by The global ethylene market plays a vital role in manufacturing various commodity plastics and polymers that are extensively used across various industries. Ethylene is a gaseous alkene that serves as a crucial raw material for producing polyethylene, ethylene glycol, ethylene oxide, and other ethylene derivatives. These derivatives find extensive applications in packaging films, containers, plastic bottles, detergents, antifreeze, and other industrial and consumer products due to their properties such as durability, flexibility and chemical resistance.
The Global Ethylene Market is estimated to be valued at US$ 342.94 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players related content: Key players operating in the ethylene market are Saudi Basic Industries Corporation (SABIC), Exxon Mobil Corporation, The Dow Chemical Company, Royal Dutch Shell plc, China Petroleum & Chemical Corporation (Sinopec Corporation), Chevron Phillips Chemical Company LLC, Total S.A., LyondellBasell Industries, National Petrochemical Company (NPC), and INEOS Group AG.
Key players operating in the Global Ethylene Market Share focus on capacity expansion, product innovation and adoption of circular business models. For instance, Dow commissioned a new ethylene production unit in Freeport, Texas in 2021 to cater to the rising demand. LyondellBasell Industries continues to focus on developing recycled and renewable-based polymers.
Growing demand:
The demand for Global ethylene Market is expected to significantly grow owing to the rising consumption of ethylene derivatives such as polyethylene in packaging films and plastic bottles driven by the e-commerce boom. There is also a growing focus on recycling plastics that will augment the demand for recycled ethylene.
Global expansion:
Major producers are investing in regions with abundant shale gas reserves such as the Middle East, North America and China for captive ethane production. The market is also witnessing capacity additions across Southeast Asia, India and Brazil to cater to their growing polymer markets.
Market key trends
Transition towards circular polymers: With the rising focus on sustainability, producers are developing recyclable polymers and chemical recycling technologies to institute circular business models and establish waste management infrastructure to collect and process plastic waste.
Porter’s Analysis
Threat of new entrants: The high capital requirements and economies of scale in production and distribution channels limit the threat of new players entering the ethylene market.
Bargaining power of buyers: Buyers have moderate bargaining power. They can negotiate price for bulk purchases. However, switching costs are high.
Bargaining power of suppliers: A few players dominate the ethylene supply market. This gives suppliers significant bargaining power over buyers.
Threat of new substitutes: No viable substitutes exist for ethylene which give it limited threat from substitutes.
Competitive rivalry: Competition is high among existing players. Players compete on basis of capacity expansion, cost leadership and product differentiation.
Geographical Regions
In terms of value, North America accounted for the highest share of 40% of the global ethylene market in 2024. This is attributed to large production capacities and growing demand from end-use industries like polyethylene and ethylene oxide in the region. Asia Pacific is expected to be the fastest growing market during the forecast period. Factors such as increasing GDP, urbanization and industrial activities in emerging economies like China and India are driving the growth of ethylene consumption in this region.
