Global Oil Refining Market Outlook 2031:
The oil refining market size was valued at USD 1.49 Billion in 2022 and is projected to reach USD 2.37 Billion by 2031, expanding at a CAGR of 5.3% during the forecast period 2023 - 2031. Growth of the market is attributed to rising demand for petroleum products.
Oil refining is an industrial process in which crude oil is transformed and refined into useful products such as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene, liquefied petroleum gas, jet fuel, and fuel oils.
The COVID-19 pandemic has had a negative impact on the market owing to a decrease in refined petroleum product consumption and a decline in global economic development. Many refinery projects throughout the world have been postponed because of the COVID-19 epidemic and the extreme volatility of crude oil prices. In the next years, rising demand for petroleum products is projected to fuel development in refining capacity.
However, problems such as a shortage of money, delays in commissioning projects, obtaining lands, and the rising usage of electric cars in emerging countries are limiting the refining industry. The market is estimated to be driven by the construction of downstream infrastructure around the world in order to satisfy rising demand for refined petroleum products during the forecast period.
In the short term, the transportation sector's need for oil as a fuel is the major factor anticipated to drive the market. Many nations are attempting to build refining capacity in order to lessen their reliance on imported refined petroleum products. African countries such as Nigeria, Algeria, and others seek to make their countries the regional refinery center. As a result, foreign and local refiners are likely to have a lot of possibilities to enter the African market in the near future.
Oil Refining Market Trends, Drivers, Restraints, and Opportunities
- Rising population and changing living standards are estimated to propel the market during the forecast period.
- Rapid industrialization is the major factor fueling the market in the coming years.
- Rising adoption of electric car is expected to hamper the market growth.
- Delays in commissioning projects act as major challenge that can restrict the market expansion during the forecast period.
- R&D investment in the market is projected to create lucrative opportunities for the market players.
Scope of Oil Refining Market Report
The report on the oil refining market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Oil Refining Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Geography (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa)
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Geographical Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Saudi Arabian Oil Co, BP plc, Exxon Mobil Corporation, Royal Dutch Shell Plc, and Sinopec Corp.
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Oil Refining Market Segment Insights
Asia-Pacific is expected to dominate the market
On the basis of geography, the oil refining market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is anticipated to expand at a substantial CAGR during the forecast period.
The Asia-Pacific region has the most refining capacity as of 2019. The region's refining capacity was about 35.5 million barrels per day in 2019. In 2019, China and India were the most important participants in the area, accounting for roughly 20% of global refining capacity. China is anticipated to account for the majority of the increase in crude oil refining in the Asia-Pacific area during the forecast period.
The country is anticipated to contribute for 26.8% of total refining growth capacity in APAC, an increase of 1.77 percent from 2018. In addition, between 2010 and 2019, India's refining capacity grew at a CAGR of 3.2 percent. India Oil Corp., the country's largest refining business, in August 2018 announced that it intends to raise its refining capacity from 80.7 million metric tons per year to 150 million metric tons per year by 2030.
In India, projects totaling INR 320 billion are in different stages of completion. Other Asia-Pacific areas, such as Southeast Asia, are seeing the commissioning of new refinery projects, including the expansion of existing ones and the development of new ones, in order to minimize reliance on imports, which is projected to generate a market potential in the future years.
Segments
Geography
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the oil refining market include Saudi Arabian Oil Co, BP plc, Exxon Mobil Corporation, Royal Dutch Shell Plc, and Sinopec Corp.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares.
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