Published Date : 28 Jun 2023
The global ethylene market size surpassed USD 185.83 billion in 2022 and is projected to rise to USD 287 billion by 2030, anticipated to grow at a CAGR of 5.58 percent during the projection period from 2022 to 2030.
Rising demand for polyethylene used in packaging, an increase in the need for cars as well as electronics are some of the main reasons influencing revenue growth. In the upcoming years, product demand is anticipated to increase as a result of changing consumer lifestyles and rising need for packaged products. The product is also used to create solvents, polyurethanes, antifreeze, and rest items, as well as to sterilize medical and surgical equipment and supplies.
Ethylene is a flammable, colorless gas that is produced by petrochemicals and is frequently utilized as a raw material for the production of plastics, textiles, and organic compounds. It is a diversified portfolio of commonly used petrochemicals, and consumer demand is affected by energy as well as economic cycles. This is transformed into more chemicals, which are transformed into further home goods and other things. Polyethylene, styrene, ethylene dichloride, and ethylene oxide are a few examples of ethylene derivatives and their uses for them. The largest proportion of ethylene used will be used in the synthesis of polyethylene, trailed by ethylene dichloride and ethylene oxide.
During the historical period, rising polythene product demand fueled the expansion of the ethylene market. Low-density polyethylene, high-density polyethylene, and linear low-density polyethylene are among the polyethylene products that primarily utilize ethylene. Due to the rising need for plastic on a global scale, the polyethylene industry has experienced significant growth. Plastic usage has grown as a result of plastic's high level of use in lightweight products and technological goods. The output of plastic resins, which form the basis for all plastic products, increased by 0.9 percent in the United States in 2020 as opposed to 1.2 percent in 2019, claims the American Chemistry Council. These variables, which propelled the use of polyethylene, had an effect on the expansion of the ethylene market.
Ethylene Market Report Scope:
|Market Revenue in 2023
|USD 196.2 Billion
|Projected Forecast Revenue in 2030
|USD 287 Billion
|Growth Rate from 2022 to 2030
|CAGR of 5.58%
|2022 To 2030
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Due to the increased demand for polyethylene from the plastics industry and compounds as from the chemical sector from developing nations like India, China, and Japan, Asia Pacific is predicted to expand at a CAGR of 6.3% over the forecast period and take the lead in the market in 2022. These countries' enhanced consumer lifestyles as a result of their industrial development have raised the need for performance-based plastic for everyday essentials. In addition, the growing middle-class population is increasing demand for homes and automobiles.
Increasing consumer acceptance of packaged products as a result of shifting consumer lifestyles is anticipated to increase product demand throughout the projected period. Polyethylene is used in a variety of products, such as sheets, bottles used for packing, and tubing. The expanding usage of containers made from plastic across a range of end-use sectors is anticipated to dramatically enhance product demand.
Growing polyethylene consumption and demand in the food and beverage sector will fuel global revenue growth. The reason why food and drinks are preserved from both internal and exterior surroundings is because of its excellent moisture barrier characteristic. The manufacturers' increased emphasis on the packaging that prevents quality loss and food contamination, which is anticipated to create sizable development prospects for the polyethylene market.
Implementation of strict government rules relating to ethylene production and consumption is the main factor limiting market growth. Strict limitations on ethylene consumption are anticipated to have a negative influence on the growth of the market since it is flammable and carcinogenic. Additionally, a number of nations are putting environmental protection laws into effect, which will probably pressurize the businesses producing hydrocarbon-based gas. For example, ethylene oxide which is a derivative of ethylene is a contemporary example of strict restriction. A colorless, combustible gas with a slight ether-like smell is called ethylene oxide (EtO). The principal application for gas is utilized as a chemical intermediary in the production of ethylene glycol, detergents, textiles, solvents, polyurethane foam, adhesives, medicines, and some other goods. ETO is governed by the US EPA as a dangerous air pollutant.
Plastic pollution is on the rise as a result of increased plastic manufacture and use, particularly of single-use plastic items. Countries and businesses are taking steps to reduce their usage of single time use plastics and focus on recycled and bioplastics, which might stifle ethylene's market revenue growth, in an effort to reduce the worldwide output of plastic waste and pollution. Additionally, the market's ability to expand its revenue is being somewhat hampered by the unpredictability of feedstock prices.
As consumers' awareness of the need for products to be packed properly has grown, the demand for plastic products has risen. Demand for plastic packaging has skyrocketed due to its many applications in industries including transportation, e-commerce, healthcare, and retail. The market is also projected to grow and be fueled by the need for high-end industrial applications. The market is driven by consumer demand for high-quality foods in appropriate packaging. Growth in the automotive and construction sectors is also aiding market expansion because plastic is used in the aforementioned industries for wiring, pipelines, vehicle components, and other goods. Expanding applications in the agricultural, medical, and other sectors are another factor driving the market size.
The adoption of strict government rules relating to the production and use of ethylene is the main factor hindering the growth of the ethylene industry. The expansion of the ethylene market is hampered by strict laws regarding its use since it is flammable and carcinogenic by nature. Additionally, a number of nations are putting environmental protection laws into effect, which will probably put pressure on the businesses producing hydrocarbon-based gas. Additionally, part of the market's expansion is being hampered by the fluctuation in feedstock costs.
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