Global ethylene market is expected to reach USD 161.61 billion by 2028, at a CAGR of 8.3% from 2021 to 2028. Global Ethylene market is witnessing a considerable growth owing to the rising demand for ethylene products from the construction industry and packaging industries.

Market Overview:

Ethylene is a hydrocarbon having formula C2H4 or H2C=CH2. This is a colourless, flammable gas with slightly sweet and musky odour, when pure. Ethylene is widely used in the chemical industry as well as feedstock. It is derived from natural gas and petroleum. Ethylene is the first identified plant hormone, responsible for regulating numerous process in plant growth, development and trigger accordingly to biotic and abiotic stress. Ethylene is well known for its effect on fruit ripening and organ abscission, and so has abundant commercial importance in agriculture. Ethylene is mainly used as a feedstock in the manufacturing of different chemical compounds including ethylene oxide, ethylene benzene, polyethylene, vinyl acetate, and alpha-olefins. The spinoffs of these compounds are used in industrial applications such as agrochemicals, automotive, packaging, detergents & soaps, and construction & textiles. The surge in demand for ethylene derivatives in packaging is the key factor driving the growth of the ethylene market. The soaring demand for ethylene products from the construction industry is another factor driving the growth of this market. Increasing application of the ethylene end product such as ethylene dichloride, polyethylene, and ethylbenzene also boost the growth of this market. Moreover, the requirement from automotive applications is expected to motivate the growth of the ethylene market. However, fluctuating prices of crude oil which is essential for the production of ethylene and its derivate, as well as the strict government regulations regarding the production of ethylene, are the main restraining factor of the ethylene market. Also, the use of coal as the feedstock to produce ethylene by many countries is generating more growth opportunities in this market. Linear low-density polyethylene (LLDPE) and Low-density polyethylene (LDPE) are required for manufacturing pharmaceutical & squeeze bottles, trash bags, caps & closures, films for frozen food & dry goods packaging, and laminations. High-density polyethylene (HDPE) is utilized in the applications such as trays, crates, bottles for milk and fruit juices, caps for drums, jerry cans, food packaging, and industrial bulk containers among others. HDPE is also used by extruding it into pipes for water, gas and irrigation, and film for carrier bags, refuse sacks and industrial lining.

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Market Dynamics:

Drivers:

• Coal is used as the feedstock to produce ethylene

Many countries are using coal as the feedstock to produce ethylene. In many countries like China, it is increasingly used as a raw material for making polyester fibre and resin. China uses coal for the production of polyolefins, liquid fuels etc. So coal as a feedstock produces ethylene which can be used in many applications.

• The rising demand for ethylene products from the construction industry

Polyethylene and Plastic materials like polyvinyl chloride (PVC) are in great demand by the construction industry. This also helps in decreasing the sound pollution level and can be easily cleaned. Commonly made up of polyvinyl chloride (PVC), CPVC, acrylonitrile butadiene styrene (ABS) or polyethylene, plastic pipes are flexible and very light in weight, making them easy to install.  All of these plastic materials are also highly chemical and water-resistant, making them suitable for many extreme environments. These are some the factors driving the ethylene market.

• Demand from automotive applications

The increase in the demand for automobiles are driving automotive industries. This has increases the sales of many parts used in automobile such as tires, cushion, screen, wiper arm, bumpers etc. which are made up of good quality plastics. This increase in sales would, in turn, drive the ethylene market.

Restraints:

• Fluctuating prices of crude oil

The fluctuating prices of crude oil which is essential for the production of ethylene and its derivate are the major restraint for the market as this affects the production of ethylene and its derivatives, and so also its price according to its requirement by various segments of the market. So fluctuating prices of crude oil are restraining the market.

Opportunities:

• The increasing demand for ethylene derivatives in packaging

Polyethylene is the major derivative that is used in packaging in the form of low-density, linear low-density (LDPE) and high density (HDPE). They are also used in making films and articles for large industrial use, and residential purposes other than packaging and these are the major drivers for the market. They are in high demand by the pharmaceutical industry for making squeezing bottles, caps, syrup bottles. They are widely used in the making of trash bags, in dry fruits packaging and in laminations. These are the factors driving this market and will drive the market in the forecasting period.

• Strict government regulations

Stringent government policy and norms regarding the production and use of ethylene are acting as main restraint for the market. More emphasis is given on the use of bio-based ethylene which uses biomass as a feedstock and also the organization has to follow all the guidelines and safety standards for the workers. The government has strict regulation for the industries to contain the air pollution and to reduce harmful emission of greenhouse gas.

Segmentation Analysis:

The global Ethylene market has been segmented based on feedstock, application end userand regions.

