Ethylene is an organic compound commonly used in production of polyethylene, which finds widespread application in packaging films and containers used across food and beverages, consumer goods and industrial packaging industries. Ethylene derivatives provide advantages such as high tensile strength, flexibility and durability. With growing demand for packaged and processed food and beverages globally, ethylene and polyethylene continue to witness high consumption. The global Ethylene Market is estimated to be valued at US$ 158.06 Mn in 2024 and is expected to exhibit a 30.% CAGR over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity of large scale infrastructural developments is expected to drive the global ethylene market during the forecast period. Significant investments are being made globally toward infrastructure modernization and construction of new residential, commercial and industrial infrastructure. Polyethylene finds widespread application in pipes, cables and various construction materials owing to properties such as corrosion resistance, durability and flexibility. With growing construction spending especially in developing countries of Asia Pacific and Latin America, demand for polyethylene is projected to rise substantially, thereby augmenting consumption of ethylene over the coming years. Investments in modernization of transport, energy and utility infrastructure will further accentuate market growth.
Porter's Analysis
Threat of new entrants: High capital requirements and economies of scale restrict entry. Bargaining power of buyers: There are numerous buyers in varied industries leading to lower buyer bargaining power. Bargaining power of suppliers: Presence of many suppliers ensures lower supplier bargaining power. Threat of new substitutes: Substitutes present minimal threat currently but development of alternate technologies could increase threat. Competitive rivalry: Competition is high owing to presence of large global players operating at same cost and quality levels.
SWOT Analysis
Strengths: Wide applications, favourable government policies. Weaknesses: Volatile feedstock prices, environmental regulations. Opportunities: Emerging applications, increasing demand from developing nations. Threats: Trade wars, economic slowdown affecting key end-use industries.
Key Takeaways
The Global Ethylene Market Growth is expected to witness high.
The Asia Pacific market dominates currently owing to large production capacities and rapid industrialization led by China, India and Southeast Asian nations. Key players like Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects operate in the market.
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.
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