Ethylene-Petrochemicals Global Market Report 2024

The ethylene-petrochemicals market size has grown steadily in recent years. It will grow from $105.31 billion in 2023 to $110.54 billion in 2024 at a compound annual growth rate (CAGR) of 5.0%. The growth observed during the historical period can be attributed to several key factors, including the escalating demand for plastics and other petrochemicals, the effects of a growing global population and urbanization, rising disposable incomes, increasing awareness of the benefits associated with ethylene petrochemicals, the availability of feedstock resources, and economic expansion. These factors collectively contributed to the expansion of the ethylene petrochemical industry during that period.

The ethylene-petrochemicals market size is expected to see strong growth in the next few years. It will grow to $135.23 billion in 2028 at a compound annual growth rate (CAGR) of 5.2%. The anticipated growth in the forecast period can be attributed to several significant factors, including the expansion of industrialization, a heightened demand for sustainable ethylene petrochemicals, the increasing popularity of bio-based ethylene petrochemicals, evolving consumer lifestyles, a surge in the production of consumer goods, and elevated demand from the automotive industry. These dynamics are expected to drive the growth of the ethylene petrochemical industry during the forecasted timeframe. Additionally, several key trends are expected to shape this period, including a shift towards the use of renewable feedstocks, a heightened focus on sustainability and environmental stewardship, the promotion of circular economy initiatives, the adoption of bio-based and renewable ethylene, the integration of digitalization and Industry 4.0 principles, and the advancement of green petrochemicals. These trends collectively reflect the industry's commitment to sustainable and eco-friendly practices, innovation, and the evolving demands of the modern market.

The growth observed during the historical period in the ethylene-petrochemicals market can be primarily attributed to the increased demand for polyethylene products. Ethylene, a key component in the production of polyethylene, is extensively used in the manufacturing of various types of polyethylene, including low-density polyethylene (LDPE), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). The market for polyethylene has witnessed significant expansion due to the heightened global demand for plastic products. The widespread adoption of plastics, especially in electronic devices and lightweight components in the automotive industry, has driven the overall demand for plastics. Notably, according to National Geographic (2020), approximately 40% of the plastic produced each year is categorized as single-use plastics. It is projected that plastic production will double by 2050. These factors, which have spurred the adoption of polyethylene and increased plastic usage, have had a direct impact on the growth of the ethylene-petrochemicals market during the historical period.

The primary feedstocks employed in the production of ethylene petrochemicals include naphtha, ethane, propane, butane, and various other feedstocks. Ethane, a colorless and odorless hydrocarbon compound, is considered the simplest hydrocarbon featuring a single carbon-carbon bond. Ethylene plays a pivotal role in a range of applications, including its use in the production of polyethylene, ethylene oxide, ethylene benzene, ethylene dichloride, vinyl acetate, and alpha-olefins. These applications are prevalent across several key end-use industries, such as packaging, automotive, construction, agrochemicals, and textiles.

The ethylene-petrochemicals market research report is one of a series of new reports that provides ethylene-petrochemicals market statistics, including ethylene-petrochemicals industry global market size, regional shares, competitors with an ethylene-petrochemicals market share, detailed ethylene-petrochemicals market segments, market trends and opportunities, and any further data you may need to thrive in the ethylene-petrochemicals industry. This ethylene-petrochemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The growth of the ethylene petrochemical market is expected to receive a significant boost from the growing automotive industry in the foreseeable future. The automotive industry is a broad sector encompassing a multitude of organizations and firms involved in the entire lifecycle of motor vehicles, from design and development to manufacturing, marketing, sales, and maintenance. Ethylene petrochemicals, particularly in the form of polyethylene, play a pivotal role in the automotive sector by offering lightweight solutions, versatile materials for various components, and supporting advancements in safety and sustainability. For example, according to a report published by the European Automobile Manufacturers' Association (ACEA) in May 2023, the year 2022 saw the production of 85.4 million motor vehicles worldwide, representing a 5.7% increase over 2021. Additionally, data from the International Organization of Motor Vehicle Manufacturers, a 36-national trade association, indicates that the total production of cars and commercial vehicles surged from 80,145,988 in 2021 to 85,016,728 in 2022. Consequently, the growing automotive industry stands as a key driver propelling the ethylene petrochemical market forward.

The growth of the ethylene-petrochemicals market is being restrained by stringent government regulations governing the production and utilization of ethylene. Ethylene, being both combustible and carcinogenic, poses a substantial threat to the environment and human health. Its highly explosive nature can lead to various adverse effects, including symptoms like light-headedness, dizziness, and unconsciousness when exposed. Several countries have been taking steps to enact legislation focused on environmental protection, placing increased pressure on companies involved in ethylene production. As an example, in April 2023, the Environmental Protection Agency (EPA), a US-based government agency, proposed significant reductions in toxic emissions, including those of ethylene oxide and chloroprene. These actions aim to promote cleaner air and reduce cancer risks in communities that have been disproportionately burdened by pollution. As a result, these stringent government regulations have become a limiting factor in the growth of the ethylene-petrochemicals market, necessitating adherence to stricter environmental standards and practices within the industry.

Prominent companies in the ethylene petrochemical market are strategically focused on the development of cutting-edge technology, such as the Integrated Olefin Suite (IOS), to maintain their competitive edge within the industry. The Integrated Olefin Suite refers to a petrochemical facility or complex designed for the efficient production of olefins, including key hydrocarbons like ethylene and propylene. For example, in March 2022, Honeywell International Inc., a US-based manufacturing firm specializing in energy, security, and safety solutions, introduced its Integrated Olefin Suite (IOS) technologies. These innovative technologies are aimed at optimizing ethylene production from naphtha crackers. The IOS encompasses a range of advanced solutions capable of increasing ethylene yield, enhancing the quality of naphtha cracker feeds, and reducing the production of lower-value byproducts. Ultimately, the IOS technology is poised to enhance competitiveness and drive profitability in naphtha cracking operations, reinforcing the market position of these major industry players.

Companies engaged in the production of ethylene are directing their investments towards the development of bio-based green polyethylene compounds. These innovative plastics are characterized by ease of production, lower energy consumption, and the capacity to deliver the same versatility as conventionally synthesized plastics. Reflecting this trend, in June 2021, Braskem, a biopolymer producer headquartered in Brazil, introduced the world's inaugural renewably sourced polyethylene wax. This novel material finds applications in the production of coatings, cosmetics, adhesives, and a range of other compounds. This underscores the industry's commitment to sustainability and the development of eco-friendly alternatives..

In July 2021, Enterprise Products Partners L.P., a US-based midstream pipeline company specializing in crude oil and natural gas, completed the acquisition of the ethylene storage business from NOVA Chemicals Corporation. The financial terms of this transaction were not disclosed. This strategic acquisition positions Enterprise to offer a range of benefits to producers, consumers, and traders in the ethylene market. These advantages include enhanced access to Enterprise's comprehensive ethylene midstream services, which encompass its export terminal and expanding Gulf Coast pipeline system. The deal also results in increased physical connectivity, improved market liquidity, and greater pricing transparency. NOVA Chemicals Corporation, a Canada-based petrochemical company operating in the ethylene petrochemical market, was the seller in this transaction.

Major companies operating in the ethylene-petrochemicals market include Akzo Nobel NV, BASF SE, Borealis AG, Chevron Phillips Chemical Company LLC, China Petrochemical Corporation, Clariant International Ltd., Dow Chemical Company, Equistar Chemicals LP, Exxon Mobil Corporation, Huntsman Corporation, Ineos Group Limited, LG Chem Ltd., Lonza Group, LyondellBasell Industries NV, Mitsubishi Chemical Corporation, Mitsui Chemicals Inc., National Iranian Petrochemical, NOVA Chemicals Corporation, Royal Dutch Shell plc, Sasol Limited, Saudi Arabia's Basic Industries Corporation, Showa Denko KK, SINOPEC Shanghai Petrochemical Co. Ltd., National Petrochemical Company, Tosoh Corporation, TotalEnergies SE, Formosa Plastics Corporation, PetroChina Company Limited, BP plc, Reliance Industries Limited, Lotte Chemical Corporation, Sumitomo Chemical Co. Ltd., Braskem SA, PTT Global Chemical PCL, Westlake Corporation, Eastman Chemical Company, Air Products and Chemicals Inc., Evonik Industries AG

Asia-Pacific was the largest region in the ethylene-petrochemicals market in 2023. Middle East was the second-largest region in the global ethylene-petrochemicals market. The regions covered in the ethylene-petrochemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the ethylene-petrochemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The ethylene petrochemical market consists of the sales of ethylene petrochemicals in different compounds such as polyethylene (plastics), ethylene oxide or ethylene glycol, ethylene dichloride, and styrene. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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