Ethylene Oxide Market - Forecast(2023 - 2028)

Report Code: CMR 0817 Report Format: PDF + Excel

Ethylene Oxide Market Overview

Ethylene Oxide Market size is estimated to reach US$1.2 billion by 2027, after growing at a CAGR of around 4.9% during the forecast period 2022 to 2027. Ethylene oxide (also known as oxirane) is an organic compound that appears as colorless and flammable gas with a faintly sweet odor. Due to its rich chemical properties and high reactive nature, ethylene oxide is used to make various chemical products such as detergents, thickeners, solvents, plastics and also various chemicals namely ethanolamines and ethylene glycol. The major use of ethylene oxide is in making ethylene glycol which is further processed to make chemical products such as glycol ethers, diethyl ether and polyester fibers. The major application of ethylene oxide is in sectors like the automotive, cleaning industry, textiles and medical sectors. Hence, factors like an increase in aircraft production, increase in consumption of detergents, increasing medical grade Polyetheretheketone (PEEK) Sterilization, growing construction activities and high productivity of the oil & gas sector are driving the growth of the ethylene oxide market size. However, the negative effects of ethylene oxide such as nausea, diarrhea, vomiting, breathlessness and eye and skin burn can limit its usage in certain sectors which can hamper the growth of the ethylene oxide industry. In 2020, due to the COVID-19 pandemic, end-users of ethylene oxide such as automotive and chemical saw a dip in their production level. Such a decrease in production reduced the usage of ethylene oxide in its end-use industries which negatively impacted the growth of the Ethylene Oxide industry.

Report Coverage

The report: “Ethylene Oxide Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Ethylene Oxide industry.

By Function – Sterilizing Agent, Fumigating Agent and Others.
By Application – Chemical Intermediates (Ethylene Glycol, Glycol Ethers, Ethanolamines, Ethoxylates, Acrylonitrile and more), Solvents, Thickeners, Adhesives, Detergents, Antifreeze, Pesticides, Pharmaceutical and Others.
By End-Use Industry – Automotive (Passenger Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles), Cleaning Industry (Household and Industrial), Aerospace (Commercial and Military), Building & Construction (Residential, Commercial, Industrial and Infrastructural) Oil & Gas Industry, Plastic, Textile, Medical, Agriculture, Chemicals, Personal Care and Others.
By Geography - North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and Rest of the World (Middle East and Africa).

Key Takeaways

  • Asia-Pacific dominates the Ethylene Oxide industry as major end-use industries for ethylene oxide such as automotive, construction, agriculture and chemicals are rapidly growing in economies like China and India on account of growing government initiatives to promote industrial development.
  • The growing demand for commercial and passenger vehicles as well as an increase in usage of temperature efficient fluids for smooth functioning of vehicles will provide growth opportunities for the ethylene oxide market size as it is majorly used as antifreeze and brake fluids in cars.
  • The high demand for convenient and easy-to-use detergent products contributed to the increase in usage of ethylene oxide-based derivatives in the manufacturing of detergents, resulting in positive market growth.

Figure: Asia-Pacific Ethylene Oxide Market Revenue, 2021-2027, (US$ Million)

Ethylene Oxide Market

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Ethylene Oxide Market Segment Analysis – By Application

Chemical intermediate held the largest portion of the Ethylene Oxide Market share in 2021 and is forecasted to grow at a CAGR of 5.4% during the forecast period 2022-2027. Ethylene Oxide as a chemical intermediate is used in the manufacturing of ethylene glycol, ethanolamines, glycol ethers and ethoxylates. These chemical compounds are further used in the making of other products such as ethylene glycol is used in making polyester fiber which forms automotive seat covers and raw material for clothing and apparel wear. According to the European Association of Automobile Manufacturers Association, in 2021, passenger car production in the US stood at 6.3 million units, showing a 3.1% increase in comparison with 2020. Further, according to National Investment Promotion and Facilitation Agency, till December 2021, FDI in India’s textile and apparel industry reached US$3.9 billion. The increase in passenger car production and FDI investment will create demand for polyester fibre in the automotive and textile sector resulting in more usage of ethylene glycol for producing such fiber. Rapid development in the automotive and textile sectors will have a positive impact on the demand for ethylene glycol, thereby contributing to the segment growth of ethylene oxide as a chemical intermediate.

