Ethylene Carbonate Market Size, Share, By Form (Solid and Liquid), Applications (Lithium Battery Electrolytes, Lubricants, Plasticizers, Surface Coatings, Chemical Intermediates, Fiber Processing Agents, Dyes, and Others), End-Use Industry (Automotive, Oil & Gas, Textile, Chemical, Medical, Personal Care & Hygiene, Agriculture, and Others), and Region - Trends, Analysis and Forecast till 2034

• The ethylene carbonate market size is projected to be USD 3.4 billion by 2034.
• In 2024, the market was valued at USD 1.05 billion.
• The market is growing at a CAGR of 13.8% during the forecast period. 

Ethylene carbonate or C3H6O3, is an organic compound. It is an odorless, colorless solid at room temperature with a pretty low melting point, about 36-38°C. Structurally, it has a five-membered ring with two oxygen atoms and a carbonyl group. It is the cyclic carbonate ester created from ethylene glycol and carbon dioxide. Due to its unique properties, EC finds applications in various industries. It acts as a polar aprotic solvent in lithium-ion batteries, producing a protective, stable layer at the electrode surface that allows improved battery performance and durability. The increasing electric vehicle industry to boost market growth.

Key Takeaways:

• North America is expected to dominate the market owing to the wide use of ethylene carbonate in chemical, automotive, and electronics industries.
• Asia Pacific is the fastest-growing region in the market due to the high demand for ethylene carbonate from countries, Japan, China, and South Korea.

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Booming Electric Vehicle Industry to Drive Market Growth

• The rapid growth of the electric vehicle industry acts as the most important stimulant for the ethylene carbonate market. Ethylene carbonate is an essential raw material used to produce lithium-ion batteries, which power these vehicles. The increasing popularity of electric cars is due to many factors, including environmental concerns, rising fuel costs, and government incentives. As the world is turning toward sustainable transport at breakneck speed, demand for high-performance batteries and ethylene carbonate is proliferating. With rising middle-class populations in developing countries and increasing urbanization, personal mobility demand is also growing at an incredible rate, fueling the EV market and the ethylene carbonate market accordingly.

Rising Demand for Energy Storage Solutions to Boost Market Growth

• As renewable energy sources, like solar and wind power, please continue to be adopted rapidly, efficient energy storage systems will be required to tackle their intermittent nature. Ethylene carbonate finds an important application here as a basic raw material in lithium-ion batteries for energy storage. Growing grid-scale energy storage projects and the growing penetration of renewable energy drive demand for ethylene carbonate in this sector.

Restraints:

Volatility in Raw Material Prices May Hamper Market Growth

• The production process of ethylene carbonate includes ethylene oxide and carbon dioxide as primary raw materials. The prices of these raw materials depend on their parent sources, such as petroleum and natural gas, and are further linked with many factors, such as crude oil price changes, natural gas production, and global supply and demand dynamics. Changes in the prices of raw materials may alter production costs and, hence, the market price of ethylene carbonate. These constant fluctuations thus challenge the manufacturers' profit margins and financial planning. For example, a sudden surge in the price of ethylene oxide may drastically increase the cost of production of ethylene carbonate, thereby cutting down the manufacturer's profit margins. To combat this exposure, firms may have to hedge their risks or develop alternative sources of supply. Both these options will be expensive and increasingly complex

Opportunities:

Growth of Renewable Energy Sector to Boost Market Growth in Future

Greater focus on renewable energy sources, such as solar and wind, is boosting demand for energy storage. These sources result in an intermittent flow of energy and thus require efficient storage systems to give stable power. Ethylene carbonate, in this respect, definitely occupies a major place as a component of lithium-ion batteries—those most widely applied for energy storage. With the exponential growth of renewable energy—due to enhanced environmental awareness, government policies, and declining costs associated with renewable technologies, further raising the demand for ethylene carbonate is bound to grow manifold.

