Market Overview
The
Global Ethylene Carbonate Market is expected to reach a significant value of
USD 594.6 million in 2023. Looking ahead, it is anticipated to grow with a
CAGR of 7.3% for the forecast period (2023-2032). The rise in ethylene carbonate demand is driven by the growing popularity of electric vehicles & the increasing need for energy storage technologies.
To produce ethylene carbonate, the main raw materials needed are ethylene oxide & carbon dioxide. Ethylene oxide is commonly derived from petroleum or natural gas through the conversion of ethylene. Carbon dioxide can be obtained from different avenues, such as streams of industrial waste, or by purifying it from the atmosphere. The manufacturing process occurs within a carefully & properly controlled reactor system, which is designed or manufactured to manage reaction conditions, for safety, & enhance production efficiency.
Market Dynamic
Presently, the transportation sector heavily relies on oil as a fuel, resulting in rising concerns from environmentalists and economists alike. However, the growing awareness of sustainable energy sources has resulted in the widespread adoption of batteries in vehicles. Notably, the IEA (International Energy Agency) reports that the number of EVs on the roads has crossed 10 million, with sales & distribution experiencing considerable growth. Given ethylene carbonate's crucial role as a polar solvent in the formulation of electrolytes for Lithium-Ion batteries, its demand is expected to grow in upcoming years.
Therefore, it can be said that Ethylene carbonate plays a crucial role in forming electrolytes for lithium-ion batteries, which have a wide range of applications in, portable
electronics, renewable energy storage solutions electric vehicles, & EVs (Electric Vehicles). Moreover, this versatile product finds utility beyond batteries, as it is used in the manufacturing of coatings, plastics, pharmaceuticals & adhesives.
Ethylene carbonate also serves as a plasticizer, enhancing the ionic conductivity of polymer electrolytes in various applications, including PVC cables, vinyl flooring, and automobile part manufacturing. To adhere to strict regulations concerning harmful phthalates' usage as plasticizers, the industry has sought environmentally friendly alternatives, leading to the development of plasticizers utilizing ethylene carbonate. As the demand for PVC products is expected to grow substantially in the coming years, accounting for more than 90% of plasticizer usage, this creates a favorable opportunity for ethylene carbonate manufacturers to target and capture a significant market share.
Research Scope and Analysis
By Form
The solid form of ethylene carbonate dominates the market within the Form segment. This can be attributed to its prolonged life and ability to withstand higher temperatures without undergoing any chemical changes. Solid ethylene carbonate is utilized across various sectors, such as chemical, automotive, industrial, &
medical sectors. Additionally, it works as an important additive in the manufacturing of pharmaceuticals, soldering fluxes & cosmetics. Moreover, in the oil & gas sector, it works as a solution of solvent to decrease thickness during more-pressure or more-temperature drilling procedures, specifically, when other fluids are ineffective due to their low viscosity. This versatility and wide-ranging applicability make solid ethylene carbonate a valuable choice in numerous applications.
In its liquid state, ethylene carbonate is widely used in lubricants & polymers. It plays a significant role in producing high-density plastics known for their resistance to chemical deterioration or degradation. When combined with substances like ethene oxide, propylene oxide & diethyl carbonate, and liquid ethylene carbonate various specialized materials can be easily made to cater specific needs of customers. Moreover, ethylene carbonate in the liquid form is of utmost importance in the manufacturing process of lithium-ion battery electrolytes. Its versatile properties make it an important constituent in various industrial applications, ensuring its relevance and demand in different sectors.
By Application
The lubricants sector dominates the market within the application segment. This can be due to the widespread use of lubricants in various industries, such as automotive, Oil & Gas, and industrial sectors, among others. Ethylene carbonate is a pivotal component within this sector, functioning as an enhancer within its compositions to improve their characteristics & effectiveness. Furthermore, it enhances the slipperiness & film-forming qualities of the lubricants, resulting in less friction & deformation among mobile components. Through the establishment of a protective layer on metal surfaces, ethylene carbonate avoids metal surface-to-metal surface interaction, reducing the chances of surface harm & component breakdown. This makes ethylene carbonate a crucial constituent in lubricants, improving their efficacy & durability across a wide range of usage.
However, the lithium battery electrolyte segment stood second after the lubricant sector in application, holding a significant share. Ethylene carbonate is extensively been used in Li-ion batteries. It acts as an important component in formulating the solution of electrolyte, easing the movement of ions between the negative & positive electrodes of the battery.
By End Use
The automotive sector dominates the end-use segment, holding a substantial revenue share. This can be accredited to the increasing adoption of ethylene carbonate in automotive manufacturing, especially in the production of vital components like spark plugs, battery terminals & ignition cable sets. Ethylene carbonate’s impressive dielectric strength plays a pivotal role in bolstering safety measures and guarding against electrical hazards in automotive uses.