Ethylene Oxide Market Segment Analysis –By End-Use Industry

The automotive sector held the largest portion of the Ethylene Oxide Market share in 2021 and is forecasted to grow at a CAGR of 6.2% during the forecast period 2022-2027. Ethylene Oxide as a chemical intermediate is majorly used to produce antifreeze liquid which is used to cool down engine temperature and as brake fluids, ethylene oxide is used in automotive brakes. Moreover, polyester fibres made from ethylene oxide ethylene glycol are used in automotive seat covers. Advantages provided by ethylene oxide such as the ability to withstand high temperatures will increase its usage in the automotive sector. According to the International Organization of Motor Vehicle Manufacturers, in 2021, global automotive production stood at 80.14 million units showing a 3% increase in comparison with the 2020 production level. Technological advancements coupled with the availability of good quality raw materials have increased the production level of automobiles. As a result, demand for ethylene oxide in the automotive sector is increasing significantly contributing to the segment’s growth in the forecast period.

Ethylene Oxide Market Segment Analysis – By Geography

Asia-Pacific held the largest portion of the Ethylene Oxide Market share in 2021 up to 41%. Major economies like China and India consist of major sectors like automotive, chemical and oil & gas sectors which are major users of ethylene oxide and its derivatives. Ethylene oxide is used as antifreeze for automotive engines and ethylene glycol derived from ethylene oxide is used to prevent hydrate formation in oil pipelines and to prevent them from corrosion. Government initiatives and growing investments to boost industrial developments have positively impacted the productivity level of these sectors. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, China’s automotive production stood at 26 million units showing a 3% increase, while India’s production stood at 4.4 million units showing a 30% increase. Such an increase in automotive production is increasing the usage of ethylene oxide in the Asia-Pacific region.

Ethylene Oxide market Drivers

Increase in Consumption of Detergents

Ethylene oxide is a versatile compound used in the making of chemicals such as ethanolamines and glycol ethers which form a major ingredient in making detergents. The COVID pandemic situation has raised the risk of infectious disease which has accelerated the demand for cleaning products such as detergents. For instance, according to first quarter reports of Henkel AG and Co. Kgaa, in Q1 of 2021, the laundry detergent sales of the company increased by 4.2%. Further, according to the quarterly reports of Proctor & Gamble, in Q4 2021, the dish detergents sale of the company increased by 2% in comparison with Q4 of 2020. An increase in the sale of detergents will increase the production level of such cleaning products and increase in demand for ethanolamines and glycol ethers. This will increase the usage of ethylene oxide in making such chemical compounds which will have a positive impact on the growth of the ethylene oxide industry. 

Growing Building and Construction Activities

Ethanolamines derived from ethylene oxide are majorly used in the construction sector for producing cement grinding aids and performance enhancers which reduce the energy consumption during cement manufacturing. The government scheme to promote affordable housing coupled with a steady increase in annual investments in construction has increased the scale of construction activities. For instance, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwellings was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Further, according to the Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose by 43.5%. The growing level of residential construction activities on account of the high demand for residential units will increase the demand for ethanolamines for cement production, resulting in more usage of ethylene oxide in making such chemical compounds. Hence, this will boost the growth of the ethylene oxide industry.

Ethylene Oxide Market Challenge

Negative Health Effects

Ethylene oxide is an alkaline agent and exposure to it can cause serious eye & skin burns, frostbite, breathing difficulty and bone cancer-like problems. Hence, due to its high applicability in many industries, the chances of getting exposed to such hazardous compounds are high. For instance, in the agriculture sector, as a pesticide it is used to control insects in grain bins, in the medical sector, it is used as a disinfectant for sterilizing surgical equipment and in the chemical sector, it is majorly used as an intermediate for chemical synthesis. Besides this, ethylene oxide is highly used in the automotive sector as antifreeze and brake fluid. The negative health effects of ethylene oxide can limit its usage in various end-use industries such as medical, agriculture, automotive and chemicals. This can have a negative impact on the growth of the ethylene oxide industry.

