Ethylene Glycol Market

Ethylene Glycol Market Outlook from 2024 to 2034

The global ethylene glycol market stood at USD 37,743.8 million in 2023. It is projected to exhibit a Y-O-Y growth of 5.9% in 2024 and reach USD 40,017 million in the same year. Surging at a CAGR of 6.5% between 2024 and 2034, demand for the chemical compound is estimated to reach USD 75,303.1 million by 2034.

Among various types of ethylene glycols or ethane-1,2-diol, monoethylene glycol is set to be extensively used across several industries, including textile and automotive. As of 2024, the chemical holds a prominent share of about 75% in terms of volume.

Monoethylene glycol is further projected to command a significant share in terms of consumption owing to its versatile chemical properties, high compatibility, and chemical stability. Demand for the compound is anticipated to rise and it is projected to witness a promising CAGR of 5.1% over the assessment period.

Attributes	Description
Estimated Global Ethylene Glycol Market Size (2024E)	USD 40,017 million
Projected Global Ethylene Glycol Market Value (2034F)	USD 75,303.1 million
Value-based CAGR (2024 to 2034)	6.5%

By 2034, demand for ethane-1,2-diol is anticipated to surge by 1.7 times from the current value. Consumption of the compound is predicted to rise worldwide in tandem with industrial expansion. It is anticipated to become more widely used as functional agents, ingredients, additives, or intermediates in a variety of industrial applications.

As of 2024, the textile and automotive industries are likely to generate more than 40% of the total demand. However, collective demand from other industries is projected to rise at a CAGR of 7% during the estimated period.

The demand is set to be supported by several macroeconomic factors. These include the rising need for polyester fibers, increasing automotive production, booming construction and packaging industries, and growing investments in the healthcare sector.

Increasing demand for textile products is one of the primary factors behind growth. Rising consumption of polyester fibers, innovations in textile manufacturing technologies, growth of the fashion industry, and rising global population are mainly attributed to growth. The need for increased textile output is surging as the world’s population rises, which is indirectly augmenting demand for monoethylene glycol in textile production.

Sales of ethane-1,2-diol are positively correlated with the extent of textile manufacturing and development. The compound is projected to be essential for the synthesis of polyester fibers, which are widely used in apparel, home textiles, and industrial fabrics. As demand for polyester-based products rises globally, the need for monoethylene glycol is predicted to rise, supporting the overall expansion.

Semi-annual Market Update

The annual growth rates of the global ethylene glycol market from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2). This gives stakeholders a comprehensive picture of the market’s performance over time and insights into potential future developments.

The figures provided in the table show the growth rate for each half-year between 2023 and 2024. The market was projected to increase at a CAGR of 6.2% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable surge in the growth rate of 6.4%.

Particular	Value CAGR
H1	6.2% (2023 to 2033)
H2	6.4% (2023 to 2033)
H1	6.5% (2024 to 2034)
H2	6.8% (2024 to 2034)

Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly rise to 6.5% in the first half and relatively surge to 6.8% in the second half. In the first half (H1), the industry saw an increase of 30 BPS while in the second half (H2), there was a slight surge of 30 BPS.

Key Industry Highlights

Booming Textile Industry Pushes Demand for Polyester Fibers

The global textile industry is constantly developing, mainly in regions like Asia Pacific, where countries such as China, India, and Bangladesh are leading textile producers. Hence, the need for monoethylene glycol continues to rise. This demand is mainly fueled by the rising consumer preference for polyester-based textiles due to their high durability, affordability, and versatility.

The growing emphasis on sustainability across the textile industry is another prominent factor augmenting the development of eco-friendly polyester fibers, such as recycled polyester. This modification is set to influence the demand for monoethylene glycol, as companies seek to balance the use of raw monoethylene glycol with more sustainable alternatives.

For instance, Indorama Ventures launched a new initiative aimed at the collective use of sustainable feedstock in monoethylene glycol production. It aligns with the global push for sustainability among textile manufacturers. This development highlights the company's promise to associate with the textile industry's shift toward green practices.

