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The petroleum liquid feedstock market size is estimated to grow at a CAGR of 4.5% between 2024 and 2028. The market size is forecast to increase by USD 77.22 billion. The growth of the market depends on several factors such as the rapid growth of the transportation sector, the rising demand for petrochemical feedstock, and the increasing number of aging refineries.
This petroleum liquid feedstock market report extensively covers market segmentation by type (naphtha and gasoil), application (industrial solvents, cleaning fluids, adulterants to petrol, gasoline, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the petroleum liquid feedstock market growth is the increasing number of aging refineries. The growing number of aging refineries is related to the aging equipment and machinery used in refineries. In addition, equipment and machinery in refineries are subjected to corrosion, erosion, and fatigue, which increase with age. Therefore, aging equipment and machinery in refineries need frequent maintenance.
Moreover, the equipment and machinery used in such old refineries are exempted from stringent standards that are imposed for newly installed parts. Therefore, such incidents result in a longer duration of production halt of refineries, which adversely affects their revenue. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
A key factor shaping the petroleum liquid feedstock market growth is the rising exploration of unconventional petroleum resources. Unconventional oil and gas can be referred to as reserves that cannot be recovered using conventional drilling techniques. In addition, unconventional reserves include tight oil, oil sands, and shale oil and gas reserves. Furthermore, crude oil and gas are essential sources of energy for the growth of various industries, such as power generation and infrastructure.
Moreover, the tapping of unconventional reserves has now become easier due to the technical advances in the oil and gas industry. Therefore, more oil and gas exploration activities in unconventional reservoirs will fuel the growth of drilling operations and subsequently increase crude oil production globally. Furthermore, as crude oil is used as raw material for the production of naphtha and gasoil, an increase in its production will fuel the production of naphtha and gasoil thereby driving the market growth during the forecast period.
Volatility in global crude oil prices is one of the key challenges hindering the petroleum liquid feedstock market growth. The global price of crude oil has a significant impact on the price of petroleum products including naphtha and gasoil, which are used as feedstock for the production of gasoline, diesel, and aromatics. In addition, volatility in crude oil prices has a direct impact on the profitability and performance of oil and gas E&P companies.
Moreover, lower crude oil prices force these companies to cancel or postpone oil and gas E&P projects. In addition, the increase in the production of shale oil in the US led to an increase in global crude oil supply and reduced the crude oil imports in the country. Therefore, the constant fluctuations in crude oil prices are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Petroleum Liquid Feedstock Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bharat Petroleum Corp. Ltd: The company offers petroleum liquid feedstock which is used mainly for space heating as well as electricity generation in gas fired power plants.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The naphtha segment is estimated to witness significant growth during the forecast period. Oil and gas upstream companies offer crude oil to refining companies for use as a raw material in the production of petroleum liquid feedstock. The naphtha segment is manufactured in the refinery as a result of the primary distillation of crude oil. The process includes primary distillation where crude oil is subjected to refining by continuous fractional distillation. In addition, this fractional distillation removes impurities from the crude oil to obtain naphtha.
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The naphtha segment was the largest segment and was valued at USD 220.99 billion in 2018. Moreover, the naphtha generated from the fractional distillation of crude oil contains a varying amount of paraffin, aromatics, and olefins. In addition, the light naphtha is used for the production of ethylene. Furthermore, a majority of the heavy naphtha is used as a feedstock for the production of high-octane gasoline and aromatics such as benzene, xylene, and toluene. In addition, benzene and its derivatives are used for the manufacturing of more valuable products such as detergents, dyes, insecticides, and polymers. Hence such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Most of the crude oil production in the region comes from countries including the US, Canada, and Mexico, and the crude oil is used as the raw material for the production of naphtha and gasoil in refineries. In addition, the shale revolution in the US has made cheap raw materials available to the refineries and, thus, has led to the growth of the refining sector in the region.
Moreover, in Canada, the supply of feedstock to refineries is ensured by the presence of several vertically integrated companies that extract crude oil from oil sands. Furthermore, the region has a strong penetration of automobiles. As a result, several new refinery projects and refinery expansion projects are carried out in the region to meet the increasing demand for petroleum products. Hence, such factors drive the market growth during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global petroleum liquid feedstock market witnessed a significant slowdown due to the closure of manufacturing plants and the suspension of commercial operations in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in manufacturing units. Such factors are expected to drive the market during the forecast period.
The petroleum liquid feedstock market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Petroleum Liquid Feedstock Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market growth 2024-2028 |
USD 77.22 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.5 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bharat Petroleum Corp. Ltd., BP Plc, CEF Group, Chevron Corp., China National Petroleum Corp., Eni SpA, Equinor ASA, Exxon Mobil Corp., Gazprom Nedra LLC, Hindustan Petroleum Corp. Ltd., Idemitsu Kosan Co. Ltd., Koch Industries Inc., Kuwait Petroleum Corp., Nayara Energy Ltd., Reliance Industries Ltd., Rosneft Deutschland GmbH, Saudi Arabian Oil Co., Shell plc, TotalEnergies SE, and YPF SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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