Following closely, the Oil & Gas industry stood as the second-largest end-use segment. The utilization of ethylene carbonate as a solvent in diverse extraction procedures has been on the rise due to its effective capability to dissolve specific substances, like aromatic hydrocarbons, facilitating their extraction from their materials. Additionally, the product serves as a key component in drilling fluids, where it reduces viscosity and improves the lubricity of the mud, resulting in enhanced drilling efficiency and reduced friction between the drill bit and the wellbore.
Moreover, ethylene carbonate finds significant use as a solvent or co-solvent in pharmaceutical drug formulations. Its ability to dissolve and solubilize various active pharmaceutical ingredients (APIs) or other components contributes to the development of drug formulations with improved bioavailability and stability. Acting as a stabilizer, plasticizer, or viscosity modifier, ethylene carbonate enhances the performance and functionality of the final drug product, making it a valuable component in the pharmaceutical industry.
The Global Ethylene Carbonate Market Report is segmented on the basis of the following:
By Form
By Application
- Lithium Battery Electrolytes
- Lubricants
- Others
By End Use
- Industrial
- Automotive
- Medical
- Oil & Gas
- Others
Regional Analysis
Asia Pacific dominates the market, holding a considerable revenue
share of 37.6% in 2023. Several reasons like governmental regulations, a robust industrial foundation, and the availability of affordable labor encourage significant industry leaders to make investments in this area which further drives its growth.
Furthermore, China's flourishing automotive sector, particularly the growing desire for EVs (electric vehicles) has made a substantial impact on the region's utilization of ethylene carbonate. Moreover, the electronics industry in the nation is experiencing considerable expansion due to the increasing uptake of consumer electronics & technological advancements. The extensive application of ethylene carbonate in the manufacturing of electronic components like printed circuit boards & capacitors has led to an increase in its utilization in the area.
In North America, especially in the United States., the automotive sector has experienced notable growth in the manufacturing and consumption of EVs. The country's emphasis on minimizing the utilization of fossil fuels & shift towards clean energy sources has led to the growth of the energy storage industry. Because ethylene carbonate is utilized in the production of lithium-ion batteries for storing energy, its usage in the area has been experiencing substantial growth.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
Continuous research and development activities, product innovations, strategic collaborations, and expansion endeavors by major players are defining characteristics of the market. To retain their market positions and cater to the evolving demands of various industries, companies are actively engaging in these initiatives. A notable example is Huntsman Corporation, which is currently increasing the production capacity of Ultrapure Ethylene as it plays a crucial role in ensuring the optimal performance and long-lasting durability of lithium-ion batteries used in electric vehicles (EVs) and electronic devices. This enhancement will aid in meeting the growing demands of the EV and electronics industries, emphasizing the importance of staying at the forefront of technological advancements in the market.
Some of the prominent players in the Global Ethylene Carbonate Market are:
- Oriental Union Chemical Corporation
- Huntsman International LLC
- BASF
- Mitsubishi Chemical Corporation
- Huntsman International LLC
- Zibo Donghai Industries Co. Ltd.
- TAOGOSEI CO. LTD.
- New Japan Chemical Co. Ltd.
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Ethylene Carbonate Market:
The COVID-19 pandemic and the subsequent global recession have significantly impacted the ethylene carbonate market. The widespread economic slowdown, restrictions on mobility, and disruptions in manufacturing and supply chains have led to reduced demand across various end-use industries. Sectors like automotive, electronics, and construction, which are major consumers of ethylene carbonate, experienced a decline in production and sales during the pandemic. Moreover, the uncertainty and financial constraints caused by the recession have led to delayed investments and project postponements, affecting market growth. However, as the world recovers from the pandemic and economies stabilize, the ethylene carbonate market is expected to gradually rebound, driven by the increasing demand for electric vehicles, energy storage systems, and sustainable industrial applications.
Report Characteristics |
Market Size (2023) |
USD 594.6 Mn |
Forecast Value (2032) |
USD 1,118.3 Mn |
CAGR (2023-2032) |
7.3% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Form (Solid and Liquid), By Application (Surface
Coatings, Lithium Battery Electrolytes, Lubricants,
Plasticizers, and Others). |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Oriental Union Chemical Corporation, Huntsman
International LLC, BASF, Mitsubishi Chemical
Corporation, Huntsman International LLC, Zibo
Donghai Industries Co. Ltd., TAOGOSEI CO. LTD., New
Japan Chemical Co. Ltd., and Other Key Players. |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Ethylene Carbonate Market is expected to reach a significant value of USD 594.6 million in
2023.
The expected CAGR for the Global Ethylene carbonate Market is 7.3% between 2023 and 2032.
In 2023, the Solid form of ethylene carbonate dominates the Global Ethylene Carbonate Market.
Some of the prominent players in the Global Ethylene Carbonate Market include Oriental Union
Chemical Corporation, Huntsman International LLC, BASF, Mitsubishi Chemical Corporation, etc.