Ethylene Carbonate (EC) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast 2024-2028

Ethylene Carbonate (EC) Market Forecast 2024-2028

The Ethylene Carbonate (EC) Market size is forecast to increase by USD 223.48 million at a CAGR of 10.32% between 2023 and 2028. The growth rate of the market depends upon several key factors. These include the continuous escalation in automotive production, which drives the demand for various materials and components. Additionally, there is a rising need for plasticizers, driven by their diverse applications across industries. Moreover, the increasing focus on sustainable energy solutions has led to a surge in demand for energy storage systems, further propelling market growth. These factors collectively contribute to a dynamic landscape, fostering innovation and driving the market's expansion as industries adapt to evolving trends and consumer demands in the automotive and energy sectors. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the Market Size During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by application (lubricants, lithium battery electrolytes, solvents, photochromatic, and others), type (solid and liquid), and geography (North America, Europe, APAC, South America, and Middle East and Africa).

The market is experiencing significant growth, driven primarily by the surge in demand for lithium-ion batteries. As the adoption of electric cars and electric vehicles (EVs) rises, there's a parallel increase in the need for efficient lithium battery technologies. This trend is further fueled by the global shift towards renewable sources and sustainable energy solutions. However, the lithium consumption required for these batteries poses challenges in terms of supply and cost, prompting exploration into substitutes and alternatives. The chemical sector plays a crucial role in developing applications, intermediates, and electrolyte solutions with optimal ionic conductivity while addressing concerns about health hazards and toxicity associated with certain components. These advancements are vital for both the automobile sector and the electronics sector, where organic solvents like Ethylene Carbonate play a pivotal role in enhancing performance and safety standards.

By Application 

The market share growth by the lubricants segment will be significant during the forecast years. One of the primary factors driving the demand for ethylene carbonate in the lubricants segment is its ability to enhance the performance and stability of lubricating oils. It serves as a key ingredient in formulating synthetic lubricants, imparting improved thermal stability and oxidation resistance. This, in turn, extends the lifespan of lubricants and reduces maintenance costs for machinery and equipment.

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The lubricants were the largest segment and were valued at USD 79.14 million in 2018. Ethylene carbonate is used as a protective surface coating for automotive body parts and vehicle interiors in the automotive industry. Animal drugs are produced using ethylene carbonate in the pharmaceutical industry. It is utilized in the production of paints, oils, metals, and industrial components in industrial applications. The increase in demand for ethylene carbonate in the lubricant manufacturing sector can be attributed to the rising demand for high-performance lubricants in a variety of industrial applications. Additionally, ethylene carbonates superior properties, such as its ability to improve the lubricating properties of the base oil, drive its demand in the lubricant manufacturing industry. These factors under the lubricants segment will fuel the growth of the market during the forecast period.

By Type 

Based on the type, the market has been segmented into solid and liquid. The solid?segment will account for the largest share of this segment.?This can be attributed to the increasing demand for chemical intermediates, solvents, plasticizers, and lubricants. The solid form of ethylene carbonate is widely used in these applications to serve the automotive, medical, chemical, and industrial end-use industries. As an additive, solid ethylene carbonate is utilized in the production of cosmetics, pharmaceuticals, and soldering fluxes. In addition, it is used as a solvent in the oil and gas industry to reduce viscosity during high-temperature or high-pressure drilling operations when other fluids are too thin to function. Therefore, its several usages drive the solid segment of the market growth during the forecast period.

By Region 

North America is estimated to contribute 35% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the ethylene carbonate market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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The increasing use of ethylene carbonate in the region is attributable to its high demand in the automotive industry and the expansion of oil and gas extraction. The US is the largest crude oil producer in North America. The rising volume of automobile production is anticipated to drive the demand for ethylene carbonate in North America. In the automotive industry, ethylene carbonate is utilized in the production of lithium batteries and protective coatings for vehicle bodies. Some automakers in the region are concentrating on expanding the production of electric vehicles.

Moreover, as ethylene carbonate is used in the batteries of electric vehicles, the expansion of the production of electric vehicles by automotive companies will fuel the growth of the ethylene carbonate market. For example, General Motors Co. (General Motors) announced in October 2020 that it would invest in its US manufacturing operations to increase the production of electric vehicles. Such factors are expected to drive the regional market growth during the forecast period. 

Market Definition 

Ethylene carbonate is an organic chemical compound. It is an odorless, colorless, and transparent crystalline solid. It is classified as the carbonate ester of ethylene glycol and carbonic acid.

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Market Dynamics

The market is driven by the increasing adoption of renewable energy production, particularly Solar PV Systems, with a focus on reducing CO2 emissions and dependence on fossil fuels. The demand is influenced by factors such as the cost and efficiency of Mono C-Si solar PV modules, Lithium-ion batteries, and the overall installation cost. Challenges lie in achieving battery cost-effectiveness and addressing grid generation and transmission issues. Trend-wise, advancements in technologies like Amorphous Silicon (A-Si PV) and ongoing support through Feed-in tariff programs contribute to ethylene carbonate market dynamics in both residential and commercial sectors. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

Growing automotive production is notably driving market growth. Owing to its superior properties, including low toxicity and high permittivity, Solar PV Systems and installation costs are increasingly being used as a protective surface coating on vehicles in response to rising environmental concerns regarding vehicle pollution. Large quantities of ethylene carbonate are used to improve the smoothness of automobile bodies. Ethylene carbonate has high dielectric strength, that is, it can withstand high electric field without becoming electrically conductive, and its application has increased in the automotive industry to ensure safety and protection against electric shock in the production of parts such as spark plugs, ignition cable sets, and battery terminals.

