Ethylene is an organic compound used as a feedstock in the production of polyethylene. It is the world’s most significant petrochemical. Polyethylene products made from ethylene include plastic bags, bottles, pipe, milk jugs, food containers, trash bins, and toys. The essential role of ethylene in the production of essential plastic materials means there is widespread demand from various end-use industries such as packaging, construction, automotive, and more. With rapid urbanization and growing populations, the need for construction materials, consumer products, and infrastructure is increasing globally. This is projected to drive the demand for ethylene and associated polyethylene products over the coming years. The global Ethylene Market is estimated to be valued at US$ 137.2 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the global ethylene market is increasing demand from the packaging industry. Polyethylene derived from ethylene plays a crucial role in the packaging industry as it is lightweight, durable, flexible, and inexpensive. It is widely used to produce plastic bags, bottles, containers, and films. The packaging industry is growing significantly due to the expanding e-commerce industry, increasing demand for packaged and processed food as a result of busy lifestyles, increasing disposable incomes, and rising focus on product safety and aesthetics. Another major trend is technological innovations to improve production efficiency and reduce costs. This includes advanced production technologies like on-purpose technology that uses fewer raw materials to produce higher quality end products and reduced greenhouse gas emissions. These innovations are helping producers meet the growing global demand for ethylene and polyethylene products in an economical and sustainable manner.
Threat of new entrants: Low capital requirements and established customers lower barriers to entry. However, large competitors’ economies of scale and access to customers increases threat.
Bargaining power of buyers: Large buyers have more negotiating power on price and quality due to market size. Many substitute products also increase buyers’ power.
Bargaining power of suppliers: A few major integrated producers give them leverage to influence prices of raw materials like natural gas and naphtha.
Threat of new substitutes: Alternatives like propylene and methanol offer substitution potential. However, ethylene advantages in manufacturing make it difficult to replace completely.
Competitive rivalry: Major global players dominate. Intense competition on basis of capacity, technology and customer service maintains pressure on prices and margins.
The Global Ethylene Market Growth is expected to witness high over the forecast period of 2023 to 2030.
Regional analysis: North America is currently the largest market for ethylene, followed by Asia Pacific and Europe. Asia Pacific region is expected to grow at the fastest pace during the forecast period due to rapidly expanding end-use industries in emerging economies like China and India.
Key players: Key players operating in the global Ethylene market are Honeywell International Inc., Molex Incorporated, Littelfuse, Inc., RMCIP, Standex Electronics, Inc., Nippon Aleph, HSI Sensing, Inc., Coto Technology USA, PIC GmbH, STG Germany GmbH, Harbin Electric Group, Zhejiang Xurui, Zippy Technology Corp. Honeywell International Inc. is one of the leading players in the market, offering a wide range of industrial automation and advanced technologies solutions for buildings, homes, transportation and industrial sectors.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it