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, also known as petcoke, is a carbonaceous solid derived from oil refinery coker units or other cracking processes. It is one of the main by-products of the oil refining process. There are two major types of petcoke—fuel-grade petcoke and calcined petcoke. Fuel-grade petcoke is used as a fuel in power plants, cement kilns, and other industrial applications that require a low-cost solid fuel. Calcined petcoke is obtained by calcining raw petcoke in a high-temperature furnace to increase the carbon content and remove moisture and volatile matter. Calcined petcoke is mainly used to make carbon anodes used in the aluminum and steel industries.
Market Dynamics:
The petroleum coke market is expected to grow at a significant rate owing to increasing use of petcoke in manufacturing process of carbon products like calcined petcoke and fuel-grade petcoke. Calcined petcoke finds major application in production of carbon anodes used in aluminum smelting and other metallurgical processes. The growing aluminum industry globally is augmenting the demand for calcined petcoke. According to World Bank, the global aluminum production increased from 63.1 million tons in 2015 to 65.9 million tons in 2020. Another factor fueling the growth of petcoke market is increasing consumption of fuel-grade petcoke in energy intensive industries like cement, steel and power generation as a cost-effective substitute for coal. According to International Energy Agency (IEA), global energy demand is projected to grow by 50% between 2018 and 2050, largely driven by emerging economies.
SWOT Analysis
Strength: Petcoke is a by-product of oil refining and is readily available near refineries, reducing transportation costs. It has higher energy content than coal, making it suitable for industries requiring high heat. Several countries are increasing petcoke imports to meet their growing energy needs.
Weakness: Being a by-product, petcoke production depends on crude oil refining. Volatile crude oil prices affect its availability. Strict environmental regulations restrict its use in some countries due to emissions on combustion.
Opportunity: Developing nations in Asia Pacific and Middle East & Africa are witnessing rapid industrialization and power sector expansion, driving the demand for inexpensive fuel. Up gradation of refineries is expected to boost petcoke output.
Threats: Stringent emission norms by regulatory bodies to curb air pollution may limit petcoke usage in the long run. Substitution threat from alternatives like coal with carbon capture technology.
Key Takeaways
The Global Petroleum Coke (Petcoke) Market Share is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand for affordable fuel from the power and cement industries.
Regional analysis: Asia Pacific dominates the global petcoke market, accounting for over 35% share in 2023. China, India, and other developing Asian countries are major consumers due to their huge coal-fired power sectors and rapid industrialization. Middle East & Africa is projected to be the fastest growing regional market between 2023-2030 on account of substantial refining capacities and rising energy needs in GCC countries.
Key players analysis: Key players operating in the Petroleum Coke (Petcoke) market are 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. The listed petcoke producers are involved in expanding their refining capacities and upgrading units to maximize petcoke production.
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