Asia-Pacific To Hold The Largest Share In The Ethylene Market
Date
10/23/2024 5:00:49 AM
(MENAFN- Straits Research)
Introduction
Ethylene finds applications across various industry verticals, such as automotive, packaging, healthcare, textile, agrochemicals, and building & construction industries, among others. Rising investments in Asia-Pacific are leading to infrastructural development, thereby positively impacting the demand for construction fittings and pipes. In the automotive sector, ethylene is used in the production of specialty glass. In the metal fabrication industry, it is used as oxy-fuel gas in metal cutting, welding, and high-velocity thermal, further driving the market growth.
Key Highlights
The ethylene market is on the path of achieving new market heights with a lucrative CAGR of around ~5.0%, strongly supported by its considerable application in the manufacturing of polymers, such as polyethylene (PE), polyethylene terephthalate (PET), polyvinyl chloride (PVC), polystyrene (PS), and fibers & other organic chemicals.
The polyethylene segment is projected to grow at a significant rate on account of its increasing demand in the end-use industries. The extensive application of high-density polyethylene in the manufacturing of trays, bottles for fruit juices and milk, industrial bulk containers, and other everyday products drive the segment growth.
Ethylene gas finds applications in the agriculture and food and beverage industry
Asia-Pacific dominates the ethylene market as the region has the highest consumption and production capacities. In 2017, Asia accounted for about 55% of the ethylene exports, supported by the presence of leading companies in the region.
Impact of COVID-19 on Ethylene Market
The lockdown in Europe and Asia-Pacific is rapidly decelerating the petrochemical demand, further decelerating the naphtha market. The collapse in demand for crude oil from international markets with limited workforce availability has adversely affected the availability of raw material for ethylene production. Similarly, the demand for plastic is witnessing a considerable decline in the automobile sector across Europe. As per the European Automotive Manufacturers Association, the COVID-19 outbreak has translated about 1.5 million worth production losses for European automobile industries. The shutdowns in Spain, France, and other countries have decelerated the demand for PVC plastics largely used for manufacturing fittings and pipes, further hampering the ethylene market growth
Competitive Players
SABIC
The Dow Company
Exxon Mobil Corporation
Royal Dutch Shell
China Petroleum & Chemical Corporation
Chevron Phillips Chemical Company
Total SA
LyondellBasell Industries Holdings BV
China National Petroleum Corporation
Repsol
BASF SE
Westlake Chemical Corporation
Sasol
Mitsubishi Chemical Corporation
Nova Chemicals Corporation.
Recent Developments
Recent Developments
November 2021: Lummus Technology signed a memorandum of understanding (MoU) with Braskem Netherlands BV , a subsidiary of the world's largest biopolymer manufacturer, Braskem. The MOU is for Braskem's ethylene technology license for developing two ethanol-to-ethylene conversion projects in North America and Asia.
October 2021: Dow intends to construct the world's first integrated ethylene cracker and derivatives plant with net-zero carbon emissions. The project will triple Dow's ethylene and polyethylene capacity while retrofitting the business's current assets to emit zero carbon.
Segmentation
By Feedstock
Naphtha
Ethane
Propane
Butane
Natural Gas
By Distribution Channel
Direct
Indirect
By Application
Polyethylene (PE)
Polyethylene terephthalate (PET)
Polyvinyl chloride (PVC)
Polystyrene (PS)
Fibers & other organic chemicals
By End Use
Automotive
Packaging
Healthcare
Textile
Agrochemical
Building & Construction
Others
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