ETHYLENE AND PROPYLENE MARKET ANALYSIS

Ethylene And Propylene MarketSize and Trends

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: 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

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