Global Ethylene Market Estimated to Witness High Growth Owing to Increasing Demand from Plastics Industry

One of the key drivers for the growth of the global ethylene market is the increasing demand from the growing plastics industry. Plastics find extensive applications across various end-use industries like packaging, consumer goods, automotive, construction and others.

SWOT Analysis
Strength: The global ethylene market witness strong growth over the forecast period due to rising demand for polyethylene plastics from packaging industry which accounted for over 50% of global ethylene consumption. Ethylene is also used as a fundamental building block in several important industrial chemicals like ethylene oxide, styrene, vinyl chloride which further boost the market growth. Technological advancements in production processes helps in reducing costs and improving production capacities.

Weakness: Intense competition among existing players limits the scope of high profit margins. Supply demand gaps due to unstable raw material prices and geopolitical issues can hamper the steady growth. Stringent environmental regulations regarding emission levels increase compliance costs for manufacturers.

Opportunity: Growing demand for ethylene from emerging economies of Asia Pacific due to rapid urbanization and industrialization presents new growth avenues. Rising usage of ethylene in manufacturing of automotive components and equipment expands the application scope. Development of bio-ethylene from renewable feedstock mitigate environmental concerns.

Threats: Volatility in crude oil and natural gas prices poses major threat as these are key raw materials. Implementation of alternatives like bio-plastics reduces dependency on petro-based ethylene. Trade wars and geopolitical tensions disrupts global supply chains.

Key Takeaways

Global Ethylene Market Size is expected to witness high growth over the forecast period supported by rising plastic consumption worldwide.

Regional Analysis: Asia Pacific dominates currently with over 50% market share led by China, India and Southeast Asian countries on account of massive polymers and petrochemical industries in the region pleasing the local demand. Countries like China, South korea and India are driving the regional growth at a good pace supported by thriving end use industries and changing lifestyle of consumers demanding packaged and processed food.

Key players operating in the global ethylene market are Littelfuse, Inc., RMCIP, Standex Electronics, Inc., Nippon Aleph, HSI Sensing, Inc., Coto Technology USA, PIT-RADWAR S.A., PIC GmbH, STG Germany GmbH, Harbin Electric Group, Zhejiang Xurui, Zippy Technology Corp., Honeywell International Inc., and Molex Incorporated. The market is highly competitive with major focus on capacity expansion, technological advancements and forward/backward integration.

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