Ethylene Carbonate Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3434
Ethylene carbonate market share is projected to expand at a steady pace over 2021-2027. The increasing penetration of lithium batteries in automotive and electronics applications is a major factor driving the industry trends. The improving living standards of consumers and the growing adoption of consumer gadgets and electric vehicles is augmenting the use of lithium-ion batteries. These factors along with the increasing demand for lubricants and plasticizers across key verticals will increase the product consumption.
The ethylene carbonate industry is slated to witness notable consumption in industrial and oil & gas sectors where lubricants are prominently used. The growing application of ethylene carbonate as an intermediate in numerous products will propel the bolster the industry outlook significantly. The substance finds extensive application as a solvent for plasticizers, different polymers, and resins, and as an intermediate for pharmaceuticals, textile finishing agents, and rubber chemicals.
By application, the plasticizers segment will hold a substantial share of the ethylene carbonate market through 2027. This can be contributed to the surging demand for plasticizers in flexible PVC applications across automotive, construction, and other sectors. Plasticizers are key functional substances that transform the physical characteristics of polymers by enhancing their flexibility and durability. The rapid expansion of the building & construction sector in developing region along with the rise of the global automotive sector will boost ethylene carbonate consumption in plasticizer applications.
Considering the end-users, the ethylene carbonate industry is poised to witness robust demand across the oil & gas sector. This is due to the widespread use of lubricants in oil & gas applications. Drilling and production operations require components to withstand harsh conditions while working efficiently. The use of the right lubricant can help oil & gas companies ensure optimum productivity, maximize the output, save costs, and minimize downtime. The increasing demand for specialty lubricants across the oil & gas sector will positively impact the overall market expansion.
In terms of regional landscape, the market for ethylene carbonate in North America is slated to expand substantially between 2021 and 2027. The regional growth is primarily driven by the expanding automotive sector. The growing vehicle ownership and the importance of light commercial vehicles have created a consistent demand for plasticizers, lubricants, and other products. Additionally, the region is witnessing continuous developments in the electric vehicle space, driving the demand for lithium-ion batteries. Carmakers across North America are ramping up EV production to meet the growing popularity and demand for electric cars.
Ethylene carbonate manufacturers and suppliers including BASF SE, Huntsman Corporation, Mitsubishi Chemical, Oriental Union Chemical Corporation, and Toagosei are expected to witness tremendous opportunities over the next few years. To meet the increasing market demand, the market players are focusing on expanding their production capacities. In June 2021, for instance, Huntsman Corporation disclosed that its Performance Products division plans to boost the production capacity at its Conroe, Texas plant that produces the ULTRAPURE Ethylene Carbonate by 2023.
The company supplies the ULTRAPURE Ethylene Carbonate to EV manufacturers and electronics companies. Huntsman has also added a new line of high-purity grades of ethylene carbonate for EV battery applications after seeing strong growth of its ULTRAPURE line owing to the growing EV demand and the localization of li-ion battery production.
How has COVID-19 outbreak impacted ethylene carbonate industry trends?
The global economic slowdown, supply chain problems, and workforce shortages in wake of the COVID-19 pandemic have had slight impact on the ethylene carbonate market forecast. The industry witnessed a sharp decline in demand, particularly in the initial stages of the pandemic, due to reduced activities in automotive, oil & gas, and other sectors. The decline in automotive and EV production has led to a weakened demand of li-ion batteries, lubricants, plasticizers, and other products, affecting ethylene carbonate industry share during 2020-2021.
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