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2022

Ethane Market

Ethane Market Size, Share, Competitive Landscape and Trend Analysis Report by Application, by End-use : Global Opportunity Analysis and Industry Forecast, 2021-2031

MC : Bulk Chemicals

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Author's: Akshata Mahantesh dhange | Eswara Prasad
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Ethane Market Research, 2031

The global ethane market was valued at $12.8 billion in 2021, and is projected to reach $18.5 billion by 2031, growing at a CAGR of 3.8% from 2022 to 2031. 

Report key highlighters 

  • The report provides complete analysis on the market status across key regions and more than 15 countries across the globe in terms of value ($Million) and volume (Tons). 

  • The ethane market is fragmented in nature with few players such as DCP Midstream LLC, L'Air Liquide S.A, Merck KGaA, Reliance Industries Limited, Royal Dutch Shell PLC, and Williams., which hold significant share of the market. 

  • The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers. 

  • The report facilitates strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering ethane market.

 

Ethane Market

Ethane is an organic hydro compound with a formula of C2H6. It is a colorless, odorless gas at standard temperature and its vapors are heavier than air, due to which it can easily ignite. Ethane is mainly produced from natural gas wells and by the reduction of ethyl iodide using zinc and copper coupled with alcohol. Ethane gas finds a wide range of end users in various end-use industries such as petrochemical, plastic industry, anti-freeze detergents, automotive, and among others. 

Growing population coupled with rapid urbanization, industrialization, and government investment & initiatives toward global warming and ozone depletion layer has spurred the ethane market. It is observed that ethane is a naturally occurring refrigerant that reduces ozone depletion and global warming as compared to typical refrigerants that are made of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). Ethane-based refrigerants, R23 and R508B, are predominantly used to reduce global warming and ozone depletion layers. This factor is expected to boost the demand for ethane in the upcoming years. Furthermore, strong economic growth has surged the establishment of industries where ethane is used as a chemical intermediator. This may propel the growth of the ethane market. 

High production rate of ethylene is projected to boost the potential sales of ethane market 

A major key element for the growth of the ethane market is rise in the production rate of ethylene owing to its wide range of end uses in various end use industries. For instance, according to an article published by the University of South Carolina in September 2021, ethylene is an essential building block component for the manufacturing of resins and plastics. Approximately 200 million tons of ethylene is produced annually, and its global production has exceeded as compared to any other organic compound. Ethane is mainly used to produce ethylene, which in turn is used by the petrochemical industry for the manufacturing of various intermediate products, such as plastics, natural gas, power generation application, and others. Furthermore, the consumption of ethane has increased in the U.S. owing to its increase in supply and low prices of raw materials. These factors are expected to act as one of the key drivers responsible for the growth of the ethane market. 

However, according to a report published by the New Jersey Department of Health and Senior Services the leakage of large amounts of ethane gas will decrease the amount of oxygen that is available in the environment. Since then, the implementation of norms and specific standards for the production of ethane gas are predicted to hamper the growth of the ethane market during the forecast period. 

Moreover, increasing awareness for eco-friendly products has surged the popularity of natural gas. In addition, its minimal or no volatile organic compounds (VOCs) releasing levels has surged the popularity of ethane gas. Furthermore, the growing demand for ethylene-based end-use products such as plastic, petroleum products, and others has surged the production rate of ethane. This is anticipated to increase sales of ethane in several end use sectors; thus, creating lucrative opportunities for the market.  

According to a report published by IEA in March 2021, there has been set up of a new project named as, INEOS Cracker and Antwerp, which is planned to be built in Belgium. This plant requires 55 kb/d of ethane by 2023. This strategic project event is likely to boost the ethane market in the upcoming years. Furthermore, a project has been scheduled, named as, Borouge Cracker 4, Ruwais in UAE, which requires 83 kd/b of ethane by 2025. These upcoming projects are expected to foster the growth of the ethane market. 

The ethane market is segmented into application, end use, and region. On the basis of application, the market is categorized into ethylene synthesis, acetic acid synthesis, and refrigerants. On the basis of end use, it is divided into plastic, food, automotive, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Ethane Market by Region

The Asia-Pacific ethane market size is projected to grow at the highest CAGR of 4.4% during the forecast period and accounted for 34% of ethane market share in 2021. Countries such as India and Australia are witnessing a rapid increase in automotive and transportation sectors where ethane is employed as an automotive refrigerant or coolant that provides structural integrity and increases the overall efficiency of vehicles. For instance, according to a report published by the Indian Ministry of Commerce and Industry in September 2019, the transportation sector in India is expected to grow at a compound annual rate (CAGR) of 5.9%, owing to the development of highways, widespread railway networks, aviation ports, and waterways structure. Furthermore, well-established chemical industries in India, Japan, South Korea, and other countries of Asia-Pacific region have enhanced the production capacities for ethane. Ethane is basic raw material predominately used for the formulation of various chemical intermediates. This is expected to act as one of the key factors responsible for the growth of the ethane market.

