Ethylene Carbonate Market: Size, Dynamics, Regional Insights and Market Segment Analysis

Ethylene Carbonate Market was valued at USD 473.00 Million in 2022, and it is expected to reach USD 1,161.95 Million by 2029, exhibiting a CAGR of 13.7 % during the forecast period (2023-2029)

Ethylene carbonate (EC) is a chemical molecule of the esters family. It has both carbonic acid and alcohol functional groups, making it useful in a variety of applications.

Liquid ethylene carbonate (LEC) is frequently utilised in the manufacture of high-density polymers that are resistant to impact or chemical deterioration. Solid ethylene carbonate is used as an ingredient in the production of cosmetics, pharmaceuticals, and solder fluxes. It is used as a solvent in the oil and gas sector to assist lower viscosity during drilling operations at high temperatures or extreme pressures when other fluids would be too thin to perform properly.

The rising demand for ethylene carbonate (EC) as a raw ingredient in the production of lubricants is due to Ethylene Carbonate Market growth. It is also utilised as a solvent for a variety of adhesives and sealants, plasticizers, resins, and polymers.

The market is partially consolidated, with only a few strong firms. Rapid urbanisation and rising living standards have fueled the rise of the vehicle sector. Because ethylene carbonate is used as a solvent in lubricants, growth in the vehicle industry has resulted in higher need for lubricants, which has boosted ethylene carbonate market demand. Lithium ion batteries are widely utilised in electric vehicles since they are lighter and need less charging time than conventional lead batteries. The growing demand for electric vehicles will eventually fuel the growth of the ethylene carbonate market. Lithium ion batteries are commonly found in electronic devices such as cell phones, tablets, and medical equipment.

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Ethylene Carbonate Market Dynamics
Increasing Demand for Lithium Batteries in Electric Vehicles

Ethylene carbonate is becoming more popular as an electrolyte in lithium-ion batteries. A graphite anode, a lithium metal oxide cathode, and an electrolyte solution doped with a lithium solution, such as lithium hexafluorophosphate, in a mixed organic solvent, usually ethylene carbonate, comprise a contemporary lithium-ion battery (LIB). The development of new and exciting areas with both commercial and industrial uses has increased demand for lithium-ion batteries. The data centre and material handling sectors have boosted their need for lithium-ion batteries in recent years, particularly in emerging markets.

According to EV Volumes statistics, total global sales of electric cars in 2021 were 6750 thousand units, a considerable rise from 3240 thousand units in 2020. Because of government limits on fossil-fuel engines, there has been a rapid increase in electric car demand, which has a substantial impact on lithium battery demand. The increasing quantity of devices, expanding need for mobiles, increased energy-saving alternatives, and technical breakthroughs in developed nations are pushing battery demand. During the forecast period, these factors are estimated to boost the ethylene carbonate market.

Increase in Use of Bio-Based Plasticizers in the Production of PVC Goods

In applications such as PVC cable, vinyl flooring, and vehicle component manufacture, ethylene carbonate is utilised as a plasticizer to improve the ionic conductivity of polymer electrolytes. Ethylene carbonate is a polar solvent and a high permittivity component of lithium battery electrolytes. It is used in surface coatings, dyes, textiles, and polymers.

It's also a plasticizer and a predecessor to vinylene carbonate. Stringent laws and standards governing the use of hazardous phthalates as plasticizers have resulted in the development of alternative, environmentally benign plasticizers based on ethylene carbonate. It is expected that more than 90% of plasticizers are used in the production of PVC goods, the demand for which is expected to increase significantly in the near future. As a result, ethylene carbonate manufacturers have a good chance to target and acquire market share.

Use of Toxic Raw Materials in the Production of Ethylene Carbonate

The chemical industry's contribution to environmental impacts stems primarily from the use of non-renewable feedstocks and inefficient use of mass and energy, resulting in atmospheric emissions, particularly carbon dioxide, which is the primary cause of global warming and climate change, as well as waste generation. Although ethylene carbonate is a more environmentally friendly solvent, its conventional manufacturing process entails the use of hazardous compounds such as ethylene oxide and carbon dioxide.

Several physical and physiological concerns have been linked to ethylene oxide exposure, including respiratory irritation, lung damage, headache, nausea, and cyanosis. The US EPA has classed it as a high-priority contaminant. Carbon dioxide, on the other hand, can cause shortness of breath, headache, nausea, and asthma. It is also considered a greenhouse gas. As a result, the use of these compounds is carefully controlled, limiting the Ethylene Carbonate market's development potential.

Fluctuating Prices of Oil & Gas Caused Price Variations in Ethylene Carbonate

Changing oil price dynamics add an extra dimension to ethylene’s overcapacity outlook. In the domain of petrochemicals, ethylene is held in high esteem. As the industry's largest commodity in terms of both volume and value, it is a vital driver of growth, profitability, and investment. Nonetheless, it is heavily influenced by supply-side dynamics from farther up the energy value chain - refining, NGLs, and coal - as well as global macroeconomic forces that determine the consumption of its thermoplastic derivatives.

