ETHYLENE AND PROPYLENE MARKET ANALYSIS

The ethylene & propylene market was valued at US$ 360,596.1 million in 2022, and is expected to register a CAGR of 6.21% in terms of revenue over the forecast period (2023 – 2030), to reach US$ 583,820.7 million by 2030. Technologies such as Methanol-to-Olefins and coal to olefins (CTO) are being developed by market players in order to reduce production cost of ethylene & propylene. For instance, McDermott International, Inc. offers Lummus Technology's Light Olefins Recovery Technology, which recovers ethylene and propylene that are produced in a Methanol-to-Olefins (MTO) process. This technology offers benefits such as high product recovery, low energy consumption and capital costs.

Ethylene And Propylene Market: Growth drivers

Rise in the demand of ethylene & propylene derivatives

Acrylonitrile is the derivative of propylene, which is used in polymers and elastomeric fiber. Acrylonitrile are used in sweaters, socks and sportswear and home furnishings, which contributes their maximum share in the market. Acrylonitrile also used in medical equipment such as valves, mechanical seals, and pumps due to the global coronavirus pandemic rising the demand for medical equipment, which increases the demand of acrylonitrile as well for Ethylene and Propylene in the market.

Rise in the demand for ethylene & propylene in automobile sector

The demand for Ethylene and Propylene is rapidly increasing in the automobile industry, which is expected to drive the growth of Ethylene and Propylene market during the forecast period. Polypropylene is a polymer of propylene that is produced from the monomer of propylene, and this monomer is used in the automobile industry. Due to the Large-scale production of automobiles increase the demand for polypropylene products, which are used in the manufacturing of bumpers, interior trim, instrumental panels, battery cases and trays, fender liners, door trims, and other machineries.

Ethylene And Propylene Market: Market restraints

Stringent safety guidelines associated with the transportation and manufacturing of Ethylene and Propylene

Stringent safety guidelines associated with the transportation and manufacturing of Ethylene and Propylene were a major restraint for the Ethylene and Propylene market growth. Ethylene and Propylene is toxic, highly inflammable, and hazardous when it is exposed to extreme pressure and temperatures. Ethylene and Propylene dealers should invest in processes, equipment and technologies to limit the toxic levels and chemical levels. These regulations increased the manufacturing costs in the Ethylene and Propylene industry, therefore regulating scope for investments relating to the expansion of product and launch of new products and into new markets, thereby affecting the growth of the market.

Ethylene And Propylene Market: Market Segmentation

Among derivate types, the ethylene segment accounted for the largest market share in 2022. Among all types of ethylene, ethylene oxide sub-segment is expected to register the highest CAGR. Ethylene oxide is mainly used for production of monoethylene glycol, diethylene glycol, and triethylene glycol. Furthermore, it is also used in production of derivatives such as ethanolamine, ethoxylates, polyethylene glycol, glycol ethers, and polyether polyols. Furthermore, the polypropylene sub-segment is expected to register the highest CAGR over the forecast period, under the propylene segment. Polypropylene is majorly used for film extrusion, and finds application in flexible and rigid packaging. Major application of these films is in packaging of food & beverage products. Other applications of polypropylene are in the manufacture of automotive interiors, consumer products, fabrics, and biaxially oriented polypropylene (BOPP) films. The growth of the food & beverage industry is expected to drive demand for flexible packaging, which in turn is projected to facilitate growth of the polypropylene segment over the forecast period.

Figure 1. Global Ethylene And Propylene Market, By Application 2022

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Among application, the pharmaceuticals segment accounted for significant market share in the ethylene & propylene market in 2022, and is expected to register significant growth during 2023 - 2030. Ethylene derivatives such as ethylene oxide are used to sterilize medical equipment and pharmaceutical products that cannot support high steam sterilization procedures, and other healthcare supplies such as ointments and bandages in order to reduce potential damage to products. It is also used as a disinfectant and fumigant. Due to increasing demand for ethylene oxide for production of commercially important derivatives, several market players are adopting strategies such as capacity expansions, and mergers and acquisitions, which is aiding the growth of the pharmaceutical application segmen

Ethylene And Propylene Market: Regional Analysis

Asia Pacific accounted for significant market share in the ethylene & propylene market in 2022, and is expected to witness significant growth over the forecast period. This is owing to the increasing demand for ethylene & propylene derivatives by various end-use industries such as automobile and packaging. This, in turn, has led companies in the region to invest in expanding the capacity of ethylene & propylene production plants. For instance, in 2015, in India, ethylene capacity expansion from 1.9 MMT to 3.2 MMT was planned by Reliance Industries in Jamnagar 3 project.

Figure 2. Global Ethylene And Propylene Market, By Region 2022

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Ethylene And Propylene Market: Recent Developments

• In February 2022, Braskem, which is one of the major polyolefins manufacturing company, as well as a market leader of biopolymers, has declared the enlargement of its circular polymer portfolio and include two new polypropylene (PP) grades with post-consumer recycled (PCR) content. Braskem's new PCR polypropylene grades would be used in an extensive array of U.S Food and Drug Administration (FDA) food contact applications, where polypropylene is used currently, such as in housewares, caps and closures, consumer packaging, and others.
• In January 2022: INVISTA, which is a Koch company and this company is associate with Flint Hills Resources, which has attained the Flint Hills Resources propylene business efficiently from Jan. 1, 2022. This includes the chemical facilities in Texas, Longview and Houston, along with the employees support. The possession of the pipelines that deliver these facilities also moved their business to INVISTA, but will continue to be worked by Flint Hills Resources under an agreement.

Ethylene And Propylene Market: Key Companies

Major players operating in the ethylene & propylene market include Exxon Mobil Corporation, Saudi Basic Industries Corporation, Royal Dutch Shell Plc., China Petroleum & Chemical Corporation, Chevron Phillips Chemical Company LLC, Total S.A., LyondellBasell Industries N.V., National Petrochemical Company, INEOS Group, and Dow Inc. among others.

Definition: Ethylene & propylene are major raw materials that are used in manufacturing a large amount of derivatives such as polyethylene, polypropylene, ethylene dichloride, cumene, and ethyl benzene. These derivatives are used by numerous end-use industries including packaging, coatings and paint, and others.