Chemicals & Material // Bulk Chemicals & Inorganics
The global ethylene carbonate market is
foreseen to grow by 15.7%, from USD 469.84 Million in 2022 to USD 1508.75
Million in 2030. Growing demand in lithium-ion battery electrolyte and
lubricant applications, massive industrial growth in Asia and Africa is to
drive the market for the upcoming forecast period. However, Volatility in raw
material prices, use of highly toxic raw materials in production of ethylene
carbonate remains one factor hindering the market growth over the anticipated
period.
Market Definition
What is Ethylene Carbonate?
Market Overview
Properties of Ethylene Carbonate
Ethylene carbonate has a molecular weight of
88.06 g/mol and a density of 1.321 g/cm3 at room temperature. It has a melting
point of -36°C and a boiling point of 242°C. Ethylene carbonate is highly
soluble in water, alcohols, and many other polar solvents. It is also soluble
in some nonpolar solvents, such as benzene and toluene. Ethylene carbonate is a
stable compound, and it does not react with most chemicals under normal
conditions.
Applications of Ethylene Carbonate
Ethylene carbonate is used in a wide range of
applications in different industries. One of its major applications is in the
production of lithium-ion batteries. Ethylene carbonate is used as a co-solvent
in the electrolyte solution of lithium-ion batteries. It improves the
performance and stability of the battery by increasing the conductivity of the
electrolyte and reducing the degradation of the battery.
Ethylene carbonate is also used as a
plasticizer in the production of polymers, such as polyethylene terephthalate
(PET), polyurethanes, and polycarbonates. It improves the flexibility,
durability, and thermal stability of these polymers. Ethylene carbonate is also
used as a solvent in the production of resins, coatings, and adhesives.
Environmental Impact of Ethylene Carbonate
Ethylene carbonate is considered to be a safe
and environmentally friendly compound. It is biodegradable, meaning that it can
be broken down by microorganisms in the environment. Ethylene carbonate is not
classified as a hazardous substance by the US Environmental Protection Agency
(EPA) and the European Union (EU). However, like any other chemical, ethylene
carbonate can be harmful if it is not handled properly. It can cause skin
irritation and eye damage if it comes into contact with the skin or eyes.
Driver in Ethylene Carbonate Market
Increasing Demand for Ethylene Carbonate in
the Manufacturing of Lithium-Ion Battery Electrolytes
The transportation sector heavily relies on
oil as fuel, causing mounting concerns among environmentalists and economists
alike. However, with the growing awareness of sustainable energy sources, there
has been a shift towards using batteries in vehicles. According to the
International Energy Agency, the number of electric vehicles on the road has
exceeded 10 million units, with sales multiplying each year. As a result, the
demand for ethylene carbonate, which serves as a polar solvent in the
electrolytes of lithium-ion batteries, is expected to experience significant
growth during the forecast period.
Restraint in Ethylene Carbonate Market
Use of Toxic Raw Materials in Ethylene
Carbonate Production
While ethylene carbonate is considered a
greener solvent, its conventional production method involves the utilization of
toxic chemicals like ethylene oxide and carbon dioxide. Exposure to ethylene
oxide can lead to various physical and health hazards, including respiratory
irritation, lung injury, headaches, nausea, and cyanosis. It is classified as a
high-priority pollutant by the US EPA. On the other hand, exposure to carbon
dioxide can result in shortness of breath, headaches, nausea, and asthma.
Furthermore, carbon dioxide is classified as a greenhouse gas. Consequently,
the use of these chemicals is subject to stringent regulations, limiting the
growth potential of the market. Ethylene Carbonate is known to pose hazards to
human health and the environment. Prolonged exposure to Ethylene Carbonate can
cause skin and eye irritation, respiratory problems, and depression of the
central nervous system. Additionally, Ethylene Carbonate is toxic to aquatic
life and can accumulate in the environment. Government agencies worldwide,
including the United States Environmental Protection Agency (EPA) and the
European Chemicals Agency (ECHA), regulate Ethylene Carbonate, imposing
restrictions and requirements on its production, usage, and disposal.
Compliance with these regulations adds to the cost and complexity of conducting
business in the industry. Furthermore, Ethylene Carbonate is flammable and can
ignite when exposed to heat or flame, posing risks to workers and facilities
handling the substance.
Opportunities in Ethylene Carbonate Market
The usage of bio-based plasticizers is on the
rise, and ethylene carbonate is one of them. Ethylene carbonate is utilized as
a plasticizer in several applications, such as PVC cable, vinyl flooring, and
automobile parts manufacturing, to improve the ionic conductivity of polymer
electrolytes. Due to stringent regulations and restrictions on the use of
harmful phthalates as plasticizers, manufacturers are turning towards
eco-friendly alternatives, including ethylene carbonate. The demand for PVC
products is projected to grow significantly, which presents an excellent
opportunity for ethylene carbonate manufacturers to gain market share. Ethylene
carbonate has a broad range of applications, including industrial and medical
use, as a reaction solvent for various chemical reactions, solvent for polymer
compounds, extractant, lubricant, foaming agent, and electrolyte solvent for
lithium-ion secondary batteries used in electric vehicles.
Ethylene Carbonate is a vital component in
lithium-ion batteries, which are commonly used in electric vehicles, portable
electronics, and renewable energy storage systems. As the demand for these
applications grows, so too will the demand for Ethylene Carbonate. Ethylene
Carbonate is a versatile solvent that can be utilized in a variety of
industries, including coatings, adhesives, and cleaning products. As these
sectors expand, so will the need for Ethylene Carbonate. The Asia-Pacific
region accounts for more than 50% of global consumption of Ethylene Carbonate, with
the region's growing population and increasing industrialization likely to
drive demand further in the coming years. The industry is continually
researching new applications for Ethylene Carbonate, such as its use in
pharmaceuticals and as a metalworking lubricant, which could offer additional
growth opportunities.
Challenges in Ethylene Carbonate Market
However, the increasing global demand for
crude oil and the unrest in the Middle East, as well as between Russia and
Ukraine, have led to fluctuations in the prices of ethylene carbonate. These
fluctuations have resulted in increased fuel prices, which have affected the
transportation and manufacturing costs for ethylene carbonate manufacturers. In
response, manufacturers have increased the prices of their offerings in the
past. As a result, fluctuations in oil and gas prices pose a significant
challenge to the ethylene carbonate market.
During the forecast period, the solid form of
ethylene carbonate dominated the global market with a revenue share of 57%.
This can be attributed to the increasing usage of solid EC in a variety of
applications, including chemical intermediates, solvents, plasticizers, and
lubricants. The automotive, medical, chemical, and industrial end-use
industries make use of solid ethylene carbonate in these applications. Solid EC
is also added as an ingredient in the manufacturing of cosmetics,
pharmaceuticals, and soldering fluxes. Furthermore, the oil and gas industry
uses solid EC as a solvent to help reduce viscosity during high-temperature or
high-pressure drilling operations where other fluids may not function
effectively.
On the other hand, liquid ethylene carbonate
finds its application in lubricants and polymers. This product is extensively
used in the production of high-density plastics that have resistance to impact
and chemical deterioration. Various materials such as diethyl carbonate, ethene
oxide, and propylene oxide can be mixed with liquid EC to produce special
materials based on the specific requirements. Additionally, the liquid form of
ethylene carbonate is used in the manufacturing process of lithium-ion battery
electrolytes. These factors are expected to drive the demand for liquid
ethylene carbonate.
Furthermore, ethylene carbonate is also used
as a solvent in the production of multiple surface coatings. The increasing
demand for surface coating products in the automobile sector, particularly for
reducing the emission of volatile organic compounds (VOCs) and providing
durable protection for vehicles, is expected to positively impact the surface
coatings market, thereby propelling the global demand for ethylene carbonate.
The lubricants segment held the largest
market share of 33% during the forecast period, driven by its extensive use in
various industries including automotive, industrial, and oil & gas. The
increasing utilization of lubricants in the automotive industry for functions
like collection, cooling, and cleaning of engines is expected to drive the
demand for ethylene carbonate.
During the latter half of the forecast
period, lithium battery electrolytes are projected to dominate the market
demand. This growth can be attributed to the rising adoption of lithium
batteries in industrial, oil & gas, and automotive sectors. In the
automotive industry, lithium batteries are gaining significant traction as a
sustainable energy source, contributing to the increased demand for
electrolytes.
