The petroleum coke (petcoke) market reached a valuation of US$ 26.87 billion in 2022 and is poised to grow at a compound annual growth rate (CAGR) of 15.5% in terms of revenue over the forecast period from 2023 to 2029. By 2029, it is projected to attain a market value of US$ 41.32 billion.
Petcoke, or petroleum coke, is a solid carbon-rich substance derived from the refining of crude oil. It is a byproduct of the process of extracting gasoline and other petroleum products from crude oil. Petcoke has gained significance as an efficient fuel source for various industrial operations, including cement kilns and power plants, primarily due to its high carbon content and minimal moisture levels. Additionally, it finds application in the production of anode carbon for aluminum smelting. However, it is crucial to note that the combustion of petcoke has raised environmental concerns, given its substantial contribution to greenhouse gas emissions and air pollution due to its elevated carbon content.
Petroleum Coke (Petcoke) Market and the COVID-19 Pandemic:
The petroleum coke (petcoke) sector has not been immune to the far-reaching effects of the COVID-19 pandemic. This unprecedented global public health crisis left an indelible mark on various industries, with expected long-term consequences for market growth. The petcoke market experienced a notable impact from the pandemic, characterized by a reduction in demand resulting from worldwide containment measures and economic downturn. Numerous sectors, including steel, cement, and power generation, scaled back their operations, consequently affecting the demand for petcoke. Furthermore, travel restrictions and disrupted transportation had ripple effects throughout the petcoke supply chain. Market volatility became pronounced due to the uncertainty created by the pandemic.
The resurgence of the petcoke market hinges on the revival of many industries and the gradual easing of global lockdown measures. Government stimulus programs and infrastructure initiatives in the post-pandemic era may stimulate a rebound in petcoke demand.
Petroleum Coke (Petcoke) Market Growth Drivers:
- Rising Demand from Cement and Power Generation Industries: The petroleum coke market is experiencing growth driven by increasing demand from the cement and power generation sectors. Fuel-grade petcoke finds extensive utilization in these industries. Developing economies like China and India are witnessing an expansion in their cement and power generation sectors, contributing significantly to the petroleum coke market. Additionally, the surge in petroleum coke exports is further boosting market expansion. For instance, India's cement industry ranks second globally, following only China, and boasts an installed capacity of 500 million metric tons per annum (MTPA), with a current production of 298 million metric tons annually. South India alone houses about 35% of this capacity. With infrastructure development on the rise, India's cement production is projected to reach 500 million metric tons by 2020 and 800 million metric tons by 2030.
- Increasing Aluminum Production Driving Calcined Petcoke Demand: The growing emphasis on lightweight design in the automotive industry and the burgeoning aerospace sector are fueling the demand for primary aluminum. Increasing environmental pressures to adopt lightweight materials are expected to drive the use of aluminum in the automotive industry. Other contributing factors include heightened construction activities in the Asia-Pacific region, particularly in ASEAN countries, as well as the adoption of innovative construction techniques and new technologies.
Petroleum Coke (Petcoke) Market Restraints:
- Adverse Environmental and Health Effects of Petcoke: The adverse environmental and health impacts associated with petcoke are poised to hinder market growth. Petcoke contains high sulfur content, which has detrimental effects on both aquatic and terrestrial environments. Consequently, governments have imposed stringent regulations to curtail petcoke usage. However, efforts are underway to develop alternative fuels and technologies that mitigate the harmful consequences of petcoke. Cleaner-burning fuels like natural gas and hydrogen, along with enhanced pollution control systems, represent such measures. Recycling and reusing petcoke are also gaining prominence to minimize its environmental footprint. These initiatives aim to counteract the negative impacts and secure the market's long-term sustainability.
- Diversification of Petcoke Usage in Medical, Electrical Components, and Ceramics: The market is witnessing a notable trend towards utilizing petcoke in applications such as medical, electrical components, and ceramics due to the array of advantages it offers. Petcoke possesses anti-corrosion properties, is lightweight, highly ductile, and exhibits excellent electrical and thermal conductivity. Furthermore, the rapid growth of the electronics industry is anticipated to drive the market's expansion.
Petroleum Coke (Petcoke) Market: Market Segmentation:
In 2022, market segmentation based on end-use industries revealed the following:
- Confectionery Segment Dominates with a 33.5% Market Share: The confectionery segment secured the largest market share, accounting for 33.5% in terms of value. This was followed by the cement kilns and power plants segments. The confectionery industry has experienced sustained growth due to rising disposable incomes and evolving consumer preferences, resulting in increased consumption of indulgent treats. Manufacturers in this sector are focusing on product innovation, introducing new flavors, and enhancing packaging to attract customers.
- Cement Kilns and Power Plants: Cement kilns and power plants were the second and third largest segments, respectively, following the confectionery category. Cement kilns are widely used in the construction industry for cement production, driven by the expansion of the construction sector, particularly in emerging economies. Power plants play a crucial role in electricity generation, with growing industrialization and urbanization leading to increased energy demand and the construction of more power plants. Both the cement kilns and power plants segments have experienced consistent growth due to infrastructural expansion and the need for stable energy supplies. Additionally, these segments have adopted environmentally friendly practices to reduce their carbon footprint, aligning with global sustainability initiatives. In 2022, confectionery, cement kilns, and power plants emerged as significant contributors to market share, catering to rising demand in their respective sectors. The future outlook for these industries remains positive, driven by changing consumer preferences and the demand for sustainable solutions.
Petroleum Coke (Petcoke) Market: Regional Analysis
In 2021, the Asia Pacific region emerged as the dominant player in the petroleum coke (petcoke) market, commanding a significant 35.6% share in terms of value. Following Asia Pacific were Europe and North America, respectively. Both Asia Pacific and Europe are major importers of petroleum coke. Notably, emerging economies like China and India are substantial contributors to the utilization of petroleum coke, primarily in cement kilns and power plants.
China stands out as a significant user of petroleum coke in power plants for energy generation. The rapid industrialization of India and China has been a driving force behind the expansion of the petroleum coke industry. In terms of volume, Asia Pacific also emerged as the most dominant market for petroleum coke. It's important to highlight that Asia Pacific and Europe are the two key importers of petroleum coke.
Petroleum Coke (Petcoke) Market: Key Developments
Phillips 66 and DCP Midstream Agreement: On January 6, 2023, Phillips 66, an American energy company, and DCP Midstream, LP, a midstream petroleum services provider, reached an agreement that increased Phillips 66's economic stake in DCP Midstream to 86.8%. This strategic move is expected to support the growth and productivity of the petroleum coke (petcoke) market.
Formation of Azule Energy: On August 2, 2022, bp, an oil and gas company, and Eni, an Italian energy company, officially established Azule Energy, a new independent joint venture combining their Angolan businesses. This joint venture is poised to impact the petroleum coke (petcoke) market.
ExxonMobil and Texas A&M University Collaboration: On June 20, 2022, ExxonMobil partnered with Texas A&M University to develop a technique that transforms petroleum coke, a byproduct of crude oil refining, into graphene using electrochemical exfoliation.
Reliance Industries' Blue Hydrogen Plans: In February 2022, Reliance Industries Ltd., a multinational conglomerate based in India, announced plans to produce blue hydrogen and convert petroleum coke into synthesis gas, indicating a strategic move within the petroleum coke (petcoke) market.
Petroleum Coke (Petcoke) Market: Key Companies
The key players actively involved in the petroleum coke (petcoke) market include 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.
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.