• The feedstock segment is divided into naphtha, ethane, propane, butane and others. As of 2020, Naphtha is the leading feedstock segment having the market share of 28.69% in 2020. Ethane is the second leading feedstock, which is also most commonly used as a feedstock for Ethylene production in most parts of the world.
• The application segment includes Polyethylene, ethylene oxide, ethylbenzene, ethylene dichloride and others. As of 2020, Polyethylene is the leading application segment of the global ethylene market with 56.18%. The demand form consumable goods segment like packaging materials, residential purposes goods, films and articles for large industrial uses are the market drivers for the market. Ethylene Oxides are broadly used in end-user segments which includes polyester films, PET bottles and fibres. Hence growth of ethylene oxide is predicted to have the highest growth rate in the near future. 
• The end-user segment includes building & construction, automotive, textiles, packaging and agrochemicals. Packaging industries held the highest market share of around 30.08% in 2020. Agrochemicals is anticipated to have the growing segments during the forecast period. The packaging, automotive and construction industries are expected to drive this market in the forecast period.

Regional Segmentation Analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia Pacific region emerged as the largest market for the Ethylene market, with a market share of around 32.48% in 2020.

• Asia-Pacific expected to have the highest market share in 2020. This is due to the fact that in the emerging economies like China and India, there is a rapid industrialization and urbanization, which has resulted in many end-user industries like automotive, packaging, textile etc. Also, there is a presence of many agricultural countries in the region. All of this drive this market in the region.
• There is stringent government regulations on the use of VOC (Volatile organic compound) emitting substances, but still, North America and Europe are most likely to witness moderate growth in the coming years. The European Chemicals Agency and The US Environmental Protection Agency control and maintain the use of ethylene through the Clean Air Act, Clean Water Act, European Directive (793/93) etc.

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Competitive Analysis:

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances and partnerships to improve their market position in the global ethylene industry.

In 2018, Exxon Mobil and Saudi Basic Industries Corporation (SBIC) had an agreement for a joint venture to begin construction of the world’s largest ethylene production plant, estimated at $1.4 billion.

In July 2019, ExxonMobil started producing on a new high-performance polyethylene line at its Beaumont, Texas polyethylene plant. This has increased the capacity of the plant by 65 per cent or 650,000 tons per year, which has brought site capacity to nearly 1.7 million tons per year.

List of Key Market Players:

• Saudi Basic Industries Corp
• Exxon Mobil Corporation
• Dow DuPont Inc.
• Royal Dutch Shell plc
• China Petroleum & Chemical Corporation
• Chevron Phillips Chemical Company LLC
• LyondellBasell Industries N.V.
• The National Petrochemical Company
• BASF SE
• Lonza Group

Key Target Audience

• Packaging Industries
• Construction Industries
• Automotive Industries
• Textiles Industry
• Food & Beverages Industry
• Agrochemical Industry

Report Description:

• Global ethylene Market, Industry Analysis, Trends, Analysis and Forecast, 2021 to 2028 is a forthcoming/imminent research report which is to be published by The Brainy Insights.
• 2020 is considered as the base year of the report. 2018 and 2019 are considered as the historic years and 2021 to 2028 are the forecast years. The global ethylene market is based on revenue (USD Million/Billion), volume and price. The report incorporates the market study on the basis of revenue, and volume. The study covers the market share revenue/market share/volume for each of the segments, regions and countries catering to global Ethylene market. The regions analyzed for the market are Europe, Asia Pacific, North America, South America and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
• The report encompasses with the relative data & information, which have been validated by the leading industry professionals and experts all across the globe. The research report also delivers an outline of the attractiveness of feedstock, application, end user and regions which are deduced and formulated on the basis of their growth rate (CAGR), market size, and attractiveness by analyzing the present and future prospects to fathom market growth and development in future.
• The report illustrates the detailed (both quantitative and qualitative) analysis of historical data, revenues, key developments, along with the crucial strategies adopted by key organizations catering to global ethylene market.  This offers vital and in depth insights in order to depict the overall market scenario.
• The report offers the detailed study for the company profiles of key organizations operating in the global ethylene market and a comparative assessment based on their product offering, business overviews, geographic presence, business strategies, segment market share, product development & innovations, recent developments, joint venture, partnerships, mergers & acquisitions, strategic alliances, SWOT analysis, and key financial information. This helps in evaluating the overall competition present in the market scenario. 
• The report provides an elaborative assessment of the porter’s five forces analysis coupled with SWOT analysis so as to provide business related data and information’s. Porter’s five forces model is analyzed to understand the overall competitive scenario that is prevailing in the market. Additionally, the SWOT analysis identifies both the positive and negative attributes of the market development which influences the company growth and development in order to sustain and survive in the long run.
• Along with that, the report also focuses on the market related driving factors, growth limitations (restraints), potential industry opportunities, significant trends and development which acts as a key potential for the investors. 
• Potential growth prospects along with the penetration rate analysis of the products (market related i.e., global ethylene market) is covered in order to comprehend the adoption rate and evaluate the market size.