"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global ethylene market size was USD 166,520 million in 2019 and is projected to reach USD 245,005 million by 2027, exhibiting a CAGR of 5.6% during the forecast period.
C2H4 is a colorless and flammable gaseous organic compound that contains double bond carbons. It is used for the production of polyethylene (PE), ethyl oxide, ethylene glycol, high-density polyethylene, 1-2-dichloroethane, vinyl acetate, and other compounds. Increasing product consumption can be attributed to the growing plastic industry. It also has an application in the agriculture industry to improve plants’ health and growth. It is used to produce plastics of various types that are used in various industries such as automotive, construction, consumer goods, packaging, and others. Moreover, technological advancement has led to the effective and increased use of plastics such as LDPE and HDPE as per the industry requirements. Also, the increasing demand for plastic products among consumers is boosting the market.
Disruption in the Supply Chain to Impede Market Amid COVID-19 Outbreak
The coronavirus pandemic has hit the chemical industry and has brought the operations and trade activities to a halt. This caused a decline in demand for the consumer and industrial market, which in turn, caused disruptions in the supply chain. The worldwide lockdown has resulted in a significant economic impact on trading and production activities in the chemical sector which further affects the pricing dynamics. However, market intelligence will be stabilized due to the high demand for PE in packaging applications. The covid-19 has increased awareness among the consumer for public and private hygiene to protect against the virus. The packaging industry has seen a hike due to the high demand for sanitized and hygienic packaged food products. A major part of this is used for the production of PE, which is further used in packaging industries for various applications such as consumer goods, food products, and others. The rise in demand for quality and hygienic packaging will significantly improve the market in the forthcoming years.
Request a Free sample to learn more about this report.
Increasing Demand for LightWeight Plastics to Aid Market
The growing trend for lightweight plastics owing to consumer’s convenience is creating new opportunities for small- and large-scale cosmetic businesses. The growing awareness of various types and forms of plastic products among consumers will further aid the development of the market. The rising trend for lightweight plastic material in the automotive and construction industries is adding to the demand. Ethylene producing manufacturers are shifting attention towards lightweight and quality packaging to provide the consumer with improved packaging solutions. Moreover, the spread of coronavirus has led consumers to push towards better product packaging owing to the new regulations pertaining to coronavirus. The growing demand for plastic consumer goods due to low prices and easy availability is further increasing the product demand in the market. Furthermore, this strong demand for plastic consumer goods for packaging applications is driving the ethylene market growth.
Increasing Demand for Packaging Solutions During Pandemic to Boost Growth
The increasing consciousness among consumers for safe packaged products has led to the demand for plastic solutions in the market. Demand has risen sharply for plastic packaging solutions for various applications in groceries, e-commerce healthcare products, and transportation. Additionally, demand for luxury, industrial applications are also expected to grow and to drive the market. The consumers are demanding high-quality food with proper packaging solutions, thus driving the market. Moreover, growth in the automotive and construction activities are also supporting the market growth as plastic is used for wiring, auto parts, pipes, and others in the respective industries. Furthermore, growing applications in agriculture, medical, and other sectors are also driving the market size.
Depleting Raw Material Sources and Introduction of Substitutes to Hinder Market Growth
Depleting of raw material such as fossil fuel resources along with fluctuating crude oil prices can act as a restraining factor for the market growth. The introduction of substitutes such as bio-ethanol from natural sources such as starch and sugar. The adoption of these bio-based substitutes can be attributed to the governmental regulations over environmental protection and preservation of resources. Moreover, rising technological advancement is further providing support towards substitutes, thus restraining the market. Another factor that acts towards restraining the market is the spread of coronavirus that has led to a disturbance in the supply chain thus affecting the market growth.
To know how our report can help streamline your business, Speak to Analyst
LDPE Segment to Hold the Major Share in the Market During the Forecast Period
Based on application, the market is segmented into high-density polyethylene, low-density PE, ethylene oxide, ethylbenzene, and others. The LDPE segment dominated the market in 2019 due to growing consumer demand for the various plastic-based products from various industries such as automotive, construction, medical, and others. These plastic products include containers, dispensing bottles, and tubes. Moreover, the trend for lightweight automobiles is a factor that is further supporting the market size.
