Ethylene Carbonate Market by Application (Lubricants, Lithium Battery Electrolyte, Plasticizers, Surface Coatings), End-Use Industry (Automotive, Oil & Gas, Industrial, Medical, Personal Care & Hygiene), and Region - Global Forecast to 2029
Ethylene Carbonate Market
The global ethylene carbonate market is valued at USD 0.8 billion in 2024 and is projected to reach USD 1.5 billion by 2029, growing at 14.4% CAGR from 2024 to 2029. The increasing demand for ethylene carbonate is primarily fueled by its rising applications in lithium battery electrolytes and lubricants. Ethylene carbonate plays a crucial role in enhancing the performance and stability of lithium-ion batteries as an electrolyte component. In addition, it is widely utilized as a lubricant additive due to its ability to improve lubrication efficiency and reduce friction in various industrial applications. These factors contribute significantly to the growing demand for ethylene carbonate across these critical sectors.
Attractive Opportunities in the Ethylene Carbonate Market
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Ethylene Carbonate Market Dynamics
Driver: Increasing demand in ethylene carbonate for the production of lithium-ion battery electrolytes
Significant reliance on oil in the transportation sector prompts increasing concerns among environmentalists and economists alike. Growing awareness regarding using sustainable energy sources has driven the adoption of vehicle batteries. According to the International Energy Agency, the global number of electric cars on the road has surpassed 10 million units. Sales of electric vehicles are also increasing exponentially year-on-year, leading to heightened demand for lithium-ion batteries. Since ethylene carbonate serves as a polar solvent for the electrolytes used in these batteries, its market is anticipated to experience substantial growth in the forecast period.
Restraint: Utilization of hazardous raw materials in the manufacturing process of ethylene carbonate
While ethylene carbonate is considered a more environmentally friendly solvent, its traditional production method involves using hazardous chemicals such as ethylene oxide and carbon dioxide. Ethylene oxide exposure can result in various physical and health risks, including respiratory irritation, lung injury, headaches, nausea, and cyanosis. It is classified as a high-priority pollutant by the US EPA. Similarly, exposure to carbon dioxide can cause symptoms such as shortness of breath, headaches, nausea, and asthma, and it is also classified as a greenhouse gas. Due to the risks associated with these chemicals, their use is strictly regulated, which poses constraints on the growth potential of the ethylene carbonate market.
Opportunity: Rise in the adoption of bio-derived plasticizers
Ethylene carbonate is a plasticizer that improves the ionic conductivity of polymer electrolytes used in applications such as PVC cable, vinyl flooring, and automotive part manufacturing. Stringent regulations and norms regarding using harmful phthalates as plasticizers have spurred the development of alternative, environmentally friendly options, including those based on ethylene carbonate. PVC products account for over 90% of plasticizer usage, and their demand is expected to grow substantially in the coming years. This creates a favorable opportunity for ethylene carbonate manufacturers to target and expand their market presence.
Challenge: Volatility in oil and gas prices
The rising global demand for crude oil and geopolitical tensions in regions like the Middle East and between Russia and Ukraine have caused fluctuations in ethylene carbonate prices. These higher fuel costs impact transportation and manufacturing expenses for ethylene carbonate producers. In response to increased costs, manufacturers have raised their prices. Therefore, fluctuations in oil and gas prices pose a significant challenge for the ethylene carbonate market.
Ethylene Carbonate Market: Ecosystem
Based on form, the solid form currently accounts for a substantial volume in the market.
Based on the form, the solid segment is estimated to have the highest market share currently. Ethylene carbonate is a transparent crystalline solid at room temperature and is utilized in this form across several critical applications. This solid organic compound is a cross-linking agent in producing super absorbent polymers, gas washing, and oil field separation processes, and as an intermediate in synthesizing polycarbonate diols. Additionally, it is found in various applications such as plasticizers, resist strip solvents, fiber processing agents, soil hardeners, organic solvents, raw materials for organic synthesis, and medical products. However, with the increasing demand for lithium batteries, the liquid segment is expected to surpass the solid segment in market share during the forecast period.
Based on Application the lithium battery electrolytes to dominate the market demand during the forecast period
Based on application, the lithium battery electrolytes segment is estimated to have the highest market share by the end of the forecast period. This growth is fueled by increasing adoption across the industrial, oil and gas, and automotive sectors. Lithium batteries are gaining popularity in automotive applications as a sustainable energy solution. These factors collectively contribute to the anticipated rise in demand throughout the forecast period.
The automotive segment is anticipated to be the most significant contributor to the ethylene carbonate market by end-use industry during the forecast period.