North American and Middle Eastern assets dominate global ethylene supply, which is mostly dependent on ethane feedstock. Ethane prices in North America are already low and, to some extent, divorced from the absolute level of oil prices - there is limited space for additional price declines. Similarly, domestic pricing in the Middle East is often established at a fixed, low level. The net result is that a reduced oil price has little influence on this quartile. However, the advantage over the rest of the cost curve is decreased.

The rising global demand for crude oil, as well as tensions in the Middle East and between Russia and Ukraine, have caused price variations in ethylene carbonate. Fuel price increases have an impact on ethylene carbonate producers' transportation and production expenses. In the past, they have responded to cost increases by raising the pricing of their offerings. As a result, variations in oil and gas prices provide a challenge to the ethylene carbonate market.
Ethylene Carbonate Market Segment Analysis
Based on Form, solid form dominated the global Ethylene Carbonate market with a revenue share of more than 50.0% in 2021. This is due to increased use in a variety of applications such as chemical intermediates, solvents, plasticizers, and lubricants. In these applications, EC in solid form is primarily employed to serve end-use sectors like as automotive, medical, chemical, and industrial. Solid ethylene carbonate is used in the production of cosmetics, medicines, and soldering fluxes. Furthermore, it is utilised as a solvent in the oil and gas sector to aid lower viscosity during high temperature or extreme pressure drilling operations where other fluids are too thin to operate efficiently.

Liquid ethylene carbonate is also utilised in lubricants and polymers. This substance is commonly utilised in the manufacture of high-density polymers that are impact and chemically resistant. Depending on the requirements, components like as diethyl carbonate, ethene oxide, and propylene oxide can be combined with liquid EC to make specific materials. Furthermore, liquid ethylene carbonate is utilised in the production of lithium-ion battery electrolytes. Such reasons are expected to drive demand for liquid ethylene carbonate.

Based on Application, the lubricants segment dominated the global Ethylene Carbonate market with a revenue share of over 30.0% in 2021 because of its wide usage in multiple end-use industries, such as automobile, industrial, and oil & gas. Furthermore, the increasing use of such lubricants in the vehicle sector and engine manufacturing for collecting, cooling, and cleaning engines is expected to increase demand for ethylene carbonate. Lithium-ion battery electrolytes are critical components in the manufacture of rechargeable batteries for electric cars (EV). Because of its strong polarity, ethylene carbonate is often employed in the production of such electrolytes.

According to Huntsman Corporation, solvents, mostly ethylene carbonate, account for roughly 75% of electrolyte by volume. Furthermore, the substance is employed as a solvent in the manufacturing of various surface coatings. The rising use of such surface coating products in the automobile industry to reduce VOC emissions and provide long-lasting protection for all cars is predicted to have a beneficial influence on the surface coatings market, pushing worldwide demand for ethylene carbonate.

Based on End-Use, the automotive segment dominated the Ethylene Carbonate market with a revenue share of over 41.0% in 2022. This is due to ethylene carbonate's strong dielectric strength and its expanding use in the automobile sector to assure safety and protection against electric shock in the fabrication of items such as spark plugs, ignition cable sets, and battery terminals. In 2022, the oil and gas market will be the second-largest end-use category. It is due to the usage of ethylene carbonate in the gas washing and oil field separation processes.

The United States and Middle Eastern countries are major contributors to the expansion of the oil and gas sector. Rising ethylene carbonate demand in these nations, particularly in the oil and gas industry, is likely to drive market expansion. Aside from the aforementioned application sectors, the product is widely utilised in a variety of other industries, including capacitor electrolytes, soil hardening agents, fibre processing agents, resist strip solvents, and as a raw ingredient in the organic synthesis process.
Ethylene Carbonate Market Regional Insights
Asia-Pacific is estimated to dominate the Ethylene Carbonate market due to its highly developed electronics industry, large production of lithium-ion batteries in China and Japan, and ongoing investments in the area to enhance lithium technology throughout the years. Furthermore, rising government limits on combustion engines in Asia have raised the market for different electric cars in China, Japan, and India, driving up demand for ethylene carbonate in a variety of applications. According to Japan's Ministry of Economy, Trade, and Sector (METI), Japanese companies have dominated the lithium-ion battery production industry in recent years. These batteries are presently used in devices and automobiles.

Ethylene carbonate is an intermediate that is also used in medicines and chemical applications to create a variety of medications and chemical solutions. China is the world's second-largest pharmaceutical market. The pharmaceutical market is expanding fast as a result of the country's growing middle-class and ageing population, rising earnings, and increasing urbanisation. According to CEIC Data, pharmaceutical income in China in September 2021 was CNY 2,374,060 million, up from CNY 2,090,150 million in August 2021.

