Ethylene Dichloride Market

Ethylene Dichloride Market Outlook for (2023 to 2033)

The ethylene dichloride market is set for significant expansion, with an anticipated valuation of USD 20,016.4 million by 2023. The market displays a considerable trend, featuring a CAGR of 3.7%, expected to endure until 2033. The consistent growth forecasts indicate that the global ethylene dichloride market will achieve an impressive valuation of USD 28,785.48 million by 2033.

Key Market Trends and Highlights

• The ethylene dichloride market is witnessing a surge in demand attributed to its pivotal role as a chemical intermediate in producing vinyl chloride monomer. This has become a key driver propelling sales, mainly due to its widespread use in manufacturing Polyvinyl Chloride (PVC) on a global scale. The increasing usage in these processes signifies the compound indispensability in producing essential materials for numerous industries.
• Ethylene dichloride stands out in the chemical landscape for its environmental friendliness. With a characteristic that prevents accumulation in the aquatic food chain and a non-toxic profile to aquatic organisms, ethylene dichloride is becoming a preferred choice in various industries. The compound compatibility with sustainable practices aligns with the growing global emphasis on environmentally conscious production methods.
• The market is experiencing significant growth due to the expanding usage of ethylene dichloride in producing industrial and consumer goods. Its versatile applications contribute to the manufacturing processes across various sectors, further fueling the market growth. The trend underscores the compound adaptability and effectiveness in catering to diverse industry needs.
• While the ethylene dichloride market is expanding, it faces challenges that impact its growth rate. Stringent regulations and standards surrounding the production and usage of ethylene dichloride, driven by its toxic nature, pose obstacles. Navigating these regulatory landscapes becomes crucial for market players to ensure sustainable growth in the face of environmental and safety concerns.

Attributes	Key Insights
Market Estimated Size in 2023	USD 20,016.4 million
Projected Market Size in 2033	USD 28,785.48 million
Value-based CAGR from 2023 to 2033	3.7%

2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections

The scope for global ethylene dichloride market insights rose at a 2.8% CAGR between 2018 and 2022. The ethylene dichloride market is anticipated to develop at a moderate CAGR of 3.7% over the forecast period from 2023 to 2033.

Attributes	Details
Market Value in 2018	USD 16,763.6 million
Market Value in 2022	USD 19,288.9 million
CAGR from 2018 to 2022	2.8%

By 2022, the market value escalated to USD 19,288.9 million, indicating a Compound Annual Growth Rate (CAGR) of 2.8% over the four years. The growth was underpinned by a rising demand for polyethylene dichloride, fueled by technological advancements, expanding industrial applications, and collaborative efforts within the market.

The polyethylene dichloride market is poised for substantial expansion from 2023 to 2033, primarily driven by a surge in research activities and strategic collaborations among key industry players. The market is expected to experience a notable uptick in demand due to these initiatives, leading to a significant boost in market valuation.

The forecast from 2023 to 2033 indicates a sustained and accelerated growth trajectory for the polyethylene dichloride market. With an anticipated increase in demand driven by technological advancements, expanding industrial applications, and establishing strategic alliances, the market is expected to achieve remarkable valuation milestones, solidifying its position as a key player in the chemical industry.

Ethylene Dichloride Market Advancing Factors

• The burgeoning production and consumption of Polyvinyl Chloride (PVC) globally emerge as a primary driver propelling the sales of ethylene dichloride. PVC versatility in applications, ranging from films and sheets to power cables, wires, flooring, pipes, and fittings, contributes significantly to the growing demand for ethylene dichloride. As a critical component in PVC production, ethylene dichloride is set to witness heightened demand in the coming years.
• The escalating adoption of ethylene dichloride (EDC) as a lead scavenger in petrol is anticipated to bolster demand over the assessment period. The oil and gas industry rapid expansion globally is compelling vendors to enhance their refinery capacities. The strategic focus aligns with the growing need for ethylene dichloride, as it becomes integral to refining processes, further enhancing its market demand.
• The worldwide rapid expansion of the oil and gas industry is a significant driver for the ethylene dichloride market. As the industry grows, there is an increasing emphasis on expanding refinery capacities, which, in turn, augurs well for the demand for ethylene dichloride. The compound role in lead scavenging for petrol aligns with the evolving needs of the oil and gas sector, further contributing to its market growth.

Country-wise Insights

The table below showcases CAGRs in the five countries spearheaded by the United States, China, the United Kingdom, Germany, and India.

CAGRs by 2033

The United States	3.6%
The United Kingdom	3.5%
Germany	3.2%
India	4.7%
China	5.6%

Key Market Position and Renowned Manufacturers Leading Capacity Expansion Strategies in United States

The United States stands as a prominent pocket in the ethylene dichloride (EDC) market, boasting the presence of several renowned manufacturers with a 3.6% CAGR. The participation of key United States-based companies in capacity expansion strategies, exemplified by Formosa Plastics United States investment in a new reactor unit in Texas, underlines the country attractiveness in the global market.

Growth Driven by Pharmaceutical and Packaging Sectors in the United Kingdom

In the United Kingdom, the ethylene dichloride market is poised for growth, primarily driven by the rapid expansion of the pharmaceutical and packaging sectors. The European market, where the United Kingdom is a crucial player, is estimated to expand at 3.5% CAGR. The increasing trend of online shopping in the United Kingdom is expected to boost the demand for plastic packaging, especially in the food and beverage sector, fueling the need for ethylene dichloride.

