Global Ethylene Market is Estimated to Witness High Growth Owing to Opportunity in Plastic Industry
Ethylene Market |
Ethylene is an important petrochemical used as a raw material in the production of polyethylene, ethylene glycol, ethylene oxide, and polyvinyl chloride (PVC). It is widely utilized in the manufacturing of plastics, fibers, and packaging materials. The increasing demand for plastics from the packaging, automotive, construction industries is fueling the growth of the global ethylene market. The plastic industry uses ethylene as a feedstock to manufacture various plastics including polyethylene, polyvinyl chloride, and ethylene-vinyl acetate.
The global
ethylene Market is estimated to be valued at US$ 137.2 Bn in 2023 and is
expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as
highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The growing plastics industry presents a huge market opportunity for ethylene
producers. Plastics have wide applications across industries such as packaging,
construction, automotive, consumer goods, among others. According to industry
estimates, the global plastic production volumes are expected to witness
significant growth over the forecast period. The increasing plastic demand from
emerging economies of Asia Pacific and Latin America is anticipated to boost
the consumption of ethylene in the region. Further, development of bio-based
and recycled plastics using ethylene as a raw material offers sustainable
growth opportunities for market players.
Porter's Analysis
Threat of new entrants: The global ethylene market requires large capital
investments for building plants and establishing distribution channels. The
presence of dominant players further poses threat to new entrants.
Bargaining power of buyers: The buyers have moderate bargaining power due to
the availability of substitutes. However, high production costs limit switching
to alternatives.
Bargaining power of suppliers: A few suppliers control the supply of raw
materials like oil and gas. This gives them strong influence over market
pricing.
Threat of new substitutes: Alternatives like propylene are available but have
limitations in applications. Ethylene faces low threat from substitutes.
Competitive rivalry: The market is highly consolidated with major players.
Intense competition exists regarding pricing and new product development.
SWOT Analysis
Strength: Ethylene has wide applications in producing polymers and chemicals.
Established production facilities and distribution networks of key players
strengthen their positions.
Weakness: Fluctuations in crude oil prices affects production costs. Stringent
environment regulations regarding emissions increase compliance costs.
Opportunity: Rising polymer demand from industries like packaging and
construction offers scope for market expansion. Developing nations provide
growth avenues.
Threats: Slowdowns in the automotive and electronics industries impact
downstream polymer demand. Trade wars and geopolitical tensions pose
disruptions.
Key Takeaways
Global
Ethylene Market Size is expected to witness high growth between
2023-2030 supported by rising polymer consumption worldwide.
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