The automotive segment is projected to hold the largest market share in the end-use industry in 2023. This growth is primarily driven by the rising sales of electric vehicles (EVs). For example, according to the International Energy Agency, EV sales surged 66% in Europe in 2022. Ethylene carbonate is crucial in EVs as an electrolyte for batteries and automotive lubricants, surface coatings, and automotive plastics manufacturing. These factors are anticipated to fuel demand throughout the forecast period.
Asia Pacific is anticipated to account for the largest market size during the forecast period.
Asia Pacific stands as the largest and most rapidly expanding market for ethylene carbonate, driven by its escalating utilization across diverse end-use sectors such as oil & gas, automotive, industrial, and medical. The region benefits from a robust manufacturing presence supported by governmental initiatives to foster sustainable energy solutions within industries. China, particularly renowned for its leading position in EV battery manufacturing, is pivotal in driving the demand for ethylene carbonate. Numerous companies, including Mitsubishi Chemical Holding (Japan) and Shandong Shida Shenghua Chemical Group Co., Ltd. (China), have established production facilities for ethylene carbonate in the Asia Pacific region. These factors are poised to propel market growth significantly throughout the forecast period.
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Ethylene Carbonate Market Players
The key companies are undertaking capacity expansion and partnerships across the supply chain to improve their share in this market. Companies, including Huntsman Corporation (US), Mitsubishi Chemical Group (Japan), Toagosei Co., Ltd. (Japan), and Shandong Senjie Cleantech Co. Ltd. (China) have adopted various strategies, including expansion, collaborations, and acquisitions between 2018 and 2024. New entrants are also expanding their production capabilities to meet the growing demand for ethylene carbonate from various end-use industries. The major vendors in the ethylene carbonate market include Oriental Union Chemical Corporation (Taiwan), Huntsman Corporation (US), Mitsubishi Chemical Group (Japan), Toagosei Co., Ltd. (Japan), New Japan Chemical Co. Ltd (Japan), Shandong Shida Shenghua Chemical Group (China), Zibo Donghai Industries Co. Ltd. (China), and Shandong Senjie Cleantech Co. Ltd. (China).
Ethylene Carbonate Market Report Scope
|
Report Metric |
Details |
|
Market Size Available for Years |
2021 to 2029 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2029 |
|
Forecast Units |
Value (USD Million/Billion), Volume (Tons) |
|
Segments Covered |
Form, Application, End-Use Industry, and Region |
|
Geographies Covered |
North America, Asia Pacific, Europe, South America, and Middle East & Africa |
|
Companies Covered |
Oriental Union Chemical Corporation (Taiwan), Huntsman International LLC (US), Mitsubishi Chemical Corporation (Japan), Toagosei Co., Ltd. (Japan), Asahi Kasei (Japan), and Others. A total of 20 significant players covered |
This research report categorizes the ethylene carbonate market based on form, application, end-use industry, and region.
Based on form, the ethylene carbonate market has been bifurcated as follows:
- Solid
- Liquid
Based on application, the ethylene carbonate market has been segmented as follows:
- Lithium Battery Electrolytes
- Lubricants
- Plasticizers
- Surface Coatings
- Others (capacitor electrolytes, resist strip solvents, fiber processing agents, soil hardening agents, organic solvents, and pharmaceuticals)
Based on the end-use industry, the ethylene carbonate market has been segmented as follows:
- Automotive
- Industrial
- Medical
- Oil & Gas
- Personal Care & Hygiene
- Others (electronics, textiles, and energy)
Based on region, the ethylene carbonate market has been segmented as follows:
-
North America
- US
- Canada
- Mexico
-
Europe
- Germany
- UK
- France
- Russia
- Turkey
- Rest of Europe
-
Asia Pacific
- China
- India
- Japan
- South Korea
- Taiwan
- Rest of Asia Pacific
-
South America
- Brazil
- Argentina
- Rest of South America
-
Middle East & Africa
-
GCC Countries
- UAE
- Saudi Arabia
- Rest of GCC
- South Africa
- Rest of the Middle East & Africa
-
GCC Countries
Recent Developments
- In February 2022, Lotte Chemical announced the construction of a new plant at Daesan, South Korea, to manufacture high-purity organic solvents, such as ethylene carbonate, used in electric vehicle batteries. This investment is part of its USD 502 million investment in the sustainable specialty materials business.
- In June 2021, Huntsman Corporation announced the expansion of its ULTRAPURE Ethylene Carbonate manufacturing facility in Conroe, Texas, US, to meet the growing demand for lithium-ion batteries in electric vehicles.
Frequently Asked Questions (FAQ):
What is ethylene carbonate? What are its applications?