Additionally, LCOE (Levelized Cost of Electricity) and Mono C-Si solar PV modules play a crucial role in the sustainable energy sector. The adoption of these technologies is driven by the global demand for clean and renewable energy. As the world faces challenges related to CO2 emissions and fossil fuels, there is a significant push toward Renewable Energy Production. This shift is also reflected in the increased use of Lithium-ion batteries in various applications, including electric vehicles and grid storage. The continued development of Solar PV Systems and associated technologies is vital for achieving a more sustainable and eco-friendly future.

Significant Market Trends 

Increasing demand for electric vehicles is an emerging trend shaping market growth. The growing consumer preference for electric vehicles (EVs), as a result of concerns about global warming, poses a threat to the demand for conventional gasoline-powered and mechanically-controlled automobiles. The electrification of automobiles has been achieved through innovative battery technologies. Tesla Inc. (Tesla), BMW, and Ford are among the companies that have begun producing EVs, which can fiercely compete with conventional automobiles. EVs are also manufactured by BYD, Beijing Electric Vehicle, ZhiDou, Shanghai Auto, and Zotye.

Moreover, the high dielectric strength of ethylene carbonate and its increasing use in the automotive industry ensure safety and protection against electric shock in the production of spark plugs, ignition cable sets, and battery terminals. Germany, the United States, and Japan are the leading EV manufacturing nations. In lithium batteries, ethylene carbonate is used as a component of electrolytes with high permittivity. Consequently, the rising demand for EVs will drive the global demand for lithium batteries, which will have a positive impact on the growth of the market over the forecast period.

Major Challenge

Fluctuating crude oil prices are a significant challenge hindering market growth. The oil and gas industry is a significant provider of petrochemicals. The prices of petrochemicals are impacted by fluctuations in crude oil prices. The price of ethylene alcohol, urea, methanol, and other petrochemicals increases when the price of crude oil increases. This price volatility compels end-user industries to switch to bio-based fuels, which has become one of the biggest challenges for the market. For example, the price of crude oil in April 2020 dipped to an average price of 21.04 US dollars per barrel.

Similarly, from February 2022, the price of crude oil increased exponentially and settled at 105.08 US dollars per barrel. The fluctuating oil prices as a result of dwindling supplies and the shale gas boom in the United States have decreased the demand for the raw materials used to manufacture ethylene carbonate. Consequently, fluctuating crude oil prices will impede the growth of the market during the forecast period.

Ethylene Carbonate (EC) Market Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

Actylis - The company offers ethylene carbonate which is used as a solvent for many polymers and resins, plasticizers, and as an intermediate for pharmaceuticals.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Asahi Kasei Corp., ATAMAN Kimya AS, BASF SE, Ereztech LLC, FUJIFILM Holdings Corp., Haihang Industry Co. Ltd., Merck KGaA, Mitsubishi Chemical Group Corp., National Analytical Corp., Oriental Union Chemical Corp., Otto Chemie Pvt. Ltd., Shandong Lixing Advanced Material Co. Ltd., Toagosei Co. Ltd., Tokyo Chemical Industry Co. Ltd., Vizag Chemical International, Zhengzhou Alfa Chemical Co. Ltd., Zhengzhou Meiya Chemical Products Co. Ltd., Spectrum Laboratory Products Inc., and Huntsman International LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Lubricants
  • Lithium battery electrolytes
  • Solvents
  • Photochromatic
  • Others

• Type Outlook
  • Solid
  • Liquid

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The market is experiencing growth due to its critical role in lithium-sulfur batteries and lithium-ion batteries. EC is used to improve lithium ion mobility and conductivity, particularly in liquid form. It is also utilized in surface coatings for EV lithium-ion batteries and various electronic devices, including gadgets and medical equipment. EC is crucial in chemical reactions within batteries, functioning effectively even under high temperature and pressure. In medical applications, EC is used as a plasticizer and vinylene carbonate precursor. Its versatility extends to organic synthesis applications and as an additive in plastics production. EC is sourced from ethylene oxide and finds application in various industries, including oil & gas and personal care and hygiene, highlighting its broad market reach and significant environmental impact.

The market plays a crucial role in various industries, particularly in battery production for next-generation electric vehicle batteries and portable electronics. It is essential for lithium-ion battery electrolytes, offering viscosity reduction and lubricity. EC is also used in solid electrolytes and capacitor electrolytes, enhancing battery performance. Beyond batteries, EC is found in high-density plastics and serves as a reactor system component. Its production involves chemical changes and utilizes additives like carbon dioxide, petroleum, and natural gas. This versatile compound is crucial for renewable energy storage and is sourced from various industrial waste streams, highlighting its significance in sustainable practices.

Market Scope
Report Coverage	Details
Page number	170
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 10.32%
Market Growth 2024-2028	USD 223.48 million
Market structure	Fragmented
YoY growth 2023-2024(%)	9.96
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 35%
Key countries	US, Canada, China, Japan, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Actylis, Asahi Kasei Corp., ATAMAN Kimya AS, BASF SE, Ereztech LLC, FUJIFILM Holdings Corp., Haihang Industry Co. Ltd., Merck KGaA, Mitsubishi Chemical Group Corp., National Analytical Corp., Oriental Union Chemical Corp., Otto Chemie Pvt. Ltd., Shandong Lixing Advanced Material Co. Ltd., Toagosei Co. Ltd., Tokyo Chemical Industry Co. Ltd., Vizag Chemical International, Zhengzhou Alfa Chemical Co. Ltd., Zhengzhou Meiya Chemical Products Co. Ltd., Spectrum Laboratory Products Inc., and Huntsman International LLC
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East, and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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