Asia Pacific Petrochemicals Market Forecast to 2031 - Regional Analysis - by Type, Application, and End-use Industry

The Asia Pacific petrochemicals market was valued at US$ 246.85 billion in 2023 and is expected to reach US$ 388.60 billion by 2031; it is estimated to record a CAGR of 5.8% from 2023 to 2031.

Growing Investments in Aerospace & Defense Industry Boosts Asia Pacific Petrochemicals Market

Governments of various countries have increased investments in aerospace-related research, including defense and ballistic protection, owing to a rise in security risks and the need to enhance national border security. For instance, the Ministry of Defense (India) published a report in 2022 stating its target of increasing defense production to US$ 22 billion by 2025. The report also revealed that the government started initiatives such as Innovations for Defense Excellence and Technology Development Fund to provide financial assistance for product innovations for the Armed Forces.

Petrochemicals and petrochemical-derived products are used in lubricants, greases, aviation fuels, and aerospace components. Thus, the rising investments in the aerospace & defense industry are expected to create lucrative opportunities for the petrochemicals market growth during the forecast period.

Asia Pacific Petrochemicals Market Overview

China, India, South Korea, Japan, and Australia are among the major economies in Asia Pacific. The growth of the petrochemicals market in Asia Pacific is propelled by the region's robust economic development and industrialization. The abovementioned countries are at the forefront of this market expansion, leveraging their extensive industrial bases, increasing consumer markets, and making strategic investments in petrochemical infrastructure to enhance their market presence. As rapid urbanization and infrastructure development in China, India, and Southeast Asian nations have led to increased construction activities, such as transportation networks, energy facilities, and public amenities, the construction industry has become a major consumer of petrochemicals. Under the Sustainable Development Goals 2030, the Asian Development Bank has announced its plans to build resilient infrastructure, promote inclusive and sustainable industrialization, and support product innovation in Asia Pacific. Similarly, as per the report by the Department for Promotion of Industry and Internal Trade (DPIIT), the Government of India has announced its plans to boost the country's infrastructure and construction services through several policies such as large budget allocation to the infrastructure sector, open FDI norms, and smart cities mission. The report also stated that the real estate industry in India is projected to account for US$ 1 trillion by 2030, along with an increased year-on-year infrastructure Capex by 34% to reach US$ 6.7 million. Petrochemical-derived products are widely used in construction projects, including residential, commercial, and industrial projects across the region. Petrochemical-derived materials such as polyvinyl chloride (PVC), polyethylene, and polystyrene are widely used in building and construction applications, including piping, insulation, roofing, and flooring. These materials offer durability, cost-effectiveness, and ease of installation, making them indispensable for modern construction projects. The automotive industry is significantly driving the petrochemicals market in Asia Pacific. As the region continues to witness an increase in automobile production and sales, there is an increasing demand for vehicle components. According to the International OICA, Asia-Oceania's vehicle production increased from 50 million in 2022 to 55.1 million in 2023. Petrochemical-based products are extensively utilized in automotive interiors and exteriors to enhance comfort levels and minimize noise, contributing to an enhanced driving experience for consumers across the region.

Asia Pacific Petrochemicals Market Segmentation

The Asia Pacific petrochemicals market is segmented based on type, application, end-use industry, and country. Based on type, the Asia Pacific petrochemicals market is segmented into ethylene, benzene, propylene, xylene, and others. The ethylene segment held the largest market share in 2023.

In terms of application, the Asia Pacific petrochemicals market is segmented into polymers, paints and coatings, solvent, rubber, adhesives, surfactants, and others. The polymers segment held the largest market share in 2023.

By end-use industry, the Asia Pacific petrochemicals market is categorized into packaging, automotive, construction, electrical & electronics, healthcare, agriculture, aerospace & defense, and others. The packaging segment held the largest market share in 2023.

Based on country, the Asia Pacific petrochemicals market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the Asia Pacific petrochemicals market share in 2023.

Shell Plc, LyondellBasell Industries NV, Saudi Basic Industries Corp, BASF SE, INEOS Group Holdings SA, Dow Inc, Chevron Phillips Chemical Company LLC, China Petroleum & Chemical Corp, Mitsubishi Chemical Group Corp, and Exxon Mobil Corp are some of the leading players operating in the Asia Pacific petrochemicals market.

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