; Ethylene Market Size, Industry Share, Forecast, 2032

Ethylene Market

Ethylene Market: Segmented: By Feedstock (Naphtha, Ethane, Propane, Butane, Other Feedstock), By Application (Polyethylene [HDPE, LDPE], Ethylene Oxide, Ethyl Benzene, Ethylene Dichloride, Others), By End Use (Building & Construction, Automotive, Packaging, Textiles, Agrochemicals & Agriculture, Others), And Region - Global Analysis of Market Size, Share & Trends For 2021-2022 And Forecasts To 2032

Published on: Nov-2022
Report Code: FG CHM 01245
No. of Pages: 170-350
Report Format: PDF

[ 170 + Pages Research Report ] Ethylene Market to surpass USD 264.9 billion by 2032 from USD 142.23 billion in 2021 at a CAGR of 5.8% in the coming years, i.e., 2022-32.

Product Overview

Ethylene Market sometimes referred as an alkene, is the most basic type of organic compound. Petroleum and natural gas are the primary sources of ethylene. In a plant, which is also a natural source of ethylene, it functions as a hormone. The ethylene hormone slows down the development, promotes leaf fall, and speeds up fruit ripening. As an organic molecule, ethylene plays a key role in the chemical industry. The substance has additional uses in the creation of synthetic fibers, ethylene oxide, antifreeze, polyethylene for plastics, mustard gas, alcohol, and other organics. In the petrochemical sector, ethylene is manufactured using a variety of processes, but the major one is steam cracking, where hydrocarbons and steam are heated to temperatures between 750 - 950 °C.

Market Highlights

The Ethylene Market is expected to project a notable CAGR of 5.8% in 2032.

The market is being driven by customer demand for high-quality food in appropriate packaging. Moreover, as plastic is used in the above-mentioned industries for wiring, auto components, pipes, and other items, growth in the automotive and construction sectors is also assisting market growth. The market size is also being driven by growing applications in the medicinal, agricultural, and other sectors.

Ethylene Market: Segments

The Polyethylene segment is expected to grow with a higher CAGR during 2022-32

Ethylene market is categorized on the basis of Application into Polyethylene (HDPE, LDPE), Ethylene Oxide, Ethyl Benzene, Ethylene Dichloride, and Others. The Polyethylene segment is further divided into HDPE and LDPE. From the Application segment, polyethylene (PE) dominated a significant revenue share in 2020, and is anticipated to continue to rule during the forecast period. The rising demand for HDPE in packaging and transportation applications is anticipated to fuel product demand and support the product's market growth.

The Packaging segment is expected to grow with a higher CAGR during 2022-32

Ethylene market is categorized on the basis of End Use into Building & Construction, Automotive, Packaging, Textiles, Agrochemicals & Agriculture, and Others. The packaging industry dominated the end-use segment in 2020 accounting for a considerable share and is expected to increase significantly throughout the forecast period. Lightweight and robust compression capabilities of the product have led to its demand in the packaging sector for the manufacturing of ethylbenzene and polyethylene, which aids in protecting packaged items in the event of being crushed or smashed.

Market Dynamics

Drivers

Increasing Demand for Packaging Solutions

Demand for plastic items has increased since customer awareness of the need for safe packaged goods has grown. Plastic packaging has witnessed an intense increase in demand for multiple uses, such as e-commerce healthcare, grocery stores, and transportation. Also, the market is anticipated to be driven by rising demand for high-end industrial applications. The market is also driven by customer demand for premium food in suitable packaging. In addition, as more people have a hectic work-life worldwide, there will be a greater demand for packaged goods and beverages, which will fuel the price of polyethylene.

Growing Demand from the Automobile Industry and Rising Applications of Ethane Gas

The growing automobile sector, which produced 95,634,593 vehicles overall in 2018, is another element driving this market growth. Typically, polyethylene is used to create wires, cables, fuel tanks, electrical insulation, and automotive bodies. Another element driving up demand for polyethylene goods in construction activities is the enormous investment made in the infrastructure and building sectors. The worldwide ethylene market has also seen an increase in expenditures aimed at expanding the production capacity for the gas. Due to the widespread use of ethane gas in many different industries, many businesses that produce it are attempting to increase their production capacity.