Ethane Market by Application

By application, the ethylene synthesis segment dominated the global market in 2021, and is anticipated to grow at a CAGR of 4.0% during forecast period. Data published by the Royal Society of Chemistry stated that 149.7 million tons of ethylene was produced in 2017 globally. This factor is anticipated to increase the overall demand for ethane, thus, fueling the ethylene synthesis application segment growth during the forecast period. Moreover, the growing food, building and construction sectors, and manufacturing plants in both developed and developing economies have enhanced the performance of metals. Ethylene is extensively used in the metal fabrication process. In addition, ethylene is used as oxy-fuel gas in metal cutting, welding, and high-velocity thermal spraying. This is anticipated to act as one of the key drivers for the growth of ethylene synthesis segment in the growing metal fabrication sector.

Ethane Market by End-use

In 2021, the plastic segment was the largest revenue generator, and is anticipated to grow at a CAGR of 4.1% during the forecast period. Plastic production has become one of the major industries in the U.S., and it is expected to grow during the forecast period. For instance, according to an article published by Plastic Industry Association in September 2022, the U.S. plastics industry accounted for an estimated $432 billion in 2020 and reached $549.5 billion in 2021. This is anticipated to act as one of the key drivers responsible for the growth of the ethane market in the plastic industry. Moreover, growing demand for plastic in several end use industries has put more emphasis on manufacturers to increase their production capacities for plastic, which is ultimately generating a need for ethane. Ethane is a valuable NGL, which is an important and economical feedstock for plastics. These are the supporting factors for the ethane market; thus, offering most remunerative opportunities in the plastic industry. 

The global ethane market profiles leading players that include, American Ethane, Aux Sable, DCP Midstream, LLC., Energy Transfer LP, L'Air Liquide S.A., Merck KGaA, Praxair Technology, Inc., Reliance Industries Limited., Shell Plc., and WILLIAMS. The global ethane market report provides in-depth competitive analysis as well as profiles of these major players.

IMPACT OF COVID-19 ON THE GLOBAL ETHANE MARKET 

  • The ethane market was impacted negatively due to the wake of the COVID-19 pandemic. According to a report published by IEA in March 2021, the petrochemical industry accounted for the majority of ethane, LPG, and naphtha. The demand suffered relatively little from the COVID-19 crisis and is expected to grow post COVID-19.  

  • However, increasing demand from the oil & gas sector has enhanced the performance of ethane market post COVID-19. Furthermore, the building & construction, food sectors, and transportation activities are projected to get back on track and start functioning with full capacity post the COVID-19 period, which is expected to drive the ethane market in 2022.  

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the ethane market analysis from 2021 to 2031 to identify the prevailing ethane market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the ethane market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global ethane market trends, key players, market segments, application areas, and market growth strategies.

Ethane Market Report Highlights

Aspects Details
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Market Size By 2031

USD 18.5 billion

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Growth Rate

CAGR of 3.8%

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Forecast period

2021 - 2031

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Report Pages

204

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By Application
  • Ethylene Synthesis
  • Acetic Acid Synthesis
  • Refrigerants
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By End-use
  • Plastic
  • Food
  • Automotive
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, UK, France, Spian, Italy, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
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Key Market Players

American Ethane, WILLIAMS, Merck KGaA, L'Air Liquide S.A., Shell Plc., Aux Sable, DCP Midstream, LLC., Praxair Technology, Inc., Energy Transfer LP, Reliance Industries Limited

Analyst Review

According to CXOs of leading companies, the global ethane market is expected to exhibit high growth potential. Ethane is an organic, colorless hydro compounds and the second-largest component of natural gas. Ethane is widely used as transportation fuel and coolants in vehicles. This factor is positively enhancing the market growth.  

In addition, ethane is an excellent source of refrigerants that makes it best suited for reducing global warming and ozone layer depletion end uses. In addition, it finds a wide range of end uses in cryogenic refrigeration system. Moreover, growing demand for plastic and increase in the production capacities of various types of polymers have enhanced the ethane market. Furthermore, factors such as flexibility in operation, ease of end use, and minimal or no volatile organic compounds (VOCs) levels enhance performance of ethane in several end use industries. CXOs further added that sustained economic growth and development of the building & construction sector has increased the popularity of ethane.

Author Name(s) : Akshata Mahantesh dhange | Eswara Prasad
Frequently Asked Questions?

Rise in the consumption of shell oil gas, growing consumer demand from automotive and transportation sector has fueled the market. In addition, rapid shift of manufacturer towards sustainable production of bio-based ethane has enhanced the performance of ethane market during the forecast period.

Ethylene synthesis application segment dominated the global market in 2021.

Asia-pacific region is projected to grow high during the forecast period.

The global ethane market was valued at $12.8 billion in 2021, and is projected to reach $18.5 billion by 2031, growing at a CAGR of 3.8% from 2022 to 2031.

L'Air Liquide S.A., Merck KGaA, Praxair Technology, Inc., Reliance Industries Limited., Shell Plc., and WILLIAMS.

Robust demand from automotive and transportation sector is main driver for ethane market.

The ethane market is negatively impacted due to the wake of the COVID-19 pandemic. Decrease in the demand from building & construction, automotive & transportation, food, aerospace, and other sectors. According to a report published by Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles, commercial vehicles and two?wheeler vehicles declined by 51%, 88%, and 40%, respectively in March 2020.

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Ethane Market

Global Opportunity Analysis and Industry Forecast, 2021-2031