The global oil refining market size reached US$ 1,445 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 2,068 Billion by 2028, exhibiting a growth rate (CAGR) of 5.43% during 2023-2028. The growing demand for petroleum products in the commercial and residential sectors, rising employment of commercial fleets or heavy-duty vehicles, and increasing utilization of electricity for operating electronic appliances are some of the major factors propelling the market.
|Oil Refining Market Size in 2022
||US$ 1,445 Billion
|Oil Refining Market Forecast in 2028
||US$ 2,068 Billion
|Oil Refining Market Growth Rate (2023-2028)
Oil refining is the process of transforming crude oil into refined petroleum products, such as gasoline, gasoil, diesel fuel, jet fuel, lubricating oils, and waxes. It involves heating crude oil in a furnace and sending it to a distillation tower, wherein it is separated by boiling points. It is conducted by following various safety measures and preventing the occurrence of the explosion of the distillation tower by excessive production of hydrocarbons. Furthermore, it helps in the production of kerosene, which is an essential fuel for generating heat in the residential and commercial sectors.
At present, the increasing demand for oil refining due to the rising utilization of oil in the transportation sector represents one of the crucial factors impelling the growth of the market. In addition, the growing purchases of passenger cars or spacious personal vehicles to travel comfortably and avoid the usage of public transportation is offering a favorable market outlook. Besides this, rising application of low-viscosity grades of fuel oil in furnaces and boilers of homes and buildings are contributing to the growth of the market. Additionally, the increasing demand for fuel in the aviation sector to operate aircraft is supporting the growth of the market. Apart from this, the rising employment of lubricants in the automotive sector for the smooth functioning of vehicles and minimizing corrosion of vehicular components is bolstering the growth of the market.
Oil Refining Market Trends/Drivers:
Rising demand for petroleum products influencing the market positively
At present, there is an increase in the demand for petroleum products in the transportation sector for powering various types of vehicles. Gasoline, diesel, and petrol are some of the commonly used petroleum products, which are employed for generating power in vehicular motors. Apart from this, petroleum products are utilized as raw materials or feedstock for making plastics. They comprise various components derived from crude oil refining and natural gas processing, which are integrated into the production of synthetic plastics. Furthermore, the rising utilization of petroleum products, such as fuel oil, for heating purposes in the residential and commercial sectors is propelling the growth of the oil refining market.
Increasing energy demands are catalyzing the demand for oil refining
At present, there is an increase in the demand for electricity across residential, industrial, and commercial sectors. Electronic devices, such as refrigerators, vacuum cleaners, air conditioners (ACs), microwaves, and dishwashers, are widely used by residents to carry out various household chores, which is catalyzing the demand for electricity worldwide. Apart from this, industries are heavily investing in the installation of advanced machinery, which is dependent on electricity to improve their operational efficiency and increase their productivity. Furthermore, the growing installation of heating, ventilation, and air conditioning (HVAC) setups in various commercial and residential buildings to improve indoor air quality and maintain pleasant temperatures is propelling the need for fuel oil to generate electricity.
Rising utilization of commercial fleets and heavy-duty vehicles are augmenting market growth
Heavy-duty vehicles comprise trucks, tow trucks, excavators, loaders, flatbed trucks, and tripper lorries, which are primarily employed for various commercial operations. They are widely utilized for long-haul deliveries, bulk transportation, mining and construction work, recovery and transportation of disabled and stranded vehicles, and logistic purposes. They are also used in the e-commerce sector for the transportation and delivery of packages. Apart from this, they are utilized for towing and moving houses. They are required in various construction sites for loading and unloading construction materials and debris. Furthermore, heavy-duty vehicles are primarily dependent on various fuels, such as diesel or petroleum, which are manufactured by the process of oil refining.
Oil Refining Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global oil refining market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on product type, fuel type, complexity type, and end user.
Breakup by Product Type:
- Light Distillates
- Middle Distillates
- Fuel Oil
Middle distillates dominate the oil refining market
The report has provided a detailed breakup and analysis of the oil refining market based on the product type. This includes light distillates, middle distillates, fuel oil, and others. According to the report, middle distillates represented the largest segment.
