The global ethylene carbonate industry value reached USD 323.3 million in 2023. Over the forecast period, the value is anticipated to rise at a CAGR of 5%. The sector is predicted to increase from USD 342 million in 2024 to USD 559.6 million in 2034.
Demand for ethylene carbonate is increasing due to the rising demand for electric vehicles and energy storage systems worldwide. Carbonate is gaining popularity in lithium-ion battery formulations and has applications in plastics, coatings, adhesives, and pharmaceuticals sectors.
According to the International Energy Agency (IEA), there was a 135% rise in global sales of battery-electric vehicles in 2023, reaching 4.7 million units.
Increasing demand for electric vehicles due to government restrictions on fossil fuel engines is significantly affecting lithium battery sales and ethylene carbonate demand. High demand for electronic devices, mobile devices, and energy-efficient sources in developed nations is projected to significantly fuel the future growth.
The pharmaceutical and agrochemical sectors are also embracing ethylene carbonate for several versatile applications. Manufacturers are focusing on research and development activities to come up with innovative and novel applications and improve production processes.
Ethylene carbonate is also gaining traction in the pharmaceutical and personal care sectors, serving as a solvent, stabilizer, or excipient in drug delivery systems. The industry is competitive, with leading producers broadening production capacities, investing in research and development, and forming strategic partnerships.
Leading manufacturers' production practices, product formulations, and market access are influenced by compliance with environmental, safety, and chemical industry regulations. Factors like raw material availability, supply chain disruptions, and geopolitical tensions also influence the market's supply-demand balance and pricing trends.
The sector is poised for further development and innovation due to the growing demand for high-performance batteries, specialty chemicals, and sustainable solutions. This shift towards clean and highly efficient products and technologies is mainly influenced by technological developments, regulatory changes, and evolving consumer preferences.
| Attributes | Description |
|---|---|
| Estimated Global Ethylene Carbonate Market Size (2024E) | USD 342 million |
| Projected Global Ethylene Carbonate Market Value (2034F) | USD 559.6 million |
| Value-based CAGR (2024 to 2034) | 5% |
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Increasing Demand for Electric Vehicles Worldwide to Augment Growth
Demand for ethylene carbonate is high in lithium-ion batteries, a prevalent choice in portable electronic devices and electric vehicles. With the rise in EVs and renewable energy solutions, demand for lithium-ion batteries is projected to rise.
Rising environmental concerns and regulations have led to a surging focus on green production processes. This, in turn, is set to fuel research into sustainable manufacturing methods such as renewable feedstock and catalytic processes.
High Demand for Consumer Electronics to Push Sales by 2034
Ethylene carbonate is a key raw material in polycarbonates and plasticizers, used in industries such as automotive, construction, and electronics. Growth of these sectors is increasing demand for carbonate. Research is underway to discover new applications in pharmaceuticals, cosmetics, and chemical reactions, aiming to diversify the market and promote growth.
Thriving Chemical Industry to Create Opportunities for Manufacturers
Regional factors such as government policies, economic conditions, and industrial development are set to influence the market. Countries with strong battery manufacturing or chemical industries are anticipated to fuel demand.
However, supply chain disruptions such as raw material shortages and transportation constraints are set to disrupt the landscape, making effective management vital for stable supply and meeting demand.
Fluctuations in Raw Material Prices to Hamper Growth
Ethylene carbonate prices are set to fluctuate due to raw material prices and demand-supply dynamics, making it difficult for manufacturers to manage costs effectively. Additionally, ethylene carbonate faces competition from substitutes, which offer low costs, better performance, and environmental benefits, thereby posing a challenge.
The ethylene carbonate sector grew at a CAGR of 4.6% from 2019 and 2023. The market reached USD 323.3 million in 2023. Ethylene carbonate, first synthesized between 2019 and 2023, was used as a solvent and electrolyte in niche applications like lithium-ion batteries and specialty polymers.
The sector has seen a surge in lithium-ion battery applications due to the rise in consumer electronics and the shift towards electric vehicles. Growth of the chemical industry, particularly in Asia Pacific, has contributed to the development of the business.
Ethylene carbonate serves as a precursor for various chemicals, including polycarbonates and plasticizers, with diverse industrial applications. The market has been influenced by environmental regulations and progressions in production technologies, aiming to reduce emissions, improve energy efficiency, and promote sustainable practices.
Research and development efforts aim to improve production efficiency, discover alternative feedstock, and find new uses in industries like pharmaceuticals and cosmetics, boosting growth. Over the forecast period, the sector is poised to exhibit healthy growth, reaching USD 559.6 million by 2034.
The industry has been shaped by globalization and international trade, with trade agreements, tariff policies, and supply chain dynamics influencing dynamics and competitiveness. Emerging economies have surged demand for ethylene carbonate due to rapid industrialization and infrastructure development in China and India, creating opportunities for growth.
Principal Consultant
The following table shows the estimated growth rates of the leading markets. The United States is anticipated to remain at the forefront in North America, with a CAGR of 2.8% through 2034. In South Asia and Pacific, India is projected to witness a CAGR of 7.5% by 2034, followed by China at 5.7% in East Asia.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 2.8% |
| Germany | 2.4% |
| China | 5.7% |
| India | 7.5% |
| Japan | 2.1% |
Over the assessment period, demand in the United States is set to rise at 2.8% CAGR. Increasing electric vehicle adoption and renewable energy infrastructure growth are set to spur demand for ethylene carbonate.
