USD 12.60 billion
Ethane Market Size, Share, Growth Analysis, By Production Method (Natural Gas Separation, Refinery by Product), By Distribution Channel (Offline, Online), By Application (Acetic Acid Synthesis, Ethylene Synthesis), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15E2166 |
Region:
Global |
Published Date: November, 2024
Pages:
157
|Tables:
117
|Figures:
77
Ethane Market Insights
Ethane Market size was valued at USD 13.17 Billion in 2023 and is poised to grow from USD 13.77 Billion in 2024 to USD 19.68 Billion by 2032, growing at a CAGR of 4.56% during the forecast period (2025-2032).
The growing demand for ethylene and its derivatives, which are used in a variety of industries, including construction materials, automobile parts, and packaging materials. Natural gas prices and petrochemical industry supply and demand dynamics have a major impact on ethane prices. Rising shale gas production, particularly in the US, has led to greater exports and production of ethane.
The increased production rate of ethylene is a major contributor to the growth of the ethane market due to its diverse range of end uses in numerous sectors of use. For instance, ethylene is a required building block ingredient for the creation of resins and plastics, according to study conducted by the University of South Carolina that's been published in September 2021.
However, the release of significant quantities of ethane gas will lead to a decrease in the amount of oxygen in the environment, according to research done by the New Jersey State of Health and Executive Services. Since then, it is anticipated that the implementation of standards and unique needs for the manufacturing of ethane gas will restrain the growth of the ethane market CAGR during in the anticipated year. increasing need for ethane and other natural gas liquids as a source of energy for the manufacture of chemicals. Increasing demand for bioplastics and other renewable alternatives for petrochemical-based materials could be the consequence of increasing interest in sustainable and renewable materials.
US Ethane Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Natural Gas Separation
Fastest Growth
Natural Gas Separation
Growth Rate
4.56% CAGR
Global Ethane Market 2022-2030 ($ Bn)
Country Share for Asia Pacific Region- 2021 (%)
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Ethane Market Segmental Analysis
Global Ethane Market is segmented by Production Method, Distribution Channel, Application, End-User, and region. Based on Production Method, the market is segmented into Natural Gas Separation, Refinery by Product, and Others. Based on function, the market is segmented into Offline, and Online. Based on application, the market is segmented into Acetic Acid Synthesis, Ethylene Synthesis, Refrigerant, and Others. Based on End user, the market is segmented into Automotive and Transportation, Construction, Electrical & Electronics, Packaging, and Others. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Ethane Market Analysis by Application
The ethylene synthesis application segment accounted for the majority of the market's revenue in 2021. In 2021, 149.7 million tons of ethylene were produced worldwide, according to the Royal Society of Chemistry. This component is expected to increase demand, which will assist the sector expansion of ethylene synthesis application throughout the projection period. Also, the growth of the food, construction, and manufacturing sectors in both developed and emerging countries has enhanced the performance of metals. Ethylene is used extensively throughout the fabrication of metal. In high-velocity thermal spraying, welding, and metal cutting, oxy-fuel gas containing ethylene is also used. This is expected to be one of the main drivers boosting the market of ethylene synthesis in the growing metal manufacturing industry.
Ethane Market Analysis by End User
The production of ethylene from ethane is a key component of many products used in the food safety industry. Ethylene is used in packaging to keep food from becoming contaminated while it is being transported and stored in grocery stores. Additionally, it is utilized in milk jugs, plastic grocery bags, and food wrappers.
Ethane is the perfect fuel for transportation because of its chemical and physical properties. It has a marginally higher energy density than liquefied natural gas (LNG), but it doesn't have the evaporation loss issue that cryogenic LNG systems do. The use of ethane in place of natural gas could lower barriers to clean alternative fuel use and boost the uptake of gas vehicles in the United States..
Global Ethane Market By Production 2022(%)
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Ethane Market Regional Insights
The ethane market is expected to grow at the fastest CAGR during 2022 to 2030 in Asia-Pacific. Due to favorable investment policies, affordable labor, and low manufacturing prices, the Asia-Pacific region has quickly industrialized, all of which have had a significant effect on the development of the region's ethane market. The packaging, automotive, transportation, building and construction, electrical and electronics, and healthcare industries just are a handful of the industries and users that are significantly boosting the demand for ethane. Moreover, the Asia-Pacific ethane market in India grew at the highest rate, while the market in China have had largest market share.
The North American ethane market holds the second-largest market share as a result of the expansion of the ethylene producing plants to meet domestic demand. Making ethylene also fulfils export requirements in addition to domestic demand. The United States, which had the biggest share of the market and Canada, which had the highest pace of growth, jointly dominated the North American ethane market.
