Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Petroleum coke is a by-product of crude oil and is look like solid rock materials. Petroleum coke is basically used across various industries as an energy source. Power generation is key end-user of the petcoke and other prominent users of petroleum coke are metal, construction, aluminum, blast furnace, and steel industry.
The global petroleum coke (petcoke) market is projected to reach around US$ 42,779.8 million by the end of 2027, in terms of revenue, growing at CAGR of 8.5% during the forecast period (2020-2027).
Growing demand from cement and power generation industry is primarily fueling the market growth of the petroleum coke. Fuel grade petcoke is widely used in the cement and power generation industry. The expanding cement and power generation industry across developing economies such as China and India is also contributing to the market growth of petroleum coke. Moreover, increasing export of the petroleum coke is again propelling the market growth.
Figure 1. Global Petroleum Coke (petcoke) Market Share (%) in terms of Value, By Region, in 2019
Asia Pacific region dominated the global petroleum coke (petcoke) market in 2019, accounting for 35.6% share in terms of value, followed by Europe and North America, respectively.
The adverse environmental and health effects of the petcoke is projected to hamper the market growth. It has high sulfur content which has adverse effects on the aquatic as well as terrestrial environments due to this government has imposed various strict regulation to limit the use of petcoke.
Global Petroleum Coke (petcoke) Market Report Coverage
||Market Size in 2019:
||US$ 22,349.1 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 42,779.8 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East & Africa: Middle East and Africa
- By Product Type: Fuel Grade Coke and Calcined Coke
- By End-use: Calcining Industry, Power Plants, Cement Kilns, Blast Furnaces, and Others
BP Plc, Chevron Corporation, Essar Oil Ltd., ExxonMobil Corporation, HPCL - Mittal Energy Limited, Indian Oil Corporation Limited, Reliance Industries Limited, Royal Dutch Shell Plc, Saudi Arabian Oil Co., and Valero Energy Corporation
- Growing demand from cement and power generation industry
- Increasing production of aluminum is driving demand for calcined petcoke
|Restraints & Challenges:
- The adverse environmental and health effects of the petcoke
Growth in infrastructure development across the Asia Pacific region is projected to bring new market opportunities in the near future. According to the report by PwC, the Asia Pacific infrastructure market is expected to grow 7 - 8% percent a year over the next decade, reaching US$5.36 trillion a year by 2025 representing 60% of the world total. Thus, growth in the construction industry in Asia Pacific region is expected to propel the market growth of petcoke.
Increasing investment by major players in enhancing the production capacity of crude oil is expected to offer lucrative opportunities. For instance, in January 2019, ExxonMobil announced that that it will increase crude refining capacity by more than 65 percent, or 250,000 barrels per day. Thus, the growing production of crude oil is expected to foster the market growth of the petcoke over the forecast period.
Figure 2. Global Petroleum Coke (petcoke) Market– Opportunity Analysis
The shifting trend of using petcoke in medical, electrical components, and ceramics application due to its various advantages offered is projected to propel the market growth. Petcoke has anti-corrosion property, is lightweight, highly ductile, and also has excellent electrical& thermal conductivity. Moreover, the rapid growth of electronic industries is also projected to spur the market growth of petcoke.
Distribution and supply agreement of petcoke is a major trend in the market and this is projected to act as a catalyst to the growth of the market. For instance, in July 2019, Arabian Cement Company (ACC) announced signing an agreement with the Egyptian Refining Company, stipulating to supply local petroleum coke (pet coke) with an annual volume tons as of July 2019. The goal of this agreement to reduce the production costs of the petcoke.
Figure 3. Global Petroleum Coke (Petcoke) Market Share (%) in terms of Value, By End-use, in 2019
On the basis of end-use in 2019, the confectionery segment has accounted the largest market share of 33.5% in terms of value, followed by cement kilns and power plants segment respectively.
Global Petroleum Coke (petcoke) Market - Impact of Coronavirus (Covid-19) Pandemic
Several refineries have reduced supply of petroleum coke due to refinery production cuts, falling consumption of gasoline and jet fuel amid the coronavirus pandemic. The prices of petroleum coke has fallen due to low crude oil prices. End-use industries can benefit from low petroleum coke prices and help to increase the profit margins of these companies. In March 2020, the Chinese Ministry of Finance offered tariff exemptions on U.S. petcoke imports as impact of COVID-19 affected domestic petcoke production in the country. According to Coherent Market Insights, petroleum coke market is expected to grow at a lower CAGR between 2020 and 2021.
- BP Plc
- Chevron Corporation
- Essar Oil Ltd.
- ExxonMobil Corporation
- HPCL - Mittal Energy Limited
- Indian Oil Corporation Limited
- Reliance Industries Limited
- Royal Dutch Shell Plc
- Saudi Arabian Oil Co.
- Valero Energy Corporation
Few Recent Developments
In January 2019, ExxonMobil announced that that it will increase crude refining capacity by more than 65 percent, or 250,000 barrels per day.