by The global ethylene carbonate market is experiencing robust growth, with promising prospects on the horizon. According to recent market analysis, the market size reached USD 275.4 million in 2021 and is expected to exhibit a Compound Annual Growth Rate (CAGR) of 5.5% during the projected period. Several key factors are driving this upward trajectory, including the growing demand for ethylene carbonate (EC) as a vital raw material in lubricant production and the expanding use of lithium-ion batteries in electric vehicles (EVs).
Growing Demand for Lithium-Ion Batteries Drives Market Expansion
The electric vehicle industry has witnessed a remarkable surge in recent years, with more than 11.3 million battery electric cars (BEVs) in use worldwide in 2021. The trend towards electric vehicles is driven by their cost-effectiveness, ease of maintenance, lower fuel prices, and superior fuel efficiency. Lithium-ion batteries, which rely on ethylene carbonate as an electrolyte solvent, have become a cornerstone of this shift toward sustainable transportation. These batteries are lighter, more energy-efficient, and environmentally friendly compared to conventional lead batteries, contributing to their widespread adoption. Government emphasis on fuel efficiency further fuels the demand for lithium-ion batteries, indirectly benefiting the ethylene carbonate market.
Innovative Cooling Solutions to Address Lithium-Ion Battery Overheating
The industry has witnessed the introduction of innovative solutions to tackle lithium-ion battery overheating issues, which could offer lucrative opportunities for market growth. Leading lithium-ion battery manufacturers are investing in Research and Development (R&D) to address this challenge effectively. These developments are expected to drive the demand for ethylene carbonate, making it an essential component in battery technology.
Consolidation and Expansion in the Market
The ethylene carbonate market is currently dominated by a few key players who are actively expanding their product lines and global reach. Prominent manufacturers, such as OUCC, Mitsubishi Chemical Holdings Corporation, Fujifilm Wako Chemical Corporation, Taogosei Co., Ltd., and BASF SE, are playing a pivotal role in meeting the growing demand for ethylene carbonate. In a notable development in September 2021, Huntsman Corporation and KPX Chemical formed a joint venture, KPX Huntsman Polyurethanes Automotive Co., aimed at producing and selling polyurethane to Korean automakers, further strengthening the markets position.
COVID-19 Impact and Market Resilience
The COVID-19 pandemic had a significant impact on global markets, including the ethylene carbonate market. However, with the gradual relaxation of pandemic-related restrictions and increased demand for plasticizers, lubricants, and lithium-ion batteries, the market is rebounding. The publics growing desire for various products is further boosting the demand for ethylene carbonate.
Driving Sustainable Growth with Bio-Based Plasticizers
Ethylene carbonate plays a crucial role in enhancing the ionic conductivity of polymer electrolytes used in applications like PVC cable, vinyl flooring, and vehicle parts. Stringent regulations against hazardous phthalates as plasticizers have led to the development of eco-friendly alternatives based on ethylene carbonate. As the demand for PVC products, in which more than 90% of plasticizers are used, continues to rise, manufacturers of ethylene carbonate have a significant opportunity to capture market share.
Challenges in Raw Material Use
While ethylene carbonate is considered a more environmentally friendly solvent, its conventional production method involves the use of hazardous substances like carbon dioxide and ethylene oxide. These materials are associated with health and environmental risks, limiting the markets potential for expansion. Ethylene oxide is categorized as a high-priority contaminant by the US EPA, while carbon dioxide is a greenhouse gas.
Regional Dominance and Market Landscape
Asia-Pacific is expected to dominate the ethylene carbonate market, driven by its well-established electronics industry, extensive lithium-ion battery production in countries such as China and Japan, and ongoing investments in lithium technology. The regions increasing demand for electric vehicles, propelled by government regulations favoring sustainable transportation, is a key driver of ethylene carbonate consumption.
North America is poised for significant growth, primarily due to the United States and Canadas strong positions in the market. The regions preference for synthetic lubricants, owing to their superior characteristics such as wear and tear protection, low friction, and thermal stability, is contributing to the markets growth. The continued expansion of specialized manufacturing industries and the rising adoption of electric vehicles in the United States further boost the demand for ethylene carbonate.
Competitive Landscape
Prominent players in the ethylene carbonate market include Oriental Union Chemical Corporation, BASF SE, Mitsubishi Chemical Group Corporation, Huntsman International LLC, and others. Recent investments and expansions, such as LOTTE Chemicals plans to build a plant for manufacturing high-purity ethylene carbonate for lithium-ion batteries, highlight the industrys commitment to meeting the growing demand.
With the market on an upward trajectory, fueled by sustainable initiatives and the electrification of transportation, ethylene carbonate is poised to play a pivotal role in shaping the future of battery technology and eco-friendly applications.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/ethylene-carbonate-market
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COMTEX_442702969/2840/2023-10-31T00:00:07
Julian Lopez is professor emeritus of finance, served as the founding academic affairs dean and founding chair of the finance department.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No journalist was involved in the writing and production of this article.