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
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 130 Billion |
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Forecast Year Market Size (2033) |
~ USD 170 Billion |
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Regional Scope |
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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
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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.
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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 demand. The containers and packaging of such municipal solid waste led to 83 billion tons of generation in 2018.
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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.
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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.
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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:
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By Application |
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By Feedstock |
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By End-User |
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Top Featured Companies Dominating the Global Ethylene Market
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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
