Growing demand for ethylene in the rapidly expanding packaging, construction and automotive end-user segments is anticipated to drive the global ethylene market in the next few years. The mass production of ethylene through the process of catalytic oxydehydrogenation is prophesized to act as an opportunity for the ethylene market in the next few years.
As per expert analysts, the global ethylene market is projected to register revenue worth US$234.2 by 2020, which is a decent increase from the initial revenue worth US$156 bn that was achieved in 2013. This growth is expected to occur at a healthy CAGR of 6.05% during the forecast period from 2014 to 2020.
Packaging Emerges As a Winning Segment in the Global Ethylene Market
The global ethylene market is mainly segregated on the basis of few factors such as application, end user and region. Under applications, polyethylene, ethylene oxide, ethylene benzene, ethylene dichloride, vinyl acetate, and alpha olefins, are key segments present in the global ethylene market. Under end-users, packaging, automotive, construction, agrochemical, textile, and soaps & detergents, are chief segments comprising the market.
Under applications, polyethylene was used extensively in the production of plastic, and progressed at the topmost growth pace in the global ethylene market, by accounting for more than 50% of the total market share in 2013. However, ethylene oxide is expected to grow at a rampant speed in the applications category of the global ethylene market in the near future. The rapid growth in the ethylene oxide application segment can be mainly attributed to the increasing consumption of its derivative called ethylene glycol used for the production of plastics for making bottles.
In terms of end users, packaging emerged as a leading segment of the ethylene market by bagging a share of more than 30% in 2013. The extensive utilization of different forms of polyethylene such as PVC, low density polyethylene (LDPE), linear low density polyethylene (LLDPE), and high density polyethylene (HDPE) for the manufacturing of packaging application products is expected to drive the global ethylene market during the forecast period.
Increasing Demand for Ethylene in Several Industries Drives Market in Asia Pacific
Region-wise, the global ethylene market is mainly spread across North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In recent times, Asia Pacific held a leading position in terms of maximum market shares of over 30% share in 2013. And this growth is projected to continue even in the near future. However, an increasing demand for ethylene in the packaging, automotive, and construction industries is projected to drive the ethylene market in Asia Pacific during the next few years too. Moreover, Asia Pacific is projected to depict a rampant pace of development in the global ethylene market during the forecast period. Rising demand for ethylene in emerging economies such as China, India, Malaysia, Thailand and Vietnam, is likely to drive the ethylene market in Asia Pacific.
In contrast to Asia Pacific, the ethylene market in North America and Europe is anticipated to grow at a moderate rate over the next six years, due to the slow but steady recovery of the economy in the U.S. and developed countries across Europe. The ethylene market in the Middle East and Africa too is projected to expand considerably in the next few years, owing to rising demand for ethylene for various industrial processes.
Saudi Basic Industries Corporation (SABIC), The Dow Chemical Company, Exxon Mobil Corporation, Royal Dutch Shell plc, China Petroleum & Chemical Corporation (Sinopec Corporation), Chevron Phillips Chemical Company LLC, Total S.A., Lyondell Basell Industries, National Petrochemical Company (NPC), and INEOS Group AG., are key players operating in the global ethylene market.
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