Restraint

Strict Policies by Governments and Reduction in Raw Materials Resources

The strict regulations created and imposed by the governments of various nations regarding the use of products derived from petroleum are anticipated to majorly impede the market growth. As a result of these rules, businesses that produce hydrocarbon-based gases will be under pressure to adhere to such environmental protection standards. The depletion of raw material resources, such as fossil fuels, and the volatile price of crude oil, may also constitute a significant obstacle to the growth of this sector.

Recent Developments

  • SABIC announced a merger with the Saudi petrochemical business SADAF and the Arabian petrochemical company PETROKEMYA in October 2019. (Saudi basic industries corporation). The objective of this merger was to make operations of SABIC competitive and more efficient.
  • By 2024–2025, new facilities may begin using Clariant's most recent catalyst for the oxidative dehydrogenation of ethane (ODH-E) for the synthesis of ethylene, as per announcements made in October 2021. Clariant is a multinational specialty chemicals business based in Switzerland. The innovative catalysts, created by Clariant and Linde Engineering, aim to commercialize ethylene production by ODH-E and will reduce carbon emissions by over 60% without carbon capture compared to traditional steam cracking.
  • Exon Mobil Corporation and SABIC established a joint venture in June 2019 called Gulf Coast Growth Ventures, and they announced plans to build a chemical complex and an ethane steam cracker in Texas. The facility's goal is to produce raw materials that will be used to make a variety of goods, including construction materials, packaging, and automotive coolants. During the examination time, the facility will also include a mono-ethylene glycol unit and two polyethylene units.

Ethylene Market: Key Players
  • Royal Dutch Shell
  • ExxonMobil
  • Dow Chemical
  • Mitsubishi Chemical
  • INEOS
  • LyondellBasell Industries
  • Borealis
  • Chevron Phillips Chemical
  • SABIC
  • Equistar Chemicals
  • Huntsman
  • LG Chem
  • Mitsui Chemicals
  • National Iranian Petrochemical
  • Nova Chemicals
  • Other Prominent Players

Ethylene Market: Regions

Ethylene market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific was the market leader in 2020 and is anticipated to grow at a higher CAGR throughout the forecast period owing to the rising demand for polyethylene from the plastics industry and compounds from the chemical sector in developing nations like China, India, and Japan. The improved consumer lifestyles in these nations due to their industrial development have raised the need for performance-based plastic for everyday essentials. In addition, the growing middle-class population is increasing the demand for homes and automobiles.

Impact of Covid-19 on Ethylene Market

The chemical sector has been affected by the coronavirus epidemic, which has halted business operations. Due to this, the consumer and industrial markets experienced a fall in demand, which in turn led to supply chain disruptions. The global standstill has had a considerable negative economic impact on the trade and production operations in the chemical industry, which also has an impact on pricing dynamics. The growing demand for hygienic and quality packaging will substantially boost the market in the future.

Ethylene Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA

Ethylene Market report also contains analysis on:

Ethylene Market Segments:

  • By Feedstock 
    • Naphtha
    • Ethane
    • Propane
    • Butane
    • Other Feedstock 
  • By Application
    • Polyethylene (HDPE, LDPE)
    • Ethylene Oxide
    • Ethyl Benzene
    • Ethylene Dichloride
    • Others 
  • By End Use
    • Building & Construction
    • Automotive
    • Packaging
    • Textiles
    • Agrochemicals & Agriculture
    • Others 
  • Ethylene Market Dynamics
  • Ethylene Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies Involved in the Market
  • Value Chain of the Market
  • Market Drivers and Restraints

Ethylene Market Report Scope and Segmentation

Report Attribute Details
Market size value in 2021 USD 142.23 Billion
Revenue forecast in 2032 USD 264.9 Billion
Growth Rate CAGR of 5.8% from 2022 to 2032
Base year for estimation 2021
Quantitative units Revenue in USD million and CAGR from 2022 to 2032
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered Feedstock, Application, End Use, and Region
Regional scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Key companies profiled Royal Dutch Shell, ExxonMobil, Dow Chemical, Mitsubishi Chemical, INEOS, LyondellBasell Industries, Borealis, Chevron Phillips Chemical, SABIC, Equistar Chemicals, Huntsman, LG Chem, Mitsui Chemicals, National Iranian Petrochemical, Nova Chemicals, and Other Prominent Players.

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