Ethylene Market To Witness Growth Due To Rising Plastic Industry Development
Market Dynamics
The ethylene market will witness high growth owing to the rising plastic industry development. Plastic has emerged as a versatile material finding wide usage across various industry verticals including packaging, construction, automotive, electronics, agriculture, and more. Expanding applications of plastic along with the growing penetration in emerging nations is propelling the demand for petrochemical inputs such as ethylene. According to industry estimates, the global plastic production doubled between the years 2000 and 2015 and is expected to increase by threefold between 2015 to 2050. The robust growth outlook of the plastics industry will continue driving consumption of ethylene in the upcoming years. Another driver for the ethylene market is the capacity expansion initiatives undertaken by prominent industry players to cater to the rising polymer demand. New production facilities and technology advancements are helping to meet the huge supply-demand gap.
SWOT Analysis
Strength: The global ethylene market enjoys strong demand from end-user industries such as packaging, construction, and automotive. The growing population and urbanization are driving the demand for packaged foods and construction materials which increases ethylene consumption. Also, economic growth in emerging countries supports industrial development and manufacturing activities that require ethylene.
Weakness: Stringent environmental regulations regarding VOC emissions can hamper the growth of ethylene production facilities. Also, fluctuating raw material prices due to geopolitical issues increase the operating costs for ethylene producers.
Opportunity: The increasing trend of polymer production from recycled plastic waste provides opportunities for ethylene producers to utilize alternative feedstock and reduce reliance on naphtha. Also, technical advancements in production processes help lower the energy usage and carbon footprint of ethylene plants.
Threats: Slowdown in major end-user industries during an economic recession can negatively impact the demand and prices of ethylene. Additionally, development of alternative products to replace plastics poses a long-term threat to the ethylene market.
Key Takeaways
The Global Ethylene Market Size is expected to witness high growth over the forecast period supported by robust demand from end-use sectors.
Asia Pacific currently dominates the global market and is expected to maintain its lead through 2031 driven by China and India. These economies are witnessing rapid industrialization and infrastructure development which boost the consumption of ethylene-based commodities.
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. Companies are investing in research to develop new cost-effective production processes and make ethylene value chain more sustainable. Collaborations and acquisitions are also taking place to gain regional presence and expertise across the ethylene production and derivatives chain.
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