Ethylene Carbonate Market - Forecast(2024 - 2030)
The Ethylene Carbonate Market size is projected to reach US$394.9 million by 2027, after growing at a CAGR of 5.9% during the forecast period 2022-2027. Ethylene carbonate is classified as the cyclic carbonate ester of ethylene glycol and carbonic acid. The ethylene carbonate at solid room temperature has a high viscosity in solutions with lithium salts. As a result of this property, it is often used in conjunction with linear carbonates such as dimethyl carbonate (DMC), diethyl carbonate (DEC), or ethyl-methyl carbonate (EMC). Also, ethylene carbonate is a highly polar solvent that dissolves a significant amount of electrolyte; thus, it is primarily employed in the electrolyte solution of lithium batteries, lubricants and other similar applications. The expansion of the transportation industry is fueling the demand for ethylene carbonate-based lubricants, which, in turn, is driving the growth of the ethylene carbonate market. Moreover, the growing oil and gas industry is anticipated to fuel the demand for ethylene carbonate because it is utilized in separation processes for gas washing and oil field. This, in turn, will drive the market growth during the forecast period of 2022-2027. However, the Covid-19 pandemic created a bottleneck for the ethylene carbonate market growth because the industrial activities associated with automotive, oil & gas and other industries were put to a halt. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles, in 2020, the global automotive industry contrasted by 13%. Nevertheless, in 2021, the surge in industrial production activities fueled the ethylene carbonate market size growth.
Report Coverage
The "Ethylene Carbonate Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Ethylene Carbonate Market.
By Form: Solid, Liquid and Powder.
By Application: Lithium Battery Electrolytes, Lubricants, Plasticizers, Surface Coatings, Soil Hardening Agents, Organic Solvents Capacitors, Pharmaceutical and Others.
By End-Use Industry: Transport (Automotive (Passenger Vehicles (PV), Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV)), Aerospace (Commercial, Defense and Others) and Marine (Passenger Ships, Cargo and Others)), Medical and Healthcare, Oil & Gas, Electrical and Electronics (Smartphone, Laptop, Television, Refrigerator and Others), Textile (Coated Textile, Impregnation Textile and Others), Energy (Wind Energy and Solar Energy) and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World [Middle East (Saudi Arabia, UAE, Israel and Rest of Middle East) and Africa (South Africa, Nigeria and Rest of Africa)].
Key Takeaways
Asia-Pacific dominated the Ethylene Carbonate Market, owing to the growing automotive industry in the region. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, the automotive production in Asia-Pacific was 46,732,785 units, an increase of 6% over 2020.
Ethylene Carbonate Market Segment Analysis – by Form
The solid segment held the largest Ethylene Carbonate Market share in the ethylene Carbonate market in 2021 and is forecasted to grow at a CAGR of 6.1% during the forecast period 2022-2027. Ethylene carbonate, a cyclic carbonate ester of ethylene glycol is a transparent crystalline solid. It is employed in most applications in the same form at room temperature. The solid form ethylene carbonate produced from ethylene glycol and other base chemicals is employed as a lubricating solvent, a crosslinking agent in the creation of high absorbent polymers, a separation agent in the gas washing process and oil fields and an intermediary in the synthesis of polycarbonate diol. Moreover, the solid form of ethylene carbonate offers higher cost savings, fewer refills, ease of transport and safer handling of chemicals over liquid and powder forms. Thus, due to these advantages solid form of ethylene carbonate, its adoption is increasing in lubricants, solvents and more, this, in turn, is propelling the market growth.
Ethylene Carbonate Market Segment Analysis – by End-Use Industry
The transport segment held the largest Ethylene Carbonate Market share in the ethylene carbonate market in 2021 and is forecasted to grow at a CAGR of 6.3% during the forecast period 2022-2027. Ethylene carbonate has several beneficial properties, such as low melting point, high boiling point & low vapor pressure and highly polar organic solvent. These properties result in higher product strength. Thus, owing to these properties’ ethylene carbonate is utilized in lubricants, lithium battery electrolytes and other similar transport applications. The factors such as the increasing adoption of passenger cars, the booming transport production and other factors are accelerating the growth of the automotive industry. For instance, the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, the global production of automobiles was 80,145,988 units, an increase of 2% over 2020. Hence, the growth of the transport industry is fueling the demand for lubricants, lithium battery electrolytes and more. This, in turn, is accelerating market growth.
