In 2024, the Azerbaijani crude oil market increased by 18% to $7.1B, rising for the fourth year in a row after two years of decline. Overall, consumption, however, recorded a abrupt contraction. Over the period under review, the market reached the maximum level at $13.2B in 2012; however, from 2013 to 2024, consumption failed to regain momentum.

The size of the Azerbaijan Oil and Gas Upstream Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 1.50">> 1.50% during the forecast period. The upstream oil and gas sector in Azerbaijan plays a vital role in the nation's energy framework, significantly shaping its economic and geopolitical dynamics. Situated in the Caspian Sea region, Azerbaijan possesses extensive hydrocarbon resources, highlighted by prominent oil fields such as Azeri-Chirag-Gunashli and the Shah Deniz gas field. These resources establish Azerbaijan as a significant contributor to the global energy landscape, drawing substantial investments from international oil firms and consortiums. The upstream industry benefits from cutting-edge extraction technologies and a well-developed infrastructure, including pipelines and offshore platforms, which enhance exploration and production efficiency. The Azerbaijani government has cultivated a conducive investment environment through appealing fiscal policies and a stable regulatory framework, encouraging foreign direct investment and collaborative ventures. Nevertheless, the sector encounters challenges, including geopolitical tensions, volatile oil prices, and environmental issues. In spite of these obstacles, Azerbaijan remains dedicated to improving its upstream capabilities and increasing its presence in global energy markets. The government's strategic emphasis on energy diversification and infrastructure projects, such as the Southern Gas Corridor, highlights its commitment to fully leveraging its oil and gas assets. In summary, Azerbaijan's upstream oil and gas market is resilient and essential to the nation's economic progress and regional energy stability. Key drivers for this market are: 4., Increasing Demand for Wood Pellets in Clean Energy Generation4.; Growing Wood Pellet Manufacturing Infrastructure. Potential restraints include: 4., The Adoption and Increasing Deployment of Alternative Renewable Energy. Notable trends are: Offshore Segment to Dominate the Market.

In 2024, the Azerbaijani market for crude oil and processed petroleum increased by 16% to $10.7B, rising for the fourth year in a row after two years of decline. In general, consumption, however, showed a pronounced shrinkage. Crude oil and processed petroleum consumption peaked at $16.5B in 2012; however, from 2013 to 2024, consumption failed to regain momentum.

The Azerbaijan Oil & Gas Downstream Industry is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 1.21% from 2025 to 2033. While the exact market size in 2025 is not provided, considering the industry's established presence and ongoing investments in refinery modernization and petrochemical expansion within Azerbaijan, a reasonable estimate for the 2025 market size would be around $5 billion. This figure is derived from considering comparable economies with similar downstream sectors and applying the provided CAGR to create a plausible projection. Key drivers include increasing domestic energy demand fueled by population growth and industrialization, alongside strategic government initiatives aimed at diversifying the economy beyond reliance on solely upstream activities. Furthermore, the expansion of regional export markets and the strategic location of Azerbaijan as a transit point for Caspian Sea resources contribute significantly to this positive growth trajectory. However, challenges remain, including reliance on aging infrastructure, environmental concerns related to emissions, and global energy price volatility. The industry is segmented across various downstream activities such as refining, petrochemicals, and marketing & distribution. Major players like TotalEnergies, TechnipFMC, KBR, SOCAR (State Oil Company of the Azerbaijan Republic), and Shell are actively involved, driving technological advancements and influencing market dynamics. The forecast period (2025-2033) anticipates continued growth, although potential restraints like geopolitical instability and fluctuating global crude oil prices could influence the overall trajectory. Strategic investments in sustainable and environmentally responsible practices within the downstream sector will be crucial for long-term, sustainable growth and ensuring competitiveness in the global market. This growth narrative underscores the substantial opportunities and challenges that characterize the Azerbaijan Oil & Gas Downstream Industry. Key drivers for this market are: 4., Growing Electricity Generation along with Energy Consumption Demand4.8.; Increasing adoption of Renewable Energy. Potential restraints include: 4., Phasing out of Coal-Based Power Plants. Notable trends are: Petrochemicals Plants is Expected to Witness Growth.

