MARKET OVERVIEW- GLOBAL PETROLEUM PITCH MARKET
The global petroleum pitch market was valued at USD 952.8 Million in 2022 and is projected to grow at a CAGR of 3.42% for the forecast period 2023 to 2029. The global market is estimated and forecasted in terms of revenue (USD Million) generated by the petroleum pitch market.
Petroleum pitch refers to a viscoelastic polymer that can be natural or synthetic. It can be derived from petroleum, and coal tar. Various applications of petroleum pitch include the manufacture of clay pigeons, refractory bricks, and the impregnation of graphite electrodes. The growth of this market is mainly attributed to the increasing demand for aluminium and steel in various end-use industries including the automotive and aerospace industries. Furthermore, a rapid increase in carbon fiber production coupled with infrastructure development observed in emerging economies is expected to offer a lucrative opportunity for the market to grow. Petroleum pitch has better waterproofing capacity, insulating, and anti-corrosion properties, used in construction building materials industries. As a result, they are a significant source of many different carbon compounds, primarily due to thermal changes. Continued research has led to the development of lightweight materials that are robust enough to withstand the physics of high speeds and cost-effective enough to replace steel in mainstream automobiles. One of the new materials investigated was pitch-based carbon fiber. Pitch based-carbon fiber panels made from crude oil are expected to revolutionize the automotive industry, and addressing the aforementioned challenge is among the major factors driving the market.
MARKET DRIVERS
The global petroleum pitch market is driven by increasing demand for pitch-based carbon fibers in the manufacturing sector. Increasing demand for lightweight and high-performance materials in various industries such as aerospace, defence, automotive, wind energy and sporting goods. Additionally, growing awareness of the benefits of using carbon fiber over traditional materials is driving the growth of this market. The pitch-based carbon fibers are attributed with excellent properties such as a wide range of tensile modulus from low modulus (55 GPa) to ultra-high modulus (900 GPa). Apart from that stiffness and high thermal conductivity are unique characteristics of pitch-based carbon fiber. Therefore, they are widely used in the manufacture of aircraft parts and components due to their ability to withstand the extreme conditions encountered during flight operations. In addition, the growing need for fuel-efficient vehicles will also drive the demand for pitch-based carbon fiber during the forecast period. The revived growth in the automotive industry is thus likely to support the generation of revenues from the petroleum pitch product in the coming years. Further, one of the major factors accelerating the global petroleum pitch market is increasing demand for refractory bricks in the construction industry across the globe. For example, according to the Statistics Bureau of Japan the revenue of the refractory brick industry in 2020 was around USD 0.89 Billion, this has increased to USD 0.94 Billion in 2021. Hence refractory bricks driving the market growth.
MARKET OPPORTUNITIES
Rising environmental concerns and stringent government regulations promoted the use of lightweight and environment-friendly materials, resulted in an opportunity to produce lightweight and environment-friendly product pitch-based carbon fibre products. Further one of the major opportunity of the global petroleum pitch market is increasing demand for refractory bricks in construction industry across the globe which are of light weight and convenient to transport
MARKET RESTRAINTS
The key retraining factor hampering the growth of the global petroleum pitch market is the high cost associated with petroleum pitch products. There are a number of cheaper substitute products such as coal tar on the market that can be a better alternative to petroleum pitch. Moreover, the cost of coal tar is relatively lower compared to petroleum pitch. This has resulted in a reluctance among consumers to purchase petroleum pitch products and a shift toward substitute products. Thereby hampering the growth of petroleum pitch market.
MARKET GROWTH CHALLENGES
Health hazards associated with petroleum pitch products are a challenging factor for market growth. Acute or short-term exposure to petroleum pitch is associated with several health effects. For example, petroleum pitch is a phototoxic substance. This means that dermal contact with petroleum in the presence of ultraviolet light (sunlight) can result in a skin reaction similar to excessive sunburn, as well as blistering. Short-term exposure without sunlight can also irritate the skin and cause other skin conditions such as dermatitis and acne. This hampers the growth of the petroleum pitch market. The aforementioned cons of petroleum pitch are expected to challenge the global petroleum pitch market in the foreseen period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global petroleum pitch market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increasing demand for pitch-based carbon fibres in manufacturing sector is expected to witness growth at a specific CAGR from 2023-2029.
PETROLEUM PITCH MARKET SEGMENTAL OVERVIEW
The Global Petroleum Pitch Market consists of different market segments like By Form, Application, and geography.
PETROLEUM PITCH MARKET BY FORM
The Petroleum Pitch market on the basis of form include:
The liquid segment is expected to witness high growth over the estimated time period. Liquid petroleum pitch’s physical and chemical characteristics make it a suitable material for the petroleum asphalt blending components. At high temperatures, the liquid pitch will support combustion and produce vapours that could catch fire if there is air and an ignition source. When subjected to intense heat, closed containers may start blowing up. Due to this factor, the liquid segment is expected to dominate the market over the forecast period.
PETROLEUM PITCH MARKET BY APPLICATION
The Petroleum Pitch market on the basis of application include:
- Graphite Electrode
- Road Surface Sealing
- Insulation
- Refractory Bricks
- Others
Based on application, petroleum pitch is used for the production of refractory bricks, clay pigeons, and as an impregnation pitch for graphite electrodes. Graphite electrodes serve to transfer the electrical energy from the power supply to the steel melting in the EAF bath. They are typically made using premium petroleum needle coke, coal tar pitch, and some additives. Petroleum pitch is an alternative and supplement to coal tar pitch. It’s PAH level is up to 10 times lower than coal tar pitch. It offers a key advantage without a considerable lowering of the carbon content. Therefore, petroleum pitch is considered a suitable material in the production of graphite electrode. This is a key factor due to which, graphite electrodes segment is expected to witness significant growth over the forecast period.
PETROLEUM PITCH MARKET BY GEOGRAPHY
The Petroleum Pitch market is studied for the following region:
- North America
- Europe
- Asia-Pacific
- Rest of the World (ROW)
For the petroleum pitch market, Asia Pacific is expected to witness the largest share in the petroleum pitch market. Asia Pacific accounted for the largest market share due to the growing demand for aluminium for the growing aerospace, automotive, and aerospace industries. In addition, the region is the largest automotive industry and the largest share of the aluminium market due to significant industrial development. Also, factors such as increased population create increased demand for adequate mobility, which in turn creates market opportunities.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL PETROLEUM PITCH MARKET
Axiom MRC provides a 360-degree analysis of the micro and macro-economic factors of the petroleum pitch market. The report included an exclusive analysis of the impact of COVID-19. In addition, the report also studied a complete analysis of changes in the global petroleum pitch market, spending, and economic and international policies on the supply and demand side. The coronavirus has affected almost every industry on a global level, and these impacts are going to stay for which includes automobile sector as well. Since, the production and sale of automotive industry has reduced during in global level, for instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), automotive industry saw a marked decline of almost 5% in world auto production, which ended 10 years of growth. Moreover, in India and various parts of Europe as well, oil refineries remained closed in the initial phase of lockdown, and production from global companies dropped during the health crisis, which has majorly affected the market share for petroleum pitch.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the petroleum pitch market is primarily focused on expanding the global growth of the petroleum pitch market through new form innovation, business expansion, and the increasing presence of a range of manufacturers operating in the petroleum pitch market has led to growing demand for the market.
The key players studied in the market are
- Fuji Oil Europe (Japan)
- NMGK Group (United States)
- Lone Star Specialities, LLC (United States)
- Himadri Special Company (India)
- Mitsubishi Chemical Corporation (Japan)
