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2021

Oil Refining Market

Oil Refining Market Size, Share, Competitive Landscape and Trend Analysis Report by Complexity Type, Product Type, Fuel Type and Application : Global Opportunity Analysis and Industry Forecast, 2021-2030

EP : Non Renewable/Conventional

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Author's: Anil Chaudhary | Eswara Prasad
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Oil Refining Market Outlook – 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 refers to post extraction treatment that is utilized to obtain high-quality oil for various uses. Crude oil contains many impurities, including phosphatides, free fatty acids, gummy substances, color bodies, tocopherols, sterols, hydrocarbons, ketones, and aldehydes. These impurities are removed in the refining process. Typically, oil refining is used to remove phospholipids, free fatty acids, & odors, and to improve oil color. Oil refining involves many thermodynamic processes, such as mass and heat transportation phenomena, to improve oil quality and processing efficiency.

The oil refining market considered in our study in based on crude oil production. The petroleum products post refining process are supplied to the market as per the demand and if remaining, can be stored as inventory stock.  

Oil-Refining-Market-2021-2030

The global demand for oil refining is primarily driven by increasing investment toward construction, expansion & upgrading of refineries to fulfill the growing petroleum product demand and to reduce the dependence on imported refined petroleum products. In addition, government regulations pertaining to carbon emissions and positive outlook toward aviation and road transportation sector are some of the factors augmenting the demand for refined products. Furthermore, rapid industrialization and urbanization coupled with rise in population across developing economies, such as China and India, led to surge in demand for passenger and commercial vehicles. Attributed to growing number of vehicles across these countries, the demand for gasoline and gas oil has increased significantly, resulting in setting up of new oil refineries across these countries to meet the growing demand for petroleum and diesel.

Moreover, the growing aviation industry across the globe especially in developing economies has escalated the demand for jet fuel/kerosene. To meet the growing demand, governments of developing countries, such as India, are aiming to double their refining capacity to around 450-500 million tons (MT) in the next 10 years by setting up new refineries. For instance, in January 2021, state-run oil refinery Indian Oil announced setting up of a new refinery in Nagapattinam in Tamil Nadu. The refinery will have an annual refining capacity of 9 million metric tons. In addition, 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. These factors are expected to drive the growth of the oil refining market during the forecast period.

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 market during the forecast period.

The global oil refining market size is segmented on the basis of complexity type, product type, fuel type, application, and region. By complexity type, it is analyzed across topping, hydro-skimming, conversion, and deep conversion. By product type, it is classified into light distillates, middle distillates, fuel oil, and others. By fuel type, it is divided into gasoline, gasoil, kerosene, LPG, and others. By application, it is fragmented into transportation, aviation, marine bunker, petrochemical, residential & commercial, agriculture, electricity, rail & domestic waterways, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major key players operating in the global oil refining industry include 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. Other players operating in the oil refining market includes PJSC Rosneft Oil Company, Valero Energy Corporation, S-Oil Corporation, Kuwait National Petroleum Company, Fluor Corporation, Abu Dhabi National Oil Company, PBF Energy Inc., and The Phillips 66 Company.

Global oil refining market, by region

The Asia-Pacific oil refining market accounted for a major market share in 2020, owing to rising demand for petroleum products favored by rapid industrialization. Growing concern to reduce the import dependency on oil producing countries, such as Saudi Arabia, Iraq, and Iran, and on developed economies, such as the U.S., is expected to propel the growth of the market across the region. According to bp Statistical Review of World Energy 2021, in 2019, Asia-Pacific oil refining throughput was 30.3 million barrels per day as compared to 29.7 million barrels per day in 2018, thereby registering a growth in production output by 1.9%. However, in 2020, lockdown impositions in major cities and economies amid COVID-19 outbreak resulted in most of the industries around the world halting their production. This has further resulted in a reduction of oil demand around the world. Attributed to this, oil refining activities across the region have been slowed down, resulting in decline in throughput of refined oil by 5.3% as compared to 2019. 

Oil Refining Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit an CAGR of 6.0% during 2021-2030

Global oil refining market, by complexity type

The deep conversion segment accounted for a major share in the oil refining market in 2020, owing to introduction of several regulations pertaining to product quality specifications that fuel the business growth. For instance, according to International Maritime Organization (IMO), from January 2020, fuel oil used on ship boards should not consist of more than 0.50% m/m (mass by mass) of sulfur.

Oil Refining Market
By Complexity Type
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Deep Conversion is projected as the most lucrative segment.

Global oil refining market, by product type

The light distillates segment accounted for a major share in the oil refining market in 2020 owing to surge in demand for gasoline from transportation industry. Rapid industrialization coupled with growing urbanization across the developing economies has led to surge in demand for gasoline driven vehicles owing to which the demand for light distillates is anticipate to surge during the forecast period.

Oil Refining Market
By Product Type
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Light Distillates is projected as the most lucrative segment.

Global oil refining market, by fuel type

The gasoline segment accounted for a major market share in 2020 due to its lower price along with increasing number of global fleet of passenger vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global passenger car fleet was increased from 39.8 million in 1999 to 55.8 million in 2020, thereby registering a growth in the production by 40.2%. Attributed to this, the demand for gasoline across the globe has been surged significantly, which is expected to drive the oil refining market growth.

Oil Refining Market
By Fuel Type
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Gasoil is projected as the most lucrative segment.

