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Growing demand for ethylene carbonate in lithium-ion electrolytes and lubricants applications

 

The Global Ethylene Carbonate Market size is projected to reach USD 439 million by 2025, at a CAGR of 6.6% during the forecast period. The market is driven mainly by the application expansion achieved through the improved quality of ethylene carbonate & lithium batteries electrolytes, lubricants, coatings, and plasticizers in various end-use industries such as automotive, industrial, electronics, medical and others, globally.

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Oriental Union Chemical Corporation (Taiwan), Huntsman (US), BASF (Germany), Mitsubishi Chemical (Japan), and Toagosei Co., Ltd. (Japan), among others, are the leading ethylene carbonate manufacturers, globally. These companies have established their brands, and ethylene carbonate produced by these companies is consumed domestically. It is supplied further to various countries such as China, Japan, New Zealand, Australia, and others within the Asia Pacific region.

Lubricants to dominate the global ethylene carbonate market during the forecast period

The ethylene carbonate industry has been segmented based on application into lubricants, lithium battery electrolytes, plasticizers, surface coatings, and others. The lubricant segment accounted for the larger share of the market in 2019. The growth in this segment is attributed to the increasing demand from various end-use industries such as industrial and automotive. They are used in automotive engines as cooling and cleaning agents. These factors are expected to drive the demand for ethylene carbonates during the forecast period.

Automotive end-use industry segment to dominate the global ethylene carbonate market during the forecast period

The market has been segmented based on the end-use industry into automotive, industrial, medical, oil & gas, personal care & hygiene, and others. The automotive segment accounted for the largest share of the market in 2019 and is expected to witness significant growth during the forecast period. The increase in this segment is attributed to different requirements by manufacturers, such as reduced emissions of volatile organic compounds (VOCs) and durable protective surface coating on vehicles. The motorization rate has increased over the last five years because of the rise in the disposable income of people and industrial growth across the globe. These factors are expected to drive demand during the forecast period.

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Huntsman accounted for the second-largest share in the market owing to the vast experience in the manufacturing of ethylene carbonate, broad product portfolio, huge production, sales, logistics, and technical service network. The company is highly focused on R&D and operates facilities in over 30 countries. It offers ethylene carbonate for various applications such as chemical intermediates, surface coatings, wood binder resins, lubricants, plasticizers, and electrolytes. The company is currently investing in advanced production technologies and carbonate derivatives to meet the customer’s demand.

 

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