Global Ethylene Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2022-2028: Increasing demand for polyethylene products, rising demand of polyethylene for packaging, and growing production of bio-based polyethylene are some of the major factors driving the growth of the Global Ethylene Market.
The Global Ethylene Market is valued at USD 122.85 Billion in 2021 and is expected to reach USD 238.95 Billion by 2028 with a CAGR of 9.97% over the forecast period.
Ethylene (H2C=CH2) is a flammable colorless gas derived from petroleum that is widely used as a feedstock in the production of fibers, plastics, and other organic chemicals. It is one of the most widely used petrochemical diversified portfolios and its consumption is sensitive to both energy and economic cycles. This is further developed into various compounds, which in turn are developed into many household and other products. Examples of ethylene and its derivatives include polyethylene, ethylene oxide, ethylene dichloride, and styrene. The synthesis of polyethylene will account for the most significant share of ethylene consumption, followed by ethylene oxide and ethylene dichloride.
The COVID-19 pandemic has shown a negative impact on the growth of the global ethylene market. The COVID-19 pandemic has limited the market growth for the product due to the complete lockdown of manufacturing facilities and trade restrictions across the world. Moreover, the global economic slowdown and the decline in product demand have negatively affected the market's growth. Industries such as packaging, construction, automotive, textiles, materials, and consumer goods that depend heavily on ethylene were hit hard by the pandemic. Due to this, the demand for ethylene in the market also decreased. However, among businesses, the detergent and sanitizer manufacturing unit has managed to maintain a semblance of profitability in the market.
The global ethylene market is segmented on the source, feedstock, application, end-user, region & country level. Based on source, the global ethylene market is segmented into hydrocarbon steam cracking, coal, and natural gas. By feedstock, the global ethylene market is segmented into butane, propane, naphtha, ethane, and others. By application, the global ethylene market is segmented into ethylene dichloride, polyethylene, ethylbenzene, ethylene oxide, and others. By end-user, the global ethylene market is segmented into agrochemicals, building & construction, textiles, automotive, packaging, and others.
The regions covered in the global ethylene market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global ethylene is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.
Some major key players for the global ethylene market report cover prominent players like -
One of the major factors in the growth of the ethylene market is the increasing demand for polyethylene products. Ethylene is primarily used in polyethylene products such as low-density polyethylene (LDPE), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). Due to the increasing demand for plastics worldwide, the market for polyethylene has grown significantly. The high penetration of plastics in electronic products and lightweight products in vehicles has increased the use of plastics. For instance, according to the American Chemistry Council, on August 26th, 2022, U.S. production of major plastic resins totalled 8.1 billion pounds in July 2022. Players in the ethylene market are benefiting greatly due to the growing demand for polyethylene products in many different markets. These factors driving the adoption of polyethylene affected the growth of the ethylene market.
Additionally, increasing demand for polyethylene for packaging is fuelling the growth of the ethylene market. The demand for products is expected to increase in the coming years due to the increasing demand for packaged goods and the changing lifestyle of consumers. This product is also used for medical and surgical equipment and supplies, gas purification and disinfection of unsaturated polyester resins, polyurethane, solvents, antifreeze, and other products. Rising demand for linear low-density polyethylene (LLDPE) due to its high tensile strength and puncture resistance in sectors including food and pharmaceutical packaging is driving the market revenue. Market monitoring by Brandessence found that one trillion single-use plastic bags are used worldwide each year, about 2 million every minute. The increasing demand for polyethylene bags for packaging across the world is driving the ethylene market.
Moreover, the growing production of bio-based polyethylene is also supplementing the ethylene market's growth. For instance, as per the news published, on September 9th, 2021, Braskem signed a memorandum of understanding (MOU) with SCG Chemicals for joint investment in bio-based ethylene production to produce bio-based polyethylene. Therefore, many products in bio-based polyethylene promote the growth of the ethylene market for the forecast period.
However, volatility in feedstock costs associated with ethylene may hinder the growth of the global ethylene market. Despite that, increasing demand for ethylene in the form of polyethylene and polyvinyl chloride from the packaging industry may create more opportunities in the global ethylene market.
Geographically, Asia-Pacific holds a significant share of the global ethylene market, owing to rising demand for ethylene-based derivatives from end-use industries such as packaging, automotive, and construction, as well as rising demand for PE from the plastics industry. Increasing demand from end-use industries such as packaging, automotives, and construction for ethylene-based derivatives is driving the growth of the market. For example, the government of India launched the Smart City Mission on February 20th, 2021, with the goal of developing 100 smart cities across the country. Such ongoing developments and initiatives among governments across various Asian countries are fruitfully contributing to enhancing the market share. In addition, the rising middle-class population is another factor supplementing the market growth in this region.
North America is the fastest-growing region in the global ethylene market due to increasing sales of automobiles, rising shale oil production, and growing construction activity. For example, according to the International Organization of Motor Vehicle Manufacturers, in 2021 there were about 26,286,317 commercial vehicles and 56,398,471 passenger cars sold. Hence, the ethylene market is growing as the sales of automobiles are increasing.
On August 3rd, 2022, the US Environmental Protection Agency (EPA) announced its plans to provide updated information to communities, states, tribes, territories, and stakeholders about the risks posed by air emissions of ethylene oxide (EtO) from commercial disinfection, as well as the EPA's efforts to address these risks. The EPA is releasing new information about specific facilities where lifetime risk levels are highest for people living nearby and is encouraging affected communities to participate in a series of public engagements to learn more.
On July 29th, 2022, INEOS Oxide launched a new ""bio-specialty"" ethylene oxide (EO) based on certified bio-based sources that do not compete with food production. The INEOS product is the culmination of 3 years of work to develop a low-carbon ethylene oxide product and reaffirms the company's commitment to developing more sustainable ways to produce the material they use and depend on every day.
On December 9th- 2021The Intercontinental Exchange launched its first ethylene futures contract. Designed for participants who need to manage ethylene price risk from the US Gulf Coast to Asia, the two cash-settled futures contracts are based on ethylene price assessments by ICIS. ICIS CFR NE (Northeast) Asia Ethylene Valuation and ICIS CFR SE (Southeast) Asia Ethylene Valuation are quoted on a per metric ton ethylene cost and freight (CFR) basis for delivery.
On August 31st, 2021- PetroChina, Asia's biggest oil and gas producer, said that its Dushanzi Petrochemical Company had commissioned an 8.04-billion-yuan ($1.24 billion) ethane-fed ethylene project in the far western region of China's Xinjiang. The project is designed to produce 600,000 tonnes of ethylene, 300,000 tonnes of high-density polyethylene, and 300,000 tonnes of full-density polyethylene per year.
|2018 - 2021
|2022 - 2028
|Market Size in 2021:
|USD 122.85 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 238.95 Billion
|Tables, Charts & Figures:
|Dental Equipment Key Players
|Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, Ineos Group Ltd, BASF SE, and others.
|By Source, By Feedstock, By Application, By End-User
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
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