Ethylene is an important petrochemical used as a building block in the manufacturing of various products. It is used to make important plastics and polymers such as polyethylene, ethylene glycol, ethylene oxide, Vinyl Acetate Monomer and others. Ethylene finds wide usage in packaging industry, construction sector, automotive industry for manufacturing interior and exterior parts of vehicles. The growing demand from packaging industry for manufacturing flexible packaging, food packaging is expected to drive the growth of global ethylene market.
The Global ethylene market is estimated to be valued at US$ 342.94 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the global ethylene market are Saudi Basic Industries Corporation (SABIC), Exxon Mobil Corporation, The Dow Chemical Company, Royal Dutch Shell plc, China Petroleum & Chemical Corporation (Sinopec Corporation), Chevron Phillips Chemical Company LLC, Total S.A., LyondellBasell Industries, National Petrochemical Company (NPC), and INEOS Group AG. These players are focusing on capacity expansion and backward integration strategies to gain major revenue share in the market.
There lies tremendous Global Ethylene Market Share opportunities in the packaging industry for ethylene and its derivatives such as low density polyethylene, linear low density polyethylene owing to increasing demand for flexible packaging, food packaging. The construction industry continues to grow exponentially in emerging economies of Asia Pacific and Middle East regions creating demand for ethylene and its polymers used in piping solutions, insulation etc.
The leading ethylene manufacturers are actively expanding their production facilities in global markets through partnerships, acquisitions and greenfield projects. For instance, ExxonMobil is expanding its ethylene production capacity in Baytown, Texas and Beaumont, Texas. Saudi Aramco is constructing an ethylene export facility along with SABIC in Saudi Arabia.
Market drivers:
- Growing demand from packaging industry: The packaging industry is the major end-use sector of ethylene where it is used to manufacture important polymers for flexible packaging, food packaging, containers etc. The rising demand for packaged and processed food will drive the ethylene market.
- Infrastructure growth in emerging economies: Countries like India, China, Indonesia are witnessing robust infrastructure growth which will augment the demand for construction materials like pipes, wires/cables, insulation where ethylene polymers are used.
Market restraints:
- Fluctuating crude oil and naphtha prices: Ethylene production is dependent on crude oil and naphtha as raw materials. Fluctuating prices of these feedstocks can negatively impact the production cost of ethylene.
- Stringent environment regulations: The manufacturing of ethylene involves emission of greenhouse gases. Stringent environment protection laws related to emission standards can restrain the market growth.
Segment Analysis
The global ethylene market is dominated by the polyethylene sub segment which has a market share of over 50%. Polyethylene is used widely in the plastic industry for manufacturing of bottles, containers and pipes. Its demand is rising mainly due to increasing use of plastics in packaging and construction industries globally.
The other major sub segments in the market include ethylene oxide, ethylene glycol, ethylene dichloride and others. Among these, ethylene oxide accounts for around 20% share due to its use in producing ethylene glycol and surfactants which are used in manufacturing detergents, solvents and adhesives.
Regional Analysis
The Asia Pacific region dominates the global ethylene market with over 40% share. China contributes significantly to the region being one of the largest producers and consumers of ethylene globally. Presence of large plastics and chemicals industry in China drives the growth of the market. North America is the second largest market owing to well established petrochemical industry and demand from end use industries such as packaging and construction in the US. The MEA region is expected to witness fastest growth during the forecast period due to rising production capacities of ethylene and its derivatives in theMiddle Eastern countries including Saudi Arabia and UAE.
Gets More Insights on: Global Ethylene Market
Comments
0 comment