Overview

Organic compound: As input price volatility eases, industry revenue will grow more consistently

The Petrochemical Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Industry revenue is expected to recover as commodity prices eventually rise
  • Fluctuations in the price of oil and gas strongly impact industry revenue
  • Increasing domestic supply of petrochemical inputs has resulted in new industry entrants

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    Industry Analysis & Industry Trends

    The past five years have been volatile for the Petrochenical Manufacturing industry, as revenue has been sensitive to changes in prices of its key inputs, crude oil and natural gas. With oil and gas prices collapsing in 2014, vertically integrated major players were forced to pass on reduced prices down the supply chain. As a result, industry revenue fell over the five years to 2017. Over the five years to 2022, industry revenue is expected to recover as commodity prices eventually rise. Vertically integrated companies will be able to take advantage of their economies of scale and further expand production.


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    Industry Report - Industry Key Buyers Chapter

    The Petrochemical Manufacturing Industry has a medium level of concentration with the top four players accounting for 54.4% of industry revenue. Industry concentration has risen over the five years to 2017. In 2012, the top four players, accounted for under 50.0% of the industry's total revenue. The rise in market share concentration is a reflection of the volatility in gas and oil prices; smaller companies have struggled to capture market share as revenue pressures have advantaged the larger players, who benefit from economies of scale.

    The relatively small number of players in this industry, and subsequently high concentration level, is due to the significant capital investment required to enter the industry. The..

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    Additional Insights for the Petrochemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petrochemical Manufacturing Industry are

  • Having contracts that are favorable to purchaser
  • Optimum capacity utilization
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Demand from plastic and resin manufacturing and Price of natural gas in the Petrochemical Manufacturing industry impact industry performance..

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    Industry Products

    What is the Petrochemical Manufacturing Industry?

    This industry manufactures petrochemicals, which are chemicals derived from refined petroleum or liquid hydrocarbons. Key products include ethylene, propylene, butylene, benzene, toluene, styrene, xylene, ethyl benzene and cumene. These products are used in the production of consumer products, automotive components and various durable and non-durable goods. Organic compounds like ethyl alcohol and inorganic chemicals like carbon black are excluded from the industry.

    Industry Products
    Aromatics (benzene, toluene, xylene, etc.)
    Liquefied refinery gases (aliphatics)
    All Other
    Industry Activities
    Manufacturing olefins made from refined petroleum or liquid hydrocarbons
    Manufacturing polyolefins made from refined petroleum or liquid hydrocarbons
    Manufacturing ethylene made from refined petroleum or liquid hydrocarbons.

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from plastic and resin manufacturing
  • Price of natural gas
  • World price of crude oil
  • Trade-weighted index

  • Current Performance
  • Production boom
  • Commodity prices crash
  • Trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Input price volatility
  • Downstream industries to buy more petrochemicals
  • New facilities come online
  • Table: Petrochemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petrochemical Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Textile Mills
  • Plastic & Resin Manufacturing
  • Soap & Cleaning Compound Manufacturing
  • Polystyrene Foam Manufacturing
  • Plastic Bottle Manufacturing

  • Key Selling Industries
  • Oil Drilling & Gas Extraction
  • Petrochemical Manufacturing
  • Petroleum Refining

  • Products & Services
  • Liquefied refinery gases (aliphatics)
  • Aromatics (benzene, toluene, xylene, etc.)
  • All Other
  • Chart: Petrochemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Plastic, resin and synthetic rubber manufacturers
  • Polystyrene foam manufacturers
  • Other domestic chemical manufacturers
  • Exports
  • Chart: Major Market Segmentation for the Petrochemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Petrochemical Manufacturing

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petrochemical Manufacturing Industry

  • Industry Globalization
    Major Companies
    LyondellBasell Industries NVChevron Phillips Chemical Company LLCIneos Group
  • Table: LyondellBasell Industries NV - financial performance
  • Table: Chevron Phillips Chemical Company LLC - financial performance
  • Table: Ineos Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Petrochemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Petrochemical Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Natural Gas (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Ethylene
  • A gaseous organic compound used in chemical reactions to make other chemicals. It is used in polymerization, oxidation and halogenation.
  • Hazardous Air Pollutants (Haps)
  • Hazardous air pollutants are known or suspected carcinogens.
  • Petrochemical
  • A chemical product derived from petroleum, but that can also be obtained from other fossil fuels like coal or natural gas.
  • Propylene
  • An unsaturated organic compound used in the production of polypropylene, a versatile polymer used in packaging and other plastic products.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petrochemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petrochemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petrochemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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