Global ethylene dichloride market share is set to register commendable growth over 2022-2028, on account of rapid industrialization and urbanization worldwide, alongside a surge in R&D activities. Ethylene dichloride refers to a colorless, synthetic, oily, and clear chlorinated hydrocarbon in liquid form. It is used mainly to develop vinyl chloride monomers, which play an important role in the production of PVC (polyvinyl chloride).
Growing number of research activities worldwide is a major factor propelling ethylene dichloride market growth over 2022-2028. In August 2020, thermoplastic resin producer Braskem and Chemetry, a Calera Corp. business joined hands to construct a demonstration facility in Brazil, using the eShuttle technology of Chemetry to produce high-purity EDC (ethylene dichloride), while generating significant savings in terms of production costs and power consumption over conventional techniques. Such activities could lead to an enhancement of the product and present lucrative growth opportunities for ethylene dichloride manufacturers over the estimated timeline.
Ethylene dichloride market share from the construction application segment will grow at a commendable pace by 2028, given the robust use of PVC in construction activities. Nearly 70% of the PVC demand worldwide comes from the construction sector. PVC is an ideal material for building components like window profile and cabling due to its flame retardant, electrical insulation, and flexible properties. These factors could lead to a significant rise in demand for ethylene dichloride since it is a key component in PVC production.
North America is poised to emerge as a major revenue source for the ethylene dichloride market by 2028, on account of rapid expansion in PVC production capacities in the region. To illustrate, in April 2021, Shintech announced the near completion of the first phase of its Louisiana PVC expansion plan by mid-2021. This involves the expansion of the complete PVC production chain at the company’s complex in Plaquemine, Louisiana, including a new vinyl chloride monomer unit with a capacity of around 1 million mt/year and an ethylene dichloride unit with a capacity of 680,388 mt/year. Developments like these could lead to a substantial rise in ethylene dichloride industry demand over the forecast period.
Ethylene dichloride market outlook is bolstered by the presence of major players like Westlake, Formosa Plastics, Occidental Chemical, LG Chem, Horizon Chemical Industry, Punjab Chemicals & Crop Protection, PPG Industries, and Olin, among others. These entities are focusing on numerous strategic initiatives like collaborations, expansions, and new facility development in order to enhance their stronghold in the global market. For instance, ADNOC (Abu Dhabi National Oil Company) inked a strategic collaboration with RIL (Reliance Industries) in June 2021, to develop a new global-scale ethylene dichloride, chlor-alkali, and PVC manufacturing plant at TA’ZIZ in Abu Dhabi. As per the agreement, Reliance and TA’ZIZ will build an integrated facility with an annual production capacity of 1.1 million tons of ethylene dichloride, 360 thousand tons of PVC, and 940 thousand tons of chlor-alkali.
Despite initial setbacks in PVC demand during the peak months of the coronavirus pandemic, growing demand from the construction sector, especially in Asia, could augment ethylene dichloride market dynamics. According to the NBS (National Bureau of Statistics) and Eurostat, the construction sector began a steady recovery since the second half of 2020, which could contribute to a growth in PVC demand. Also, the rise of e-commerce during the pandemic has triggered the development of flexible PVC packaging with advanced attributes.
For instance, in February 2021, Alpfilm and Braskem collaborated for the commercialization of an antimicrobial PVC packaging film, dubbed Alpfilm Protect PVC, designed to inactivate various pathogens, including the SARS-CoV-2 virus, upon contact. Developments like these will also boost demand for ethylene dichloride in PVC production over the estimated timeline.