Because of its expanding application in different end-use sectors such as oil and gas, automotive, industrial, and medical, Asia Pacific is the biggest and fastest-growing ethylene carbonate market. Asia Pacific has a strong manufacturing industry, which is backed by government programmes aimed at developing sustainable energy solutions for the industry. China is the largest market for EV battery manufacturing, hence demand for ethylene carbonate is high. Furthermore, a big number of enterprises, like Mitsubishi Chemical Holding (Japan) and Shandong Shida Shenghua Chemical Group Co., Ltd., have their ethylene carbonate manufacturing base in Asia Pacific (China). During the forecast period, these factors are likely to drive market growth.

Because of the presence of huge firms in the automotive and chemical industries, North America is regarded as one of the primary product marketplaces. Vehicle utilisation has steadily increased in North America during the previous decade. This is driving up the price of ethylene carbonate. Furthermore, during the first quarter of 2022, there was a significant demand for EV vehicles in the United States, which is expected to have a beneficial influence on the global market.

During the forecast period, the Europe region is also expected to increase significantly. The fast expansion of the region's industrial sector is supporting the expansion of the regional market. Furthermore, the consistent demand for electric vehicles in the automotive industry has raised demand for lithium-ion batteries, leading in increasing need for ethylene carbonate. According to Visual Capitalist, the largest contributors to the expansion of the EV battery manufacturing sector are Hungary, the United Kingdom, Poland, Germany, and Sweden.
Research Methodology
The research process comprises the investigation of various factors affecting the industry, such as historical data, market environment, technological innovation, upcoming technologies, government policy, competitive landscape and technical progress in related industries, as well as current market trends, market risks, opportunities, market barriers, and challenges. Primary and secondary methods are used for collecting the data in the report. Secondary sources, such as annual reports, press releases, industry associations, non-profit groups, governmental agencies, and customs data, account for around 25% of data sources.

Secondary sources, directories, and databases such as Factiva (Dow Jones & Company), Bloomberg Business, Hoovers, Wind Info, Statista, Trading Economics, and Avention, Investing News Network, Federal Reserve Economic Data, annual reports, investor presentations, and SEC filings of companies are included in the research report. To deliver the final quantitative and qualitative data, all possible components impacting the markets included in the report were investigated, extensively researched, validated through primary research, and reviewed. Bottom-up technique has been used in the market engineering process, along with several data triangulation methodologies, to estimate the market and forecast the overall market segments and sub-segments covered in the report.
Report Scope:
Product classification, product application, product technology, industry overview, competitive landscape, industrial chain structure, national policy and planning analysis of the industry, development trend, the most recent dynamic analysis are included in the Ethylene Carbonate Market report. The report examines the influence of market drivers, trends, opportunities, challenges, and restraints on global demand during the forecast period. The Ethylene Carbonate Market competitive landscape includes information about each competitor, such as company overview, market potential, company financials, revenue generated, new market initiatives, investment in R&D, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The research uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making.
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Ethylene Carbonate Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 473 Mn.


Forecast Period 2023 to 2029 CAGR:
13.7%
Market Size in 2029:
US $ 1,161.95 Mn.


 Segments Covered:
by Form
Solid
Liquid


by Application
Lubricants
Surface Coatings
Lithium Battery Electrolyte
Plasticizers
Others


by Grade
Battery Grade
Industry Grade


by End-Use
Automotive
Industrial
Oil & Gas
Medical
Others



Leading Manufacturers in the Ethylene Carbonate Market are:
1. Thermo Fisher Scientific (US)
2. Empower Materials (US)
3. Huntsman International LLC (US)
4. Alfa Aesar (US)
5. Chevron Phillips Chemical (US)
6. BASF SE (Germany)
7. The Merck Group (Germany)
8. Mitsubishi Chemical Holdings Corporation (Japan)
9. FUJIFILM Wako Pure Chemical Corporation (Japan)
10.Toagosei Co., Ltd. (Japan)
11.New Japan Chemical Co. Ltd (Japan)
12.Tokyo Chemical Industry Co. Ltd (Japan)
13.Otto Chemie Pvt. Ltd. (India)
14.RX Marine International (India)
15.Vizag Chemical (India)
16.Antares Chem Private Limited (India)
17.Parsol Chemicals Pvt. Ltd. (India)
18.Shandong Lixing Chemical Co.,Ltd (China)
19.Taixing Taida Fine Chemical Co. Ltd (China)
20.Zibo Donghai Industries Co. Ltd. (China)

Frequently Asked Questions:

1] What segments are covered in the Global Ethylene Carbonate Market report?
Ans. The segments covered in the Ethylene Carbonate Market report are based on Form, Grade , Application, End-Use.

2] Which region is expected to hold the highest share in the Global Ethylene Carbonate Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Ethylene Carbonate Market.

3] What is the market size of the Global Ethylene Carbonate Market by 2029?
Ans. The market size of the Ethylene Carbonate Market by 2029 is expected to reach USD 1,161.95 Mn.

4] What is the forecast period for the Global Ethylene Carbonate Market?
Ans. The forecast period for the Ethylene Carbonate Market is 2023-2029.

5] What was the market size of the Global Ethylene Carbonate Market in 2022?
Ans. The market size of the Ethylene Carbonate Market in 2022 was valued at USD 473.00Mn.