PUBLISHER: Market Research Future | PRODUCT CODE: 1274270
PUBLISHER: Market Research Future | PRODUCT CODE: 1274270
The surge in the market is mainly driven by the escalating demand for ethylene carbonate (EC) as a pivotal raw material for producing lubricants. In addition to this, it is widely used as a solvent for various applications like adhesives and sealants, plasticizers, resins, and polymers. The market is fairly consolidated, with only a handful of major players dominating it. Key manufacturers such as Mitsubishi Chemical Holdings Corporation, OUCC, TAOGOSEI CO., LTD., Fujifilm Wako Chemical Corporation, and BASF SE are expanding their product portfolio and geographical reach to leverage the growth potential of the market.
Segment Overview
Solid ethylene carbonate was the leading product segment in the global market in 2022 owing to its wide-ranging applications in lubricants, ethylene carbonate solvents, plasticizers, and chemical intermediates. The solid form of EC finds extensive usage in industries such as medical, chemical, automotive, and industrial to cater to end-use requirements. It also serves as an ingredient in cosmetics, medications, and soldering fluxes.
Liquid ethylene carbonate, on the other hand, is predominantly utilized in lubricants and polymers. The production of high-density polymers that can endure impact and chemical degradation uses this product extensively. Depending on specific requirements, ethene oxide, diethyl carbonate, and propylene oxide can be combined with liquid EC to create particular materials. Additionally, liquid ethylene carbonate is a critical component in the production of electrolytes for lithium-ion batteries. These applications are expected to drive the demand for liquid ethylene carbonate.
The dominant position in the ethylene carbonate market was held by the Asia Pacific region in 2021, primarily due to its robust industrial base, government policies, and low labor costs that have led to significant investments by key players. Furthermore, the region's leadership in the production of lithium-ion battery electrolytes and EV lithium-ion batteries has been a significant driver of the market's growth.
Another significant market for ethylene carbonate is North America, where large corporations in the automotive and chemical sectors are present. The demand for vehicles in North America has consistently increased over the past decade, resulting in an uptick in the demand for ethylene carbonate.
The COVID-19 pandemic has had a significant impact on the ethylene carbonate market. The global demand for ethylene carbonate has been affected by the pandemic due to the slowdown in several industries, including automotive, construction, and electronics.
One of the major factors affecting the ethylene carbonate market during the pandemic was the disruption in the supply chain. The restrictions on transportation and the closure of manufacturing plants led to a shortage of raw materials and delayed the delivery of finished products. This led to a decline in the production of ethylene carbonate, which affected the overall demand for the product.
Additionally, the decline in the automotive industry during the pandemic had a significant impact on the demand for ethylene carbonate. Ethylene carbonate is used in the production of lithium-ion batteries, which are used in electric vehicles. The decline in the production of electric vehicles during the pandemic led to a decline in the demand for ethylene carbonate.
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