Demand for the Chemical Compound Rises in Heat Transfer and Hydraulic Fluids

Emerging economies are significantly driving demand for ethane-1,2-diol. These economies rely heavily on this chemical compound as a key component in heat transfer and hydraulic fluids, which are important for various industrial processes.

Rapid growth in industrial activities, such as the rise of frame projects and improvements in well-organized cooling and lubrication solutions are boosting the consumption of ethane-1,2-diol. As industries seek high proficiency and sustainability, demand for unique and high-performance ethane-1,2-diol-based fluids is predicted to rise, positively impacting growth.

Developing markets, mainly in Asia Pacific and North America, are facing rapid progress. Growth in manufacturing plants, chemical processing units, and other industrial facilities is augmenting the need for ethane-1,2-diol for use as a crucial fluid in maintaining operational productivity and safety.

For instance, LyondellBasell declared a joint venture with a vital Middle Eastern petrochemical company to discover a new ethane-1,2-diol production plant in Saudi Arabia. This new venture aims to cater to the high demand from the region's booming industrial sector. It is hence focusing on providing high-quality chemical products for use in heat transfer and hydraulic fluids.

Increasing Vehicle Production Pushes Demand for Antifreeze and Coolant Solutions

The growing production of vehicles, particularly in rapidly developing countries like China and India, directly determines the demand for ethylene glycol, which is a crucial element in antifreeze and coolant solutions. As the global automotive industry continues to surge, with a move toward electric and hybrid vehicles, demand for effective cooling solutions increases. Moreover, the shift toward superior vehicle performance necessitates unique coolant compositions, bolstering sales.

As the world increasingly adopts electric vehicles, the need for the compound is anticipated to rise considerably. EVs require efficient thermal management systems to maintain battery performance and longevity. The compound plays a crucial role in these systems, ensuring optimal battery temperatures and high vehicle efficiency.

For instance, The Dow Chemical Company broadened its ethane-1,2-diol production capacity in Texas to meet the growing demand from the automotive and packaging industries. This move aligns with the company’s strategy to capitalize on the rising demand for EVs and the need for cutting-edge coolant solutions.

Health Risks Associated with the Compound May Lead to Stringent Regulations

Ethylene glycol, commonly used in cooling fluids in vehicles and industrial applications, poses significant health risks when ingested, inhaled, or absorbed through the skin. Its exposure can result in severe health issues, such as brain damage, kidney tissue damage, and even death. Long-term exposure has been shown to cause developmental impairment as well as infertility.

Regulatory agencies across the world are becoming gradually concerned about the health risks associated with this compound. For instance, the United States Environmental Protection Agency (EPA) and the European Chemicals Agency (ECHA) have revised the compound’s use to reduce health issues.

The risks associated with the compound are getting more public attention. It is further estimated to lead to the implementation of strict norms, including bans on ethane-1,2-diol in finished consumer goods.

Such regulatory changes could create a significant impact on the global market by reducing demand. Researchers are striving to find alternative components, which can decline growth. The company may need to invest heftily to comply with changing regulations.

Businesses can further face high operating expenses and decreased profitability due to product adaptation in accordance with new standards stipulated by law. Hence, tightening regulations is a key obstacle to growth in the industry.

2019 to 2023 Global Ethylene Glycol Sales Analysis Compared to Demand Forecast from 2024 to 2034

The global ethylene glycol market recorded a CAGR of 3% during the historical period between 2019 and 2023. The growth was positive as it reached a value of USD 37,743.8 million in 2023 from USD 33,597.5 million in 2019.

During the historical period, the industry experienced significant fluctuations due to economic qualms. The global economy encountered several challenges, such as trade disputes, currency fluctuations, and geopolitical conflicts impacting industries dependent on this compound.

The COVID-19 pandemic disrupted global supply chains and industrial activities, causing a temporary downturn in the ethane-1,2-diol industry. It further led to delays and reduced manufacturing capacity. Lockdowns and restrictions impacted transportation and logistics, making it difficult to maintain regular supply and distribution channels.

Decreased industrial activities and demand fluctuations in key end-use industries, such as automotive, construction, textile, and packaging made the situation more challenging for manufacturers. The industry demonstrated steady growth after the pandemic with a slow but steady recovery. It was evidenced by the easing of lockdowns globally and changing supply chains as part of the new normal.

