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.