Graph and download economic data for Non-Oil Real GDP Growth in Constant Prices for Azerbaijan (AZENGDPXORPCHPT) from 2000 to 2025 about Azerbaijan, non-oil, REO, real, GDP, and rate.

The Azerbaijani crude soybean oil market surged to $4M in 2024, growing by 73% against the previous year. Over the period under review, consumption continues to indicate a modest expansion. Over the period under review, the market attained the peak level in 2024 and is likely to see steady growth in the immediate term.

In 2024, the Azerbaijani virgin olive oil market decreased by -17.5% to $2.8M, falling for the second consecutive year after two years of growth. In general, consumption recorded a mild descent. Over the period under review, the market reached the maximum level at $6.2M in 2017; however, from 2018 to 2024, consumption remained at a lower figure.

The Azerbaijani crude palm oil market surged to $82M in 2024, picking up by 57% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption enjoyed buoyant growth. As a result, consumption reached the peak level of $116M. From 2023 to 2024, the growth of the market remained at a lower figure.

The size of the Central Asia Oil and Gas Midstream Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 3.00">> 3.00% during the forecast period. The midstream sector of the oil and gas industry in Central Asia represents a pivotal component of the region's energy landscape, involving the transportation, storage, and processing of hydrocarbons from extraction sites to consumers. This sector is essential for linking the rich oil and gas reserves of Central Asia—particularly in nations such as Kazakhstan, Turkmenistan, and Uzbekistan—with international markets. The region's advantageous geographical position, serving as a bridge between Europe and Asia, further amplifies its significance within the global energy supply framework. Critical infrastructure, including pipelines, storage facilities, and export terminals, is vital for the effective movement of hydrocarbons over extensive distances while addressing geopolitical complexities. Recent trends in the Central Asia midstream sector indicate a surge in investments aimed at infrastructure development, such as pipeline expansions and the establishment of new routes to diversify export channels and mitigate reliance on any single market. Notable projects, including the Trans-Caspian Pipeline and various enhancements to existing pipelines, are designed to improve connectivity and bolster the region's economic advancement. Nevertheless, the sector encounters obstacles such as geopolitical strife, volatile global oil prices, and environmental issues. Striking a balance between economic advantages and sustainable practices, along with fostering regional collaboration, will be essential for the ongoing development and stability of the oil and gas midstream market in Central Asia. Recent developments include: August 2022: Kazakhstan aimed to sell some of its crude oil through Azerbaijan's most extensive oil pipeline. Kazakhstan is seeking alternatives to a route Russia has threatened to shut., August 2022: KazMunayGas (KMG) oil and gas company sought to develop bilateral cooperation with Azerbaijan's SOCAR energy company in connection to the trans-Caspian infrastructure development. SOCAR deals with exploring oil and gas fields in the Caspian Sea., September 2021: The State Oil Company of Azerbaijan (SOCAR) and the Swiss-Dutch company, Vitol Group, agreed to transport about 1 million tons of Turkmen oil annually via the Baku-Tbilisi-Ceyhan oil trunk pipeline (abbreviated as BTC). SOCAR transports Turkmen oil across the Caspian Sea by tankers. The length of the BTC pipeline is 1,768 kilometers. The oil pipeline passes through the territory of three countries - Azerbaijan (443 km), Georgia (249 km), and Turkey (1076 km).. Key drivers for this market are: 4., Increasing Demand from Industrial Applications4.; Growing Infrastructure Across the World. Potential restraints include: 4., A Rise In Concerns Related To Carbon Emissions And A Shift Towards Electric Vehicles And Renewable Sources Of Energy. Notable trends are: Transportation Sector to Dominate the Market.

The Azerbaijani crude rapeseed oil market fell markedly to $69K in 2024, reducing by -17.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, showed prominent growth.

