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India Ethylene Market By Feedstock Type (Naphtha, Ethane, Propane, Butane, Others); By Application (Polyethylene (PE), Ethylene Oxide (EO), Ethylene Dichloride (EDC)/Vinyl Chloride Monomer (VCM), Ethylbenzene (EB), Alpha Olefins, Others); By End-Use Industry (Packaging, Automotive, Construction, Agrochemicals, Textiles, Others); By Technology (Steam Cracking, Others) – Growth, Future Prospects & Competitive Analysis, 2016 – 2030

Summary
Table Of Content

India Ethylene Market Overview

India’s Ethylene Market, valued at USD 5,178.19 million in 2022, is projected to reach USD 6,514.53 million by 2030, growing at a CAGR of 3.33%, driven by advancements in polymer demand and shale gas. Dominated by the polyethylene (PE) industry, which held around 83% of the market share in 2023, the market dynamics are driven by this sector. India is facing a significant surplus in ethylene, expected to more than double to 11.2 million metric tons, alongside a 63% increase in the propylene surplus to 18.67 million tons. This excess supply has exerted downward pressure on both PE and PP prices, leading to losses for refiners since September due to low profit margins.

Ethylene (C2H4), a colorless, flammable gas with a faint, sweet, and musky odor, is the simplest alkene and plays a crucial role in both industrial chemistry and plant biology. Industrially, it serves as a fundamental raw material in the production of various products, most notably polyethylene, which is among the most common plastics. It’s also a precursor for chemicals like ethylene oxide (used in antifreeze and polyester manufacturing), polyvinyl chloride (PVC), and styrene. In the plant world, ethylene functions as a hormone, influencing key processes such as fruit ripening, flower opening, and leaf shedding. Its unique gaseous nature makes it pivotal in accelerating fruit ripening, particularly in confined spaces where higher concentrations can have a more pronounced effect.

The landscape of the market is primarily shaped by major players, including Reliance Industries Limited, Indian Oil Corporation Limited, GAIL (India) Limited, ONGC Petro Additions Limited, and Haldia Petrochemicals Limited. While India holds promising prospects to emerge as a pivotal player in both consumption and manufacturing within the global chemical industry, it encounters several obstacles. These challenges encompass the limited availability of domestic feedstock, prolonged delays in obtaining regulatory approvals, and a notable shortage of skilled professionals in research and development.

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India Ethylene Market Drivers and Trends

This upward trajectory can be attributed to several pivotal factors. The market is primarily driven by an increasing demand for polymers, especially ethylene-based polymers, which are essential in the production of plastics. This surge in demand has been a significant contributor to market expansion. The advent of shale gas exploration has led to a decrease in the production costs of ethylene, further stimulating market growth. The rapid pace of urbanization and industrialization in emerging economies, particularly in India, has amplified the need for ethylene-based packaging materials. The growing demand for automobiles and electronic devices in Asia-Pacific regions, notably in China and India, is also playing a crucial role in the expansion of the ethylene market.

The India Ethylene Market is observing several major trends that are instrumental in its ongoing development and growth. A significant trend is the shift towards green technologies. The Indian government is actively endorsing environmentally friendly practices within the chemical industry, a move that is expected to drive substantial growth in the ethylene market. In parallel, the continued urbanization and industrialization in emerging economies like India have led to an escalated demand for ethylene-based packaging materials. The Indian government’s encouragement of foreign investments in the chemical industry is anticipated to substantially enhance the growth of the ethylene market. Key industry players such as Reliance Industries Limited and Indian Oil Corporation Limited are intensifying their focus on research and development. This emphasis on innovation is directed towards improving their product offerings and sustaining a competitive position in the market.

India Ethylene Market Challenges and Restraint Factors.

The India Ethylene Market is confronted with several challenges and restraints, notably economic constraints in emerging countries, which significantly impede market growth. Furthermore, business market obstacles, encompassing logistical and entry barriers, pose additional difficulties. A major restraining factor is the implementation of stringent regulations due to the combustible and carcinogenic nature of ethylene, along with environmental legislation aimed at protecting the environment, which places considerable pressure on companies involved in hydrocarbon-based production, including ethylene. The market is affected by the volatility of raw material prices, which introduces uncertainty in production costs and impacts market stability and profitability.

