The oil refining market involves the process of separating crude oil into usable petroleum products like gasoline, diesel, jet fuel, heating oil, lubricants, and other petrochemicals. Crude oil is processed through distillation units where it is heated and separated into fractions according to boiling points. Further processing steps such as cracking, reforming, alkylation and isomerization are employed to convert the distilled fractions into desired products based on global demand. The oil refining industry plays a vital role in meeting the rising energy needs of the transportation, manufacturing, residential and commercial sectors worldwide. The Global Oil Refining Market is estimated to be valued at US$ 1838.46 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the oil refining market are Reliance Industries Limited,BP PLC,China National Petroleum Corporation (CNPC),ExxonMobil Corporation,Chevron Corporation. Reliance Industries Limited is India's largest private sector oil refining and petrochemicals company.
The growing demand for petroleum-derived fuels and petrochemical products from the expanding economies in Asia Pacific and other developing regions is expected to drive the growth of the global oil refining market. Countries like China and India are witnessing an increasing number of vehicle sales and fuel consumption due to rising disposable incomes.
The major players in the market are engaged in capacity expansion and investments in new refinery projects globally to capture the demand from emerging markets. For example, BP plans to increase its refining capacity in India by around 0.5 million barrels per day by 2025. This will help the company boost its fuel and petrochemicals production.
Market Key Trends
One of the key trends in the oil refining market is increasing conversion of refineries to production of cleaner burning fuels with lower sulfur contents. Strict emission norms by regulatory bodies worldwide are pushing refineries to reduce the sulfur content in gasoline and diesel. Many refineries are investing in hydrodesulfurization units and fluid catalytic cracking units to meet global sulfur reduction standards and manufacture fuels compliant with Euro 6 and U.S. Tier 3 standards. This trends is expected to lower air pollution and protect the environment in the long run.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the oil refining market is moderate as setting up large scale refining facilities requires huge capital investments. Bargaining power of buyers: The bargaining power of buyers like petrochemical companies and oil marketing companies is moderate as there are many established oil refiners in the market. Bargaining power of suppliers: The bargaining power of crude oil suppliers like OPEC countries is high due to their control over global crude oil production. Threat of new substitutes: The threat of substitutes is low as there are limited alternatives to crude oil refining currently. Competitive rivalry: Intense competition exists between established players to gain market share.
Geographical Regions
The North American region accounts for over 30% of the global oil refining market value currently due to presence of large refineries and robust fuel demand.
The Asia Pacific region is expected to witness the fastest growth in oil refining market during the forecast period led by expanding refinery capacities and rising energy needs of China and India.
What Are The Key Data Covered In This Oil Refining Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Oil Refining 's growth between 2024 and 2031.
:- Accurate calculation of the size of the Oil Refining and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Oil Refining Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Oil Refining vendors
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it