The increasing industrial application of ethylene is a key factor driving its demand from around the world. Hence, an increasing number of petrochemical companies worldwide are engaged in the production of ethylene and its derivatives to benefit from their accelerating demand in the global market. Citing the lucrative prospects that the ethylene market has in the global perspective, leading petrochemical companies periodically increase their production capacities. According to reports, the demand for ethylene across various end-use industries is expected to increase significantly. This endorses the positive growth prospects of the global ethylene market.
The global ethylene market, valued at US$156.0 billion in 2013, is anticipated to reach an estimated valuation of US$234.2 billion by 2020. The market is thus poised to exhibit a CAGR of 6.0% between 2014 and 2020.
What is Ethylene and What are its Core Uses?
Ethylene is a colorless inflammable gas that has a sweet taste and a distinct odor. It is used for a wide range of industrial applications. The most popular uses of ethylene are enumerated below:
Polyethylene derived from ethylene is used in the manufacture of plastics:-
Polyethylene is extensively used for the production of plastic packaging, toys, and pipes. Plastics obtained from polyethylene are used in objects of all dimensions, with the simplest or the most complex shapes. The escalating consumption of polyethylene in the manufacture of a diverse range of plastic products correspondingly increases the demand for ethylene. The polyethylene segment of the global ethylene market accounted for 50% of the total market in 2013, due to its accelerating demand across the plastic industry.
Browse Market Research Report of Global Ethylene Market:
Ethylene oxide is used in the manufacture of plastic bottles:-
Ethylene oxide is another derivative of ethylene that has managed to capture a substantial share in the global ethylene market. The prospective market growth of ethylene oxide will be largely due to the increasing demand for its derivative, ethylene glycol, which is used to manufacture plastic items, especially bottles. Ethylene oxide is expected to be the fastest growing application segment of the global ethylene market.
Ethylene has extensive use in the packaging industry:-
Ethylene has a multitude of applications across end-use segments such as the packaging, automotive, agrochemical, construction, textile, and others (including soaps and detergents) industries. Of these, the packaging industry registered the most demand for ethylene in 2013, accounting for a market share of above 30%.
Increasing usage of ethylene in the manufacture of diverse products across this industry is expected to help the segment exhibit the fastest growth of all application segments in the near future. The packaging industry uses various types of polyethylene, such as PVC, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), and high density polyethylene (HDPE) for producing a myriad of packaging items such as containers, pipes, films, and drums. Increasing demand for such products around the world is expected to fuel the demand for ethylene from the packaging segment.
Browse Market Research Press Release of Global Ethylene Market:
Demand for ethylene is also rapidly increasing across industries such as construction and automotive. This will drive the global ethylene market exponentially over the next few years. Volatility in crude oil prices will, however, create a few obstacles and restrain the market’s growth trajectory. However, mass production of ethylene through the catalytic oxydehydrogenation process is anticipated to create future growth opportunities for the market.