Middle distillates refer to a wide range of refined components, which result from the separation of crude oil through fraction distillation, between lighter products, such as liquid petroleum gas (LPG) and gasoline, and heavier products, such as fuel oil. They are extracted from the middle section of the distillation column below the light ends. They are widely utilized for heating, lighting, and transportation purposes.
Light distillates refer to the refined oil materials which are produced by fractional distillation at the top section of the distillation tower, above the middle distillates consisting of kerosene, jet fuel, diesel, and other heavier products, such as asphalt, bitumen, lubricating oils, and waxes.
Breakup by Fuel Type:
Gasoline holds the largest share in the market
A detailed breakup and analysis of the oil refining market based on the fuel type has also been provided in the report. This includes gasoline, gas oil, kerosene, LPG, and others. According to the report, gasoline accounted for the largest market share.
Gasoline is a mixture of flammable, volatile, and liquid hydrocarbons extracted from petroleum and used as a fuel for internal-combustion engines. It is also utilized as a solvent for oils and fats. It is highly preferred as an automobile fuel due to its high energy of combustion and capacity to mix air spontaneously in a carburetor. It is produced via distillation by separating the volatile and more valuable fractions of crude petroleum. It is also manufactured by thermal cracking, wherein heat and high pressure are used.
Gasoil is a hydrocarbon oil or a petroleum distillate with an immediate boiling range and viscosity between kerosene and lubricating oil.
Kerosene is a flammable hydrocarbon liquid fuel commonly used as a source of heat, light, and power. It is derived from crude oil through the refining process.
Breakup by Complexity Type:
- Deep Conversion
Deep conversion holds the biggest share in the oil refining market
A detailed breakup and analysis of the oil refining market based on the complexity type has also been provided in the report. This includes topping, hydro-skimming, conversion, and deep conversion. According to the report, deep conversion accounted for the largest market share.
A deep conversion refinery is the last section of refining and an amalgamation of all components of a conversion refinery and an additional unit called the coking unit. It can treat and convert extremely heavy crude oil fractions into lighter products.
Topping refinery is a processing plant with a simple configuration and is constructed primarily for preparing raw materials required for manufacturing petrochemicals and industrial fuels.
Hydro-skimming refineries can produce refined products from little feedstocks as well as high-octane gasoline. They are integrated with hydrotreating and reforming units and can also manufacture naphtha and hydrogen as by-products.
Conversion refineries are refining plants that have all the basic units, along with an olefin conversion plant and coking units.
Breakup by End User:
- Marine Bunker
- Residential and Commercial
Transportation accounts for the largest market share
A detailed breakup and analysis of the oil refining market based on the end user has also been provided in the report. This includes transportation, aviation, marine bunker, petrochemical, residential and commercial, agriculture, and others. According to the report, transportation accounted for the largest market share.
The transportation sector depends on fossil fuels for generating power and operating vehicles. At present, the rising purchase of passenger cars or personal vehicles for traveling comfortably and minimizing the usage of public transport is catalyzing the demand for various types of fuel in the transportation sector. Besides this, the growing utilization of heavy-duty vehicles for long-haul distribution, mining and construction, bulk load transportation, and logistic purposes is propelling the demand for petroleum, diesel, and gasoline.
The aviation industry requires jet fuel, which is primarily derived from crude oil, for operating airplanes. Aviation fuel is manufactured to satisfy the unique requirements of both the engine and airframe of the aircraft.
Maritime vessels utilize bunker fuel, such as white diesel or marine gas oil, stored in the bunker space of the vessel to power their motors.
Breakup by Region:
- North America
- United Kingdom
- Asia Pacific
- South Korea
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest oil refining market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.
Asia Pacific held the biggest market share due to the increasing investments in improving crude oil refining technologies. Besides this, the growing demand for oil to generate electricity and operate heavy machinery in industries is catalyzing the demand for various crude oil and oil refinery products. Moreover, various Southeast Asian countries are commissioning refinery projects to reduce the dependency on imports in the region.