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Ethylene Carbonate Market Segment Analysis – by Geography
Asia-Pacific is the dominating region as it held the largest Ethylene Carbonate Market share in the ethylene carbonate market in 2021 up to 41%. The economic growth of the Asia-Pacific countries is driven by the growth of the sectors such as automotive, aerospace and more. Variables such as bolstering the commercial industry, rising disposable income of people and other such variables are expanding the automotive and aerospace industry's growth in the region. For instance, the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2020, the production of light commercial vehicles in Asia-Pacific was 4,668,333 units and in 2021 it was 5,099,264 units, an increase of 9%. Moreover, in 2020, the production of passenger vehicles in the Asia-Pacific region was 35,822,949 units and in 2021, it was 38,152,172, an increase of 7%. Furthermore, Airbus, anticipates that by the end of 2040, Asia-pacific will need over 17,600 new aircraft, this will result in an opportunity for the production of new aircraft. Therefore, the growth of the transport industry in Asia-Pacific is fueling the demand for ethylene carbonate-based lubricants, lithium battery electrolytes and more. This is fueling the ethylene carbonate market size growth.
Ethylene Carbonate Market Drivers
The Growth of Electric Vehicle Production
Ethylene Carbonate is a highly polar, low viscosity solvent that dissolves a considerable amount of electrolyte. Thus, ethylene carbonate is utilized as a non-aqueous electrolyte in lithium batteries. The lithium-ion batteries are currently used in most electric cars due to their high energy per unit mass compared to other electrical energy storage methods. The production of electric vehicles is growing due to factors such as increasing government subsidies, increasing demand from consumers and the development of a new electric vehicle manufacturing setup to boost the production of electric vehicles. For instance, according to International Energy Agency (IEA), in 2019, the total battery-based car production at the global level was 1,502,985 units and in 2020 it was 2,089,366 units, an increase of 39%. Moreover, in 2019, the total production of plug-in hybrid cars worldwide was 526,101 units and in 2020, it was 984,850 units, an increase of 87.2%. Thus, the increasing production of electric vehicles is fueling the demand for lithium-ion batteries. As a result, the demand for ethylene carbonate is surging, which, in turn, is driving market growth.
Growth of Pharmaceutical Industry
In the pharmaceutical industry, Ethylene Carbonate is employed as a chemical intermediate to make a variety of medications. The surge in the production of pharmaceuticals, government initiatives and other factors are the key determinants driving the pharmaceutical industry's growth. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), in 2020, the total production of pharmaceuticals in Europe was EURO 310,000 million (approximately US$354,080.76 million), an increase of 5.7%. Also, according to the International Trade Administration, the pharmaceuticals market in Vietnam is expected to grow by a 10% annual rate from 2017 to 2028, with revenues per capita virtually tripling in ten years from 2017 to 2027. Hence, the growth of the pharmaceutical industry is boosting the demand for ethylene carbonate-based intermediates. This, in turn, is aiding the ethylene carbonate industry's growth.
Ethylene Carbonate Market Challenge
Volatility in Raw Material Prices
Ethane and propane are utilized as raw ingredients in the manufacturing of Ethylene Carbonates. The majority of these materials are crude oil-based derivatives that are susceptible to commodity price volatility. Moreover, the ongoing Russia-Ukraine war has highly impacted crude oil prices. For instance, according to the World Bank, Brent crude oil prices are expected to average $100 per barrel in 2022, the highest level since 2013 and a more than 40% increase over 2021. This causes ethylene carbonate raw material costs to fluctuate. Thus, the fluctuations in the prices of raw materials may restrict the ethylene carbonates industry growth during the projected forecast period.
Ethylene Carbonate Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Ethylene Carbonate Market. The top 10 companies in the Ethylene Carbonate market are:
Linde Oriental Union Chemical Corporation
Recent Developments
In February 2022, Lotte Chemical announced it intends to invest US$500 million in expanding the output of battery materials and other chemicals at its Daesan complex in South Korea. The company plans to construct plants to produce ethylene carbonate and dimethyl carbonate, which are solvents used as electrolytes in lithium-ion batteries.