In terms of end-use industry, the automotive
segment is expected to be the primary contributor to the ethylene carbonate
market during the forecast period. The surge in sales of electric vehicles is a
major driving factor, with Europe experiencing a notable 66% increase in EV
sales in 2023, as reported by the International Energy Agency. Ethylene
carbonate is not only used as an electrolyte in batteries for these vehicles
but also finds applications in automotive lubricants, surface coatings, and the
manufacturing of automotive plastics. These factors are anticipated to propel
the demand for ethylene carbonate. The oil & gas segment is the
second-largest end-use segment, driven by the use of ethylene carbonate in gas
washing and oil field separation processes. The United States and Middle
Eastern countries play a significant role in the growth of the oil & gas
industry, and the increasing demand for ethylene carbonate in these regions,
particularly in the oil & gas sector, is expected to fuel market growth.
Regional Insights
During the forecast period, the largest
market size for ethylene carbonate is expected to be in the Asia Pacific
region. As of 2023, the Asia-Pacific ethylene carbonate market was valued at
USD 207 million, with a projected growth to USD 279 million and a CAGR of 4.6%.
This growth can be attributed to the rise in demand for lithium-ion batteries
used in electric vehicles, as well as the flourishing electronics industry in
countries like China, Japan, and South Korea. With Asia Pacific accounting for
55% of global consumption, it has become the largest and fastest-growing market
for ethylene carbonate. This can be attributed to its usage in various end-use
industries such as oil & gas, automotive, industrial, and medical. The
region has a strong presence of manufacturing industries, backed by government
policies that aim to develop sustainable energy solutions for the industry. As
the largest market for electric vehicle battery manufacturing, China is leading
the demand for ethylene carbonate. Additionally, many companies have their
production base for ethylene carbonate in the Asia Pacific, including
Mitsubishi Chemical Holding (Japan) and Shandong Shida Shenghua Chemical Group
Co., Ltd. (China).
During the forecast period, several factors
are expected to drive the growth of the global ethylene carbonate market. North
America is considered to be one of the major markets for the product, mainly
due to the presence of large corporations in the automotive and chemical sectors.
The growing usage of vehicles in the region is consistently increasing, which
is leading to a surge in the demand for ethylene carbonate. Additionally, there
was a high demand for electric vehicles in the United States during the
forecast period, which is expected to have a positive impact on the global
market.
The European region is also expected to
witness significant growth during the forecast period. The region's industrial
sector's rapid growth is fueling the growth of the regional market. Moreover,
the steady demand for electric vehicles in the automotive sector has increased
the demand for lithium-ion batteries, resulting in the rising demand for
ethylene carbonate. According to Visual Capitalist, Hungary, the United
Kingdom, Poland, Germany, and Sweden are the major contributors to the growth
of the EV battery manufacturing business.
The South American market for ethylene
carbonate is also projected to grow during the forecast period, driven by the
increasing demand for lithium-ion batteries and other electronics applications
in the region. The market was valued at USD 7.7 million in 2023 and is
projected to reach USD 8.9 million, growing at a CAGR of 3.7%.
In Africa, the market for ethylene carbonate
was valued at USD 2.7 million in 2023 and is projected to reach USD 3.9
million, growing at a CAGR of 3.6% during the forecast period. The growth is
driven by the increasing demand for ethylene carbonate in the industrial
sector, particularly in the automotive and electronics industries.
Market
Segmentation
For the purpose of this report, the global ethylene
carbonate market segmented on the basis of form type, application, end-use, and
region:
Form
Type Outlook:
On the basis of form type, the market is
segmented into solid, liquid.
Application
Outlook:
On the basis of application, the market is
segmented into lithium battery electrolytes, lubricants, plasticizers, surface
coatings, others.
End-use
Outlook:
On the basis of end-use, the market is
segmented into automotive, industrial, medical, oil & gas, personal care
& hygiene, others.
Figure
1 Ethylene Carbonate Market By End-use (Market Size And Forecast By Value - USD
Million, 2022 & 2030)