Ethylene Carbonate Market (2023 - 2028)
Ethylene carbonate is a highly polar solvent and dissolves large amounts of electrolyte, it is mainly used in lithium batteries electrolyte solution. Additionally, it can easily dissolve polymers, making it useful as a detergent and releasing agent.
Some of its applications include lubricants, soil hardening agents, organic solvents, raw materials for organic synthesis, medical products, and fiber processing agents.
The global ethylene carbonate market was valued at US$ 512.5 million in 2021 and is expected to expand at a CAGR of 6.85% during the forecast period (2022 to 2030). The main driver of the expansion of ethylene carbonate and Li-ion battery electrolytes has been the rise in sales of battery-powered products and the adoption of electric cars. The need for ethylene carbonate as a lubricant has also expanded due to the expansion of the automotive manufacturing industry. Therefore, the market for ethylene carbonate is being shaped by the automobile industry.
The rise of the automotive sector and the improvement in living standards have fueled the demand for lubricants, which in turn has fueled the market expansion. The demand for electric vehicles has increased due to environmental issues including the strict emission of pollutants, which has led to an increase in the growth of ethylene carbonate. Mobile phones, tablets, and medical equipment all make use of lithium ions as electronic components. As a result, the market for ethylene carbonate has expanded due to a rise in the manufacture and sales of these devices.
The market demand for lithium-sulfur batteries is increasing because of their large increase in energy storage capacity over lithium-ion batteries. In comparison to lithium-ion batteries, they are regarded as next-generation electric vehicle batteries. They feature widely available sulfur cathodes and have no environmental impact, which has increased demand for ethylene carbonate in lithium-sulfur batteries.
The ethylene carbonate market is segmented by form, application, end-user, and by region.
By form, the global market is dominated by solid shape. This is due to their increasing use in a variety of applications, including lubricants, solvents, plasticizers, and chemical intermediates. To serve end-use industries including automotive, medical, chemical, and industrial, EC in solid form is frequently used in these applications. Depending on the needs, substances like diethyl carbonate, ethene oxide, and propylene oxide can be combined with liquid EC to create specific materials. Additionally, liquid ethylene carbonate is employed in the production of electrolytes for lithium-ion batteries. These elements are anticipated to increase the demand for liquid ethylene carbonate.
By application, due to its widespread use across numerous end-use industries, including the automotive, industrial, and oil & gas sectors, the lubricants segment dominated the global market. In addition, it is anticipated that increased use of these lubricants in the manufacturing of engines and the vehicle sector will increase demand for ethylene carbonate. The growing use of these surface coating materials in the automotive industry to lower VOC emissions and provide durable protection for all cars is anticipated to positively affect the surface coatings market, driving up demand for ethylene carbonate on a global scale.
By end-use, the market was dominated by the automotive industry. This is explained by the fact that ethylene carbonate has a high dielectric strength and is increasingly used in the automotive sector to assure safety and protection against electric shock when producing components like spark plugs, ignition cable sets, and battery terminals.
By region, the market was controlled by Asia Pacific. This is due to elements including a robust industrial base, supportive governmental regulations, and the availability of low labor costs that motivate important players to invest in the area. Along with producing EV lithium-ion batteries, the region also leads the world in the manufacture of lithium-ion battery electrolytes.
China, Japan, South Korea, and India are manufacturing hubs for goods like batteries, lubricants, and paints & coatings. Additionally, the rise of the industrial and automotive sectors because of the major economies has increased demand for ethylene carbonate in a variety of applications.
Due to the existence of huge firms in the chemical and automotive industries in North America, is regarded as one of the primary product markets. Over the past ten years, North America has seen a steady increase in car utilisation. The need for ethylene carbonate is growing as a result. Additionally, the U.S. market saw a significant increase in demand for electric vehicles, which is anticipated to benefit the global industry.
In June 2022, Lotte Chemical, a significant chemical firm with headquarters in South Korea, said that it would produce electrolyte organic solvents at high-purity ethylene oxide facilities in order to manufacture ingredients for electric vehicle batteries. Over 30% of electrolytes are made up of organic solvents; imports are heavily reliant on this region. The business announced that the board has approved spending 210 billion won, or USD 185 million, to develop a plant by the second half of 2023 that will create organic solvents used in electrolytes such as dimethyl carbonate and ethylene carbonate.
In September 2021, KPX Chemical, a producer of polyurethanes in Korea, and Huntsman Corporation, a chemical manufacturer in the U.S., have formed a joint venture called KPX Huntsman Polyurethanes Automotive Co. The joint venture will operate a specialist polyurethane production facility at KPX Chemical’s Ulsan project, which will supply polyurethane to Korean automakers.
In July 2020, Azelis Americas CASE, LLC in the United States and Azelis Canada, Inc. in Canada are distributor partners with Huntsman Corporation, and the two companies recently announced the expansion of their partnership. This agreement is intended to serve as the catalyst for the company’s Material Science division’s allocation in the US and Canada.
Ethylene carbonate and Li-ion battery electrolytes have experienced significant growth due to the increased use of electric vehicles and the sales of battery-powered goods. It is obvious that the vehicle sector is influencing the ethylene carbonate market as a result.