Ethane

Ethane

The Ethane Market is expected to grow at a steady rate of around 4% owing to the increasing usage of ethylene in the packaging industry and 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, 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 is raising the demand for 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 wide application of ethylene the demand for ethane is also increasing as is used as the feedstock in steam cracker for ethylene processing.

• 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 the majority of the market share and generates the largest demand for ethane. The primary reason for the growth of ethylene is due to 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, films 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.
• Based on the end-user industry the market is segmented into packaging, automotive and transportation, construction, electrical and electronics, and others. The majority of the demand for ethane is generated due to the growing packaging industry. The packaging industry is witnessing this high growth phase due to several factors at play, such as booming E-commerce, where the rapid growth of e-commerce has led to an increased demand for packaging materials, as online retailers require specialized packaging solutions to protect their products during shipping and storage. Furthermore, the rise of meal kits, subscription boxes, and fast fashion has created a surge in demand for customized, flexible packaging solutions. These items require unique packaging designs that cater to their specific needs, boosting the demand for innovative packaging technologies. Additionally, rapid industrialization and urbanization in emerging economies are creating new opportunities for packaging suppliers. Asia-Pacific, Latin America, the Middle East, and Africa are expected to experience significant growth in the packaging industry due to increasing demand for packaged goods, and due to the factors stated above, the ethane market is anticipated to experience secular growth during the forecast period.
• For a better understanding of the market adoption of the ethane industry, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. With rapid urbanization and industrialization, the demand for ethane-based packaging materials is exponentially increasing in emerging economies. 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 ethylene is extensively used as a raw material in automobiles and electronic devices and ethane is one of the most preferred feedstock used for the production of the ethylene. 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.
• Some of the major players operating in the market include 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