Oil Refining Market is Expected to Reach $3,751.5 Billion by 2030

According to a new report published by Allied Market Research, titled, “Oil Refining Market: Opportunity Analysis and Industry Forecast, 2021–2030,” The global oil refining market was valued at $1,345.0 billion in 2020, and is projected to reach $3,751.5 billion by 2030, growing at a CAGR of 5.3% from 2021 to 2030.

Oil refining is the process whereby crude oil is split and refined into commercially useful products. Distillation is the primary means of separating the constituents, which may be sold directly or be used as feedstock for further processes. These secondary processes may involve separation by extraction or may use catalysts to change the chemical species such that further range of products is produced. 

The demand for oil refining has witnessed tremendous growth driven by increasing penetration across various industries such as transportation, aviation, marine bunker, petrochemical, agriculture, and electricity.All players in the oil refining industry are investing heavily to find new commercial avenues for their product segments via strategic production and business expansion. Some of the major factors that surge the demand for oil refining include growing demand for lighter petroleum products and introduction of several air borne emission regulations. In addition, rapid urbanization and heavy investment toward industrial sector along with rising disposable income across developing regions are some of the factors influencing the demand for light distillates, which is expected to drive the growth of the market in the coming years.

Growing investment toward upgrading, refurbishment, and expansion of existing refinery facilities is expected to drive the growth of the oil refining market. In April 2018, Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) announced an investment of $44,000.0 million to construct mega refinery and petrochemical complex in India. In addition, growing concern across developing economies, such as China and India, to minimize the dependency on import of petroleum products from foreign countries is anticipated to drive the growth of the market. However, growing adoption of clean fuel is expected to hamper the growth of the oil refining market during the forecast period. Furthermore, digitalization and technological development of physical elements of oil refineries is expected to provide growth opportunities for the oil refining market during the forecast period.

By complexity type, the global oil refining market size is studied across topping, conversion, and deep conversion. The deep conversion segment accounted for the largest market share in 2020, owing to introduction of several regulations pertaining to product quality specifications. The deep conversion segment dominated the global market with more than one-fourth of the total market share in 2020.

By product type, the global oil refining market is studied across light distillates, middle distillates, fuel oil, and others. The light distillates segment accounted for the largest market share in 2020, owing to surge in demand for gasoline from transportation industry. The light distillates segment dominated the global market with more than two-fifths of the total market share in 2020.

By fuel type, the global oil refining market is studied across gasoline, gasoil, kerosene, LPG, and others. The gasoline segment emerged as the leader in 2020, owing to its lower price along with increasing number of global fleet of passenger vehicles. The gasoline segment dominated the global market with more than two-fifths of the total market share in 2020.

By application, the global oil refining market is studied across transportation, aviation, marine bunker, petrochemical, residential & commercial, agriculture, electricity, and others. The transportation segment emerged as the leader in 2020, owing to growing demand for passenger and commercial vehicles across the globe. The transportation segment dominated the global market with more than two-fifths of the total market share in 2020.

Region-wise, the global oil refining market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major oil refining market share in 2020, owing to rising demand for petroleum products favored by rapid industrialization. The Asia-Pacific region dominated the global market with more than one-third of the total market share in 2020.

The major players studied and profiled in the global oil refining market are Reliance Industries Limited, Sinopec Corporation, China National Petroleum Corporation, Saudi Arabia, Royal Dutch Shell Plc, BP Plc, ExxonMobil Corporation, Total S.A., Chevron Corporation, Marathon Petroleum Corporation, PJSC Lukoil Oil Company, Petroleos de Venezuela S.A., Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.

COVID-19 analysis:

Lockdown impositions in major cities and economies have resulted in most of the industries around the world halting their production. This has further resulted in reduction of oil & gas demand around the world. For instance, as per the bp Statistical Review of World Energy 2021, global petroleum and liquid fuels average consumption was reported 88.5 million barrels per day during 2020, which was a decline by around 9.1 million barrels per day as compared to 2019. In addition, power demand from industrial and commercial end users has also witnessed a significant dip in recent times, owing to the global pandemic. Attributed to this, the demand for liquids fuel has been declining during the pandemic outbreak period. This trend is expected to continue for a few more years till all the industrial activities that are halted across the globe resume to normal amid government-imposed lockdown measures.

Key findings of the study

• In 2020, Asia-Pacific dominated the global market with around 35.49% share in terms of revenue. In addition, it is also projected to grow at the highest CAGR of 6.03% in terms of value.
• The deep conversion segment dominated the global oil refining market with around 29.99% of the share in terms of revenue.
• The conversion segment is projected to grow at the highest CAGR of 5.92% in terms of revenue.
• The light distillates segment dominated the global market of oil refining with around 44.56% of the share in terms of revenue.
• The middle distillates segment is projected to grow at the highest CAGR of 5.68% in terms of revenue.
• The gasoline segment dominated the global oil refining market with 43.50% of the share in terms of revenue.
• The kerosene segment is projected to grow at the highest CAGR of 6.27% in terms of revenue.
• The transportation segment dominated the global oil refining market with 47.90% of the share in terms of revenue.
• The aviation segment is projected to grow at the highest CAGR of 7.11% in terms of revenue.