ETHYLENE CARBONATE MARKET ANALYSIS

The global ethylene carbonate market size was valued at USD 782.51 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 9.73% from 2022 to 2030. Due to its increasing demand, ethylene carbonate market is expected to grow at a significant rate in the coming years. The growth is mainly driven by a number of factors such as increasing application in a wide range of end-use industries. A large part of this growth is also attributed to the rising production of electronic devices. Furthermore, growing government policies on fuel efficiency have further fueled the industry growth. Besides, the increasing demand for lubricants and the growing demand for lithium battery electrolytes are some of the other factors driving market growth.

Global Ethylene Carbonate Market: Regional Insights

Regionally, Asia-Pacific is expected to dominate the global ethylene carbonate market. Countries such as China, Taiwan, and Japan are major consumers of ethylene carbonate. Increasing industrialization and the rising middle class have resulted in the rapid expansion of the manufacturing sector in the countries. This has prompted the demand for ethylene carbonate in a wide range of applications.        

Europe is expected to witness fastest growth over the forecast period owing to the strong presence of automotive sector. According to Germany's Association of International Motor Vehicle Manufacturers, there were more than 90,000 newly registered electric vehicles in the first half of 2020, an increase of about 90%, including more than 43,000 battery-electric drive cars (an increase of 40%) and some 47,000 plug-in hybrids (a 190% increase).

Figure.1: Global Ethylene Carbonate Market Share (%), By region, 2021

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Global Ethylene Carbonate Market Drivers:

Increasing Penetration of Electric Vehicle to Augment Ethylene Carbonate Market Growth

Ethylene carbonate is widely used in manufacturing lithium-ion batteries and lithium batteries are important component of electric vehicles. According to the IEA, in 2030, global electric vehicle sales are expected to reach 23 million as per the New Policies Scenario (excluding two-/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are likely to be EVs. Moreover, it is estimated that the global market share of EVs may reach 30% (245 million vehicles) by 2030.

Growing Demand As Chemical Intermediates In Chemical Sector To Foster Market Growth

Strong growth of chemical sector is fuelling growth of the market. Ethylene carbonate is widely used as intermediates in various chemical synthesis process. Global chemical output volume is predicted to expand by 3.9% in 2021, according to the American Chemistry Council (ACC), following a fall of 2.6% in 2020, which was the greatest decline in the last 40 years.

Global Ethylene Carbonate Market Opportunities:

Growing demand for lithium sulfur-batteries is projected to present significant growth opportunities for key players in the near future. Moreover, the emergence of new technology such as liquid cooling systems is projected to offer lucrative opportunities to the ethylene carbonate market in the coming years. Moreover, increasing manufacturing activities is further projected to augment market growth.

Growing use of bio-based plasticizers is again projected to serve major growth opportunities. For instance, in October 2021, Cargill launched Biovero bio-based plasticizer. It will be useful for variety of product manufacturing applications such as flooring, clothing, wires, cables and plastic films and sheets for its industrial customers throughout North America

Global Ethylene Carbonate Market Trends:

Rapid Urbanization

Rapid urbanization and increasing construction activities are acting as trend for the global market. Moreover, rising pharmaceutical sector has boosted the demand for ethylene carbonate-based intermediates

Increasing Production Capacity

Growing focus on increasing production capacity of ethylene carbonate is another major trend observed in the market. For instance, in June 2021, Huntsman Corporation announced that its Performance Products division is planning to significantly increase its existing capacity for ULTRAPURE Ethylene Carbonate at its Conroe, Texas facility by mid-2023.

Global Ethylene Carbonate Market Restraints:

High Cost Of Ethylene Carbonate

Owing to the high cost of ethylene carbonate, its use may be restricted in certain regions. Additionally, government policies regarding fuel efficiency may also hinder the development of the ethylene carbonate market. Hence, consumers are looking for eco-friendly and sustainable products.

Global Ethylene Carbonate Market - Impact of Coronavirus (Covid-19) Pandemic:

Unfavorable conditions arising due to the outbreak of Covid-19 is expected to restrict the market growth. The COVID-19 pandemic has had an impact on the global economy, led to considerable drop in demand for products and raw materials manufactured by various sectors across the world    

Figure.2: Global Ethylene Carbonate Market Share (%), By segments, 2021

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Global Ethylene Carbonate Market Segmentation:

The global ethylene carbonate market report is segmented into application, end-user industry, and geography

Based on application, the market is segmented into Lithium Batteries, Lubricants, Medical Products, Intermediates and Agents, and Other Applications. Out of which, Lithium Batteries is expected to dominate the global market over the forecast period and this is attributed to the growing demand from electric vehicles, mobiles, energy storage systems, power backup/UPS, laptops, and other applications. Thus, growing demand for electronic products is propelling segment growth.

Lubricants segment is also expected to witness significant growth in the near future. Ethylene carbonate is generally used as a key intermediate in the production of lubricants and greases.

Based on end-user industry, the market is segmented into Automotive, Pharmaceuticals, Oil and Gas, and Other End-user Industries. Out of which, Automotive is expected to dominate the global market over the forecast period and this is attributed to the increasing use of ethylene carbonate in production of lithium batteries which are important component of electric vehicle.

Pharmaceuticals segment is also expected to witness significant growth in the near future and this is owing to the increasing use of ethylene carbonate in the preparation of various drug formulations.

Global Ethylene Carbonate Market: Key Developments

In June 2021, Huntsman Corporation announced that its Performance Products division is planning to significantly increase its existing capacity for ULTRAPURE Ethylene Carbonate at its Conroe, Texas, facility by mid-2023. ULTRAPURE Ethylene Carbonate is critical to the reliable operation and long working life of lithium- ion batteries for electric vehicles (EVs) and electronics.

Global Ethylene Carbonate Market: Key Companies Insights

The global ethylene carbonate market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global ethylene carbonate market are BASF SE, Huntsman International LLC, Lixing Chemical, Merck KGaA, Mitsubishi Chemical Corporation, OUCC, Shandong Senjie Cleantech Co. Ltd, Shandong Shida Shenghua Chemical Group Co. Ltd, Toagosei Co. Ltd, Tokyo Chemical Industry Co. Ltd, Zibo Donghai Industries Co. Ltd., Liaoning Ganglong Chemical Co., Ltd., and Taixing Taida Fine Chemical Co., Ltd

*Definition: Ethylene carbonate is a chemical compound used in various applications, including lubricants, surface coatings and lithium battery electrolytes. It is manufactured from propane and crude oil-based derivatives. In a liquid form, ethylene has a melting point of 34-37 degrees Celsius. The odourless, transparent solid is a building block for many products, including plasticizers and cosmetics.