Oil Refining Market Size, Share, Trends & Forecast | 2031 (2024)

Global Oil Refining Market size was valued at USD 1490.28 billion in 2021 and is poised to grow from USD 1651.27 billion in 2022 to USD 3751.5 billion by 2030, growing at a CAGR of 5% in the forecast period (2023-2030).

Oil refining is the industrial process of transforming and refining crude oil into commercially useful products such as diesel, jet fuel, liquefied petroleum gas, gasoline, asphalt base, and fuel oils, among others. These products are widely used as transportation fuel, electricity generation, heating, and road paving. Oil refining is used to remove impurities in crude oil like phosphatides, colour bodies, tocopherols, hydrocarbons, free fatty acids, odour, as well as to improve the colour of the oil. Distillation is the first and most fundamental step in the refining process, in which crude oil is heated to extremely high temperatures in order to separate various types of hydrocarbons, followed by several other processes such as cracking, reforming, post-treatment, and refining products.

The demand for oil refining is being driven primarily by increased investment in the construction, expansion, and upgrading of refineries in order to meet rising petroleum product demand and TOreduce dependence on imported refined petroleum products. Furthermore, government regulations governing carbon emissions, as well as a positive outlook for the aviation and road transportation sectors, are boosting demand for refined products. therapid industrialization and urbanisation, combined with population growth in developing economies like China and India, resulted in an increase in demand for passenger and commercial vehicles. Because of the growing number of vehicles in these countries, the demand for gasoline and gas oil has increased significantly. As a result, new oil refineries are being built in these countries to meet the growing demand for petroleum and diesel.

US Oil Refining Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global oil refining market is segmented based on the complexity, Product Type and region. Based on complexity, the oil refining market is segmented into topping, conversion, and deep conversion. Based on Product Type, the oil refining market is segmented into light distillates, middle distillates, fuel oil, and others. Based on Region it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Oil Refining Market Analysis by Complexity

Based on complexity, The topping oil refining market is expected to grow rapidly due to its ability to convert larger molecules into smaller ones, resulting in high-value products. Conversion refining is capable of removing residuals from fuel. Stringent regulations governing product quality specifications are expected to drive deep conversion refining.

Oil Refining Market Analysis by Product type

Based on product type, Middle distillates have a shorter carbon chain (with 10-20 carbon atoms) than light distillates and thus dominated the market. Middle distillate oil is widely used in industries such as aviation, power generation, and marine bunkers. The market for light distillates oil refining will expandwith the increasing middle-class population's spending power.

The Asia Pacific oil refining market is expected to expand due to increased demand for petroleum products favoured by rapid industrialization. Furthermore, growing concern about reducing the importdependence on oil-producing countries like Iraq, Saudi Arabia, and Iran, as well as industrialised economies like the United States, is likely to propel market growthacross the region.

The North American oil refining market is expected to grow significantly During the forecast period. Valero Energy, Marathon Petroleum, ExxonMobil, and Phillips 66 are the major North American players expected to drive regional market growth. Marathon Petroleum is the largest refining company in the United StatesWith 16 refineries and a crude oil capacity of around 2.9 million barrels per day.

Oil Refining Market Drivers

Rising Demand of Oil in Numerous Industries to Bolster Market Growth

• The rapid demand for oil in various industrial sectors such as aviation, petrochemicals, transportation, agriculture, electricity, marine bunkers, and others, as well as increasing urbanisation and a rapidly expanding population, are driving revenue growth in the global oil refining market. Furthermore, rising industrial investment, rising disposable income in certain developing countries, rising demand for lighter and refined petroleum products, and increased investments in research and development activities are expected to support market growth throughout the forecast period.

Oil Refining Market Restraints

Availability of Alternatives in the Market to Hinder Demand

• The market growth is hampered by several unfavourable factors, including rising demand for clean fuel, natural gas, a lack of sufficient funds, rising adoption of electric vehicles globally, and project delays. Moreover, the oil refining market is restricted by a lack of investments in the oil and gas sector, the lower margin in the oil prices, delayed project commissioning, land acquisition, and the increasing adoption of electric vehicles in developed and developing countries worldwide.

oil refining market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D.

Oil Refining Market Top Player's Company Profiles

• Royal Dutch Shell
• ExxonMobil Corporation
• China Petroleum & Chemical Corporation (Sinopec)
• BP plc
• Chevron Corporation
• Total SE
• Valero Energy Corporation
• Phillips 66
• Marathon Petroleum Corporation
• Eni SpA
• Petrobras
• ConocoPhillips
• Indian Oil Corporation
• Rosneft
• PTT Public Company Limited
• Gazprom Neft
• SK Innovation Co., Ltd.
• OMV AG
• Reliance Industries Limited
• Abu Dhabi National Oil Company (ADNOC)

Oil Refining Market Recent Developments

• In May 2021, ExxonMobil Corporation’s oil and gas resources in New Mexico was acquired by Empire Petroleum. The assets contain more than 700 wells and 40,000 net acres in acres.

• Emerging trends in the oil refining market include increased investment in refinery building, expansion, and upgrading to satisfy expanding petroleum product demand and reduce dependency on imported refined petroleum products. Moreover, throughout the projected period, the oil refining market is predicted to see development prospects due to digitization and technological advancements in the physical components of oil refineries.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our oil refining market analysis, in terms of complexity, the topping segment held larger market share because of its transforming potentiality and in terms of product type, Middle distillate dominates the market due to its high utilization. Positive outlook for refinery facility expansion, sulphur emission regulations, rising demand for refined products, the impact of shale gas, and ongoing investment in O&G infrastructure are the key factors driving the phthalic oil refining market growth. Moreover, Business expansion, agreement, and acquisition are the key factors of growth strategies of oil refining market players.