North America is estimated to expand further in this domain due to the increasing purchase of personal cars and heavy-duty vehicles for commercial operations, along with the rising energy demands in the residential and commercial sectors. Furthermore, rising exports of various finished petroleum products are bolstering the growth of the oil refining market.
Due to the rising energy demands around the world and increasing purchases of commercial fleets and personal vehicles, key players are experiencing a massive demand for crude oil. They are also focusing on improving the refining process and optimizing the production of various crude oil products. Leading companies are adopting fluid catalytic cracking techniques and adding ZSM-5 zeolite to the catalysts to increase the yield of propylene. They are also adopting efficient refining processes to manufacture sustainable aviation fuels. Top companies are planning mergers and collaborations with other firms and industries to increase their productivity and sales. They are also focusing on enhancing their infrastructure and increasing their refining capacities to fulfill meet the demand for petroleum around the world.
The report has provided a comprehensive analysis of the competitive landscape in the global oil refining market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Abu Dhabi National Oil Company
- Bharat Petroleum Corporation Limited
- BP p.l.c.
- Chevron Corporation
- China National Petroleum Corporation
- Hindustan Petroleum Corporation Limited (Oil and Natural Gas Corporation)
- Indian Oil Corporation Ltd.
- Marathon Petroleum Corporation
- Petróleos de Venezuela S. A
- PJSC Lukoil Oil Company
- Reliance Industries Limited
- Shell plc
- TotalEnergies SE
- In May 2023, Abu Dhabi National Oil Company announced that its world class low-carbon LNG growth project will move forward in the Al Ruwais Industrial City, Al Dhafrah, Abu Dhabi, as the location offers significant synergies.
- In December 2022, PJSC Lukoil Oil Company completed the reconstruction of various units at its Volgograd refinery, which included the modernization of the CDU-VDU-5 crude distillation unit with a production capacity of 3.5 million tons per year.
- In March 2023, Marathon Petroleum Corporation announced the acquisition of a 49.9% interest in LF Bioenergy from Cresta Fund Management for $50 Million.
Oil Refining Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- Product Type
- Fuel Type
- Complexity Type
- End User
|Product Types Covered
||Light Distillates, Middle Distillates, Fuel Oil, Others
|Fuel Types Covered
||Gasoline, Gasoil, Kerosene, LPG, Others
|Complexity Types Covered
||Topping, Hydro-Skimming, Conversion, Deep Conversion
| End Users Covered
||Transportation, Aviation, Marine Bunker, Petrochemical, Residential and commercial, Agriculture, Others
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||Abu Dhabi National Oil Company, Bharat Petroleum Corporation Limited, BP p.l.c., Chevron Corporation, China National Petroleum Corporation, Hindustan Petroleum Corporation Limited (Oil and Natural Gas Corporation), Indian Oil Corporation Ltd., Marathon Petroleum Corporation, Petróleos de Venezuela S. A, PJSC Lukoil Oil Company, Reliance Industries Limited, Shell plc, TotalEnergies SE, etc.
||10% Free Customization
|Report Price and Purchase Option
||Single User License: US$ 2499
Five User License: US$ 3499
Corporate License: US$ 4499
|Post-Sale Analyst Support
||PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)
Key Questions Answered in This Report:
- How has the global oil refining market performed so far, and how will it perform in the coming years?
- What are the drivers, restraints, and opportunities in the global oil refining market?
- What is the impact of each driver, restraint, and opportunity on the global oil refining market?
- What are the key regional markets?
- Which countries represent the most attractive oil refining market?
- What is the breakup of the market based on the product type?
- Which is the most attractive product type in the oil refining market?
- What is the breakup of the market based on the fuel type?
- Which is the most attractive fuel type in the oil refining market?
- What is the breakup of the market based on the complexity type?
- Which is the most attractive complexity type in the oil refining market?
- What is the breakup of the market based on the end user?
- Which is the most attractive end user in the oil refining market?
- What is the competitive structure of the global oil refining market?
- Who are the key players/companies in the global oil refining market?
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the oil refining market from 2017-2028.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global oil refining market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the oil refining industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.