The global Ethylene & Propylene Market was valued at US$ 325,264.5 Million in 2018, according to Ethylene & Propylene Market Report, by Derivative Type (Ethylene (Polyethylene (HDPE, LDPE, and LLDPE), Ethylene Oxide, Others (Ethylene Dichloride etc.)), Propylene (Polypropylene, Propylene Oxide, Others (Cumene, Acrylonitrile etc.))), by Application (Chemical & Petrochemicals, Pharmaceuticals, Paints & Coatings, Others (Metal Fabrication etc.)), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) published by . The global ethylene & propylene market is projected to reach US$ 520,251.9 million by 2027, exhibiting a CAGR of 5.5% during the forecast period (2019-2027). This is attributed to increasing demand for ethylene & propylene derivatives. Ethylene & propylene are used as raw materials for derivatives such as polyethylene, polypropylene, ethylene dichloride, cumene, and ethyl benzene which are used in various end-use industries such as packaging, coatings and paints etc. For instance, ethylene dichloride is converted to polyvinyl chloride which is used for synthesis of polyvinyl chloride (PVC). PVC is a plastic polymer used in pipes, electric cables, construction, signs, clothing and furniture, healthcare, flooring, and wire rope. Growing demand for PVC is propelling growth of ethylene market. However, growth of the market is expected to be hampered by introduction of stringent government regulations on the use of non-biodegradable plastic and fossil fuels such as natural gas and crude oil. For instance, in 2017, in Europe, Regulation (EU) 2017/752 was published by European Commission (EC) which amends the regulation for plastic materials and articles intended for contact to food. To know the latest trends and insights prevalent in this market, click the link below: https://www.coherentmarketinsights.com/market-insight/ethylene-and-propylene-market-3007 Browse 50 market data tables* and 40 figures* on "Ethylene & Propylene Market” - Global forecast to 2027. Key Takeaways of the Market:
- Among applications, the chemicals and petrochemicals segment is expected to witness major growth over the forecast period. Ethylene & propylene is used for production of derivatives such as monoethylene glycol, diethylene glycol, triethylene glycol, ethanolamine, ethoxylates, polyethylene glycol, glycol ethers, and polyether polyols. According to Federation of Indian Chambers of Commerce & Industry (FICCI), in 2014, polypropylene and polyethylene, derivatives of propylene & ethylene accounted for around 62% of polymer used in the flexible packaging industry in India.
- Moreover, Propylene has application in paints and coatings. Propylene glycol is a derivative of propylene which is utilized in water-based acrylic architectural paints to extend dry time. It prevents the surface from drying due to its slower evaporation rate compared to water. The expanding paint & coating industry is expected to facilitate growth of the ethylene and propylene market over the forecast period. According to World Paints & Coatings Industry Association, in 2018, the global paints & coatings market increased by 4.9% to $164.9 billion.
- Despite lower market share, the Middle East and Africa region is expected to exhibit strong growth over the forecast period. The construction industry in the Middle East is growing due to increasing number of construction projects such as the US$ 147 billion King Abdullah Economic project in Saudi Arabia, US$ 45 billion Lusail development in Qatar for FIFA 2022, and US$ 20 billion Duqm New Town Project in Oman, which are propelling demand for polyethylene in this region. In Africa, Sasol, a chemical and energy company, commissioned its polypropylene expansion project in Southern Africa, in November 2016. This project has increased the company’s polypropylene production capacity by 103,000 tons per annum in South Africa.
- The key players in the market are adopting inorganic business strategies such as capacity expansions in order to strengthen their foothold in the global market. For instance, in 2015, Royal Dutch Shell Plc. upgraded its Singapore Ethylene Cracker Complex (ECC) to a capacity of 800,000 tons. This has boosted the company’s production capacity of ethylene to one million tons a year, and reduced ECC’s per unit energy consumption by about 7%, and CO2 emissions by 11%.
- Major players operating in the global 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.