Ethylene Oxide Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Ethylene Oxide Market. The top 10 companies in the Ethylene Oxide Market are:

  1. BASF SE
  2. Sinopec
  3. Saudi Basic Industries Corporation
  4. Royal Dutch Shell Plc.
  5. DowDuPont Inc.
  6. India Glycols Limited
  7. Indorama Ventures Public Company Limited
  8. Huntsman International LLC
  9. Azko Nobel
  10. LOTTE Chemical Corporation 

Recent Developments

  • In 2021, LOTTE Chemical Corporation invested US$211.4 million to expand its domestic production of ethylene oxide adduct which is an advanced material that is used in concrete.
  • In 2021, India Glycols Limited and Clariant entered into a 51-49% joint venture called Clariant IGL Specialty Chemicals Private Limited which will result in the production of renewable ethylene oxide.
  • In 2019, BASF SE in line with its customer-focused corporate strategy invested US$560 million to expand the production capacity of ethylene oxide and its derivatives at its Verbund site in Antwerp, Belgium.

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1. Ethylene Oxide Market - Market Overview
    1.1 Definitions and Scope
2. Ethylene Oxide Market - Executive Summary
    2.1 Key Trends by Function
    2.2 Key Trends by Application
    2.3 Key Trends by End-Use Industry
    2.4 Key Trends by Geography
3. Ethylene Oxide Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Ethylene Oxide Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Ethylene Oxide Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Ethylene Oxide Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Ethylene Oxide Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Ethylene Oxide Market – By Function (Market Size - US$ Million/Billion)
    8.1 Sterilizing Agent
    8.2 Fumigating Agent
    8.3 Others
9. Ethylene Oxide Market – By Application (Market Size – US$ Million/ Billion)
    9.1 Chemical Intermediates
        9.1.1 Ethylene Glycol
        9.1.2 Glycol Ethers
        9.1.3 Ethanolamines
        9.1.4 Ethoxylates
        9.1.5 Acrylonitrile
        9.1.6 Others
    9.2 Solvents
    9.3 Thickeners
    9.4 Adhesives
    9.5 Detergents
    9.6 Antifreeze
    9.7 Pesticides
    9.8 Pharmaceutical
    9.9 Others
10. Ethylene Oxide Market - By End-Use Industry (Market Size - US$ Million/Billion)
    10.1 Automotive
        10.1.1 Passenger Vehicles
        10.1.2 Light Commercial Vehicles
        10.1.3 Heavy Commercial Vehicles
    10.2 Cleaning Industry
        10.2.1 Household
        10.2.2 Industrial
    10.3 Aerospace
        10.3.1 Commercial
        10.3.2 Military
    10.4 Building & Construction
        10.4.1 Residential
        10.4.2 Commercial
        10.4.3 Industrial
        10.4.4 Infrastructural
    10.5 Oil & Gas Industry
    10.6 Plastics
    10.7 Textile
    10.8 Medical
    10.9 Agriculture
    10.10 Chemicals
    10.11 Personal Care
    10.12 Others
11. Ethylene Oxide Market - By Geography (Market Size - US$ Million/Billion)
    11.1 North America
        11.1.1 the USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 the UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 the Netherlands
        11.2.6 Spain
        11.2.7 Belgium
        11.2.8 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zeeland
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 the Middle East
   Saudi Arabia
   Rest of the Middle East
        11.5.2 Africa
   South Africa
   Rest of Africa
12. Ethylene Oxide Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Ethylene Oxide Market – Industry/Competition Segment Analysis Premium 
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Ethylene Oxide Market – Key Company List by Country Premium Premium 
15. Ethylene Oxide Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."