13-Oct-16 Growing demand for ethylene and its derivatives from packaging and construction sector will drive the global ethylene market through 2025. The global ethylene market is forecast to grow at a CAGR of 11.6%, during 2016-2025, in value terms, on account of growing packaging industry, increasing application of ethylene across automotive and building & construction sector, as per TechSci Research. In 2011, global automobile production stood at 79.88 mln units and reached 90.78 mln units by 2015. With growth in automobile production, increase in demand for ethylene derivatives was witnessed from the automotive industry and a similar trend is expected to continue during 2016-2025. Moreover, development of coal to olefins technology as an alternative way for ethylene production, lifting up of the sanctions in Iran are expected to augment the ethylene production capacity, globally through 2025.
Few of the major producers of ethylene across the world includes Saudi Arabia Basic Industries Corporation (SABIC), The Dow Chemical Company and ExxonMobil Corporation.
Polyethylene was the largest end use segment in the global ethylene market in 2015 on account of increasing demand for safe and high quality packaging material from various sectors such as food & beverage, pharmaceuticals and chemicals. Moreover, increasing application of ethylene derivatives such as ethylene oxide, for manufacturing high quality plastic and disposable plastic products, in automobile sector and PET market is expected to fuel the demand for ethylene, globally. Rising demand for ethylene derivatives such as polyethylene (PE) and ethylene dichloride can be attributed to their increasing application across plastic manufacturing industry. In 2014, the global plastic materials (thermoplastics and polyurethanes) production stood at 260 million metric tons. Asia-Pacific accounted for a share of around 46% in the overall plastics material production, while China alone controlled 26% of the global plastic materials production. Large manufacturing base of plastic materials in Asia-Pacific generates strong demand for ethylene from the region, owing to which the region controls the largest share in the global ethylene market.
"Asia-Pacific region controls the largest share in the global ethylene market on account of increasing demand for ethylene derivatives from packaging industry along with automobile and construction sector. Over the next five years, the region is expected to continue to controlling the largest share in the global ethylene market on account continuous shift of manufacturing base of automobiles from Western European countries towards Asia-Pacific countries, thereby generating increased demand for ethylene in the region. Additionally, shale gas revolution in the United States has enabled ethylene manufacturers in North America to produce ethylene using lower priced feedstocks. Consequently, steady growth in ethylene supply at cheaper rates is expected to drive the global ethylene market at a promising rate.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
Previous News
Next News
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}