Regulatory policies in the United States, including environmental regulations and safety standards, influence the production, sale, and usage of carbonate. Compliance with these regulations, such as the Toxic Substances Control Act (TSCA) administered by the Environmental Protection Agency (EPA), is essential for manufacturers and consumers in the country.
Trade relations with key carbonate-producing countries, such as China and Japan, also influence the availability and pricing of carbonate in the United States. The country's position in producing lithium-ion battery electrolytes and EV lithium-ion batteries is projected to fuel growth.
The United Kingdom is actively involved in research and development activities to advance ethylene-related technologies and applications. Academic institutions, research organizations, and private companies are exploring new production methods, improving product performance, and discovering new applications.
The sector is influenced by price fluctuations, supply chain disruptions, and competition from suppliers, as well as changes in raw material prices and consumer preferences. The automotive industry in the United Kingdom, fueled by the growing demand for electric vehicles (EVs), has led to a surge in ethylene carbonate consumption.
The country is a leading manufacturer of EVs and lithium-ion batteries, boosting demand. The electronics industry in the United Kingdom is also growing with the adoption of consumer electronics and technological developments. This carbonate is widely used in electronic components like capacitors and printed circuit boards, causing a surge in consumption.
Over the forecast period, demand in China is set to increase at a steady CAGR of 5.7%. Growing focus on environmental sustainability and circular economy principles are set to prompt the adoption of green production methods and eco-friendly alternatives to carbonate. Leading companies in the country are exploring ways to minimize environmental impact and improve sustainability practices, fueling demand.
The section below analyzes the leading segment of the market. In terms of the end-use industry, the automotive segment is estimated to account for a share of 35.4% in 2024. Based on product form, the solid segment is anticipated to hold a share of 55.2% in 2024.
| Segment | Automotive (End-use Industry) |
|---|---|
| Value Share (2024) | 35.4% |
Growing demand for electric vehicles worldwide is set to surge sales of ethylene carbonate. The carbonate is a vital component in the electrolyte of lithium-ion batteries, the primary energy storage systems used in electric vehicles (EVs) and hybrid vehicles. This enhances battery performance by improving conductivity, leading to better efficiency, faster charging times, and increased energy density.
Ethylene carbonate extends the driving range of EVs by improving energy density and efficiency, enabling longer distances on a single charge. This reduces environmental impact by allowing the widespread adoption of electric vehicles, mitigating air pollution, and combating climate change.
| Segment | Solid (Product Form) |
|---|---|
| Value Share (2024) | 55.2% |
By 2034, demand for the solid ethylene carbonate segment is anticipated to surge significantly. Solid-state electrolytes, such as carbonate-based polymers, are increasingly being researched in the battery industry for the potential to improve safety, energy density, and cycle life.
Solid polymers can be used as matrix materials in composite materials, enhancing properties like mechanical strength, thermal stability, and chemical resistance. These can also be used as solid derivatives for specialized applications, such as phase change materials or intermediate chemicals in industries like electronics, construction, and textiles.
Progressions in solid-state synthesis techniques, including mechanochemical, microwave-assisted, and solvent-free synthesis, are set to enhance product quality, process efficiency, and sustainability. Furthermore, solid forms of carbonate play a key role in circular economy initiatives, promoting resource efficiency and sustainability through recycling or upcycling.
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Oriental Union Chemical Corporation, Huntsman Corporation, BASF SE, Mitsubishi Chemical Corporation, and Toagosei Co., Ltd. are the key ethylene carbonate manufacturers in the industry. Ethylene carbonate is in high demand across various industries, including oil and gas and automotive.
Leading companies are investing in product facility growth and mergers to improve global presence. Continuous research and development activities, product innovations, strategic collaborations, and development efforts characterize the sector.
Huntsman Corporation is enhancing the Texas facility's production capacity of Ultrapure Ethylene Carbonate, which is projected to be completed by 2024. This is vital for the optimal performance and long-lasting durability of lithium-ion batteries in electric vehicles and electronic devices.
Leading manufacturers are investing in innovation and product development to discover increased applications of ethylene dichloride. The main focus is on safety, quality, and customer satisfaction to attract a large customer base.
Industry Updates
As per product form, the industry has been categorized into solid and liquid.
Based on applications, the sector is segmented into lithium battery electrolytes, plasticizers, lubricants, surface coatings, and others.
The industry is categorized into oil and gas, automotive, pharmaceuticals, and others.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and the Middle East and Africa.
The sector is set to witness a CAGR of 5% by 2034.
The sector witnessed a CAGR of 4.6% from 2019 to 2023.
In 2034, the sector is anticipated to reach USD 559.6 million.
Oriental Union Chemical Corporation, Huntsman Corporation, and BASF SE.
The sector is set to reach USD 342 million by 2024.
The solid segment is estimated to hold a significant share in 2024.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Product Form
6.2. Application
6.3. End Use Industry
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Form
7.1. Solid
7.2. Liquid
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use Industry
8.1. Oil and Gas
8.2. Automotive
8.3. Pharmaceuticals
8.4. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
9.1. Lithium Battery Electrolyte
9.2. Plasticizers
9.3. Lubricants
9.4. Surface Coatings
9.5. Others
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East and Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Product Form and Application for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Oriental Union Chemical Corporation
20.2. Huntsman Corporation
20.3. BASF SE
20.4. Mitsubishi Chemical Corporation
20.5. Toagosei Co., Ltd.
20.6. Asahi Kasei
20.7. Prasol Chemicals Ltd
20.8. Shandong Shida Shenghua Chemical Group
20.9. Shandong Senjie Chemical
20.10. Dubi Chem
20.11. Alfa Aesar
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Ethylene Carbonate Market
