The global ethylene market is primarily driven by its extensive use in the manufacturing of various plastics such as polyethylene, ethylene dichloride, ethylene oxide, ethylene glycol, and ethylene benzene. Ethylene is the backbone of plastics production and is majorly used as a feedstock or building block of polymers. The plastics made using ethylene have a wide range of applications across various end-use industries such as electronics, packaging, automotive, construction, and healthcare among others. The surging demand for plastics from these industries is expected to drive the consumption of ethylene in the coming years.

The global ethylene market is estimated to be valued at US$ 158.06 Mn in 2023 and is expected to exhibit a CAGR of 30.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The surging demand from the plastics industry remains the major growth driver for the global ethylene market over the forecast period. As per estimates, the global plastics production reached around 368 million tons in 2020 and is expected to grow at a CAGR of 4% until 2030. Plastics find widespread usage across industries and their demand is constantly rising owing to properties like durability, versatility, and lightweight. This escalating demand for plastics is directly fueling the consumption of ethylene used as raw material in plastic manufacturing. Another key factor contributing to the market growth is the increasing demand from the packaging industry. Packaging plays a crucial role in the safe delivery of goods and products across industries and its demand continues to increase with growing e-commerce and pharmaceutical sectors. Ethylene is a key feedstock material for producing polyethylene used widely in flexible and rigid packaging. The synergies between escalating plastics and packaging demand along with limited substitutes will continue propelling the ethylene market during the forecast period.

Segment Analysis

The global ethylene market is dominated by the polyethylene sub-segment which accounts for over 60% of the total market share. Ethylene is majorly used to produce polyethylene which finds applications in plastic bottles, containers, films, packaging products etc. The widespread end-use of polyethylene in various packaging and consumer goods has boosted the consumption of ethylene for its production.

PEST Analysis

Political: Governments across the globe are promoting the petrochemical industry and providing incentives to boost local ethylene production which will positively impact the market growth.

Economic: Growth in the plastic and chemical industries along with rising disposable incomes in developing nations is augmenting the demand for ethylene.

Social: Rising population and burgeoning middle-class has increased the consumption of packaged food, consumer goods which requires ethylene-based plastics for packaging.

Technological: Manufacturers are investing in R&D to develop innovative production technologies like steam cracking to produce ethylene at low costs and optimize resource usage.

Key Takeaways

The Global Ethylene Market Growth is expected to witness high over the forecast period due to expanding plastic and chemical industries globally.

The Asia Pacific region dominates the market and accounts for over 50% share owing to large production capacities and rapidly increasing consumption from countries like China, India and ASEAN nations. Countries in the region are also attracting huge petrochemical investments.

Key players operating in the ethylene market are Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects.

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