The ethylene carbonate market is classified into form, application, end-use industry, and region. 

Form:

On the basis of form, the market is bifurcated into solid and liquid. The solid ethylene is expected to dominate the market during the forecast period. The segment’s growth is attributed to the wide use of ethylene carbonate in large quantities globally.

Application:

By application, the market is segmented into lithium battery electrolytes, lubricants, plasticizers, surface coatings, chemical intermediaries, fiber processing agents, dyes, and others. The lithium battery electrolytes segment is projected to lead the market during the forecast period as ethylene carbonate is one of the important ingredients in EV batteries.

End-Use Industry:

By end-use industry, the market is categorized into automotive, oil & gas, textile, chemical, medical, personal care & hygiene, Agriculture, and others. The automotive segment is holding the largest ethylene carbonate market share owing to the rising use of ethylene carbonate in the automotive industry.

Regional Insights:

Geographically, the market is studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

• North America: The driving factors for the North American market are the wide applications of ethylene carbonate in the automotive, chemical, and electronics industries. Other drivers include the regional commitment to advanced technologies and the framework of sustainable solutions that might help strengthen the electric vehicle market.
• Asia Pacific: Asia Pacific has the largest and fastest-growing market for ethylene carbonate, with significant demand from countries such as China, Japan, and South Korea, among others. The region's booming automotive, electronic, and textile industries also contribute to the market growth.

Ethylene Carbonate Market Report Scope:

Segmentation:

By Form:

• Solid
• Liquid

By Applications:

• Lithium Battery Electrolytes
• Lubricants
• Plasticizers
• Surface Coatings
• Chemical Intermediates
• Fiber Processing Agents
• Dyes
• Others

By End-Use Industry:

• Automotive
• Oil & Gas
• Textile
• Chemical
• Medical
• Personal Care & Hygiene
• Agriculture
• Others

By Region:

North America

• U.S.
• Canada

Europe

• Germany
• U.K.
• France
• Russia
• Italy
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• South Korea
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• Israel
• South Africa
• Rest of Middle East & Africa

The key players in the ethylene carbonate market are Oriental Union Chemical Corporation, BASF SE, Huntsman Corporation, and others. These players are adopting strategies, such as partnerships and collaborations, investments, and others to maintain a competitive edge in the market.

List of Key Players in the Market:

• Oriental Union Chemical Corporation
• Huntsman Corporation
• BASF SE
• Mitsubishi Chemical Corporation
• Toagosei Co., Ltd.
• Asahi Kasei
• Prasol Chemicals Ltd
• Shandong Shida Shenghua Chemical Group
• Shandong Senjie Chemical
• Dubi Chem
• Alfa Aesar

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• In March 2024, Dow announced plans to invest in ethylene derivatives capacity on the U.S. Gulf Coast, including producing carbonate solvents, essential components of the lithium-ion battery supply chain. This investment supports growth in the domestic electric vehicle (EV) and energy storage markets, and it builds on Dow's excellent track record of growth initiatives, including recent global alkoxylation capacity expansions in the U.S. Gulf Coast and Europe, which are set to come online within the next two years. This project will capture more than 90% of the carbon dioxide produced during the ethylene oxide manufacturing process and use it to generate carbonate solvents required for vehicle electrification and to enhance the U.S. power system through energy storage.
• In June 2022, Lotte Chemical Co., Ltd., one of the largest chemical companies in South Korea, will collaborate with Sasol Ltd., a South African energy and chemical corporation, to assess the feasibility of building and operating a jointly owned plant for manufacturing electrolyte solvents, considered one of the critical components of electric vehicle lithium-ion batteries. The two firms will perform a pre-feasibility study to determine if Sasol's locations near Lake Charles, Louisiana, and Marl, Germany, are viable for a facility producing electrolyte solvents using feedstock from Sasol and third parties, along with technologies from LOTTE and third-party licensors.

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