Global Ethane Market Size Worth USD 18.75 Billion in 2032 | Emergen Research

Rising demand for ethylene for production of various industrial chemical products is driving market revenue growth.

Vancouver, Nov. 23, 2023 (GLOBE NEWSWIRE) -- The global ethane market, valued at USD 12.80 Billion in 2022, is poised for steady growth with a projected revenue CAGR of 3.8% during the forecast period. The primary driver behind this growth is the rising demand for ethylene, a crucial petrochemical utilized in the production of various industrial chemical products, including plastics, fibers, and organic chemicals. These chemicals find extensive applications in consumer packaging, transportation, and construction industries.

Market Drivers:

The demand for ethane is fueled by its role in the production of ethylene, which serves as a feedstock for a range of industrial chemical products. Notably, ethylene acts as a plant growth regulator, stimulating fruit ripening and contributing to the growth of taller and leafier crops. Furthermore, the increasing demand for ethane in shale gas production, particularly in the United States, a major shale gas producer, is a significant factor propelling market growth.

Governments worldwide are also contributing to the market's expansion by planning to introduce ethanol-blended petrol, aiming for a reduction in carbon emissions. For example, India is set to use 20% ethanol-blended petrol from 2025, with ethanol offering a considerable reduction in greenhouse gas emissions compared to gasoline.

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Market Restraints:

Despite the promising outlook, the ethane market faces challenges such as volatile gas and oil prices, which can create uncertainty in energy planning and investment. The correlation between ethanol and gasoline prices adds to the complexity, with disruptions in crude oil production impacting ethane production.

Segment Insights:

Ethane Application Insights:

The market is segmented based on application into ethylene synthesis, acetic acid synthesis, refrigerant, and others. The ethylene synthesis segment dominated the market in 2022, driven by its essential role in various manufacturing processes in petrochemical industries. Ethylene is a key component in the production of plastics and is also utilized in agricultural practices to ripen fruits and germinate seeds.

The refrigerant segment is witnessing the highest revenue CAGR, attributed to the increasing use of refrigerants in heat transfer applications. The demand for refrigerants, which can carry significantly more energy than water or air, is on the rise, contributing to the growth of this segment.

Ethane End-Use Insights:

The end-use segment is categorized into packaging, automotive and transportation, construction, electrical and electronics, and others. The ethylene synthesis segment dominates, with major volumes of ethylene used in the manufacturing of polyethylene and ethylene glycol, which finds applications in various industries, including antifreeze, paints, plastics, and cosmetics.

The packaging segment is expected to witness the fastest revenue growth, driven by the use of ethanol as an antimicrobial agent in packaging. Ethanol helps prevent moisture-related issues and extends the shelf life of packaged foods.

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Regional Insights:

Ethane North America Market:

North America accounted for the largest revenue share in 2022, with rising demand from domestic consumers contributing to market growth. The United States, a major shale gas producer, witnessed a 9% increase in ethane demand, setting a new monthly production record. In Canada, ethane demand is propelled by petrochemical production in Alberta.

Ethane Asia Pacific Market:

The Asia Pacific market is poised for the fastest revenue growth, driven by increasing production capacity of ethylene glycol. Major countries in the region are investing in manufacturing expansion to boost production capacity, further supported by significant investments in ethylene projects.

Ethane Europe Market:

Europe is expected to account for a significantly large revenue share, attributed to rising natural gas production. Countries like Norway, the U.K., and the Netherlands lead natural gas production in the region. Ethane production and exports are increasing, supported by substantial investments in the petrochemical industry.

Scope of Research

Report Details Outcome
Market size in 2022 USD 12.80 Billion
CAGR (2023–2032) 3.8 %
Revenue forecast to 2032 USD 18.75 Billion
Base year of estimation 2022
Historical data 2019–2021
Forecast period 2023–2032
Quantitative units Revenue in USD Billion and CAGR in % from 2023 to 2032
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered Production method, application, end-use, and region
Regional scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Country scope U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Benelux, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, South Africa, Turkey, Rest of MEA
Key companies profiled Axcel Gases, ATCO Atmospheric and Speciality Gases Private Limited, Praxair Technology, Inc, Aditya Air Products, Reliance Industries Limited, Air Liquide, WILLIAMS, DCP Midstream, LLC, American Ethane, DEVON ENERGY CORPORATION
Customization scope 10 hours of free customization and expert consultation

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Ethane Top Companies and Competitive Landscape

The global ethane market is fragmented, with several key players accounting for the majority of market revenue. Major players are deploying various strategies, entering mergers & acquisitions, strategic agreements & contracts, developing, testing, and introducing new products and solutions.

Some major players included in the global ethane market report are: 

  • Axcel Gases
  • ATCO Atmospheric and Speciality Gases Private Limited
  • Praxair Technology, Inc
  • Aditya Air Products
  • Reliance Industries Limited
  • Air Liquide
  • DCP Midstream, LLC. 
  • American Ethane

Ethane Latest Industry News 

  • On 17 March 2023, India-based prominent petrochemical company Gail India Limited, signed a Memorandum of Understanding (MoU) with Shell Energy India to explore sourcing of ethane and other opportunities along the energy value chain. The natural gas distribution company will start importing ethane from countries with an excess supply of this hydrocarbon. This importation will serve the purpose of substituting naphtha and natural gas as raw materials in petrochemical facilities.
  • On 9 January 2023, Qatar Energy invested USD 6 billion to construct an ethane cracker with a capacity of 2.1 million tons. This integrated complex will house two high-density polyethylene derivative units with a combined annual production capacity of 1.7 million tons. The state-run Qatar Energy will possess a majority stake of 70 % in the venture, while Chevron Phillips Chemicals will hold a 30 % stake.

For the purpose of this report, Emergen Research has segmented the global ethane market on the basis of power module type, technology, thermal type, end-use, and region:

  • Production Method Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032) 
    • Natural gas separation
    • Refinery by product
    • Others
  • Application Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032)
    • Ethylene synthesis
    • Acetic acid synthesis
    • Refrigerant
    • Others
  • End-Use Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032)
    • Packaging
    • Automotive and Transportation
    • Construction
    • Electrical and electronics
    • others
  • Regional Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019–2032)
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • France
      • U.K.
      • Italy
      • Spain
      • Benelux
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Rest of APAC
    • Latin America
      • Brazil
      • Rest of LATAM
    • Middle East & Africa
      • Saudi Arabia
      • UAE
      • South Africa
      • Turkey
      • Rest of MEA

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