by The petroleum coke (petcoke) market is estimated to be valued at US$ 28.35 Mn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Petroleum coke or petcoke is a carbonaceous solid derived from oil refinery coker units or other cracking processes. It is basically a byproduct of the crude oil refining process and is in high demand from aluminum, cement and power industries. Petcoke is mainly used as a cost-effective fuel in various applications such as power plants, cement kilns, and aluminum smelters. It is also replacing coal in power and cement industries due to its higher energy content and lower ash content as compared to coal.
Market Dynamics:
The global petcoke market is primarily driven by rising demand from aluminum industries. Petcoke is a key material used in the smelting process of aluminum. The growing aluminum production across the globe especially in Asia Pacific is fueling the demand for petcoke. According to International Aluminum Institute, the global aluminum production reached almost 64 million tons in 2021 and is estimated to grow over 3% annually till 2030. Apart from this, petcoke is also increasingly used as an alternative fuel in power generation and cement industries due to its lower sulfur content as compared to coal. This is positively impacting the market growth. However, strict emission norms pertaining to sulfur dioxide and particulate matter emissions from using petcoke may hinder the market growth over the forecast period.
Segment Analysis
Petcoke market is dominated by fuel grade petcoke segment which accounts for over 80% of the total market share. Fuel grade petcoke or petroleum coke is a carbonaceous solid material derived from oil refinery coker units or other cracking processes. Due to its high calorific value, fuel grade petcoke is widely used as a cost effective fuel in numerous industries like cement, steel, lime etc. and also for power generation. The demand for fuel grade petcoke is expected to continue growing during the forecast period supported by rising energy needs of various industries globally.
PEST Analysis
Political: Stringent environmental regulations in some regions regarding emissions may negatively impact the petcoke market.
Economic: Growth in applications industries like cement and power generation will drive the demand for petcoke during the forecast period supported by ongoing industrialization and infrastructure projects globally.
Social: Increasing global population and urbanization is leading to higher demand for housing and construction which will augment the cement and steel production thereby boosting petcoke consumption.
Technological: Research on developing advanced technologies to reduce production cost and minimize environmental impact during combustion of petcoke.
Key Takeaways
The global Petroleum Coke (petcoke) Market Size is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand from cement and power industries supported by strong economic growth especially in developing Asian countries.
Regional analysis: Asia Pacific accounts for over 50% of the global petcoke market led by countries like India and China. Low labor costs, easy availability of raw materials and growing infrastructure development are driving the cement and power industries in the region thereby propelling the demand for petcoke in APAC.
Key players operating in the 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. Strategic investments by key players in refinery expansion projects especially in Asia and Middle East will help strengthen their position in the petcoke market during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
