SEATTLE, Nov. 14, 2019 /PRNewswire/ -- Key Trends and Analysis of the Ethylene & Propylene Market:
The market of ethylene and propylene is expected to experience significant growth over the forecast period owing to expansion of production capacities by key players in the global market. For instance, in 2017, key players in Asia Pacific announced the expansion of their ethylene and propylene production capacities, including, Jiangsu Sailboat (China - 320 thousand tons per year), KPIC (South Korea - 330 thousand tons per year), Shenhua Ningmei (China - 430 thousand tons per year), Lotte Titan (Malaysia – 92 thousand tons per year), and Shaanxi Yanchang (China - 300 thousand tons per year). However, the introduction of stringent regulations by governments all over the globe on the use of plastic is expected to hamper the growth of the market.
The ethylene & propylene market is also expected to experience growth opportunities with the introduction of green ethylene. Green ethylene is produced by dehydration of bio-ethanol, which is produced using corn, sugarcane, cellulose or agricultural waste. This method serves as an alternative for fossil fuel-based ethylene production. The method is called 'green ethylene' as it uses renewable resources as raw materials.
Key players in the market are focused on adopting various business strategies such as acquisitions in order to enhance their product portfolio. For instance, in June 2019, Chevron Phillips Chemical acquired Nova Chemicals, a company owned by UAE-based Mubadala, for US$ 15 billion. This acquisition is expected to help Chevron Phillips strengthen its position in North America as a producer of high-density polyethylene (HDPE). Moreover, in May 2017, ExxonMobil Corporation acquired Jurong Aromatics Corporation which has ethylene production capacity of 1.9 million tons per year.
The global ethylene & propylene market is expected to exhibit a CAGR of 5.5% during the forecast period (2019–2027)
On the basis of derivative types, the market has been segmented into ethylene and propylene. Within ethylene derivatives, the polyethylene segment is expected to register the highest CAGR over the forecast period. Low density, high density, and linear low density polyethylene are majorly produced grades of polyethylene polymers, and are used to manufacture various products. Utilization of polyethylene by various industries due to its mechanical, electrical, optical, chemical, and thermal properties is driving demand for polyethylene. Market players are focused on strategies such as capacity expansions in order to meet the growing demand for polyethylene. For instance, in July 2019, ExxonMobil Corporation started a new polyethylene line at its plant in Texas, U.S.
Among regions, the Asia Pacific market is expected to witness significant growth over the forecast period. Increasing demand for ethylene in the production of ethylene derivatives such as styrene monomers is aiding growth of the ethylene market in China. Moreover, majority of the types of plastics are derived from ethylene. According to American Institute of Chemical Engineers (AICHE), the polymer market in India is dominated by polypropylene and polyethylene segments which represented 73% of all the commodity resin consumed in 2015 to 2016. Thus, increase in adoption of ethylene and propylene in countries such as India and China is expected to contribute to the growth of the ethylene and propylene market in Asia Pacific.
Some of the 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.