The HDPE segment is also expected to have significant growth during the forecast period. The growing demand for high density polyethylene HDPE can be attributed to growing construction activities. They are used for wiring, tube, and pipes in the construction industry due to high chemical and UV resistance thus useful for outer applications. They are also used as container bottles for shampoo, laundry detergent, conditioner, and others due to their low chemical resistance. All of the above factors are expected to contribute to the growth of the market.
Asia Pacific Ethylene Market Size, 2019 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
North America is estimated to have a significant share in the global market, which can be attributed to the rapid technological advancement and high disposable income in the region. The increased demand for plastic-based consumer goods has been leading the manufacturers towards the innovation of new products. This demand, along with the high economic status of countries within the region, is driving the market. Moreover, the growth in the medical industry has been supporting the market demand for ethylene derived products, where they are used as IV tubes, injections, pouches, and others. The aforementioned factors are supporting the market growth.
Asia Pacific dominated the market in 2019, which can be attributed to the increasing demand for PE from the plastic industry and chemicals from the chemical industry from developing countries such as China, India, and Japan. The economic development within these countries has led to an improvement in the lifestyle of consumers causing high demand for quality-based plastic for daily essential use products. Moreover, the growing middle-class population is further fueling the demand for construction activities and automobiles. The plastic industry in China is dominant in the region due to the rising number of younger populations that are demanding new housing units and individual vehicles thus improving the market.
The European region is expected to have significant market growth during the forecast period. This growth can be associated with the high demand for automobiles from all levels of consumers. Evolving consumer lifestyle acts as a key driver for the high demand for luxury automobiles, thus creating market opportunities. Germany is one of the major evolving automotive countries due to increasing technological advancement that provides efficient plastic solutions to be used in automobiles for making them lightweight and lower the production cost.
To know how our report can help streamline your business, Speak to Analyst
Latin America and the Middle East & Africa are expected to have substantial growth during the forecast period. Brazil is one of the major countries responsible for growth in the region due to the high rate of urbanization and developing economy in the country. Moreover, growing innovation within the region has led to high consumption of the product thus used in construction and consumer goods industries. The Middle East & Africa is a major location for raw materials thus creating opportunities for manufacturers in the region. This can growth can be attributed to the growing economy which is causing high disposable income for consumers, thus supporting the market growth.
Joint Ventures and Capacity Expansion are the Key Strategies Implemented by the Companies
Key players operating in the industry are Reliance Industries Limited, China Petroleum & Chemical, LyondellBasell Industries Holdings, Exxon Mobil Corporation, Shell International, SABIC, and others. Companies profiled are involved in product innovation, mergers, acquisitions, and collaborations thus gaining a competitive edge in the global market. For example, In September 2018, China's Sinopec started production at the Zhanjiang refinery. The company will produce 8,000 kilotons per year at this factory.
An Infographic Representation of Ethylene Market
To get information on various segments, share your queries with us
The market research report provides a detailed ethylene industry analysis and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, the report offers insights into ethylene market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Million); Volume (Kiloton)
Application; and Geography
Fortune Business Insights says that the global market size was USD 166,520 million in 2019 and is projected to reach USD 245,005 million by 2027.
In 2019, the market stood at USD 166,520 million.
Growing at a CAGR of 5.6%, the market will exhibit steady growth in the forecast period (2020-2027).
The LDPE segment is expected to be the leading segment in this market during the forecast period.
Increasing demand from the automotive and construction industry is a key factor driving the market growth.
Reliance Industries Limited, China Petroleum & Chemical, LyondellBasell Industries Holdings, Exxon Mobil Corporation Industries are a few of the leading players in the global market.
Asia Pacific dominated the global market in 2019.
The continuous growth in the economy, lifestyle, and population of the younger generation is expected to drive the product demand.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry