Ethylene Carbonate Market: Overview
The size of the world market for ethylene carbonate was evaluated at USD 275.4 million in 2021 and is expected to grow at a CAGR of 5.5% during the projected period. The rising demand for ethylene carbonate (EC) as a raw material to make lubricants is blamed for the market expansion. Many adhesives, sealants, plasticizers, resins, and polymers use it as a solvent. Only a few players dominate the market, which is largely consolidated. The scope of EC's applications is enormous. It has numerous end uses, including industrial and medical ones. It serves as an electrolyte solvent for lithium-ion secondary batteries, which are used in EVs, as well as a reaction solvent for various chemical reactions, a solvent for different polymer compounds, an extractant, a lubricant, and a foaming agent.
With the advantages, including cost-effectiveness, ease of maintenance, lower fuel prices, and fuel efficiency, there is an increasing trend toward using electric vehicles. In 2021, 11.3 million battery electric cars (BEVs) were used worldwide. More than four million new battery electric vehicles were added to the global fleet that year, with the number continuously increasing since 2016. Since lithium batteries are lighter and use less energy to charge, they are more efficient than other types of typical lead batteries. This is boosting the market for ethylene carbonate and, in turn, the need for lithium batteries. Additionally, the market for lithium-ion batteries in electric vehicles is expanding due to the government's increased emphasis on fuel efficiency. The Ethylene Carbonate Market should benefit as a result. Over the past ten years, car utilization has consistently increased across North America, Europe, and Asia-Pacific. This is further fueling the need for ethylene carbonate.
A novel liquid cooling technique was launched to tackle the overheating problem in lithium-ion batteries, which may offer profitable prospects for the market throughout the projected period. Lithium-ion battery manufacturers are working diligently to control this issue through their R&D procedures. Only a few players dominate the market, which is largely consolidated. OUCC, Mitsubishi Chemical Holdings Corporation, Fujifilm Wako Chemical Corporation, Taogosei Co., Ltd., and BASF SE are a few major producers increasing their product lines and global reach. In September 2021, Huntsman Corporation, a Woodland chemical manufacturer, and KPX Chemical, a Korean polyurethanes maker, formed the KPX Huntsman Polyurethanes Automotive Co. The joint venture manufactures and sells polyurethane to Korean automakers from KPX Chemical's specialist polyurethane manufacturing facilities in Ulsan, South Korea.
Ethylene Carbonate Market: COVID-19 Impact
The worldwide lockdown has impacted all global markets, including this one. The pandemic has impacted numerous solvent manufacturing businesses with the new social distancing norms and non-operational chemical plants. In the current context, several relaxations in the COVID-19 restrictions are provided, and the market is establishing its enormous operations worldwide. The demand for plasticizers, lubricants, and Li-ion batteries is gradually increasing, and it will soon reach its target of 2024. With the lockdown lasting several months, the primary drivers required various ways to boost their business efficiency and ethylene carbonate market sales. Nowadays, the public desire for more items is increasing, driving the ethylene carbonate market demand.
Ethylene Carbonate Market: Drivers
Increasing Need for Ethylene Carbonate in Production Of Lithium-Ion Battery Electrolytes to Drive Market’s Growth
Currently, the transportation sector relies heavily on oil as a fuel, which has raised worries among environmentalists and economists. The use of batteries in automobiles has increased due to increased awareness about using sustainable energy sources. According to the International Energy Agency, the number of electric vehicles on the road has surpassed 10 million units. Electric vehicle sales are also increasing year after year. This rise has increased the need for Li-ion batteries. Since ethylene carbonate serves as the polar solvent for the electrolytes used in these batteries, demand for it will likely rise significantly throughout the forecast period.
Growing Use of Bio-Based Plasticizers to Propel Market’s Growth
In applications such as PVC cable, vinyl flooring, and vehicle part manufacture, ethylene carbonate is utilized as a plasticizer to improve the ionic conductivity of polymer electrolytes. 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 predicted that more than 90% of plasticizers are used in producing PVC products, the demand for which is expected to increase significantly in the near future. As a result, ethylene carbonate makers have a good opportunity to target and acquire market share.
Ethylene Carbonate Market: Restraints
Use of Hazardous Raw Materials in Manufacturing Ethylene Carbonate to Restrict Market’s Growth
Although ethylene carbonate is a more environmentally friendly solvent, its conventional production method uses hazardous substances, including carbon dioxide and ethylene oxide. Ethylene oxide exposure has been linked to several physical and health risks, including cyanosis, headaches, nausea, and lung damage. The US EPA has categorized it as a high-priority contaminant. On the other side, exposure to carbon dioxide can also cause asthma, headaches, nausea, and shortness of breath. It is categorized as a greenhouse gas as well. As a result, the use of these compounds is heavily controlled, which limits the market's potential for expansion.
Ethylene Carbonate Market: Segment Overview
Ethylene Carbonate in Solid Form to Dominate Market due to Its Application in Various Sectors
In the forecast period, solid form held a revenue share dominating the global market. This is due to their increasing use in various applications, including lubricants, solvents, plasticizers, and chemical intermediates. To serve end-use industries, including automotive, medical, chemical, and industrial, EC in solid form is frequently used in these applications. Cosmetics, medications, and soldering fluxes all contain solid ethylene carbonate as an ingredient. Additionally, it is employed as a solvent in the oil and gas sector to assist in reducing viscosity during high temperature or extreme pressure drilling operations where other fluids are too thin to work properly.
With Growing Automobile Industry, Demand for Lubricants to Increase
The lubricants segment dominated the global market due to its widespread use across numerous end-use industries, including the automotive, industrial, and oil & gas sectors. In addition, it is anticipated that increased use of these lubricants in the manufacturing of engines and the vehicle sector will increase demand for ethylene carbonate. The availability of a big pool of skilled labor and technological know-how, as well as attracting foreign investment norms, are key growth drivers for the manufacturing sector in these regions. The rapid expansion of specialized manufacturing industries like 3D printing and medical devices is anticipated to complement the industrial growth in these markets.
Ethylene Carbonate Market: Regional Landscape
With Presence of Major Manufacturing Region Like China, Asia Pacific to Acquire Major Market Share
Asia-Pacific is predicted to dominate the market due to the region's highly developed electronics industry, large production of lithium-ion batteries in China and Japan, and ongoing investments made there over the years to promote lithium technology. Additionally, the requirement for different electric vehicles in China, Japan, and India increased due to the expanding government limits on combustion engines in Asia, which is driving up the demand for ethylene carbonate in various applications. China produced almost 2.9 million battery electric vehicles in 2021, up 166 percent from the previous year. Around 601,000 plug-in hybrid vehicles were produced in China in the same year, up 131% from the year before.
To create various medications and chemical solutions, ethylene carbonate, a chemical intermediary, is also used in pharmaceutical and chemical applications. China is the second-largest medication market in the world. With the country's elderly and middle-class population growth, rising affluence, and accelerating urbanization, the pharmaceutical business is expanding quickly. According to CEIC Data, pharmaceutical sales in China generated CNY 2,374,060 million in September 2021 versus CNY 2,090,150 million in August 2021. Over the years, it is anticipated that the aforementioned reasons will increase the region's need for ethylene carbonate.
North America is predicted to experience significant expansion throughout the projection period since the U.S. and Canada are the two biggest nations with lucrative growth potential in the region's industry. The good characteristics of ethylene carbonate, such as wear & tear protection, heavy load holding & low friction, and thermal stability, can be ascribed to customers' inclination toward synthetic lubricants. This is projected to enhance the industry's growth in the local market. Over the past ten years, North America has seen a steady increase in car utilization. The need for ethylene carbonate is growing as a result. Additionally, the U.S. market experienced strong demand for EV vehicles during the first quarter of 2022, which is anticipated to benefit the global industry.
Global Ethylene Carbonate Market: Competitive Landscape
In February 2022, LOTTE Chemical announced large-scale investments at the Daesan Petrochemical Complex to increase its competitiveness in environmentally friendly and specialized products. LOTTE Chemical inked an investment memorandum of understanding (MOU) to build and expand plants with Chungcheongnam-do and Seosan-si at the Chungnam Provincial Hall. Lotte plans to build a plant to manufacture organic solvents for electrolytes, such as high-purity ethylene carbonate (EC) and dimethyl carbonate (DMC), which are used in lithium-ion batteries. In June 2021, Huntsman Corporation's Performance Products division revealed intentions to significantly boost its existing capacity for ULTRAPURETM Ethylene Carbonate at its Conroe, Texas facility by mid-2023. ULTRAPURETM Ethylene Carbonate is critical for the safe operation and extended life of lithium-ion batteries in electric vehicles (EVs) and gadgets.
Few of the players in the Ethylene Carbonate Market include Oriental Union Chemical Corporation, BASF SE, Mitsubishi Chemical Group Corporation, Huntsman International Llc, Toagosei Co., Ltd., Shandong Shida Shenghua Chemical Group Co., Ltd., Shandong Senjei Cleantech Co., Ltd., Zibo Donghai Industries Co., Ltd., Merck KGAA, Dubi Chem Marine International, Alfa Aesar, Tokyo Chemical Industry Co., Ltd., Empower Materials, Taixing Taida Fine Chemical Co., Ltd., Zhengzhou Meiya Chemical Products Co., Ltd., Otto Chemie Pvt. Ltd., Vizag Chemicals International, Fujifilm Wako Pure Chemical Corporation, Rx Marine International, Cole-Parmer Instrument Company, Llc., National Analytical Corporation, Antares Chem Private Limited, Liaoning Aoke Chemical Co., Ltd., Shandong Lixing Chemical Co., Ltd., And Dongying Hi-Tech Spring Chemical Industry Co., Ltd.
Global Ethylene Carbonate Market is Segmented as Below:
By End-Use Industry
Key Elements Included In The Study: Global Ethylene Carbonate Market
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