Ethylene Carbonate Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

The Global ethylene carbonate market is projected to grow from US$ 323.2 Mn in 2022 to US$ 574.5 Mn by 2031, at a CAGR of 6.6% during the forecast period 2023-2031. In terms of volume, the market is estimated to register a CAGR of 6.3% during the forecast period.

Ethylene carbonate, an organic compound with the chemical formula (CH2O)2CO, is primarily used as a raw material in the production of lubricants and as a solvent for many resins, polymers, and plasticizers. It is a colorless, odorless liquid that is only slightly soluble in water. Ethylene carbonate is increasingly being used as an electrolyte in lithium-ion batteries due to its low toxicity, non-flammability, and low vapor pressure. It is also used in various oil and gas processes as it provides low toxicity, eliminates harmful deposits, and minimizes corrosion. Additionally, the use of ethylene carbonate is economical as it provides low-cost metal complexing in a readily biodegradable form.

The demand for ethylene carbonate is primarily driven by its growing use in lithium-ion electrolytes and significant industrial growth in the Asia Pacific region. The increasing use of lithium-ion batteries in various sectors is expected to create a surge in demand for ethylene carbonate in the near future, as they have electrolytes that are typically a mixture of organic carbonates such as ethylene carbonate. Moreover, the industrial sector is a major driver of the global ethylene carbonate market, and with the rise in the industrial sector in the Asia Pacific region, the market is expected to witness considerable growth in the region. Furthermore, the manufacturing sector has emerged as one of the high-growth sectors in Asia Pacific.

However, the cost of raw materials used in the production of ethylene carbonate has experienced volatility in recent years, which has impacted the global ethylene carbonate market. The price of basic chemicals has increased, which has led to a rise in the overall cost of ethylene carbonate.

Market Dynamics of the Global Ethylene Carbonate Market:

Drivers 

Increasing Demand for Lithium-ion Batteries

The demand for lithium-ion batteries has been steadily increasing over the past decade. This growth is driven by the increasing adoption of electric vehicles, portable electronic devices, and renewable energy systems, all of which rely heavily on lithium-ion batteries. In addition, the decreasing cost of lithium-ion batteries and their improved performance have made them a more attractive option for consumers and businesses alike.

Lithium-ion batteries have become increasingly important for the automotive industry in the global ethylene carbonate market, as electric vehicles have become more popular. According to a report by Astute Analytica, electric vehicles will account for 58% of new passenger car sales by 2040. This represents a significant shift from traditional gasoline-powered vehicles, and highlights the importance of lithium-ion batteries for the automotive industry.

Growing Automotive Industry

The automotive industry has been one of the major users of ethylene carbonate. Ethylene carbonate is used in the production of coatings and adhesives that are used in various automotive applications, including body panels, interior parts, and underbody coatings. Ethylene carbonate-based coatings and adhesives provide excellent adhesion and chemical resistance, making them ideal for automotive applications.

The growth of the ethylene carbonate market in the automotive industry is expected to grow in the coming years, as automakers focus on improving fuel efficiency and reducing emissions. In addition, the growth of electric vehicles is expected to drive demand for ethylene carbonate-based coatings and adhesives, as these vehicles require specialized coatings and adhesives that can withstand high temperatures and harsh environments.

Restraints of the Ethylene Carbonate Market:

High Cost: 

The production cost of ethylene carbonate is higher compared to other chemicals due to the complex process involved in its production. According to a report by Grand View Research, the cost of ethylene carbonate is expected to increase further due to rising raw material prices and the implementation of stringent environmental regulations.

Limited Availability: 

China and India are the major producers of ethylene carbonate, accounting for more than 80% of the global production, according to a report by Transparency Market Research. This limited availability can lead to supply chain disruptions and price volatility, making it difficult for manufacturers to plan their production processes.

Challenges of the Ethylene Carbonate Market:

Regulatory Compliance: 

The production of ethylene carbonate is subject to various regulations regarding safety, environmental protection, and other factors. For instance, the European Chemicals Agency (ECHA) has classified ethylene carbonate as a substance of very high concern (SVHC) due to its reproductive toxicity. This requires manufacturers to comply with strict regulations regarding its use, handling, and disposal.

Segmental Analysis of Global Ethylene Carbonate Market

By Grade

The global ethylene carbonate market is segmented by grade into industry grade and battery grade. The industry grade segment is expected to hold the largest market share during the forecast period. This can be attributed to the widespread usage of ethylene carbonate in various industrial applications such as coatings, adhesives, and plasticizers. On the other hand, the battery grade segment is projected to grow at the highest CAGR during the forecast period, owing to the increasing demand for high-quality ethylene carbonate in the manufacturing of lithium-ion batteries.