Market Concentration

Tier 1 companies include leaders with annual revenues exceeding USD 100,000 to 120,000 million. These companies are currently capturing a significant share of 40 to 45% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.

They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Reliance Industries Limited, Shell Chemical, Sinopec, SABIC, BASF SE, Indian Oil Corp, Ineos Group Limited, Dow Chemical, LG Chem Ltd., and LyondellBasell Industries.

Tier 2 companies encompass mid-sized participants with revenues ranging from USD 60,000 to 70,000 million. They hold a presence in specific regions and exert significant influence on local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.

They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Formosa Plastics Corporation, PETRONAS Chemicals Group, Nippon Shokubai Co., Ltd., and MEGlobal (EQUATE).

Country-wise Insights

The section covers assessments of ethane-1,2-diol sales across key countries. Countries from East Asia and North America are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 7% through the forecast period.

Countries	CAGR 2024 to 2034
South Korea	7.8%
Japan	7.4%
China	6.8%
Canada	7.1%
United States	6.7%

Rising Demand for Compact Electronic Devices Boosts Sales in South Korea

South Korea is projected to surge at a CAGR of 7.8% from 2024 to 2034, with sales anticipated to reach USD 11,682.1 million by 2034. The country’s robust automotive and electronics industries are set to boost demand.

The automotive industry depends on ethane-1,2-diol for antifreeze and coolants to ensure optimal vehicle performance and longevity. Monoethylene glycol (MEG), a component in antifreeze formulations, is particularly essential in the country’s automotive manufacturing landscape.

In the electronics industry, the compound plays a key role in producing polymers used in electronic components. As electronic devices become more intricate and compact, there is a growing need for high-quality polymers with superior stability and electrical insulation properties.

Demand for Cleaning Agents Skyrockets in Japan’s Textile Industry

Japan is projected to surge at a CAGR of 7.4% from 2024 to 2034, with sales set to reach USD 2,164.7 million by 2034. The country’s textile industry is renowned for its ongoing innovation. It produces cutting-edge fabrics and textiles through intricate and precision-driven processes. Monoethylene glycol, diethylene glycol, and triethylene glycol are essential for ensuring the effectiveness and durability of the equipment used in these operations.

Monoethylene glycol, for instance, is commonly used in the formulation of cleaning agents that are required for removing residues and contaminants from machinery. The high cleaning efficacy of MEG-based agents ensures that textile production equipment remains free of buildup that could impair performance or lead to costly maintenance issues.

In addition to maintenance, ethane-1,2-diol is integral in cooling systems, which are vital for managing the heat generated during high-speed and high-volume textile production. Efficient cooling helps in preventing overheating, which can otherwise result in machine malfunctions or reduced lifespan.

High Use of Monoethylene Glycol in Green Solvents across China Augurs Growth

China is estimated to witness a CAGR of 6.8% in the forecast period. Several companies in the country are set to use the compound as an intermediate in a wide range of chemical reactions. Apart from that, high demand for textiles, increasing production of natural gas, and surging popularity of bio-based ethane-1,2-diol are anticipated to accelerate demand.

The ongoing development of application areas for monoethylene glycol is another factor bolstering demand. It is set to find extensive use in the production of green solvents and batteries. It is also projected to be utilized in the manufacturing of brake fluids and polyester fibers.

Category-wise Insights

The section explains the growth trajectories of the leading segments. In terms of the end-use industry, the textile category will likely dominate and generate a share of around 25.8% in 2024. Based on product type, the monoethylene glycol segment is projected to hold a share of 62.8% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.

Textile Manufacturers Seek Polyester Fibers for Use in Bedding and Curtains

Segment	Textile (End-use Industry)
Value Share (2024)	25.8%

The textile segment is forecast to experience a decent CAGR of 7.3% from 2024 to 2034. The booming fashion industry and the emergence of several e-commerce platforms are likely to create new opportunities.

