The global ethane 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.
Ethane is an aliphatic hydrocarbon produced from natural gas, petroleum refineries and heavy liquid feedstock cracking. It is a major feedstock for producing ethylene. It constitutes around 35% of global ethylene produced and is consumed almost all by ethylene capacities. It is also used in making vinyl chloride and acetic acid in limited capacities.
Rising demand of HDPE, LDPE and other copolymers of ethylene from various industries such as packaging and construction industry are likely to drive the ethylene demand, which in turn will drive ethane market. As ethane is one of the major feedstock for ethylene production, demand for ethylene is expected to fuel the growth of this market. Demand from packaging and construction industry is actually increasing because of growing population and extra income in developing countries. Additionally, demand for vinyl chloride and acetic acid is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost ethane demand.
Drivers and Restraints of Ethane Market
Growing investments in downstream industries in regions like the Middle East and the Americas are likely to offer tremendous possibilities for ethane 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 until the global market was flooded with crude oil oversupply.
Ethane and its derivatives are exposed to the probability of volatility in supply and price of crude oil and natural gas. Ethane has an adverse effect on human body if exposed to it for a longer duration. Its acute toxicity and flammability often make environmental regulatory institutions to implement strict regulations on ethane usage. Existing and future regulations concerning the use of ethane and its derivatives in end products are likely to hinder the market growth.
Ethane Market by Region
The USA was the largest consumer of ethane and this pattern is anticipated to continue to be identical over the following few years. Consumption in the USA is showing upward trend because of increase in economic activity and due to abundant reserves of shale gas. Growing demand for packaging, construction and other industries will drive ethane market in the USA. With major production capacities in the USA, the region is likely to grow in terms of global supply capability. Consumption of ethane in the Middle East is likely to grow at a significant rate due to demand from packaging and construction industry. Demand from Europe and Asia was low relatively and is likely to stay same in the next few years.
Top players in this market include SABIC, Exxon Mobil, INEOS, Borealis, Consol Energy, ONEOK, LyondellBasell, Occidental, Dow Chemicals and Indorama among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Supply & Demand
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
Regional analysis includes:
- Middle-East and Africa
- 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
- Strategies of key players and products available
- Potential and niche segments, regions showing promising growth