The changing dynamics in Oil Refining Market with covid-19 impact assessment
The unexpected
shifts in the global markets because of the sudden outbreak of the COVID-19
virus have brought many major and minor tremors to industries of all sizes
including the Oil Refining Market.
It was
estimated prior to this unanticipated outbreak that the Oil Refining
Market will reach CAGR of 4.3 % during the forecast period. However, the
gradual slowing down of industries will undoubtedly impose limits on the
previously estimated growth rate.
Oil
Refining Market Insights
Oil
refining market is
likely to witness a healthy CAGR of 4.3% during
the forecast period. The prime factors contributing to the demand for oil
refining are rapid industrialization, growing population, changing
demographics, and improving living standards. There is an increased investment
on construction and upgradation of refineries to fulfill petroleum product
demand.
Market Share Analysis
Oil Refining Market Share: By Complexity
Type
Based on the complexity type,
the oil refining market is segmented as topping, conversion, and deep
conversion. The topping oil refining market is
expected to register robust growth due to its ability to
transforming to high value products through the cracking of larger molecules
into smaller ones. Conversion refining has the ability to eliminate the
residuals from fuel. Deep conversion refining is expected to be driven by
stringent regulations pertaining to product quality specifications.
Oil Refining Market Share: By Product
Type
Based on the product type,
the market is segmented as light distillates, middle distillates, fuel oil, and
others. Middle distillate delivers flammable
liquids of shorter carbon chain (with 10-20 carbon atoms) compared to light distillates
and hence, dominated the market in 2019. Oil refined through
middle distillates has wide application in industries such as aviation, power
generation, and marine bunkers. The light distillates oil refining market to
grow with the increasing spending capacity of expanding middle class
population.
Oil Refining Market Share: By Fuel Type
Based on the fuel type, the
oil refining market is segmented as gasoline, gasoil, kerosene, LPG, and
others. Gasoline oil refining is expected to
grow with the increased uses of it in transportation industry.
Increasing passenger vehicle fleet in developing countries to drive the
gasoline demand in the coming years.
Oil Refining Market Share: By
Application Type
Based on the application
type, the oil refining market is segmented as transportation, aviation, marine
bunker, petrochemical, residential & commercial, agriculture, electricity
generation, and others. Transportation and
petrochemical industries to consume the largest chunk of the refined oil and
will drive the market over the forecast period.
Oil Refining Market Share: By Region
In terms of regions, Asia-Pacific has the highest refining capacity.
China and India are the key countries in the region and have accounted for
significant share in global market in 2019. These two countries also witnessed
refining capacity expansion in last few years. Other than these two countries
South East Asian countries have also commissioned a number of refinery projects
to reduce dependency on imports.