Ethylene Market size is poised to cross USD 170 Billion by the end of 2033, witnessing around 6% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of ethylene was USD 130 Billion. 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.
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.
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 demand. The 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
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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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End-user (Packaging, Automotive, Construction, Agrochemical, Textile, Chemicals, Rubber & Plastics)
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.
Our in-depth analysis of the global 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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North American Market Forecast
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.
Saudi Basic Industries Corporation
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
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