Global Ethane Market By Geography, 2022-2030
- Largest
- Fastest
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Ethane Market Dynamics
Ethane Market Drivers
Growing demand for ethylene
- Ethane is an essential feedstock for the production of ethylene, which is used to produce a wide range of products such plastics, textiles, and chemicals. It is expected that increasing ethylene consumption will boost ethane demand.
Expanding petrochemical industry
- Ethane is a crucial component of the industry's raw materials. Ethane demand is anticipated to rise along with the petrochemical sector's expansion.
Shale gas production is increasing
- Production of shale gas has considerably expanded in recent years. As ethane is a component of shale gas, it is expected that increasing shale gas production would increase ethane availability.
Ethane Market Restraints
Environmental concerns
- The production and use of ethane and its derivatives have an influence on the environment by emitting greenhouse gases, causing air pollution, and contaminating the water. The usage of ethane may be limited by regulations as a result of these concerns.
Oil and gas price volatility
- Ethane prices are strongly linked with oil and gas prices. The profitability of ethane extraction and use can be affected by volatility in the price of oil and gas, which can change ethane prices.
Infrastructure constraints
- Ethane needs special infrastructure for its transportation and storage. Ethane accessibility and availability may be limited by infrastructure issues, especially in regions with underdeveloped infrastructure.
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Ethane Market Competitive Landscape
Leading market players are making substantial investments on R&D to expand the range of products they offer, which will lead to future growth of the ethane market. Market participants are engaging in a broad range of strategic activities to improve their global presence in addition to key industry changes such new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the ethane industry must offer relatively affordable products if they want to grow and survive in an ever brutal and competitive landscape.
Ethane Market Top Player’s Company Profiles
- Royal Dutch Shell
- ExxonMobil Corporation
- BP plc
- Chevron Corporation
- Total SE
- LyondellBasell Industries Holdings B.V.
- EQUATE Petrochemical Company
- China National Petroleum Corporation (CNPC)
- Dow Chemical Company
- Sasol Limited
- Saudi Aramco
- PTT Global Chemical Public Company Limited
- Occidental Petroleum Corporation
- Eni SpA
- Qatar Petroleum
- Formosa Petrochemical Corporation
- Reliance Industries Limited
Ethane Market Recent Developments
- In January 2022, Prices for ethane increased as a result of a number of variables, including a limited supply, high demand from petrochemical and plastic industries, and low inventories. Ethane prices rose by almost 25% in both the US and Europe, reaching their highest levels in over two years.
- In February 2022, as prices began to decline as a result of improved supply and logistics, the ethane market felt some relief. The market environment was primarily influenced by the restart of production in some of the major NGL-producing locations, including the Permian Basin and the Montney Basin.
Ethane Key Market Trends
- The fact of ethylene can be used for a wide range of uses in numerous industries implies that the growth of the ethane market is significantly influenced by the increased production rate of ethylene. According to research from the University of South Carolina that was published in September 2021, for instance, ethylene is a vital building block ingredient for the creation of resins and plastics. With an annual production rate of around 200 million tons, more ethylene than any other organic chemical is generated. The main use of ethane is to create ethylene, which is then used by the petrochemical sector for manufacturing a variety of intermediate goods, such as plastics, natural gas, uses for power generation, and others. The United States' consumption of ethane has increased as a result of expanding production and low raw material costs. These components are projected to be one of the main drivers advancing the industry. So, the significant ethane gas leak will lead less oxygen to be available in the environment, according to a study published by the New Jersey Department of Health and Senior Services. Since then, it is anticipated that the adoption of standards and specific requirements for the production of ethane gas will restrain the growth of the ethane market CAGR during the projection year.
Ethane Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Ethane market analysis, growing demand for ethylene and its derivatives, which are used in a variety of industries, including construction materials, automobile parts, and packaging materials. Natural gas prices and petrochemical industry supply and demand dynamics have a major impact on ethane prices. Since then, it is anticipated that the implementation of standards and unique needs for the manufacturing of ethane gas will restrain the growth of the ethane market. Increasing need for ethane and other natural gas liquids as a source of energy for the manufacture of chemicals. Increasing demand for bioplastics and other renewable alternatives for petrochemical-based materials could be the consequence of increasing interest in sustainable and renewable materials.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 12.60 billion |
| Market size value in 2031 | USD 18.82 billion |
| Growth Rate | 4.56% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Ethane Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Ethane Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Ethane Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Ethane Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Ethane Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Ethane Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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