Global Ethylene Carbonate Market - 2022-2029

Market Overview

Ethylene Carbonate market reached US$ YY million in 2021 and is expected to record significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 6.80% during the forecast period (2022-2029).

A cyclic carbonate ester of ethylene glycol and carbonic acid, ethylene carbonate is an organic compound. Ethylene carbonate is a transparent, crystalline solid that is somewhat soluble in water and is practically odor and color-free at room temperature. Application in the synthesis of aliphatic polyurethanes using diamines and diols, use as a precursor for ring-opening polymerization using KOH as an initiator, use as a reactant in the production of dimethyl carbonate and transesterification to produce glycerol carbonate are just a few of the many uses for ethylene carbonate.

Market Dynamics

The growing demand for lithium-ion batteries will drive the market. However, the volatile raw material prices could be a major market restraint.

Growing demand for Lithium-ion batteries

Lithium-ion batteries are increasingly using ethylene carbonate as their electrolyte. The emergence of novel and intriguing industries with both commercial and industrial applications has increased the demand for lithium-ion batteries. The material handling and data center industries have seen an increased demand for lithium-ion batteries in recent years, especially in developing countries.

Government regulations on fossil fuel engines have resulted in a sharp increase in the demand for electric vehicles, which significantly impacts the demand for lithium batteries. The demand for batteries is driven by an increase in electronics, a rise in mobile phone sales, energy-saving technologies and technological advancements in developed nations. During the anticipated period, these elements are anticipated to propel the ethylene carbonate market.

The volatile raw material prices

One of the most abundant organic compounds is ethylene. It serves as a crucial petrochemical industry building block. It is produced from a mixture of petroleum-based feedstocks, including naphtha, in steam-cracking units. Several important derivatives of ethylene, such as ethylene oxide, are produced from it and then used to create ethylene carbonate. The cost of the finished product is largely determined by the cost and availability of raw materials. Ethane and propane are used as raw materials in producing ethylene carbonates. Most of these materials are derivatives based on crude oil, susceptible to changes in commodity prices. The Middle East's unrest and rising global demand for crude oil are two key causes of ethylene carbonate price volatility. High manufacturing costs also impact the market for ethylene carbonate brought on by rising energy prices and high transportation costs caused by rising fuel prices. Manufacturers of ethylene carbonate have ensured that the price increase is asymmetrically shared, with end-users bearing the majority of the burden in response to the rise in manufacturing costs. The price of ethylene carbonate's raw materials becomes unstable as a result. As a result, the market for ethylene carbonate is restricted by the fluctuating price of raw materials.

COVID-19 Impact Analysis

Because the production of ethylene carbonate has been disrupted, industrial-scale synthesis of ethylene carbonate requires massive machinery, large-scale industrial reagents and skilled workers. During the pandemic, industry lockdowns and social distancing requirements severely hampered production. Further, the global lockdown imposed by the COVID-19 pandemic hampered both the supply of raw materials necessary to manufacture ethylene carbonate and the supply of finished products. As a result, the demand-supply dynamics in the ethylene carbonate market were severely impacted. Lockdowns and a lack of raw materials in end-user industries reduced overall activity in these application sectors, lowering the demand for ethylene carbonate as raw materials. However, the global ethylene carbonate market has the potential to grow tremendously, accelerated by the growth prospects shown by automotive, industrial, medical, oil & gas, personal care & hygiene and other industries.

Segment Analysis

The global ethylene carbonate market is classified based on form, application, end-user and region.

Due to increasing demand for long-lasting protective surface coating on vehicles, the automotive sector dominates the end-user segment

According to the end-use sector, the automotive sector is anticipated to hold the largest market share in 2021. With a CAGR of 0.5% from 2015 to 2019, the output volume for the automotive industry increased, reaching 146.4 million units in 2019. Between 2015 and 2019, the output volume for the automotive industry increased at a CAGR of 0.5 percent, reaching 146.4 million units in 2019. Regarding vehicle sales and revenue, Volkswagen and Toyota are two of the most successful automakers in the world. The expansion of this market is attributed to various manufacturer demands, including decreased emissions of volatile organic compounds (VOCs) and long-lasting protective surface coating on vehicles. In addition, the demand for ethylene carbonate will increase along with the demand for electric vehicles.

Geographical Analysis

Economic expansion and rising demand for organic materials allow Asia-Pacific to dominate the market

Since ethylene carbonate is increasingly used in various end-use industries, including oil and gas, automotive, industrial and medical, Asia-Pacific dominates the regional segment. In addition, the ethylene carbonate market is proliferating due to rising disposable income, population growth and economic expansion in China and Taiwan. The region is expected to grow as the economy expands and domestic demand for organic exports and products rises. Environmental rules and volatile raw material prices positively impact the Asia-Pacific ethylene carbonate market.

Competitive Landscape

In terms of global and local producer numbers and strengths, the global ethylene carbonate market is competitive due to major players such as Huntsman, BASF SE, Mitsubishi Chemical, Asahi Kasei, New Japan Chemical Co. Ltd, Shandong Shida Shenghua Chemical Group, Tokyo Chemical Industry Oriental Union Chemical Corporation, RX Marine International, Fujifilm Wako Pure Chemical Corporation, Taixing Taida Fine Chemical Co. Ltd, Alfa Aesar and Empower Materials. The market is fragmented and pivotal market stakeholders use market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition in their respective markets.

BASF SE

Overview: Global chemical company BASF SE produces chemicals for numerous industries. With more than 700,000 shareholders, it is one of the biggest publicly traded companies in the world. Transportation, chemicals, construction, electronics and electric, energy and resources, furniture and wood, home care and cleaning, agriculture and other industries comprise the company's 13 product categories. There are more than 30 BASF SE Group companies based in Ludwigshafen. More than 90 countries are home to 241 additional industrial sites in addition to BASF SE's six international locations. In 2020, the BASF Group generated about US$ 68,625.85 million.

Product Portfolio:

Ethylene carbonate S There are many uses for the organic, highly aprotic solvent ethylene carbonate. When combined with 1,6-hexanediol (HDO), ethylene carbonate is an intermediate in synthesizing polycarbonate diols. Then, polyurethane coatings use this polyol resin.

Ethylene carbonate is used in various applications, such as a solvent for lubricants, a crosslinking agent for producing superabsorber polymers, a separation process for gas washing and oil field operations and photochromic applications for lithium-ion batteries, among others.

Key Development:

On August 5, 2021, SINOPEC and BASF SE extended the Verbund site in Nanjing, China, which is run by BASF-YPC Co., Ltd., a joint venture between the two corporations. It involves building a new tert-butyl acrylate factory and increasing the capacity of several downstream chemicals, including propionic acid, propionic aldehyde, ethyleneamines, ethanolamines and purified ethylene oxide.

Key Development:

• On August 5, 2021, SINOPEC and BASF SE extended the Verbund site in Nanjing, China, which is run by BASF-YPC Co., Ltd., a joint venture between the two corporations. It involves building a new tert-butyl acrylate factory and increasing the capacity of several downstream chemicals, including propionic acid, propionic aldehyde, ethyleneamines, ethanolamines and purified ethylene oxide.

Why Purchase the Report?

• To visualize the global ethylene carbonate market segmentation based on form, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global ethylene carbonate market by analyzing trends and co-development.
• Excel data sheet with numerous data points of ethylene carbonate market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Application mapping available as excel consisting of key products of all the major market players

The global ethylene carbonate market report would provide approximately 70 tables, 69 figures and almost 171 pages.

End-User Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies