Ethylene Market Size & Share, by Application (Ethylene Oxide, Ethyl Benzene, Vinyl Acetate, High-Density, Low-Density Polyethylene); Feedstock (Naphtha, Ethane, Propane, Butane); End-user (Packaging, Automotive, Construction, Agrochemical, Textile, Chemicals, Rubber & Plastics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2033

  • Report ID: 4540
  • Published Date: Feb 10, 2023
  • Report Format: PDF, PPT

 Global Ethylene Market Definition

Ethylene (H2C=CH2) is a colorless flammable gas generated from petroleum that is widely employed as a feedstock in the manufacture of textiles, plastics, and other organic compounds. It is one of the most extensively used diverse petrochemical portfolios, and its usage is affected from both energy and financial cycles. This is then transformed into numerous chemicals, which are then transformed into a variety of household and other items. Polyethylene, ethylene oxide, ethylene dichloride, and styrene are examples of ethylene and its derivatives. Polyethylene synthesis will account for the majority of ethylene use, after ethylene oxide and ethylene dichloride.

Global Ethylene Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

~6%

Base Year Market Size (2022)

 ~ USD 130 Billion

Forecast Year Market Size (2033)

~ USD 170 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)

Global Ethylene Market Size, Forecast, and Trend Highlights Over 2023 - 2033

The global ethylene market is estimated to garner a revenue of ~USD 170 Billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 130 Billion in the year 2022.  The rising automobile industry is one of the main factors estimated to propel the market expansion over the forecast period. Ethylene is frequently used in the production of wires and cables, electrical insulation, gasoline tanks, and automobile exteriors, among other things. It was noticed that in 2021, India sold around 4 million passenger and commercial vehicles, on the other hand, around 5 million commercial vehicles and about 22 million passenger cars were sold in China in the same year.

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Moreover, the demand for ethylene and associated materials in construction activities is also rising as a result of increasing investment in the building and infrastructure sectors, backed by the growing urbanization across the world which is anticipated to positively impact the market growth for ethylene throughout the forecast period. According to Invest India, by 2030, the Indian real estate market is predicted to be worth USD 1 trillion and contribute 13% of the country's GDP. In India, where urbanization is expected to increase from 33% to over 40% of the population by 2030.

Global Ethylene Market: Growth Drivers and Challenges

Growth Drivers

  • High Increase in Labor Force – Based on data from 181 nations, the average labor force in 2021 was 19.85 million. China had the biggest number of inhabitants at 792.08 million. The growing working population and labor force, supported by increasing investment in various industrial sectors throughout the world has created a massive need for packaged meals and refreshments, which is expected to propel the market for ethylene during the forecast period.

  • Increasing Demand for Packaged Foods & Beverages – Foods that are natural, of excellent quality, barely processed or unprocessed, free of preservatives, and with a longer shelf life are in higher demandThe containers and packaging of such municipal solid waste led to 83 billion tons of generation in 2018.

  • Rise in Demand for Polyethylene – The most popular plastic in the world is polyethylene (PE). The exported value of polymers of ethylene in 2021 was 101,964,787.

  • Elevating the Automobile Industry – The automotive industry is made up of a diverse range of businesses and institutions engaged in the creation, improvement, production, marketing, and sale of automobiles. The number of sales of automobile vehicles in 2021 includes 66 million units.

  • Rising Construction Sector– It was noticed that in 2021, the market size of the American construction industry was estimated to be over 2 trillion dollars, and in the following year, it is anticipated to grow even more.

Challenges

  • Strict Policies Formed by the Government
  • Use of Petroleum-Based Products - Events that have the potential to obstruct the flow of oil and petroleum products to market, such as geopolitical and weather-related occurrences, can have an impact on the prices of both crude oil and petroleum products. These kinds of occurrences may result in actual disruptions or breed concern over future supply or demand, which can increase price volatility.
  • Decrease in the Resources of Raw Materials

The global ethylene market is segmented and analysed for demand and supply by end-user into packaging, automotive, construction, agrochemical, textile, chemicals, rubber & plastics, and others. Out of which, the packaging segment is anticipated to hold the largest market size by the end of 2033 on the back of increasing demand for packaging due to COVID-19. The safety concern of people increased during the pandemic and everyone started purchasing goods online. Which in turn is anticipated to boost the growth of the market. Thus, the e-commerce sales of the U.S in the second quarter of 2022 were USD 257.3 billion, an increase of 2.7% from the first quarter.

Global Ethylene Market Regional Synopsis

The North America ethylene market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033 owing to an increase in urbanization across the region. Rapid urbanization and infrastructure development is expected to drive up demand for building and construction plastics even more. The size of the American construction sector was noted to be valued at over 2 trillion dollars in 2021, and it is anticipated to increase even more in the following year.

Market Segmentation

Our in-depth analysis of the global ethylene market includes the following segments:

        By Application

  • Ethylene Oxide
  • Ethyl Benzene
  • Vinyl Acetate
  • High-Density Polyethylene
  • Low-Density Polyethylene

       By Feedstock

  • Naphthene
  • Ethane
  • Propane
  • Butane
  • Others

          By End-User

  • Packaging
  • Automotive
  • Construction
  • Agrochemical
  • Textile
  • Chemical
  • Rubber & Plastics
  • Others

Top Featured Companies Dominating the Global Ethylene Market

  • Saudi Basic Industries Corporation

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • Exxon Mobil Corporation
  • Shell International B.V.
  • Chevron Phillips Chemical Company LLC
  • TotalEnergies Company
  • Lyondellbasell Industries Holdings N.V.
  • China National Petroleum Corporation
  • Repsol, S.A.
  • BASF SE
  • Westlake Corporation 

 


In-the-news

In the News

  • SABIC SK Nexlene announced a partnership between SABIC and SK Geo Centric, has made plans to increase the production capacity of its factory in Ulsan, South Korea. The expansion, which is scheduled to start up in the second quarter of 2024, is focused on applications for flexible packaging, solar panels, cars, and boots.

  • BASF SE, in Mumbai, India, broke ground on a new Polyurethane Application Development Laboratory. The lab, which will be opened in 2024, will improve relationships with Indian clients in fast-growing sectors such as consumer appliances, building, footwear, furniture, and transportation.


Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 4540
  • Published Date: Feb 10, 2023
  • Report Format: PDF, PPT

Key Questions Answered in the Report

1) What are the major factors driving the growth of the ethylene market?

Ans: Increase in the labor force and high demand for packed foods and beverages are the major factors driving the growth of the ethylene market.

2) What would be the CAGR of ethylene market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.

3) What are the challenges affecting the ethylene market growth?

Ans: Strict policies and increase use of petroleum-based products are the challenges affecting the market growth.

4) Which region will provide more business opportunities for growth of ethylene market in future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

5) Who are the major players dominating the ethylene market?

Ans: The major players in the market are Saudi Basic Industries Corporation, Exxon Mobil Corporation, Shell International B.V., Chevron Phillips Chemical Company LLC, TotalEnergies Company, Lyondellbasell Industries Holdings N.V., China National Petroleum Corporation, Repsol, S.A., BASF SE, Westlake Corporation.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the ethylene market?

Ans: The market is segmented by application, feedstock, end-user, and by region.

8) Which segment captures the largest market size in end-user in the ethylene market?

Ans: The packaging segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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