Interesting Facts about India’s Ethylene Market

Ethylene, a vital industrial organic chemical, is produced by heating natural gas, or petroleum, to separate it from a mixture of gases.
It is characterized as a colorless, flammable gas with a sweet taste and odor.
Ethylene’s primary uses include serving as a monomer for constructing longer carbon chains and as a base material for other two-carbon compounds.
India is on track to significantly increase its ethylene capacity in the next three years, expecting an addition of approximately three million tons per year, elevating the total capacity to over seven million tons annually.
As of FY2023, the polyethylene (PE) industry holds a dominant position in the Indian ethylene market, with a significant market share.
Both China and India are currently facing challenges with oversupplies of ethylene and propylene, crucial feedstocks for producing petrochemicals such as polyethylene (PE) and polypropylene (PP).
This excess supply is exerting downward pressure on the prices of both PE and PP.

Competitive Analysis

These key players include:

Reliance Industries Limited
Indian Oil Corporation Limited
GAIL (India) Limited
ONGC Petro Additions Limited
Haldia Petrochemicals Limited

These firms are integral to the Indian ethylene market, engaging actively in the production, distribution, and supply of ethylene. This chemical is essential for a range of industries, notably the petrochemical and polymer sectors, and the contributions of these companies are significant in supporting and advancing the market’s dynamics.

These companies are at the forefront of innovation and production efficiency, each vying for market dominance through strategic initiatives like capacity expansion, technological advancements, and product diversification. The competitive edge in this market is also driven by factors such as cost-effectiveness, supply chain efficiency, and adherence to environmental regulations. The market is further influenced by global trends in petrochemicals, regional demands, and evolving consumer preferences, which all players must navigate. Additionally, the Indian government’s policies and incentives for the petrochemical industry play a critical role in shaping the competitive environment. The market is also witnessing an increasing focus on sustainable and eco-friendly practices, which is compelling companies to adapt their strategies accordingly. This competitive analysis indicates a market that is both challenging and ripe with opportunities for growth and innovation.

Recent Developments

In August 2022, Reliance Industries Limited (RIL) announced plans to invest 750 billion rupees (approximately $9.4 billion) in expanding its oil-to-chemical operations. This includes constructing one of the largest single-train purified terephthalic acid (PTA) plants and a 1 million tons per year (t/y) polyethylene terephthalate (PET) plant in Dahej, with completion targeted for 2026.
RIL, in collaboration with Abu Dhabi National Oil Company (ADNOC), unveiled their joint project to produce 940,000 t/y of chlor-alkali, 1.1 million t/y of ethylene dichloride (EDC), and 360,000 t/y of polyvinyl chloride (PVC).
GAIL (India) Limited, the nation’s leading gas supplier, plans to establish an ethane cracking facility near its liquefied natural gas (LNG) import terminal in Dabhol, Maharashtra. The project, estimated at $4.9 billion, aims to produce ethylene, a key component in plastic manufacturing.
In August 2023, Indian Oil Corporation Ltd. (IOCL) engaged McDermott International to facilitate the expansion of olefin and polymer production at its Panipat refinery. This expansion is expected to enhance the refinery’s ethylene output by approximately 20%, supporting the production of various products, including containers, automobile parts, furniture, and heavy-duty films.
Demonstrating its commitment to innovative technology, IOCL in November 2023 selected LyondellBasell’s Hostalen “Advanced Cascade Process” (Hostalen ACP) for a new 200 kiloton per year (KTA) high-density polyethylene (HDPE) plant, marking a significant step in its petrochemical expansion projects.

Segmentation

By Feedstock Type:
- Naphtha
- Ethane
- Propane
- Butane
- Others (including coal and biomass)
By Application:
- Polyethylene (PE)
- Ethylene Oxide (EO)
- Ethylene Dichloride (EDC)/Vinyl Chloride Monomer (VCM)
- Ethylbenzene (EB)
- Alpha Olefins
- Others (including rubber and solvents)
By End-Use Industry:
- Packaging
- Automotive
- Construction
- Agrochemicals
- Textiles
- Others (including pharmaceuticals and personal care)
By Technology:
- Steam Cracking
- Others (including oxidative coupling and methanol-to-olefins)

Chapter No. 1 : Introduction 17
1.1. Report Description 17
1.1.1. Purpose of the Report 17
1.1.2. USP & Key Offerings 17
1.2. Key Benefits for Stakeholders 17
1.3. Target Audience 18
1.4. Report Scope 19

Chapter No. 2 : Executive Summary 20
2.1. Ethylen Market Snapshot 20
2.2. India Ethylen Market, 2017 – 2022 (Kilo Tons) (USD Million) 21