Ethylene carbonate is a cyclic ester made from reacting propylene, ethylene oxide, and butylene oxide with carbon dioxide. It is used as a polar solvent or a cross-linking agent in the production and synthesis of superabsorber polymer for various applications such as lubricants, greases, lithium-ion batteries, and oil field solutions.
Who are the major players involved in this market?
Oriental Union Chemical Corporation (Taiwan), Huntsman (US), Mitsubishi Chemical (Japan), Toagosei Co., Ltd. (Japan), New Japan Chemical Co. Ltd (Japan), Shandong Shida Shenghua Chemical Group (China), Zibo Donghai Industries Co. Ltd. (China), and Shandong Senjie Cleantech Co. Ltd (China) are the major manufacturers in the DMC market.
What is the primary challenge for the expansion of the ethylene carbonate market?
The primary challenge to the growth of the ethylene carbonate market is the volatility of raw material prices.
Which region is likely to support ethylene carbonate market growth? Why?
The Asia-Pacific region is expected to bolster the growth of the ethylene carbonate market. This is due to its expanding use across various industries such as oil and gas, automotive, industrial, and medical. Additionally, factors like population growth, increasing disposable income, and robust economic development in countries like China and Taiwan further drive market expansion.
Which application is the main contributor to the growth of the ethylene carbonate market?
The lithium battery electrolyte segment is anticipated to be the main driver of growth in the ethylene carbonate market.
Which end-use industry represents a substantial portion of the ethylene carbonate market?
The automotive industry holds the largest share of the ethylene carbonate market. .
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The study involved four major activities in estimating the current size of the ethylene carbonate market—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on the revenues of key vendors in the market through secondary research. In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to to identify and collect information for this study. These secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors, notifications by regulatory bodies, trade directories, and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The ethylene carbonate market comprises several stakeholders, such as raw material suppliers, end-product manufacturers, and regulatory organizations in the supply chain. Developments in the ethylene carbonate industry characterize the demand side. The supply side is characterized by market consolidation activities undertaken by the manufacturers. Key subject matter experts from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
Note: The three tiers of the companies were decided on the production capacities for ethylene carbonate.
Tier 1 companies: ethylene carbonate production capacity of more than 50 KT/yr; Tier 2 companies: ethylene carbonate production capacity between 10 KT/yr to 50 KT/yr; and Tier 3 companies: ethylene carbonate production capacity of less than 10 KT/yr.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the ethylene carbonate market. These methods were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players were identified through extensive primary and secondary research.
- Primary and secondary research determined the ethylene carbonate market's value chain and size in terms of value and volume.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Ethylene Carbonate Market Size: Bottom-Up Approach
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Global Ethylene Carbonate Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above — the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and determine each market segment's and subsegment's exact statistics. The data was triangulated by studying various factors and trends from both the demand and supply sides in the demand and supply sides in industrial, automotive, medical, oil & gas, personal care & hygiene, and other industries.
Market Definition
Ethylene carbonate is an organic compound with the formula (CH2O)2CO. It is classified as the carbonate ester of ethylene glycol and carbonic acid. In the market, ethylene carbonate is available in both liquid and solid forms. It serves primarily as a raw material for the production of lubricants, polycarbonates, and as an electrolyte in lithium-ion batteries. Additionally, ethylene carbonate is utilized as a solvent in various polymer resins, plasticizers, adhesives, sealants, and other chemical applications. Key factors influencing the ethylene carbonate market include supply-demand dynamics, pricing trends, regulatory frameworks, technological advancements, and global trade flows.
Key Stakeholder
- Manufacturers of ethylene carbonate
- Traders, distributors, and suppliers of ethylene carbonate
- Government and research organizations
- Associations and industrial bodies
- Research and consulting firms
- R&D institutions
- Environment support agencies
- Investment banks and private equity firms
Report Objectives
- To define, describe, and forecast the ethylene carbonate market size in terms of volume and value
- To provide information about the significant factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To analyze and forecast the ethylene carbonate market size based on application, end-use industry, and region
- To project the market size of the key regions, namely, North America, Asia Pacific, Europe, Middle East & Africa, and South America
- To strategically analyze the market for individual growth trends, prospects, and their contribution to the overall market
- To strategically analyze the micro-markets concerning individual growth trends, growth prospects, and their contribution to the overall market
- To track and analyze the competitive developments, such as new product development, expansion, merger & acquisition, new product development, and contract & agreement, in the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to client-specific needs. The following customization options are available for the report:
Additional country-level analysis of the ethylene carbonate market
Profiling of additional market players (up to 5)
Product matrix, which gives a detailed comparison of the product portfolio of each company.
Generating Response ...
Growth opportunities and latent adjacency in Ethylene Carbonate Market