Textile manufacturers have recently adopted three key principles, namely, distributing, manufacturing, and designing various flexible materials like polyester. Ease of care, stain resistance, and high durability properties are pushing the demand for polyester fibers for use in upholstery, bedding, and curtain fabrics. The growing demand for technical textiles, such as reinforcing materials, filter fabrics, and geotextiles is further set to accelerate sales.

Monoethylene Glycol Gains Traction Amid Growing Use in Hydraulic Fluids

Segment	Monoethylene Glycol (Product Type)
Value Share (2024)	62.8%

The monoethylene glycol (MEG) segment, with a projected value share of 62.8% in 2024, is poised to significantly impact global demand. MEG's dominance is attributed to its extensive use across various key industries, particularly in the production of polyester fibers and resins. The textile industry, a key consumer of MEG, relies on it for manufacturing polyester fibers used in clothing and other fabrics.

The automotive industry's demand for antifreeze and coolants also drives MEG consumption. Its ability to lower the freezing point and raise the boiling point of engine coolants makes it a preferred choice for enhancing vehicle performance and safety.

MEG's use in heat transfer fluids, hydraulic fluids, and as a solvent in multiple chemical applications supports its dominance. The projected growth in the textile and automotive industries ensures continued demand and reinforces MEG's leading position across the globe.

Competition Outlook

The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes innovations in manufacturing and identifies the latest trends set to boost new applications across the globe.

A few key players in the ethane-1,2-diol industry are actively enhancing their capabilities and resources to cater to the growing demand for organic compounds across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster their client base.

Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use industries. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.

Industry Updates

• In May 2024, Japan-based Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical decided to conduct a joint feasibility study on feedstock and fuel conversion at their respective ethylene production facilities in Western Japan to spur carbon neutrality and lead the decarbonization of society.
• In July 2024, Sinopec, headquartered in China, announced plans to continue cutting ethylene output, following a reduction in June. This decision is likely aimed at boosting fuel production.
• In February 2024, LyondellBasell, based in Rotterdam, acquired a leading ethane-1,2-diol producer headquartered in Europe. This strategy would help the company to broaden its product portfolio and strengthen its position in the region.

Leading Ethylene Glycol Brands

• Reliance Industries Limited
• Shell Chemical
• Sinopec
• SABIC
• BASF SE
• Indian Oil Corp
• Ineos Group Limited
• Dow Chemical
• LG Chem Ltd.
• LyondellBasell Industries
• Mitsubishi Chemical Corporation
• LOTTE Chemical Corp.
• Eastman Chemical Company
• Nan Ya Plastics
• Formosa Plastics Corporation
• PETRONAS Chemicals Group
• Nippon Shokubai Co., Ltd.
• MEGlobal (EQUATE)
• Other Key Players

Key Segments of Market Report

By Product Type:

Monoethylene glycol, diethylene glycol, and triethylene glycol are the key product types.

By End-use Industry:

End-use segments included in the study are textile, automotive, healthcare and pharmaceuticals, industrial applications, chemical, packaging, construction, and others. The textile segment is further divided into polyester fibers and polyester films. The automotive segment is segregated into antifreeze and coolant and hydraulic and brake fluids. The healthcare and pharmaceuticals segment includes solvents and sterilizing agents. Industrial applications feature heat transfer fluids and dehydrating agents. The chemical segment is bifurcated into resins and solvents.

By Region:

Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa have been covered in the report.

Frequently Asked Questions

What was the global worth of ethylene glycol in 2023?

The global market was valued at USD 37,743.8 million in 2023.

How big is the global industry?

It is set to reach USD 40,017 million in 2024.

At what rate will the global demand rise through 2034?

The global demand is anticipated to rise at 6.5% CAGR through 2034.

What is the anticipated size of the industry by 2034?

It is projected to reach USD 75,303.1 million by 2034.

Who buys ethylene glycol?

It is mainly purchased by automakers for use in antifreeze formulations and coolants to prevent water in engines from overheating or freezing.

What is ethylene glycol used for in India?

It is used as a key raw material for the manufacturing of polyester fibers.

What are the disadvantages of ethylene glycol?

It has a very low capability to absorb heat and can crystallize at low temperatures.