Ethylene Carbonate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Ethylene Carbonate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Ethylene Carbonate Market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The ethylene carbonate market was negatively impacted by the COVID-19 pandemic. Due to the pandemic scenario, electric vehicle (EV) and device manufacturing units were temporarily shut down, resulting in a decrease in lithium battery and lithium consumption during the lockdown which in turn affected the growth of the ethylene carbonate market. However, as the lockdowns were lifted, the EV segment picked up the pace in order to meet the target emission standards set by many countries, which will increase demand for lithium batteries and thus stimulate ethylene carbonate demand in the near future.

Key Highlights

• Over the medium term, the factors affecting the growth of the ethylene carbonate market are the rising number of applications for intermediates in the chemical sector and the growing need for lithium batteries in the automobile sector.
• However on the flip side, rising health hazards due the toxicity of ethylene carbonate and replacement prospects by other substitutes are likely expected to hinder the market growth.
• Asia-Pacific is expected to dominate the global market owing to the highly developed electronics sector and high production of lithium-ion batteries.

Key Market TrendsIncreasing Demand in Lithium Batteries

• Ethylene Carbonate is being increasingly used as electrolytes in lithium-ion batteries. A modern Lithium-ion battery (LIB) contains a graphite anode, a lithium metal oxide cathode, and an electrolyte solution doped with a lithium solution, such as lithium hexafluorophosphate in a mixed organic solvent, which is often ethylene carbonate.
• The emergence of new and exciting markets, for both commercial and industrial applications, has been boosting the demand for Li-ion batteries. In recent years, the demand for Li-ion batteries from the data center industry and material handling industry grew, particularly in developing countries.
• Due to government regulations on fossil fuel engines, there has been a rapid expansion in electric vehicle demand which is having a significant influence on demand for lithium batteries.
• In addition, the technological advancement and declining costs has been encouraging the adoption of the lithium-ion batteries low-speed electric vehicles (LSEV) market. The LSEV market is mainly dominated by India and China. More than 90% of electric vehicles in India are low-speed electric vehicles (LSEV).
• The rising number of electronics, growing demand for mobiles, increasing energy saving sources, and technological advancements in developed regions are driving the demand for batteries, which in turn is expected to drive the market for ethylene carbonate during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific is expected to dominate the global market owing to the highly developed electronics sector and high production of lithium-ion batteries in China and Japan, coupled with the continuous investments in the region to advance lithium technology through the years.
• Besides, the growing government regulations on combustion engines in Asia and increased the need for various electric vehicles in China, Japan, and India are increasing the demand for ethylene carbonate in various applications.
• India has been witnessing a surge in manufacturing batteries locally, owing to the government’s thrust on e-mobility. The government of India aims to achieve a 30% electric fleet by 2030. Also, in March 2019, the Government of India approved to set up a National Mission on Transformative Mobility and Battery Storage for driving clean and sustainable mobility initiatives with a five-year phased manufacturing program (PMP) till 2024.
• According to The Ministry of Economy, Trade and Industry (METI), Japan, Japanese companies are leading the market in the production of lithium-ion batteries in recent years, and these batteries are further being used in electronics as well as in automobiles.
• Ethylene Carbonate acts as an intermediate and is also employed in pharmaceuticals and chemical applications to produce various drugs and chemical solutions.
• China is the second largest market for pharmaceuticals, globally. The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and aging population in the country, rising incomes, and increasing urbanization. The pharmaceutical sales of the country are expected to reach up to USD 175 billion by 2022. This is expected to boost growth of the market studied in terms of its usage in the pharmaceutical industry.
• All the abovementioned factors are expected to augment the demand for ethylene carbonate in the region in the coming years.

Competitive Landscape

The global ethylene carbonate market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are BASF SE, Huntsman International LLC, Mitsubishi Chemical Corporation, OUCC, and Merck KGaA, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

TOAGOSEI CO., LTD.
BASF SE
Huntsman International LLC
Merck KGaA
Mitsubishi Chemical Corporation
New Japan Chemical Co., Ltd.
OUCC
Shandong Shida Shenghua Chemical Group Co., Ltd.
Tokyo Chemical Industry Co., Ltd
Zibo Donghai Industries

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