June 17, 2024
Global Ethylene Market

The Global Ethylene Market is Estimated to Witness High Growth Owing to High Demand in Petrochemical Industry

The global ethylene market is primarily driven by the increasing demand for ethylene in the production of polyethylene which finds application in various industries including packaging, automotive, construction and healthcare among others. Ethylene acts as an important raw material in the production of polyethylene which provides properties such as durability, flexibility and resistance to corrosion. Furthermore, ethylene is also utilized in the chemical industry as a feedstock for the production of ethylene oxide, ethylene dichloride and ethyl benzene which have extensive applications.

The Global Ethylene Market is estimated to be valued at US$ 158.06 Mn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period 2024 to 2030.

Key Takeaways
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.

The growing consumption of polyethylene in various industries due to properties such as durability, flexibility and resistance to corrosion is expected to present lucrative growth opportunities in the global ethylene market over the forecast period.

With increasing demand for ethylene from developed as well as developing economies, key players in the market are focusing on expanding their production facilities across various geographies to leverage potential growth opportunities.

Market drivers
The growing demand from the petrochemical industry is one of the major drivers for The Global Ethylene Market. Ethylene serves as an important raw material for the production of various petrochemical products like polyethylene, ethylene oxide, vinyl acetate etc. which find widespread applications resulting in increased consumption of ethylene. According to estimates, over 50% of ethylene is utilized by the petrochemical industry, thereby driving the market growth over the forecast period.

PEST Analysis
Political: The government policies and regulations will impact ethylene production and prices. Governments aim to ensure adequate ethylene supply at reasonable prices to support economic growth.

Economic: The global economy recovered post-pandemic creating demand from industries like construction and manufacturing relying on ethylene. Inflation and capital expenditures affect production and profitability.

Social: Population growth and urbanization increase usage of ethylene-based plastics and packaging. Environmental initiatives encourage sustainable innovations and alternatives.

Technological: Manufacturers invest in innovating production processes to improve efficiency, yields and reduce emissions. New technologies enable substituting ethylene in some applications with other materials.

Geographical regions where market in terms of value is concentrated:
North America holds the largest share of the global ethylene market followed by Asia-Pacific and Europe. The US and China are the top producers and consumers globally due to their large manufacturing and construction industries that heavily rely on ethylene and its derivatives. Established markets in Western Europe also account for significant demand.

The fastest growing region for the global ethylene market:
The Asia-Pacific region excluding Japan is projected to be the fastest growing market during the forecast period. Countries like India, Indonesia, Vietnam and others are witnessing increased industrialization and investment in manufacturing and infrastructure development supporting market growth. Growing population and rising living standards in the region will further propel consumption of ethylene-based products.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it