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Petrochemical Manufacturing in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Petrochemical Manufacturing Market Research Report | NAICS 32511 | Jan 2017

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

IBISWorld’s Petrochemical Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Industry Statistics & Market Size
Revenue
$54bn
Annual Growth 12-17
-9.5%
Annual Growth 17-22
Annual Growth
Profit
Profit
Employment
9,612
Businesses
52
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
  • ... purchase to read more

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.


... ... purchase to read more

Industry Report - Starting a New Business Chapter

Barriers to entry into the Petrochemical Manufacturing industry are high, and are expected to remain that way. This industry faces a number of barriers to entry, a major one being the level of capital required. The costs to construct a plant can range anywhere from a couple hundred million to billions of dollars. For example, Dow Chemical Co. is in the works of securing permits to construct a $1.7 billion plant in Freeport, TX.

Aside from the costs of building a plant, regulatory costs are high as well. Because the industry deals with chemical waste and emissions, companies are subject to rules set by the Environmental Protection Agency. With regulation increasing, these costs are expected to remain high as well, for example, in 2015 Exxon Mobil spent $5.6 bi.. ... purchase to read more

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... purchase to read more

     


    Industry ProductsRelated Reports

    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 hydrocarbonsManufacturing polyolefins made from refined petroleum or liquid hydrocarbonsManufacturing 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
  • 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 NV
    Chevron Phillips Chemical Company LLC
    Ineos 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 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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