By Form

Based on form, the global ethylene carbonate market is divided into solid and liquid segments. The solid segment dominated the market in 2022 and is further expected to maintain its lead position during the forecast period, owing to its usage in a wide range of applications as a high-permittivity component of electrolytes in lithium and lithium-ion batteries. Moreover, the liquid segment is projected to grow at the highest CAGR during the forecast period, owing to its extensive usage as an electrolyte in lithium-ion batteries.

By Application

The global ethylene carbonate market is segmented by application into lubricants, solvents, chemical intermediates, and others. The lubricant segment is estimated to have the highest market share during the forecast period due to the growing usage of ethylene carbonate in various end-use industries such as industrial, oil & gas, and automotive. In the automotive sector, lubricants are used as cooling and cleaning agents, which is expected to drive the demand for ethylene carbonate in this segment. 

On the other hand, the chemical intermediate segment is projected to grow at the highest CAGR during the forecast period, owing to the increasing demand for ethylene carbonate in the manufacturing of various chemical compounds.

By Industry

Based on industry, automotive segment is estimated to have the highest ethylene carbonate market share during the forecast period because the automotive industry is the largest consumer of ethylene carbonate with the intention to reduce emission from vehicles. Moreover, the rising demand for electric vehicles will also drive the demand for ethylene carbonate. Furthermore, oil & gas segment is projected to grow at the highest CAGR during the forecast period. 

Regional Analysis of the Global Ethylene Carbonate Market 

The global ethylene carbonate market is experiencing significant growth, with Asia Pacific being the leading contributor to the market. The region is witnessing a surge in the usage of ethylene carbonate in various industries such as oil & gas, automotive, industrial, and medical. The growing demand for ethylene carbonate in these industries is attributed to its unique properties such as high solvency power, low toxicity, and excellent stability.

China and Japan are the major contributors to the growth of the regional market. The Chinese market is expected to grow at a significant rate due to the country's increasing focus on the automotive sector. The Chinese government's funding initiatives for the automotive sector are also expected to boost the demand for ethylene carbonate in the country. In addition, Japan is a major consumer of ethylene carbonate due to its usage in the electronics industry.

Furthermore, the supportive government initiatives for the industrial sector in the Asia Pacific region are expected to drive the growth of the market. The increasing industrialization and infrastructural development in the region are creating a demand for ethylene carbonate in various applications such as coatings, adhesives, and plastics. This is expected to further propel the growth of the ethylene carbonate market in the region.

Competitive Landscape

The global ethylene carbonate market is dominated by several key players, including BASF SE, Huntsman International LLC, Merck KGaA, Mitsubishi Chemical Corporation, Toagosei Co., Ltd., Sigma-Aldrich, Lixing Chemical, Tokyo Chemical Industry Co., Ltd, and OUCC. These players have implemented a variety of competitive strategies to gain a foothold in emerging markets. 

Mergers and acquisitions have been a popular approach for many large companies, while others have expanded their reach by acquiring smaller brands and domestic companies. Through extensive research, these strategies have been found to be effective for increasing market share and expanding geographical boundaries.

List of Key Companies Profiled:

• BASF SE
• Huntsman International LLC
• Lixing Chemical
• Merck KGaA
• Mitsubishi Chemical Corporation
• New Japan Chemical Co., Ltd
• OUCC
• PANAX ETEC
• Parchem Fine & Specialty Chemicals
• Shandong Senjie Cleantech Co., Ltd.
• Sigma-Aldrich, Inc.
• TOAGOSEI CO., LTD.
• Tokyo Chemical Industry Co., Ltd
• Wego Chemical Group
• Zibo Donghai Industries Co., Ltd
• Other Prominent Players

Segmentation Overview 

Global Ethylene Carbonate Market is segmented based on grade, form, application, industry and region:

By Grade:

• Battery Grade
• Industry Grade

By Form:

• Solid
• Liquid

 By Application:

• Lithium Battery Electrolytes
• Capacitor Electrolytes
• Resist Strip Solvents
• Fiber Processing Agents
• Lubricants
• Soil Hardening Agents
• Organic Solvents
• Plasticizers
• Surface Coatings
• Chemical Intermediates
• Dyes
• Others

By Industry:

• Healthcare & Pharmaceuticals
• Automotive
• Chemicals
• Oil & Gas
• Textile
• Personal Care & Hygiene
• Agriculture
• Others

By Region:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America