The global ethylene vinyl acetate market is estimated to witness a healthy growth, at an estimated CAGR of over 4%, over the forecast period. The major factors driving the growth of the market studied are growing demand from packaging industry and increasing usage of renewable energy sources.
- Increasing threat of substitutes is likely to hinder the markets growth.
- Introduction of renewable bio-based EVA is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Solar Cell Encapsulation - A Huge Market Potential
- Ethylene Vinyl Acetate (EVA) is used for the encapsulation of photovoltaic (PV) modules in the majority of solar cells due to the advantages such as good light transmittance and elasticity, excellent melt fluidity, low processing temperature, and adhesive property.
- Solar power industry is one of the fastest growing industries in the world. According to International Energy Agency (IEA), this industry accounts for almost two-thirds of net power capacity worldwide. The value of solar power was estimated USD 86 billion in year 2015 and is projected to reach USD 422 billion by year 2022.
- The United States is the second-largest PV market after China. According to Solar Energy Industries Association (SEIA), the solar industry generated USD 17 billion investment in the American economy.
- India's annual Solar PV additions have been doubled, with 9.6GW coming online, due to government's policy to increase the share of solar power in the country's energy mix and also due to falling down equipment prices globally.
- Whereas, in Japan solar PV capacity growth slowed down by 12% to 7GW and in European Union, annual PV additions remain stable at below 6GW.
- Owing to all these factors, the market for ethylene vinyl acetate is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific dominated the global market with a share of more than 45%. With growing packaging and power industries in countries like China, India, Japan, and South Korea, the consumption of EVA is increasing in the region.
- China has the second-largest packaging industry in the world. The country is expected to witness a consistent growth during the forecast period, owing to the rise of customized packaging, increased demand for packaged consumerist goods, in the food segment, like microwave food, snack foods, and frozen foods, etc.
- Moreover, the country witnessed rapid growth in the fast-moving consumer goods (FMCG) sector in the recent past. The growth of the FMCG market was majorly driven by the increased spending on premium and healthier products by the middle-class consumers in the country.
- Additionally, India has the fifth-largest packaging industry worldwide which is growing at a significant rate. The country's packaging industry is majorly driven by growing innovation in industries to make their products compact and portable.
- Due to all such factors, the market for ethylene vinyl acetate in the region is expected to have a steady growth during the forecast period.
The ethylene vinyl acetate market is consolidated in nature. Some of the major players in the market include Celanese Corporation, Dow, BASF SE, Hanwha Group, and Arkema Group, among others.
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