Ethylene Vinyl Acetate Market - Forecast(2024 - 2030)
Market Overview
The Ethylene Vinyl Acetate Market is forecast to reach US$16 billion by 2030, after growing at a CAGR of 5.7% during the forecast period 2024-2030. Ethylene Vinyl Acetate (EVA) is a thermoplastic copolymer that provides crack resistance, flexibility, along with adding toughness to certain materials. Ethylene Vinyl Acetate copolymers are commonly used in a wide range of applications such as solar cell encapsulation, film manufacturing, wires and cables, adhesives, sealants, coatings, and as redispersible polymer powder in plasters and cement renders. An increase in demand from the agriculture, and packaging industry acts as a major driver for the market.
There is a growing trend towards sustainable and bio-based materials. EVA produced from sugarcane is a bio-based alternative to conventional petroleum-based EVA. Additionally, the growing investment in solar energy by governments acts as an opportunity for the ethylene vinyl acetate market. This commitment to increase renewable energy aligns with the goals of reaching net zero which contributes to a positive outlook for the ethylene vinyl acetate industry during the forecast period.
Market Snapshot
Report Coverage
The report: “Ethylene Vinyl Acetate Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Ethylene Vinyl Acetate Industry.
By Type: Low Density, Medium Density, and High Density.
By Application: Solar Cell Encapsulation, Film Manufacturing, Wire & Cable, Adhesives & Sealants, Coatings, Plasters and Cement Renders, Others.
By End-Use Industry: Pharmaceutical, Packaging, Building & Construction, Agriculture, Footwear, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa)
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Key Takeaways
- Building and Construction Industry in Ethylene Vinyl Acetate Market is expected to see the fastest growth, owing to increasing demand for thermoplastic copolymers (EVA) for the production of adhesives, sealants, cement, and other construction materials.
- EVA has properties such as longer durability, higher flexibility, crack resistance, and corrosion resistance that makes it ideal for the production of various construction materials.
- Asia-Pacific dominated the Ethylene Vinyl Acetate Market in 2023, with China most likely to drive the market growth. The major reason behind this is the increasing demand of adhesives and plastics from the packaging industry, along with construction activities that require the use of these thermoplastic copolymers (EVA).
- The Solar Cell Encapsulation segment held the largest share in the Ethylene Vinyl Acetate Market since the demand for EVA has been increasing for this segment due to the ideal properties that the EVA holds.
Ethylene Vinyl Acetate Market Segment Analysis – By Type
High-Density thermoplastic copolymers (EVA) held the largest share in the Ethylene Vinyl Acetate Market in 2023 and is expected to grow at a CAGR of 5.5% between 2024 and 2030. High density Ethylene Vinyl Acetate has better chemical resistance, better impact resistance to a lower temperature, better UV resistance, and are more cost-effective in comparison to low and medium Ethylene Vinyl Acetate. Moreover, high-density EVA is generally preferred for the production of construction materials like adhesives, sealants, protective coatings, plasters, and cement renders. Hence, these factors are most likely to increase their demand in the upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By Application
The Solar Cell Encapsulation segment held the largest share in the Ethylene Vinyl Acetate Market in 2023. The primary purpose of encapsulation is to bind the multiple layers of the module together. A typical formulation of EVA or thermoplastic copolymer for PV modules constitutes 28–33% of vinyl acetate by weight that is compounded with additives such as ultraviolet (UV) absorbers, curing agents, thermo-antioxidants, and photo antioxidants. Furthermore, EVA materials are commonly used for encapsulation of around 80% of photovoltaic or PV modules. EVA has lots of advantages, such as low processing temperature, high adhesion strength, excellent adhesive property, and high transparency, along with glass-like transmission properties. In addition to this, the price of EVA is also comparatively low which makes it an ideal material for solar cell encapsulation. Hence, the rise in demand for Ethylene Vinyl Acetate (EVA) for the purpose of solar cell encapsulation will help increase the market growth in the upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By End-Use Industry
The Building & Construction Industry held the largest share in the Ethylene Vinyl Acetate Market in 2023 and is expected to grow at a CAGR of 5.9% between 2024 and 2030. Construction spending on buildings is projected to increase just over 6% in 2023, according to the mid-year update of the American Institute of Architect’s AIA Consensus Construction Forecast. The demand for apartments, condos and townhomes is high as single-family homes have become more expensive and less available due to lack of space. As per a report from the U.S. Commerce Department, homebuilding increased in August 2022 as rising rents boosted the construction of multi-family housing to the highest level in more than 36 years. The number of apartments under construction (890,000 residents in 2-plus unit properties) as of September 2022 is at the highest level since the first quarter of 1974, according to the National Association of Home Builders (NAHB). This, in turn, increases the demand for the use of Ethylene Vinyl Acetate required for the production of construction materials, thus, leading to the growth of the market in the upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the Ethylene Vinyl Acetate Market in 2023 up to 38%, with China being the one to dominate the market. China’s construction sector is expanding rapidly. According to the National Bureau of Statistics, China’s construction output is estimated to be worth approximately US$4.9 trillion in 2022, up by 3.8% over 2021. China plans to invest US$1.43 trillion in key construction projects as part of its 14th five-year plan. As per the National Development and Reform Commission (NDRC), the Shanghai plans calls for a total investment of US$38.7 billion over the next three years. The Japanese construction industry is expected to boom as the World Expo will be hosted in Osaka, Japan in 2025. Such developments boost the ethylene vinyl acetate market size in the region.
