Ethylene Carbonate Market

The global Ethylene Carbonate Market is valued at USD 0.8 Billion in 2024 and is projected to reach a value of USD 3.623 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 14.75 % between 2025 and 2035.

Premium Insights

Ethylene

• The increased automotive industry has led to a high demand for lubricants, contributing to the rising demand for ethylene carbonate, which is used as a solvent in these lubricants. This factor is driving the ethylene carbonate industry.
• The Asia Pacific accounted for the largest growth, with a revenue share of 36% in 2024.
• The Solid form segment accounted for the largest market growth and contributed more than 51% of the total revenue share in 2024.
• The Automotive segment revealed the most significant market growth and contributed around 45% of the total revenue share in 2024.
• Based on Application, Lithium Battery Electrolyte segment accounted for the largest market growth in 2024.

Top Market Trends

1. Ethylene carbonate is a crucial element of the electrolytes used in

   lithium-ion batteries

   , the dominant battery type in

   electric vehicles

   . There is a high demand for ethylene carbonate because of the augmented demand for EVs, fuelling the overall market increase.
2. Ethylene carbonate is used for the production of polycarbonate plastics, which are utilized in numerous applications such as automotive, electronics, and construction. The rise in demand for polycarbonate plastics is propelling the development of the ethylene carbonate market.
3. 3. Ethylene carbonate is utilized as a chemical intermediate in generating different chemical substances, which include solvents, plasticizers, and lubricants. The expansion of the chemical intermediates industry is projected to increase the demand for ethylene carbonate further.
4. 4. Manufacturers increasingly focus on producing sustainable ethylene carbonate, using renewable feedstocks, and reducing their environmental impact.
5. 5. Asia Pacific is the largest and fastest-increasing market for ethylene carbonate because of its strong growth in the automotive, electronics, and construction industries.

Economic Insights

The economic outlook for the ethylene carbonate industry is favorable. The market is poised for sustained development in the future, driven by the rising demand for lithium-ion batteries, the expanding adoption of polycarbonate plastics, and the growth of the chemical intermediates industry. In addition, the ethylene carbonate industry is subject to various regulatory policies, which may impact its growth. For example, the European Unions REACH regulations restrict the use of certain chemicals due to environmental and health concerns. Compliance with such regulations might pose challenges to the industry.

Market Segmentation

The Global Ethylene Carbonate Market is segregated into the below-mentioned segments as:

{{Segmentation_Ext}}

Based on Form

Solid Form Segment to Lead Maximum Market Share

In 2024, the solid segment dominated the market due to its prolonged shelf life and ability to endure elevated temperatures without chemical alterations. Solid ethylene carbonate is widely employed across diverse industries such as automotive, chemical, medical, and industrial sectors. It functions as an additive in the manufacturing of cosmetics, pharmaceuticals, and soldering fluxes.

Based on Application

Lithium Battery Electrolyte Segment Expected to be the Major Market Revenue Share

The lithium battery electrolyte segment is witnessing the greatest market growth during the forecast period. The extensive adoption of lithium-ion batteries in consumer electronics like tablets, smartphones, and medical devices has spurred the demand for ethylene carbonate, a crucial ingredient in lithium-ion battery electrolytes. The significant volume of electrolytes dissolved in ethylene carbonate drives the markets growth.

Based on End-use

Automotive Segment Expects Dominion Status in the Forecast Period

The automotive segment is expected to experience significant market growth over the forecast period. The high demand can be attributed to manufacturers' demand for minimizing the release of volatile organic compounds that contribute to smog. In addition, the growth is propelled by the increasing demand for electric vehicles as a solution to mitigate pollution and environmental concerns.

Based on Region

Asia Pacific to Dominate Global Sales in the Projected Period

The Asia Pacific dominated the global ethylene carbonate market in 2024. The rise in the adoption of electric vehicles and the growing demand for energy storage systems in the region drive the market. Moreover, favorable government policies, a strong industrial base, and the availability of cost-effective labor incentivize major industry players to invest, which are other factors expected to boost market growth. Also, the region is foremost in producing lithium-ion battery electrolytes and EV lithium-ion batteries. This is likely to propel the market expansion during the forecast period.

Competitive Landscape

The industry is marked by ongoing research and development, advancements in product offerings, strategic partnerships, and expansion initiatives undertaken by major players to uphold their market standings and address the changing needs of diverse sectors. For example, Huntsman Corporation is increasing the production capacity of Ultrapure Ethylene Carbonate at its Texas facility within the performance products division.

The key players in the global Ethylene Carbonate market include - Huntsman International LLC (U.S.) among others.

Recent Market Developments

• In June 2024, LOTTE Chemical made a significant investment in the Daesan Petrochemical Complex in order to enhance its competitiveness in producing environmentally friendly and specialized materials, as well as contribute to the local economy. The company will invest around 602 billion KRW to construct new facilities, including an EV battery electrolyte organic solvent plant and CO2 capture and liquefaction facilities, as well as expand the EOA and HPEO plants.

Segmentation of the Global Ethylene Carbonate Market