The global ethylene market is estimated to be valued at US$ 137.2 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview: Ethylene is an organic compound that is widely used in the production of polyethylene which is used to make various plastic products ranging from plastic bottles and containers to plastic films and sheets. It also serves as a basic petrochemical building block for the production of ethylene oxide, ethylene dichloride, and vinyl chloride among other petrochemical products that find applications in industries such as construction, automotive, packaging and more. Market Dynamics: Rising demand from the petrochemical industry is estimated to be a major driver for the global ethylene market over the forecast period. Petrochemical products such as polyethylene, ethylene glycol and ethylene dichloride that utilize ethylene as a feedstock have wide applications in the packaging, construction and automotive industries. According to industry estimates, over 50% of ethylene is converted into polyethylene. Growing consumption of plastics across industries is expected to positively influence ethylene demand. Additionally, expansion of ethylene cracking facilities by key market players to cater to the growing demand is also expected to aid the market growth. For instance, in 2018, INEOS announced the expansion of its UK cracking facilities to produce additional 500,000 tons of ethylene per year. However, volatile feedstock prices and stringent environmental regulations regarding plastic production may hinder the market growth. SWOT Analysis Strength: The global ethylene market has strong demand and consumption. Ethylene production facilities are well-established with advanced technologies. Research and development of innovative production processes is enhancing efficiency. Weakness: Volatility in crude oil and natural gas prices raises production costs. Stringent environmental regulations regarding emissions increase compliance costs. Dependence on few feedstock types increases supply chain risks. Opportunity: Growing polyester and polyethylene industries present new application areas. Developing economies in Asia Pacific region offer huge market potential. Production of bio-based ethylene through renewable feedstocks can significantly lower costs. Threats: Availability of substitutes like propylene may affect demand. Trade wars and geopolitical tensions can disrupt supply chains. Rising environmental activism may lead to stricter emission norms. Key Takeaways The Global Ethylene Market Size is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing consumption of ethylene derivatives in packaging, construction and automotive industries. The growth is further supported by rising population, urbanization rates and increasing investments in manufacturing sector across emerging economies. Regional analysis: Asia Pacific dominates the global market, accounting for over 50% share due to rising manufacturing activity, building construction and automotive production in China, India, Indonesia and other developing nations in the region. China represents the largest consumer as well as producer of ethylene globally due to presence of ample feedstock sources and massive polyester and plastics industries. Key players: Key players operating in the ethylene market are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company , Lonza Group. The market is highly consolidated with top five players accounting for over 50% share. Companies are investing in capacity expansions and advancing production technologies to cater to the booming demand. Get more insights on this topic: https://www.rapidwebwire.com/global-ethylene-market-share-analysis/
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