Chapter No. 3 : Impact Analysis of COVID 19 & Russia-Ukraine War on Ethylen Market 23
3.1. Impact Assessment of COVID-19 Pandemic, By Region 23
3.1.1. Supply chain disruptions 23
3.1.2. Demand fluctuations 23
3.1.3. Shift in product mix 23
3.1.4. Reduced industrial activity 23
3.1.5. Temporary disruptions and delays 23
3.1.6. Shift in focus towards essential services 23
3.2. Russia-Ukraine War Impacts 24
3.2.1. Uncertainty and economic instability 24
3.2.2. Supply chain disruptions 24
3.2.3. Regional market shifts 24
3.2.4. Shift in government priorities 24

Chapter No. 4 : Ethylen Market – Industry Analysis 25
4.1. Introduction 25
4.2. Market Drivers 26
4.2.1. Driving Factor 1 Analysis 26
4.2.2. Driving Factor 2 Analysis 27
4.3. Market Restraints 28
4.3.1. Restraining Factor Analysis 28
4.4. Market Opportunities 29
4.4.1. Market Opportunity Analysis 29
4.5. Porter’s Five Forces Analysis 30
4.6. Value Chain Analysis 31
4.7. Buying Criteria 32

Chapter No. 5 : Import Export Analysis 33
5.1. Import Analysis by Region 33
5.1.1. India Ethylen Market Import Volume/Revenue, By Region, 2017 – 2022 33
5.2. Export Analysis by Region 34
5.2.1. India Ethylen Market Export Volume/Revenue, By Region, 2017 – 2022 34

Chapter No. 6 : Demand Supply Analysis 35
6.1. Demand Analysis by Region 35
6.1.1. India Ethylen Market Demand Volume/Revenue, By Region, 2017 – 2022 35
6.2. Supply Analysis by Region 36
6.2.1. India Ethylen Market Supply Volume/Revenue, By Region, 2017 – 2022 36

Chapter No. 7 : Production Analysis 37
7.1. Production Analysis by Region 37
7.1.1. India Ethylen Market Production, By Region, 2017 – 2022 37

Chapter No. 8 : Price Analysis 38
8.1. Price Analysis by Feedstock 38
8.1.1. India Ethylen Market Price, By Feedstock, 2017 – 2022 38
8.1.2. India Feedstock Market Price, By Feedstock, 2017 – 2022 38

Chapter No. 9 : Raw Materials Analysis 39
9.1. Key Raw Materials and Suppliers 39
9.2. Key Raw Materials Price Trend 39

Chapter No. 10 : Manufacturing Cost Analysis 40
10.1. Manufacturing Cost Analysis 40
10.1.1. Manufacturing Cost Analysis 40
10.2. Manufacturing Process 40
10.2.1. Manufacturing Process 40

Chapter No. 11 : Analysis Competitive Landscape 41
11.1. Company Market Share Analysis – 2022 41
11.1.1. India Ethylen Market: Company Market Share, by Volume, 2022 41
11.1.2. India Ethylen Market: Company Market Share, by Revenue2022 41
11.1.3. India Ethylen Market: Top 6 Company Market Share, by Revenue2022 42
11.1.4. India Ethylen Market: Top 3 Company Market Share, by Revenue2022 42
11.1. India Ethylen Market Company Volume Market Share, 2022 43
11.2. India Ethylen Market Company Revenue Market Share, 2022 44
11.3. Company Assessment Metrics, 2022 45
11.3.1. Stars 45
11.3.2. Emerging Leaders 45
11.3.3. Pervasive Players 45
11.3.4. Participants 45
11.4. Start-ups /SMEs Assessment Metrics, 2022 45
11.4.1. Progressive Companies 45
11.4.2. Responsive Companies 45
11.4.3. Dynamic Companies 45
11.4.4. Starting Blocks 45
11.5. Strategic Developments 46
11.5.1. Acquisitions & Mergers 46
11.5.2. New Product Launch 46
11.5.3. Regional Expansion 46
11.6. Key Players Product Matrix 47

Chapter No. 12 : PESTEL & Adjacent Market Analysis 48
12.1. PESTEL 48
12.1.1. Political Factors 48
12.1.2. Economic Factors 48
12.1.3. Social Factors 48
12.1.4. Technological Factors 48
12.1.5. Environmental Factors 48
12.1.6. Legal Factors 48
12.2. Adjacent Market Analysis 48

Chapter No. 13 : Ethylen Market – By Feedstock Segment Analysis 49
13.1. Ethylen Market Overview, by Feedstock Segment 49
13.1.1. Ethylen Market Volume Share, By Feedstock, 2022 & 2030 50
13.1.2. Ethylen Market Revenue Share, By Feedstock, 2022 & 2030 50
13.1.3. Ethylen Market Attractiveness Analysis, By Feedstock 51
13.1.4. Incremental Revenue Growth Opportunity, by Feedstock, 2023 – 2030 51
13.1.5. Ethylen Market Revenue, By Feedstock, 2017, 2022, 2026 & 2030 52
13.2. Naphtha 53
13.3. Ethane 54
13.4. Propane 55
13.5. Butane 56
13.6. Others 57

