Published By : 10 Aug 2016 | Published By : QYRESEARCH
Petrochemicals are used as chemical building blocks for a variety of materials and applications. They are used in in manufacturing and consumer goods industries. The economies of various countries in the Middle East are dependent on petrochemical products. This is because petrochemicals are used in almost all industries across the globe. The petrochemicals market is shifting towards China and the Middle East as these regions have witnessed new capacity additions lately.
Ethylene to be Key Product Segment in Future
Ethylene is expected to lead in terms of products owing to its extensive use in the furniture, packaging, and construction industries. The largest application of ethylene is polyethylene synthesis which is widely used in the electrical, electronics, and packaging sectors. Other applications of ethylene are production of vinyl acetate and alpha olefins. All these factors are expected to ensure the growth of the ethylene market in the coming years, thus driving their demand.
Shift towards Bio-based Chemicals to Hamper Growth of Petrochemicals Market
Price volatility of petroleum based petrochemicals is one of factors impeding the growth of the petrochemicals market. The health hazards associated with the use of petrochemicals is another factor deterring the use of petrochemicals product. Petrochemicals also cause a lot of environmental issues, which has caused many government regulations to spring up against them. Petrochemical companies are thus shifting their attention towards the production of bio-based chemicals. Bio-based chemicals are eco-friendly and cheaper in price. The demand for bio-based chemicals is increasing owing to the growing consumer awareness regarding the benefits of these chemicals. The adoption of these chemicals is expected to grow both in the public and commercial sectors.