The Global Ethylene Market is Expected to Witness High Growth Owing to Increasing Plastic Production
Ethylene is an important basic petrochemical used prominently as a feedstock in the production of polyethylene, which finds wide usage in packaging films, containers, bottles, pipes, and wires & cables on account of its lightweight and durability characteristics. The growing demand for polyethylene from various end-use industries like packaging, consumer goods, construction, automotive has driven the consumption of ethylene over the past few years. Besides polyethylene, ethylene is also used to produce ethylene oxide, ethylene dichloride, ethyl benzene, and ethylene glycol which are basic building blocks for a wide range of industrial and consumer products.
The Global ethylene market is estimated to be valued at US$ 158.06 Mn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in The Global Ethylene Market are Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects. These players are focusing on capacity expansion and mergers & acquisitions to consolidate their position in the market. For instance, in 2020, ExxonMobil started a new ethylene plant in Baytown, Texas with annual capacity of 1.5 million tonnes.
The growing plastic demand across industries like packaging, consumer goods, automotive offers significant opportunities for ethylene producers to cater to burgeoning plastic production. Regional trade agreements are also opening new avenues for international players to enter emerging markets in Asia Pacific and Middle East region.
Key players are also investing in partnerships and joint ventures to expand their global footprint and production capacities. For example, in 2021, Lotte Chemical Titan signed an MOU with ExxonMobil to set up a 1.3 million tonne per year ethane cracker complex in Texas, US. Such strategic collaborations will help meet the growing global demand for ethylene.
Market Drivers
- Growing demand for plastics from end-use industries like packaging, consumer goods is the key driver for ethylene market. Plastics are increasingly used in packaging films, bottles, containers due to properties like durability and lightweight.
- Expansion of automotive industry worldwide is also fuelling the consumption of plastic components in vehicles. Plastics are preferred over other materials in vehicles due to weight reduction.
Market Restrains
- Stringent environmental regulations around plastic waste disposal and recycling may restrain the plastic production to some extent negatively impacting ethylene demand.
- Supply chain disruptions amid Covid-19 pandemic temporarily affected the plastic production however long term outlook remains positive with rising plastic consumption globally.
Segment Analysis
The global ethylene market can be segmented based on type, application, and region. Based on type, the polyethylene segment is projected to dominate the market during the forecast period. Polyethylene finds wide applications across industries like packaging, construction, automotive due to its properties like chemical resistance, durability and flexibility. based on application, the packaging segment accounted for the largest share in 2021. Ethylene is used to produce polyethylene which is majorly used in the packaging industry for wrapping, carrying bags, containers etc. Other applications include consumer goods, construction, automotive.
Global Analysis
Regionally, Asia Pacific dominated the global ethylene market in 2021 and is estimated to continue its dominance during the forecast period. This is attributed to growing construction and packaging industries in emerging economies like China and India. China being the largest producer and consumer of ethylene globally is dominating the APAC market. North America is projected to witness significant growth owing to rising demand from packaging and automotive industries in the US. Europe holds a substantial share owing to developed end use industries in countries like Germany, France, UK. Middle East & Africa region is expected to rise at a steady pace due to growing construction activities in GCC countries.
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