Global oil refining market, by application

The transportation segment accounted for a major oil refining market share in 2020, owing to growing demand for passenger and commercial vehicles across the globe. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global vehicle (passenger & commercial) fleet was increased from 56.3 million in 1999 to 77.6 million in 2020, thereby registering a growth in the production by 37.8%. Attributed to this, the demand for gasoline and gasoil across the globe has been surged significantly, which is expected to drive the growth of the market.

Oil Refining Market
By Application
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Transportation is projected as the most lucrative segment.

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 benefits for stakeholders

  • The global oil refining market analysis covers in-depth information of major industry participants.
  • Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • Major countries have been mapped according to their individual revenue contribution to the regional market.
  • The report provides in-depth analysis of the global oil refining market forecast for the period 2021–2030.
  • The report outlines the current global oil refining market trends and future scenario of the global oil refining market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets. 
  • Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global oil refining market study.

Key market segments

By Complexity Type

  • Topping
  • Hydro-Skimming
  • Conversion
  • Deep Conversion

By Product Type

  • Light Distillates
  • Middle Distillates
  • Fuel Oil
  • Others

By Fuel Type

  • Gasoline
  • Gasoil
  • Kerosene
  • LPG
  • Others

By Application

  • Transportation
  • Aviation
  • Marine Bunker
  • Petrochemical
  • Residential & Commercial
  • Agriculture
  • Electricity
  • Rail & Domestic Waterways
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • Netherland
    • Russia
    • UK
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • Singapore
    • Indonesia
    • Rest of Asia-Pacific
  • LAMEA
    • Brazil 
    • Argentina
    • Venezuela
    • Saudi Arabia
    • Iran
    • Iraq
    • UAE
    • Kuwait
    • Algeria
    • Egypt
    • Nigeria
    • South Africa
    • Rest of LAMEA

Oil Refining Market Report Highlights

Aspects Details
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By Complexity Type
  • Topping
  • Hydro-Skimming
  • Conversion
  • Deep Conversion
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By Product Type
  • Light Distillates
  • Middle Distillates
  • Fuel Oil
  • Others
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By Fuel Type
  • Gasoline
  • Gasoil
  • Kerosene
  • LPG
  • Others
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By Application
  • Transportation
  • Aviation
  • Marine Bunker
  • Petrochemical
  • Residential & Commercial
  • Agriculture
  • Electricity
  • Rail & Domestic Waterways
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

PJSC LUKOIL OIL COMPANY, CHINA NATIONAL PETROLEUM CORPORATION, BHARAT PETROLEUM CORPORATION LIMITED, INDIAN OIL CORPORATION LIMITED, CHEVRON CORPORATION, HINDUSTAN PETROLEUM CORPORATION LIMITED, BP PLC, .RELIANCE INDUSTRIES LIMITED, PETROLEOS DE VENEZUELA, S.A., MARATHON PETROLEUM CORPORATION, .ROYAL DUTCH SHELL PLC, EXXONMOBIL CORPORATION

Analyst Review

The global oil refining market is anticipated to witness growth during the forecast period, driven by rising demand for petroleum products favored by rapid industrialization. Growing concern to reduce the import dependency on oil producing countries, such as Saudi Arabia, Iraq, and Iran, and on developed economies, such as the U.S., is likely to propel the growth of the oil refining market across the region.

The major factors driving the growth of the oil refining market are positive outlook toward expansion of refinery facilities to meet the growing demand for gasoline, gasoil, jet fuel, and LPG across the globe. In addition, regulations pertaining to sulfur emissions are also anticipated to drive the market growth. For instance, MARPOL introduced International regulatory regime to limit the air borne emission from ships. According to the regulation from 1st January 2015, the maximum sulfur content in marine fuels within emission control area is to be restricted at 0.10% by weight. Moreover, growing adoption of petroleum fired electricity generation facilities is expected to surge the demand for liquid fuels, which eventually will drive the market growth in near future.

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.

Author Name(s) : Anil Chaudhary | Eswara Prasad
Frequently Asked Questions?

Business expansion, agreement, and acquisition are the key growth strategies of oil refining market players.

Transportation, aviation, marine bunker, petrochemical, and power generation industries are the potential customers of oil refining industry.

To get latest version of oil refining market report can be obtained on demand from the website.

Increasing investment toward construction, expansion & upgradation of refineries to fulfill the growing petroleum product demand and to reduce the dependence on imported refined petroleum products are the emerging trends in the oil refining market. In addition, digitalization and technological development of physical elements of oil refineries are also likley to provide growth opportunity for the oil refining market during the forecast period.

Asia-Pacific region will provide more business opportunities for oil refining market in coming years.

The top ten market players are selected based on two key attributes - competitive strength and market positioning

Positive outlook toward expansion of refinery facilities, Regulations pertaining to sulfur emissions, Increasing demand for refined products, Impact of shale gas, and ongoing expenditure toward O&G infrastructure are the key factors driving the phthalic oil refining market growth.

Reliance Industries Limited, Sinopec Corporation, China National Petroleum Corporation, Saudi Arabian Oil Company (Saudi Aramco), Royal Dutch Shell Plc, BP Plc, ExxonMobil Corporation, TotalEnergies SE, 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 are the leading players in oil refining market.

Gasoline, tansportation, light distillates, and deep conversion segments holds the maximum share of the oil refining market.

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.

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Oil Refining Market

Global Opportunity Analysis and Industry Forecast, 2021-2030