Stringent safety regulations associated with the manufacturing and transportation of propylene was a major restraint on the market.
LONDON, March 2, 2020 /PRNewswire/ -- The global propylene market reached a value of nearly $83.7 billion in 2019, having grown at a compound annual growth rate (CAGR) of 2.95% since 2015, and is expected to grow at a CAGR of -1.81% to nearly $77.8 billion by 2023. Stringent safety regulations associated with the manufacturing and transportation of propylene was a major restraint on the market. Propylene is highly inflammable, toxic and hazardous when exposed to extreme temperatures and pressures. Propylene suppliers should invest in equipment, technologies and processes to limit the toxic levels and chemical concentrations. These regulations increased the operating costs of companies in the propylene industry, thus limiting the scope for investments relating to the launch of new products and expansion into new markets, thereby affecting the market growth. Read More On The Business Research Company's Propylene Market Report @ https://www.thebusinessresearchcompany.com/report/propylene-global-market-report
Stringent government regulations related to the production and use of ethylene have also affected the ethylene market growth negatively. Ethylene is combustible and carcinogenic in nature, making it dangerous to its environment. It is highly explosive and can cause light-headedness, dizziness, and unconsciousness when exposed. Several countries are implementing legislations for environment protection, which will put pressure on the companies involved in the production of ethylene. For instance, in January 2020, a group of 364 environmental and other non-governmental organizations filed a petition with the U.S. Environmental Protection Agency (EPA) to revise standards applicable to petro-plastics production facilities. The petition requests EPA to impose unprecedented controls on such facilities. Moreover, globally, governments are banning single-use plastics to curb the plastic waste. For instance, in January 2020, China, announced its plans to ban single-use plastics and promote recycling and green packaging. The restrictions laid on production would hamper the growth of the ethylene market. Browse More on Ethylene Market @ https://www.thebusinessresearchcompany.com/report/ethylene-global-market-report
The global ethylene market reached a value of nearly $222.1 billion in 2019, having grown at a compound annual growth rate (CAGR) of 5.25% since 2015, and is expected to grow at a CAGR of 4.77% to nearly $267.6 billion by 2023.
Increased Demand For Polythene Products Drove The Ethylene Market
During the historic period, increased demand for polythene products contributed to the ethylene market's growth. Ethylene is mainly used in polyethylene products such as low-density polyethylene (LDPE), high density polyethylene (HDPE) and linear low-density polyethylene (LLDPE). The polyethylene market has grown substantially due to the increased demand for plastic across the globe. The high penetration of plastics in electronic products and lightweight products in vehicles has increased the consumption of plastics. According to the National Geographic, 40% of the plastic produced every year is single-use plastics. The production of plastic increased exponentially to 448 million tons by 2015, from 2.3 million tons in 1950, and this number is being expected to double by 2050. These factors drove the adoption of polyethylene, which positively impacted the growth of the ethylene market.
Greener Alternatives To Ethylene
Ethylene producing companies are investing in ways to develop bio-based green polyethylene compounds. These plastics are easy to produce, consumes less energy and offer the same versatility of chemically synthesized plastic. Following the trend, in 2018, Braskem, a Brazil based bio polymer producer, in partnership with LEGO Group, a Danish toy production company, started to supply its I'm greenT polyethylene. I'm greenT polyethylene is a plastic made from sugarcane which is 100% recyclable and contributes to the reduction of greenhouse gases.
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Trend In The Propylene Market- On-Purpose Propylene Production Technologies
Petrochemical companies are adopting on-purpose propylene production technologies to produce propylene as a sole product but not as an alternate or co-product. On-purpose propylene technology refers to a modified version of the traditional fluid catalytic cracking unit which increases propylene yield to 20% more than the actual output. Traditional sources for propylene which include steam crackers and oil refineries yield less propylene as a derivative or co-product due to shift in feedstocks from naphtha to ethane. To meet the increased demand for propylene, petrochemical companies are investing to develop on-purpose technologies to accelerate the shortfall of propylene production. Major on-purpose technologies include propane dehydrogenation, methanol-to-olefins/methanol-to-propylene (MTO/MTP), high-severity fluidized catalytic cracking (HS-FCC), coal-to-olefins/coal-to-propylene (CTO/CTP) and gas-to-olefins (GTO). Major companies adopting this technology include BASF, Dow Chemical, ExxonMobil Chemical and Sidi Kerir Petrochemicals Co (SIDPEC).
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