The renewable energy market in Azerbaijan is poised for significant growth, driven by the government's ambitious targets for energy diversification and decarbonization. While precise market figures for Azerbaijan are not provided, we can infer substantial potential based on regional trends and the country's commitment to sustainable energy. Factors such as increasing energy demand, limited fossil fuel resources, and the global push towards renewable energy sources are key drivers. The country's geographical location, with access to wind and solar resources, presents opportunities for wind and solar power generation, while the potential for hydroelectricity remains a significant component of the energy mix. However, challenges like the initial high capital investment required for renewable energy projects, grid infrastructure limitations, and policy uncertainties could hinder rapid market expansion. Nevertheless, government initiatives to attract foreign investment, coupled with falling technology costs, suggest a trajectory of robust growth in the renewable energy sector in Azerbaijan. The involvement of international players like ACWA Power and Masdar further indicates the market's attractiveness and the potential for large-scale projects. We expect to see a shift in the market share towards solar and wind energy, as these technologies become increasingly cost-competitive and technologically advanced. Hydropower, while established, will likely maintain a significant share due to existing infrastructure and further potential developments. Over the forecast period (2025-2033), the Azerbaijani renewable energy market is anticipated to experience a compound annual growth rate (CAGR) in line with regional averages, possibly exceeding 3.4% given the nation's proactive policies. This growth will likely be driven by both utility-scale projects and distributed generation, reflecting increasing adoption of renewable energy solutions across various sectors. Government support mechanisms, including subsidies and tax incentives, are likely to be crucial for accelerating this transition and attracting further investments. A detailed analysis of specific segments (solar, wind, hydro) requires access to more granular market data specific to Azerbaijan, but overall, the outlook for renewable energy in Azerbaijan is positive, with significant expansion expected in the coming years. Recent developments include: February 2023: ACWA Power signed three implementation agreements with Azerbaijan's Ministry of Energy and a cooperation agreement with the State Oil Company of the Azerbaijan Republic (SOCAR) to develop new renewable projects in the country. The agreements signed comprise the development by ACWA Power of 1.5 GW of offshore wind and 1 GW of onshore wind, as well as the development of a battery energy storage system (BESS) and the development of green hydrogen in the country., August 2022: The Asian Development Bank (ADB) and Masdar Azerbaijan Energy Limited Liability Company (MAE) signed a USD 21.4 million loan agreement to finance Masdar's 230-megawatt (MW) solar power plant near the Alat settlement in Azerbaijan.. Notable trends are: Hydropower to Dominate the Market.

In 2023, the Azerbaijani tall oil market increased by 1.8% to $1.6K, rising for the fourth year in a row after two years of decline. Over the period under review, consumption, however, showed a deep downturn. Over the period under review, the market reached the maximum level at $4.2K in 2012; however, from 2013 to 2023, consumption stood at a somewhat lower figure.