Chapter No. 14 : Ethylen Market – By Application Segment Analysis 58
14.1. Ethylen Market Overview, by Application Segment 58
14.1.1. Ethylen Market Volume Share, By Application, 2022 & 2030 59
14.1.2. Ethylen Market Revenue Share, By Application, 2022 & 2030 59
14.1.3. Ethylen Market Attractiveness Analysis, By Application 60
14.1.4. Incremental Revenue Growth Opportunity, by Application, 2023 – 2030 60
14.1.5. Ethylen Market Revenue, By Application, 2017, 2022, 2026 & 2030 61
14.2. HDPE 62
14.3. LLDPE 63
14.4. LDPE 64
14.5. Ethylene Oxide 65
14.6. Ethyl Benzene 66
14.7. Ethylene Dichloride 67
14.8. Others 67

Chapter No. 15 : Ethylen Market – By End-user Segment Analysis 68
15.1. Ethylen Market Overview, by End-user Segment 68
15.1.1. Ethylen Market Volume Share, By End-user, 2022 & 2030 69
15.1.2. Ethylen Market Revenue Share, By End-user, 2022 & 2030 69
15.1.3. Ethylen Market Attractiveness Analysis, By End-user 70
15.1.4. Incremental Revenue Growth Opportunity, by End-user, 2023 – 2030 70
15.1.5. Ethylen Market Revenue, By End-user, 2017, 2022, 2026 & 2030 71
15.2. Building & Construction 72
15.3. Automotive 73
15.4. Textiles 74
15.5. Packaging 75
15.6. Others 76

Chapter No. 16 : Company Profiles 77
16.1. Reliance Industries Limited 77
16.1.1. Company Overview 77
16.1.2. Product Portfolio 77
16.1.3. Swot Analysis 77
16.1.4. Business Strategy 78
16.1.5. Financial Overview 78
16.2. Indian Oil Corporation Limited 79
16.3. Bharat Petroleum Corporation Limited 79
16.4. Hindustan Petroleum Corporation Limited 79
16.5. GAIL (India) Limited 79
16.6. ONGC Petro additions Limited (OPaL) 79
16.7. Haldia Petrochemicals Limited 79
16.8. Mangalore Refinery and Petrochemicals Limited (MRPL) 79
16.9. Gas Authority of India Limited (GAIL) 79
16.10. Chennai Petroleum Corporation Limited (CPCL) 79
16.11. HPCL-Mittal Energy Limited (HMEL) 79
16.12. Essar Oil Limited 79
16.13. Gujarat State Fertilizers & Chemicals Limited (GSFC) 79
16.14. Gujarat Alkalies and Chemicals Limited (GACL) 79
16.15. Deepak Fertilisers and Petrochemicals Corporation Limited 79

Chapter No. 17 : Research Methodology 80
17.1. Research Methodology 80
17.2. Phase I – Secondary Research 81
17.3. Phase II – Data Modeling 81
17.3.1. Company Share Analysis Model 82
17.3.2. Revenue Based Modeling 82
17.4. Phase III – Primary Research 83
17.5. Research Limitations 84
17.5.1. Assumptions 84

