Ethane Market Size, Share, Growth, Trends, and Global Industry Analysis: By Application Type (Ethylene Synthesis, Acetic Acid Synthesis, Refrigerant, Others), By End User (Packaging, Automotive, Construction, Agrochemicals, Textile, Others), and Region Forecast 2019-2030

Ethane Market size was valued at US$ 850.3 million in 2023 and is anticipated to grow at a CAGR of 7.2% from 2024-2030. Ethane is a simple, colorless, odorless, and gaseous hydrocarbon that belongs to the alkane family of organic compounds. Ethane is commonly isolated from natural gas or petrochemicals and chiefly used as feedstock for ethylene production. The market's revenue growth is significantly driven by the rising growth of the petrochemical industry. Ethane serves as a vital feedstock in the production of ethylene, a fundamental building block for a wide range of petrochemical products, including plastics, synthetic rubber, and various chemicals. As the global demand for these petrochemical products continues to surge, driven by various industries such as packaging, automotive, construction, and consumer goods, the need for ethane as a feedstock escalates proportionally. This heightened demand results in increased revenue for ethane suppliers and producers, making it an integral part of the petrochemical supply chain.

Moreover, global industrialization plays a significant role in driving the market. As countries and regions worldwide undergo rapid industrialization and urbanization, there is a substantial increase in the demand for various products derived from petrochemicals, where ethane serves as a key feedstock. Industries such as manufacturing, construction, automotive, and consumer goods heavily rely on plastics, synthetic rubber, and chemicals produced using ethane-derived ethylene. This heightened demand for ethane is especially pronounced in emerging economies where industrial growth is robust.

However, stringent government regulations relating to the manufacture and use of ethane are hampering the market growth. Meanwhile, the augmented demand for gas from end-use industries will create new opportunities for the leading manufacturers functioning in the market. Key manufacturers are announcing innovative launches, acquisitions, and strategic collaborations to cater to the rising demand from various end-use industries. For instance, in July 2022, Bayport Polymers LLC, a 50/50 joint venture (JV) between TotalEnergies and Borealis, launched the start-up of commercial operations of a new ethane cracker with an annual production capacity of one million tons of ethylene.

Ethane Market Key Developments 

• In September 2021, PetroChina launched $1.2 bln ethane-to-ethylene project in China's far western region of Xinjiang.
• In February 2022, Ineos launched the Pacific Ineos Belstaff, its largest ethane carrier that can carry 99,000 m3 of the petrochemical feedstock.