The Central Asia oil and gas midstream market, encompassing transportation, storage, and terminals across Kazakhstan, Tajikistan, Turkmenistan, and the rest of the region, presents a significant growth opportunity. Driven by increasing domestic energy demand fueled by industrialization and population growth, coupled with the region's strategic geopolitical location and existing export pipelines, the market is projected to experience a Compound Annual Growth Rate (CAGR) exceeding 3% from 2025 to 2033. Kazakhstan, with its established oil and gas infrastructure and significant reserves, constitutes the largest market segment. However, neighboring countries like Turkmenistan, possessing substantial natural gas reserves, are also poised for considerable growth, particularly as regional infrastructure development improves and facilitates increased export capacity. While investments in pipeline expansion and modernization are key drivers, challenges remain, including geopolitical instability, the need for infrastructure upgrades to handle increasing volumes, and the potential impact of fluctuating global energy prices. Furthermore, environmental concerns and the push towards cleaner energy sources might influence long-term market trajectory. The leading companies in this market, including international giants like Chevron and Shell alongside state-owned enterprises such as KazMunayGas and QazaqGaz, are likely to continue shaping its future through strategic investments and operational improvements. The market's growth will depend on balancing the need for reliable energy infrastructure with sustainable development practices. This dynamic market landscape is characterized by a complex interplay of factors. International collaborations are crucial for unlocking the full potential of the region's energy resources, and the success of individual players hinges on adaptability and strategic foresight. Furthermore, government policies, particularly regarding foreign investment and regulatory frameworks, significantly impact market expansion. The ongoing focus on energy security within Central Asia also drives the development of robust and efficient midstream infrastructure. While the existing infrastructure forms the backbone of the market, future growth hinges upon continuous upgrades, diversification of transport routes, and strategic alliances between national and international companies. The market's future trajectory will largely depend on the successful navigation of geopolitical complexities and the effective implementation of sustainable energy strategies. Recent developments include: August 2022: Kazakhstan aimed to sell some of its crude oil through Azerbaijan's most extensive oil pipeline. Kazakhstan is seeking alternatives to a route Russia has threatened to shut., August 2022: KazMunayGas (KMG) oil and gas company sought to develop bilateral cooperation with Azerbaijan's SOCAR energy company in connection to the trans-Caspian infrastructure development. SOCAR deals with exploring oil and gas fields in the Caspian Sea., September 2021: The State Oil Company of Azerbaijan (SOCAR) and the Swiss-Dutch company, Vitol Group, agreed to transport about 1 million tons of Turkmen oil annually via the Baku-Tbilisi-Ceyhan oil trunk pipeline (abbreviated as BTC). SOCAR transports Turkmen oil across the Caspian Sea by tankers. The length of the BTC pipeline is 1,768 kilometers. The oil pipeline passes through the territory of three countries - Azerbaijan (443 km), Georgia (249 km), and Turkey (1076 km).. Notable trends are: Transportation Sector to Dominate the Market.

The Azerbaijani market for processed petroleum oils and distillates expanded rapidly to $3.7B in 2024, with an increase of 11% against the previous year. In general, consumption continues to indicate a relatively flat trend pattern. Over the period under review, the market reached the peak level in 2024 and is expected to retain growth in years to come.

In 2024, the Azerbaijani refined olive oil market increased by 15% to $106M, rising for the third year in a row after two years of decline. Overall, the total consumption indicated a measured increase from 2012 to 2024: its value increased at an average annual rate of +2.9% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption increased by +36.6% against 2021 indices.

In 2024, the Azerbaijani cotton-seed oil market decreased by -24.4% to $1.7M for the first time since 2020, thus ending a three-year rising trend. Over the period under review, consumption showed a perceptible contraction. Cotton-seed oil consumption peaked at $2.2M in 2012; however, from 2013 to 2024, consumption failed to regain momentum.

In 2024, after two years of growth, there was significant decline in the Azerbaijani sesame oil market, when its value decreased by -55.7% to $11K. Over the period under review, consumption, however, posted significant growth. Sesame oil consumption peaked at $24K in 2023, and then dropped sharply in the following year.

In 2024, the Azerbaijani maize oil market decreased by -6.2% to $41M, falling for the second year in a row after four years of growth. In general, consumption, however, showed a pronounced curtailment. Over the period under review, the market hit record highs at $63M in 2012; however, from 2013 to 2024, consumption remained at a lower figure.

The Azerbaijani oil crops market dropped slightly to $154M in 2024, which is down by -3.4% against the previous year. Over the period under review, consumption, however, showed resilient growth. Oil crops consumption peaked at $176M in 2021; however, from 2022 to 2024, consumption failed to regain momentum.

In 2024, the Azerbaijani refined maize oil market decreased by -6.9% to $36M, falling for the second year in a row after two years of growth. Overall, consumption continues to indicate a noticeable decrease. Over the period under review, the market attained the peak level at $53M in 2012; however, from 2013 to 2024, consumption remained at a lower figure.