Growing Demand Linked to Crude Oil and Government Initiatives in India

The ethylene dichloride market is anticipated to flourish, driven by the increasing demand for crude oil and government initiatives to meet end-use requirements in India, expanding at a CAGR of 4.7% by 2033. The trend is expected to persist, fostering the growth of the dimethylamino market in India.

Technological Advancements and Innovation in Germany Increases Sales

Germany, with its advanced technological landscape, plays a significant role in the ethylene dichloride market, rising at a CAGR of 3.2% by 2033. The country is known for emphasizing innovation and technology in the chemical industry. The ethylene dichloride market in Germany will likely benefit from ongoing research and development activities, contributing to the introduction of advanced production processes and applications.

Growing Manufacturing Sector in China

China, renowned as a manufacturing powerhouse, plays a pivotal and strategic role in the global ethylene dichloride market with a CAGR of 5.6%. The nation expansive manufacturing sector, encompassing the production of plastics, chemicals, and various industrial goods, positions China as a critical driver of ethylene dichloride demand. The compound holds integral significance in manufacturing a diverse range of materials vital to these industries, reflecting its essential role in supporting China vast industrial landscape.

The continuous expansion of China manufacturing sector underscores the sustained demand for ethylene dichloride, further solidifying the country status as a critical player in the global market. As China continues to drive innovation and growth in various industries, ethylene dichloride remains indispensable, emphasizing the country central role in globalizing the ethylene dichloride market dynamics.

Category-wise Insights

The table below highlights how vinyl chloride monomer is projected to lead the application market, expanding at a market share of 96% in 2023. The table further details how direct chlorination is anticipated to witness a market share of 61.2% in 2023.

Category	Market Share in 2023
Vinyl Chloride Monomer	96%
Direct Chlorination	61.2%

Rising Demand for Ethylene Dichloride Driven by Vinyl Chloride Monomer (VCM) Applications

The global ethylene dichloride market is set to experience a surge in demand, primarily driven by the leading application segment-vinyl chloride monomer (VCM), with a market share of 96% in 2023. The increasing conversion of VCM to polymeric PVC, fueled by health and safety considerations due to the former hazardous nature, is propelling the growth of the ethylene dichloride market. As the construction industry undergoes continuous expansion, driven by a surge in innovative city projects worldwide, the demand for PVC will escalate significantly. This, in turn, is poised to drive the adoption of ethylene chloride, establishing it as a critical component in producing essential materials for the construction sector.

Direct Chlorination Holds a Prominent Position in the Market

The utilization of direct chlorination plays a pivotal role in shaping the dynamics of the ethylene dichloride market. Direct chlorination is an essential manufacturing process in ethylene dichloride (EDC) production, involving the direct reaction of ethylene with chlorine, with a market share of 61.2% in 2023. This method has become a cornerstone in the production chain due to its efficiency and direct synthesis capabilities, enabling the creation of a critical intermediate product.

Direct chlorination offers advantages such as high selectivity, yield, and cost-effectiveness compared to alternative methods, contributing significantly to the economic viability of ethylene dichloride production. The simplicity and efficiency of the direct chlorination process make it a preferred choice for many manufacturers, ensuring a streamlined and sustainable supply chain for ethylene dichloride.

Competitive landscape

Many key ethylene dichloride manufacturers are inclined to invest significantly in innovation, research, and development practices to uncover increased applications of ethylene dichloride. With technology, players also focus on ensuring safety, quality, and customer satisfaction to captivate an increased customer base. Some of the latest developments include

• The state-owned Chemicals Derivatives Company (TA'ZIZ) of Abu Dhabi and Reliance Industries embarked on a substantial chemical production venture valued at over USD2 billion in Ruwais, Abu Dhabi. The joint venture, TA'ZIZ EDC & PVC, is poised to establish and operate a cutting-edge facility that produces polyvinyl chloride (PVC), ethylene dichloride (EDC), and chlor-alkali.
• Sinopec Sabic Tianjin Petrochemical Co. Ltd. and Saudi Arabia SABIC entered a collaborative joint venture for a substantial expansion project at the Tianjin ethylene plant.

Market Report Scope

Attributes	Details
Estimated Market Size in 2023	USD 20,016.4 million
Projected Market Valuation in 2033	USD 28,785.48 million
CAGR Share from 2023 to 2033	3.7%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in USD million
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa
Key Market Segments Covered	Application, Production Process, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Olin Corporation; Occidental Chemical Corporation; Formosa Plastics Corporation; Tosoh Corporation; Vynova Group; SABIC; Westlake Chemical Corporation; ThyssenKrupp AG; PT Asahimas Chemical; Prochem, Inc.; VESTOLIT GmbH; Tokyo Chemical Industry Co., Ltd.

Ethylene Dichloride Market By Category

Application:

• Vinyl Chloride Monomer (VCM)
• Ethylene Amines
• Other Solvents

Production Process:

• Direct Chlorination
• Oxy Chlorination

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East & Africa

Frequently Asked Questions

How Big is the Market?

The ethylene dichloride market is expected to reach a valuation of USD million in 2023.

What is Spain’s Market Outlook?

Spain registered a market share of 4% in 2023.

How Big will be the Ethylene Dichloride Market?

The ethylene dichloride market is set to expand by a CAGR of 3.7% by 2033.

Which is the Leading Application in the Ethylene Dichloride Market?

Vinyl Chloride Monomer (VCM) is preferred and is expected to rise to a market share of 96% in 2023.

Who are the Market Players?

Tosoh Corporation, Vynova Group, and SABIC are the key market players.