The Ethane Market was valued at USD 13.38 billion in the year 2022 and is expected to grow at a steady rate of around 4% during the forecast period (2023-2030), owing to the increasing usage in the packaging industry coupled with the growing adoption of LDPE in the construction sector. Ethane is a by-product that is produced from the refinery of gas or from natural gas processing, the major demand for ethane comes from its single-end use as a feedstock at steam crackers for ethylene production. Furthermore, increasing use of Low-density Polyethylene (LDPE) because of its low-temperature flexibility, toughness, and corrosion resistance properties. In addition, they are non-toxic and non-contaminating, and resistant to impact, dampness, chemicals, rip, and stress fracture. In recent years, the demand for LDPE has risen dramatically due to its application in many industries such as manufacturing packaging, garbage bins, floor tiles, mailing envelopes, and dropper bottles which in turn is raising the demand for the ethane in the market. Moreover, the use of low-density polyethylene in the market is growing due to the electrical insulating qualities that have resulted in its growing utilization in a variety of end-use sectors across the world.
The major trend witnessed in the global ethane market is the increasing investments aimed at boosting the production capacity for gas. Due to the large-scale ethane gas application in various industries, many companies engaged in its production are working toward expanding their production capacities. For instance, in August 2018, ExxonMobil and Saudi Basic Industries Corporation, under a joint venture, announced their decision to construct the world’s largest ethylene production plant, estimated to be developed for USD 1.4 billion.
Furthermore, Ethylene is developed into four different compounds, which in turn are developed into several household and other products such as Polyethylene (Plastics) which are used to make food packaging, bottles, bags, and other plastics-based goods, and with this increased spectrum of usage of ethylene is increasing the demand for ethane, as it is one of the primary feedstock that is used in the synthesis of ethylene.
Royal Dutch Shell Plc; Praxair Technology Inc.; Air Liquide, Williams; Energy Transfer; American Ethane Company, LLC; Enbridge Inc.; Devon Energy Corporation; Saudi Aramco; Santos Limited; and Reliance Industries Limited are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Insights Presented in the Report
“Amongst application, the Ethylene Synthesis category to hold a significant share in the market in 2022.”
Based on application, the ethane market has been classified into ethylene synthesis, acetic acid synthesis, refrigerant, and others (fuel for automotive, detergent, scientific research). The ethylene synthesis holds most of the market share and generates the largest demand for ethane. The primary region for the rising demand for ethylene is the burgeoning demand for Polyethylene. The polyethylene category can be further bifurcated into HDPE and LDPE with LDPE expected to witness higher adoption during the forecast period. This is mainly due to the increasing use of films & and sheets in the packaging industry. LDPE is used in the production of food and non-food packaging. Furthermore, film and sheets have low toughness, stiffness, and strength, and high ductility. This plastic has a high density, sturdy construction, and long life. Hence, they are also used in the manufacturing of tubes, vessels, bubblers, dosing bottles, and molded laboratory equipment due to their property of being opaque. Hence, all these factors are contributing to the growth of the market.
“APAC to hold a significant share in the market.”
APAC is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing demand for ethane and its byproducts in various industries such as food and beverage, electrical and electronics, packaging, and construction. With rapid urbanization and industrialization, the demand for ethylene-based packaging materials is growing exponentially in emerging economies which in turn is driving the demand for ethane higher. Besides, the growing demand for automobiles and electronic devices in APAC countries, such as China and India, is encouraging the growth of the ethane market because ethene is used as a raw material and in some cases as a fuel as well in automobiles. In the coming years, emerging countries are expected to witness a rise in their middle-class population, which would further boost the demand for electronic items and automobiles in these countries. Thus, the increased demand for gas from end-use industries will open new avenues for the growth of the players operating in the market.
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1. Market Introduction
2. Research Methodology Or Assumption
3. Market Synopsis
4. Executive Summary
5. Impact Of Covid-19 On The Ethane Market
6. Ethane Market Revenue (usd Bn), 2020-2030f
7. Market Insights By Application
8. Market Insights By End-user
9. Market Insights By Region
10. Ethane Market Dynamics
11. Ethane Market Opportunities
12. Ethane Market Trends
13. Demand And Supply-side Analysis
14. Value Chain Analysis
15. Competitive Scenario
16. Company Profiled
17. Competitive Scenario
Research Methodology for the Ethane Market Analysis (2023-2030)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Ethane market were the three major steps undertaken to create and analyze the adoption of Ethane in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Ethane market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Ethane market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Ethane market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. Major segments are included in the report as application and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Ethane market. Further, we conducted factor analysis using dependent and independent variables such as various applications and end-users of Ethane. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Ethane market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Ethane market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors, including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Ethane market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application in the global Ethane market.
The main objective of the Global Ethane Market Study
The current & future market trends of the global Ethane market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
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