Global Ethylene Market Is Estimated To Witness High Growth Owing to Increasing Demand from Various End-Use Industries
The global ethylene market is estimated to be valued at USD 166,520 million in 2019 and is expected to exhibit a CAGR of 5.6% over the forecast period of 2020-2027, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The ethylene market refers to the worldwide demand, production, and trade of ethylene, which is a key intermediate chemical used in various industries. Ethylene is primarily used for the production of polyethylene, which is widely used in packaging, consumer goods, and construction materials. It is also used in the production of other chemicals such as ethylene oxide, ethylene glycol, and vinyl acetate, among others. The growth of the global ethylene market is driven by the increasing demand for polyethylene and other ethylene derivatives from the packaging, automotive, construction, and textile industries, among others.
B) Market Dynamics:
The global ethylene market is driven by two main drivers:
1) Growing demand for polyethylene: The increasing demand for polyethylene, which is derived from ethylene, is a major driver for the global ethylene market. Polyethylene is widely used in various applications such as packaging films, bottles, pipes, and automotive components, among others. The rising population, urbanization, and disposable income levels are fueling the demand for packaged food and beverages, thereby driving the demand for polyethylene.
2) Expanding end-use industries: The growth of end-use industries such as packaging, automotive, construction, and textiles is driving the demand for ethylene and its derivatives. The packaging industry, in particular, is witnessing significant growth due to the increasing demand for flexible and sustainable packaging solutions. The automotive industry is also driving the demand for ethylene-based products such as automotive components and materials used for lightweighting vehicles.
C) Segment Analysis:
The ethylene market can be segmented based on application and end-use industry. The packaging segment dominates the market due to the increasing demand for flexible and sustainable packaging materials. Other key segments include automotive, construction, textiles, and chemicals, among others. Among these, the packaging segment is expected to dominate the market over the forecast period due to the increasing demand for packaged food and beverages globally.
D) PEST Analysis:
1. Political: The Ethylene Market is influenced by government regulations and policies regarding the production, trade, and use of ethylene and its derivatives. Government initiatives to promote sustainable packaging solutions and reduce plastic waste are expected to impact market dynamics.
2. Economic: The economic growth of countries and their disposable income levels play a crucial role in driving the demand for ethylene and its derivatives. The growth of end-use industries such as packaging, automotive, and construction also depends on economic factors.
3. Social: Changing consumer preferences towards flexible and sustainable packaging solutions and increasing awareness about environmental concerns are driving the demand for ethylene-based products.
4. Technological: Technological advancements in ethylene production and processing techniques, such as steam cracking, have led to increased efficiency and cost-effectiveness in the production of ethylene.
E) Key Takeaways:
1. The global ethylene market is expected to witness high growth, exhibiting a CAGR of 5.6% over the forecast period, due to the increasing demand for polyethylene and other ethylene derivatives from various end-use industries.
2. The Asia Pacific region is expected to be the fastest-growing and dominating region in the global ethylene market, driven by rapid industrialization, urbanization, and growing consumer demand for packaged food and beverages.
3. Key players operating in the global ethylene market include Borealis, Chevron Phillips Chemical, Dow Chemical, Equistar Chemicals, ExxonMobil, Huntsman, INEOS, LG Chem, LyondellBasell Industries, Mitsubishi Chemical, Mitsui Chemicals, National Iranian Petrochemical, Nova Chemicals, Royal Dutch Shell, Sasol, SABIC, Showa Denko, Sinopec Shanghai Petrochemical, Tosoh, and Total.
The global ethylene market is poised for significant growth due to the increasing demand for ethylene and its derivatives from various end-use industries.
English
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Russian
Romaian