List of Figures
FIG NO. 1. India Ethylen Market Volume & Revenue, 2017 – 2022 (Kilo Tons) (USD Million) 20
FIG NO. 2. Porter’s Five Forces Analysis for India Ethylen Market 29
FIG NO. 3. Value Chain Analysis for India Ethylen Market 30
FIG NO. 4. India Ethylen Market Import Volume/Revenue, By Region, 2017 – 2022 32
FIG NO. 5. India Ethylen Market Export Volume/Revenue, By Region, 2017 – 2022 33
FIG NO. 6. India Ethylen Market Demand Volume/Revenue, By Region, 2017 – 2022 34
FIG NO. 7. India Ethylen Market Supply Volume/Revenue, By Region, 2017 – 2022 35
FIG NO. 8. India Ethylen Market Production, By Region, 2017 – 2022 36
FIG NO. 9. India Ethylen Market Price, By Feedstock, 2017 – 2022 37
FIG NO. 10. Raw Materials Price Trend Analysis, 2017 – 2022 38
FIG NO. 11. Manufacturing Cost Analysis 39
FIG NO. 12. Manufacturing Process 39
FIG NO. 13. Company Share Analysis, 2022 40
FIG NO. 14. Company Share Analysis, 2022 40
FIG NO. 15. Company Share Analysis, 2022 41
FIG NO. 16. Company Share Analysis, 2022 41
FIG NO. 17. Ethylen Market – Company Volume Market Share, 2022 42
FIG NO. 18. Ethylen Market – Company Revenue Market Share, 2022 43
FIG NO. 19. Ethylen Market Volume Share, By Feedstock, 2022 & 2030 49
FIG NO. 20. Ethylen Market Revenue Share, By Feedstock, 2022 & 2030 49
FIG NO. 21. Market Attractiveness Analysis, By Feedstock 50
FIG NO. 22. Incremental Revenue Growth Opportunity by Feedstock 50
FIG NO. 23. Ethylen Market Revenue, By Feedstock, 2017, 2022, 2026 & 2030 51
FIG NO. 24. India Ethylen Market for Naphtha, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 52
FIG NO. 25. India Ethylen Market for Ethane, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 53
FIG NO. 26. India Ethylen Market for Propane, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 54
FIG NO. 27. India Ethylen Market for Butane, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 55
FIG NO. 28. India Ethylen Market for Others, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 56
FIG NO. 29. Ethylen Market Volume Share, By Application, 2022 & 2030 58
FIG NO. 30. Ethylen Market Revenue Share, By Application, 2022 & 2030 58
FIG NO. 31. Market Attractiveness Analysis, By Application 59
FIG NO. 32. Incremental Revenue Growth Opportunity by Application 59
FIG NO. 33. Ethylen Market Revenue, By Application, 2017, 2022, 2026 & 2030 60
FIG NO. 34. India Ethylen Market for HDPE, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 61
FIG NO. 35. India Ethylen Market for LLDPE, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 62
FIG NO. 36. India Ethylen Market for LDPE, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 63
FIG NO. 37. India Ethylen Market for Ethylene Oxide, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 64
FIG NO. 38. India Ethylen Market for Ethyl Benzene, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 65
FIG NO. 39. Ethylen Market Volume Share, By End-user, 2022 & 2030 68
FIG NO. 40. Ethylen Market Revenue Share, By End-user, 2022 & 2030 68
FIG NO. 41. Market Attractiveness Analysis, By End-user 69
FIG NO. 42. Incremental Revenue Growth Opportunity by End-user 69
FIG NO. 43. Ethylen Market Revenue, By End-user, 2017, 2022, 2026 & 2030 70
FIG NO. 44. India Ethylen Market for Building & Construction, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 71
FIG NO. 45. India Ethylen Market for Automotive, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 72
FIG NO. 46. India Ethylen Market for Textiles, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 73
FIG NO. 47. India Ethylen Market for Packaging, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 74
FIG NO. 48. India Ethylen Market for Others, Volume & Revenue (Kilo Tons) (USD Million) 2017 – 2030 75
FIG NO. 49. Research Methodology – Detailed View 79
FIG NO. 50. Research Methodology 80

List of Tables
TABLE NO. 1. : India Ethylen Market: Snapshot 19
TABLE NO. 2. : Drivers for the Ethylen Market: Impact Analysis 25
TABLE NO. 3. : Restraints for the Ethylen Market: Impact Analysis 27
TABLE NO. 4. : India Ethylen Market Volume & Revenue, By Feedstock, 2017 – 2022 37
TABLE NO. 5. : Key Raw Materials & Suppliers 38

What is the projected growth rate of the India Ethylene Market by 2030?

In 2023, the India Ethylene Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.4% until 2030, reflecting a steady increase in market size and value.

Which sector dominates the India Ethylene Market, and what is its market share?

The Polyethylene (PE) industry dominates the India Ethylene Market, holding a substantial market share of around 83% in 2023. This sector is a key driver of the market’s dynamics.

What are the primary uses of ethylene, and how does it impact plant biology?

Ethylene (C2H4) is used industrially as a raw material in producing polyethylene, a common plastic, and is a precursor for chemicals like ethylene oxide, PVC, and styrene. In plant biology, ethylene acts as a hormone, influencing fruit ripening, flower opening, and leaf shedding due to its unique gaseous nature.

What challenges does the India Ethylene Market face?

Despite its growth potential, the India Ethylene Market encounters several challenges, including limited domestic feedstock availability, regulatory approval delays, and a shortage of skilled professionals in research and development. These factors pose significant hurdles to India’s emergence as a key player in the global chemical industry.

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