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
[ 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.
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.
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.
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.
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.
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.
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.
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:
Ethylene Market Segments:
|Market size value in 2021
|USD 142.23 Billion
|Revenue forecast in 2032
|USD 264.9 Billion
|CAGR of 5.8% from 2022 to 2032
|Base year for estimation
|Revenue in USD million and CAGR from 2022 to 2032
|Revenue forecast, company ranking, competitive landscape, growth factors, and trends
|Feedstock, Application, End Use, and Region
|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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