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The petroleum liquid feedstock market size is forecast to increase by USD 77.22 billion, at a CAGR of 4.5% between 2023 and 2028. The growth of the market is underpinned by several key factors driving demand across industries. With the transportation sector experiencing rapid growth worldwide, the need for liquid feedstocks, including gasoline and diesel, remains robust. Additionally, the petrochemical industry's escalating demand for feedstock to produce plastics, chemicals, and other essential materials further fuels market expansion. Moreover, the increasing number of ageing refineries necessitates the use of liquid feedstocks to maintain production levels and meet market demand for Liquefied Petroleum Gas (LPG). These converging dynamics highlight the market's resilience and its pivotal role in supporting industrial growth and economic development globally, reinforcing its significance in the energy value chain and beyond.
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The 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.
The market, key drivers include the robust demand from the petrochemical industry for raw materials such as naphthalene and hydrocarbons. The automotive fleet and energy sector's reliance on petroleum-based fuels and chemicals further fuel market growth. However, shifting trends towards electric vehicles pose a challenge to traditional petroleum-based commodities. Additionally, fluctuations in crude oil prices and environmental concerns regarding hydrocarbon-based products present ongoing challenges for the market. Overall, balancing demand from diverse sectors while adapting to evolving trends remains crucial for stakeholders in the market. 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 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. Regulatory exemptions for older equipment, particularly in handling Natural Gas Liquids (NGL), can lead to increased operational risks and maintenance challenges, contributing to extended downtime and reduced productivity in refineries. These factors are negatively impacting the market, hindering growth during the forecast period as refineries grapple with compliance issues and operational inefficiencies associated with aging infrastructure.
A key factor shaping the 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, 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, including advancements in gasification. Therefore, more 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 also support the expansion of gasification processes. Gasification converts hydrocarbons into synthesis gas (syngas), which is a precursor for producing various chemicals and fuels, including naphtha and gasoil. This synergy between increased crude oil production and gasification processes is expected to drive market growth during the forecast period, as industries leverage technological advancements to optimize resource extraction and downstream processing capabilities.
Volatility in global crude oil prices is one of the key challenges hindering the 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 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 research and growth, 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 market growth and forecasting strategies.
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.
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 market is integral to the petrochemical industry and energy sector, supplying essential raw materials for various applications. Derived from hydrocarbons such as oil naphtha, coal naphtha, and wood naphtha, these liquid feedstocks serve as crucial inputs for producing petrochemical products, including chemicals, plastics, and textiles. They also play a vital role in fuel production for automotive fleets and motor vehicles. Petrochemical plants rely on petroleum liquid feedstocks as crude materials to manufacture a wide range of oil-based commodities, catering to diverse industries. With the growing demand for sustainable alternatives, electric vehicles are increasingly influencing the market dynamics, prompting organizations to explore innovative solutions while maintaining their foothold in the evolving energy landscape.
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.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is characterized by its crucial role in refinement processes, providing essential inputs for various industries. Engine vehicles and marine fuel rely on liquid feedstocks derived from crude oil deposits, shale gas, and offshore drilling. Refinery capacity determines the availability of feedstocks such as gas oil, pentane, and naphthenes, essential for producing biofuels and renewable feedstocks. With the focus on cleaner energy sources and climate change mitigation, biomass and waste oils are increasingly utilized as renewable alternatives in biofuels production. Data analytics play a vital role in optimizing feedstock utilization and refining processes, ensuring efficiency and sustainability. From chemical industries requiring synthetic rubber and carbon fiber to heavy industries relying on steam crackers and greenfield refineries, petroleum liquid feedstocks are indispensable in driving industrial growth and innovation.
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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 growth analysis, Market Forecasting, 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 market 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
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