The global refining market is forecast to grow from 99.7 million barrels per day (mbpd) in 2018 to nearly 106.5mbpd in 2023, at a CAGR of 1.3%, according to a new report.
The global refining market is characterised by a high demand for petrochemicals and fuels for automobiles, which will keep the market growing for the next decade, according to the ‘Opportunities and Trends in the Global Refining Market, Forecast to 2023’ study from ResearchandMarkets.com.
“An expanding population, increasing affordability, higher automobile penetration, lower oil prices, and increasing investments by companies in the developing regions of the world will aid in new refinery construction and upgrade of old facilities,” the research firm said.
“Increasing automobile penetration will drive the demand for gasoline and diesel, mainly in Asia and Africa, which drives the need to expand refinery capacity to cater to expanding demand,” it said.
Asia is expected to be the key hub for refinery expansion, as the region invests heavily in new capacities and upgrading old ones to meet domestic demand and take advantage of export opportunities, according to the report.
China and the Middle East are expected to lead the way for refinery expansion, followed by India and Southeast Asia. These regions are expected to drive global growth, as they add more consumers to the market, which will drive demand for oil-based products.
“Satisfying domestic demand is a key concern for most countries, as demand exceeds supply in many developing regions, especially in the Middle East, where countries and companies are focusing more on downstream activities after years of focus on upstream,” said ResearchandMarkets.com.
Middle Eastern companies are also looking at other geographies to invest in new refinery capacity, as they are keen to tap into growing global demand for petrochemical products.
“South and Southeast Asia and Africa will be key beneficiaries of such Middle Eastern investments,” the research firm said.
The latest ‘Opportunities and Trends in the Global Refining Market’ study from ResearchandMarkets.com addresses the future and present market opportunities across the globe, as well as challenges faced in a rapidly changing environment.
Market metrics are provided for the United States and Canada, Latin America, Africa, Europe, Russia & CIS, the Middle East, China, and other APAC countries.
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