Ethylene Vinyl Acetate Market Drivers
Increasing Demand for Packaging drives the Demand for Ethylene Vinyl Acetate
EVA's chlorine-free composition makes it a preferred choice for packaging applications. EVA#s excellent clarity, flexibility, and thermal stability make it a suitable choice for various packaging applications across different sectors. EVA is often utilized in the production of films and sheets. Its clarity ensures that the packaged products are visible to consumers, adding an aesthetic appeal to the packaging. Moreover, EVA's flexibility allows for easy processing into different forms, enabling the creation of diverse packaging formats. Additionally, EVA's ability to adhere well to various surfaces contributes to its effectiveness in protective films, ensuring a secure and resilient packaging solution. The expansion of EVA in packaging applications also aligns with sustainability goals. According to Trivium Packaging’s 2022 Global Buying Green Report, based on a survey of more than 15,000 consumers across Europe, North America, and South America, key findings conclude that overall consumer demand for sustainable packaging remains high. With the growing need for sustainable packaging, the demand for EVA is set to increase.
An increase in agricultural activities is most likely to increase demand for the product
Ethylene Vinyl Acetate (EVA) is also used in agrochemicals such as pesticides, insecticides, and herbicides. The major advantage of using EVA is that it has a lower frequency of applications in soil, it provides a continuous and regular supply of nutrients to plants, it helps reduce the nutrient loss caused by leaching, provides greater convenience over handling fertilizers help in the mitigation of root damage caused by a high concentration of salts, along with a reduction in production costs. World population has reached 8 billion people on 15 November, 2022, according to the United Nations (UN). The UN also estimates that the world population will reach 9 billion by 2037. The increasing population creates a huge demand for food. As per a report by the Food and Agriculture Organization (FAO), nearly 40% of the world’s agricultural crops are lost to pests and diseases each year. To tackle these problems and to increase production, the use of agrochemicals is vital.
Ethylene Vinyl Acetate Market Challenges
Problems associated with the use of EVA in photovoltaic packaging can cause an obstruction to the market growth
According to recent research published by the U.S. Department of Energy Office of Scientific and Technical Information, EVA when exposed to UV rays or atmospheric water, generally tends to decompose in order to produce acetic acid, which in turn, lowers the pH and increases the surface corrosion rates of embedded devices. In most cases acetic acid is produced at a very slow rate, however, it usually does not take much to catalyze reactions that can lead to rapid deterioration of the module. Hence, this problem associated with the use of EVA in photovoltaic packaging is likely to stifle the market growth.
Ethylene Vinyl Acetate Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Ethylene Vinyl Acetate top 10 companies include:
- Arkema S.A.
- Braskem S.A.
- Celanese Corporation
- The Dow Chemical Company
- Exxon Mobil Corporation
- Formosa Plastics Corporation
- Sumitomo Chemical
- Lyondell Basell Industries N.V.
- Sinopec Corporation
- SABIC
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15.2. Braskem S.A.
15.3. Celanese Corporation
15.4. The Dow Chemical Company
15.5. Exxon Mobil Corporation
15.6. Formosa Plastics Corporation
15.7. Sumitomo Chemical
15.8. Lyondell Basell Industries N.V.
15.9. Sinopec Corporation
15.10. SABIC