, rising use of petrochemicals in packaging, increasing application in synthetic fibers, expansion of specialty petrochemicals, rising focus on process efficiency and scale.

The petrochemicals market is expected to benefit from growth in the automobile industry during the forecast period. An automobile is a motorized vehicle designed for transporting passengers or cargo on roads, typically powered by an internal combustion engine or electric motor. The rising production of automobiles is increasing the demand for petrochemical products used in manufacturing brake parts, radiators, and other components. For instance, in January 2024, the European Automobile Manufacturers Association, a Belgium-based automobile industry association, reported that in 2023, the EU car market expanded by 13.9% over 2022, reaching total annual sales of 10.5 million vehicles. Thus, the growth of automobiles is expected to boost the demand for petrochemicals during the forecast period.

Major companies operating in the petrochemicals market are increasingly focused on developing innovative solutions, such as decarbonizing petrochemical production to reduce their carbon footprint and comply with stringent environmental regulations. Decarbonizing petrochemical production refers to the process of reducing carbon dioxide (CO2) emissions associated with the production of petrochemical products. For instance, in July 2024, KBR, Inc., a US-based company operating in fields of science, technology, and engineering, launched KCOTKlean, a suite of low- and zero-carbon technologies aimed at decarbonizing the catalytic olefins process in the petrochemical industry. This innovative solution combines KBR's K-COT technology with the CPOx (catalytic partial oxidation) technology from the Korea Institute of Machinery and Materials (KIMM). KCOTKleanTM focuses on reducing carbon emissions through the use of circular feeds, cleaner fuels, electrification, and effective carbon capture methods.

In April 2024, INEOS Group Limited, a UK-based chemical manufacturing company, acquired TotalEnergies' 50% share of Naphtachimie, Gexaro, and Appryl for an undisclosed amount. Through this acquisition, INEOS aims to strengthen its petrochemical presence in Southern Europe by fully integrating strategically important assets that enhance production capacity, operational efficiency, and supply-chain infrastructure. TotalEnergies is a France-based energy company specializing in petrochemical products.

Major companies operating in the petrochemicals market are Royal Dutch Shell PLC, Saudi Basic Industries Corporation (SABIC), The Dow Chemical Company, China Petroleum & Chemical Corporation (Sinopec), LyondellBasell Industries N.V., LG Chem Ltd., Chevron Phillips Chemical Company LLC, INEOS Group Holdings S.A., BASF SE, GS Caltex Corporation, Haldia Petrochemicals Ltd, Kuwait Petroleum Corporation, Imperial Oil Limited, Duqm Refinery & Petrochemical Industries, Mitsui Chemicals, PKN ORLEN, China National Offshore Oil Corporation, Sumitomo Chemical Co., Inc, LUKOIL, Nizhnekamskneftekhim, NOVA Chemicals Corporation, Keiyo Ethylene Co Ltd, Rongsheng Petrochemical, Reliance Industries Limited, Manali Petrochemicals Ltd, DCW Limited, China National Petroleum Corporation, Supreme Petrochem Ltd, Sasol, Total, Egyptian Petrochemicals Holding Company (ECHEM), RusGazDobycha, Borealis AG, BP plc, Cepsa, Gazprom, Mitsubishi Chemical Corp, Saudi Aramco, Versalis, Osaka Petrochemical Industries Ltd, Maruzen Petrochemical Co., Idemitsu Kosan Co., Rosneft, Repsol, Sidi Kerir Petrochemicals Company (SIDPEC), ADNOC, ExxonMobil Petroleum & Chemical, Zhejiang Hengyi, Carbon Holdings Limited, SIBUR, Finolex Industries Limited.

Asia-Pacific was the largest region in the petrochemicals market in 2025. Middle East was the second largest region in the petrochemicals market. The regions covered in the petrochemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the petrochemicals 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 petrochemicals market consists of the sales of aliphatic compounds, aromatic compounds, inorganic compounds, and synthesis gas. 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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