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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Ethylene is an important basic petrochemical which finds its application in the production of various polymers and copolymers like polyethylene, ethylene oxide, ethylene glycol etc. Polymers like polyethylene are used in various applications like packaging films, carrier bags, bottles etc due to properties like flexibility, durability and transparency. The growing demand from packaging industry is the major factor driving the growth of the ethylene polymer and copolymers segment in the global ethylene market.
Market Overview:
Ethylene is an organic compound used as a chemical intermediate in the production of various polymers and industrial chemicals. As an alpha-olefin, ethylene is a simple alkene hydrocarbon which forms the basis of an important class of chemicals. The market is primarily driven by growing demand from packaging and construction industries.
Market key trends:
One of the key trends witnessed in the global ethylene market is the significant capacity additions by major players. For instance, Shell is doubling the ethylene production capacity of its plant in Pennsylvania, USA to 1.6 million tons per year by 2023. Also, ExxonMobil is planning upgrades and expansion of its production units in Baytown, Texas and Baton Rouge, Louisiana that will increase the combined ethylene capacity by 600,000 tons annually by 2023. These strategic expansions are helping the companies cater to the growing demand for ethylene and its downstream products globally. Furthermore, growing demand for polyethylene from packaging industry is also fueling the consumption of ethylene which is expected to drive the market growth over the forecast period.
Segment Analysis
The global ethylene market is segmented by type, derivatives and regional. Based on type, the market is segmented into cracking of petroleum, steam cracking of natural gas liquids and dehydrochlorination of ethane. Among these, steam cracking of natural gas liquids dominates the market and accounts for around 60% of global ethylene production. This is because natural gas liquids are cost effective feedstock and steam cracking allows production of multiple products apart from ethylene.
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 demand from polyethylene production. The global ethylene market size for 2023 is US $137.2 Bn.
North America dominated the global market in 2023 and accounted for around 30% of global production. This is due to availability of abundant shale gas reserves in the region which has made steam cracking of natural gas liquids more economical. However, Asia Pacific is expected to be the fastest growing market during forecast period due to rapid industrialization and infrastructure development in major economies including China and India.
Key players operating in the global 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. These players have established production facilities across major ethylene markets and are focusing on capacity expansion to leverage growth opportunities.
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