The global ethane market size is expected to reach USD 685.4 Million in 2028 and register a revenue CAGR of 3.1% over the forecast period, according to the latest report by Reports and Data. Increasing number of product applications as a refrigerant to replace substances which are harmful to ozone layer or have greenhouse warming potentials is driving market revenue growth.
Growing usage of ethane for production of acetic acid is boosting market revenue growth. Acetic acid is used in the production of polyvinyl acetate for wood glue, soft drink bottles, fabrics, and synthetic fibers, as well as a variety of household, food, and other applications that are essential to everyday life. The market growth is due to rising capital expenditure for enhancing production of the acetic acid.
Increasing investments by various producers for development of new facilities, strengthening supply chain of the product, and technological upgrades are also contributing to market revenue growth. Acetic acid is also used to manufacture vinyl acetate. Vinyl acetate can be polymerized into a number of different polymers, which are common components in adhesives and paints. Ethane is a clean gas and can be turned to liquid form at high temperatures. It is environment friendly and is the future of fuel. It can be used to power industries where power can be an issue. Ethane is easier to liquefy, transport and then gasify. This helps in reducing cost of transportation as well.
Companies profiled in the global market report includes Royal Dutch Shell Plc, Praxair Technology Inc., Air Liquide, Williams, Energy Transfer, American Ethane Company, LLC, Enbridge Inc., Devon Energy Corporation, Saudi Aramco, and Santos Limited.
Some Key Highlights From the Report
- In September 2021, PetroChina launch USD 1.2 billion ethane-to-ethylene project in China’s Xinjiang. The project will produce 600,000 tons of ethylene, 300,000 tons of high-density polyethylene and full-density polyethylene every year. The project will reduce dependence on foreign ethylene processing technology.
- Ethylene synthesis segment accounted for largest revenue share in 2020. Ethane is used to produce ethylene, which is used by petrochemical companies to produce range of products, most of which can be converted into plastics. Increased supply and low cost of ethane as compared to other petrochemical feedstocks are driving the growth of the segment.
- Food safety industry relies heavily on products which comes from ethane to make ethylene. Ethylene is used in packaging to prevent food contamination and help store food during transportation and in grocery stores. It is also used in food wrappers, milk jugs and plastic grocery bags.
- Online segment revenue is expected to register faster revenue growth rate during the forecast period, as this mode of distribution has the advantage of providing a broader exposure to the product produced by the manufacturers, especially with the proliferation of smart devices and internet connectivity.
- Market in Asia Pacific region accounted for significant revenue share in 2020 and is expected to register the highest revenue growth rate during the forecast period. This is due to rapidly growing end-use industries, coupled with increasing consumption of ethane in these industries, as well as rapid industrialization and urbanization in the region. In addition, growing sales of automotive in countries such as China and India, and rising disposable income are factors supporting revenue growth of the market in the region.
For the purpose of this report, Reports and Data has segmented the global ethane market based on production method, application, end-use, distribution channel, and region:
- Production Method Outlook (Revenue, USD Million; Volume, Kilo Tons; 2018–2028)
- Natural Gas Separation
- Refinery By-product
- Application Outlook (Revenue, USD Million; Volume, Kilo Tons; 2018–2028)
- Ethylene Synthesis
- Acetic Acid Synthesis
- Others (Fuel for automotive, detergent, scientific research)
- End-use Outlook (Revenue, USD Million; Volume, Kilo Tons; 2018–2028)
- Automotive and Transportation
- Electrical and Electronics
- Distribution Channel Outlook (Revenue, USD Million; Volume, Kilo Tons; 2018–2028)
- Regional Outlook (Revenue, USD Million; Volume, Kilo Tons; 2018–2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa