by The global ethylene market has witnessed high demand over the past few years owing to its wide applications in producing polyethylene, ethylene oxide, ethylene dichloride and propylene. Ethylene acts as a basic feedstock for manufacturing these chemicals that are further used across industries such as packaging, construction, automotive and consumer goods. The polymer products derived from ethylene witness long shelf life and durability making them ideal for use in producing plastics, resins and fibers. The easy availability and competitive pricing of ethylene make it a preferred base chemical for chemicals manufacturing globally.
The Global ethylene market is estimated to be valued at US$ 342.94 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the global ethylene market are Saudi Basic Industries Corporation (SABIC), Exxon Mobil Corporation, The Dow Chemical Company, Royal Dutch Shell plc, China Petroleum & Chemical Corporation (Sinopec Corporation), Chevron Phillips Chemical Company LLC, Total S.A., LyondellBasell Industries, National Petrochemical Company (NPC), and INEOS Group AG.
The Global Ethylene Market Share is expected to witness significant growth opportunities owing to rising investments in PE, PVC and ethylene dichloride capacities across major markets. Furthermore, the increasing demand for consumer products from emerging economies of Asia Pacific and Middle East Africa is also pushing polymer and chemical manufacturers to enhance their ethylene production capacities.
Major global players are strategizing expansion of their ethylene production facilities across high growth regions like North America, Asia and Middle East in order to capitalize on the positive demand outlook. For instance, SABIC plans to boost its ethylene capacities at its Texas and Saudi Arabian facilities by 2025.
Market Drivers
Growing demand for ethylene from packaging, construction and automotive industries especially in developing nations is the key driver for the market. Rapid urbanization and increasing disposable incomes in countries like India, Indonesia and Brazil have elevated the consumption of packaged foods, plastics and construction materials that use ethylene-based polymers and chemicals. This rising consumption from end-use industries is expected to continue driving the ethylene market over the forecast period.
PEST Analysis
Political: Regulations regarding carbon emissions and environmental safety are becoming stricter globally, which impacts production facilities and expansion plans in this market.
Economic: Fluctuations in crude oil prices affect the prices of ethylene and derivatives. Changing economic conditions also impact the demand from end-use industries like packaging, construction etc.
Social: Population growth and rising disposable incomes in developing regions drive the demand for ethylene and products made from it. Increased health and environmental awareness also influences product innovation.
Technological: Advancements in production technologies help improve yields and efficiency. Development of bio-based and recyclable ethylene derivatives allows for more sustainable options.
The Asia Pacific region accounts for the largest share of the global ethylene market in terms of value, led by China, India, Japan and other Southeast Asian countries. This is attributed to the presence of numerous manufacturing units as well as growing consumption from end-use industries in these developing economies.
North America is projected to witness the highest growth during the forecast period. This can be attributed to increasing investments towards shale gas extraction and expansion of manufacturing facilities, coupled with a rebound in the construction sector in the US.
The geographical regions with the highest consumption of ethylene are Asia Pacific, North America, and Western Europe. China represents the largest consumer globally, followed by the United States.
