The global ethylene market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Ethylene is an aliphatic hydrocarbon produced from steam cracking of naphtha and ethane (natural gas). It is a major feedstock for producing many downstream chemicals. Important downstream chemicals produced from ethylene include polyethylene, ethylene glycol, ethylene oxide, PVC and polystyrene. Other derivatives include linear alpha olefins (LAO), detergent alcohols and plasticizer alcohols, vinyl acetate monomer (VAM), and various intermediates such as ethyl acetate and ethyl acrylate.
Rising demand for polyethylene and other copolymers of ethylene from various industries such as packaging, construction, and automobiles industry are likely to drive the ethylene market. As ethylene is a major feedstock for polyethylene production, demand for polyethylene is expected to fuel the growth of this market. Demand for packaging, construction, and automobiles industry are actually increasing because of growing population and extra income in developing countries. Polymers such as polypropylene, polyethylene, butyl rubber and acrylics among others are obtained from ethylene, making ethylene a major driver for chemical production. Additionally, demand for ethylene oxide is likely to increase at a greater rate because of an upsurge in demand from polyester end-use markets, which in turn will boost ethylene demand. A portion of ethylene demand is also from its extensive usage in agriculture as a plant hormone to ripen fruits.
Drivers and Restraints of Ethylene Market
Growing investments in downstream industries in regions like the Americas, the Middle East and the Far East are likely to offer tremendous possibilities for ethylene and its derivatives market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA, the shale gas revolution has made the raw material cost much cheaper in the recent past which lasted after the global market was flooded with crude oil oversupply.
Ethylene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Ethylene has an adverse effect on human body if exposed to it for a longer duration. It’s combustible and carcinogenic nature often makes environmental regulatory institutions to implement strict regulations on ethylene usage. Existing and future regulations concerning the use of ethylene and its derivatives in end products are likely to hinder the market growth.
Ethylene Market by Region
Asia was the largest consumer of ethylene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China and India. China, Japan, and South Korea were the largest consumers of ethylene in this region, whereas India is likely to grow at a higher pace. Growing demand for packaging, construction, and automobiles and other industries will drive ethylene market in Asia. Consumption of ethylene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from packaging, construction and textiles industry. With major production capacities in the USA, the region is likely to grow in terms of global supply capability. Demand from Europe was low relatively and is likely to stay same in the next few years and will continue focusing on exporting to Asia.
Top players in this market include BASF SE, LP, Equistar Chemicals, ExxonMobil Corporation, Chevron The Dow Chemical Company, Phillips Chemical Company, Formosa Plastics Corporation, U.S.A., Shell Chemical LP, INEOS, Sasol Ltd and Westlake Chemical Corporation among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth