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Ethylene Oxide Market Overview
Ethylene Oxide Market size is estimated to reach US$1.9 billion by 2030, after growing at a CAGR of around 4.9% during the forecast period 2024 to 2030. 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 fibres. 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, growing construction activities and high productivity of the oil & gas sector are driving the growth of the ethylene oxide market size.
With increasing environmental concerns and sustainability efforts, there is a growing trend towards the production of bio-based ethylene oxide. This involves using renewable feedstocks such as sugarcane or corn, reducing the reliance on fossil fuels and lowering the carbon footprint of ethylene oxide production. Advances in technology are leading to more efficient and environmentally friendly production processes for ethylene oxide. This includes the development of new catalysts and process technologies that reduce energy consumption and emissions.
Report Coverage
The report: “Ethylene Oxide Market Report –
Forecast (2024 – 2030)” 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.
Ethylene Oxide Market Segment Analysis – By Application
Ethylene Oxide Market Segment Analysis –By End-Use Industry
Ethylene Oxide Market Segment Analysis – By Geography
Asia-Pacific held the largest portion of the Ethylene Oxide Market share in 2023 up to 41%. In various end use industries such as automotive, chemical and oil & gas 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. According to China Association of Automobile Manufacturers (CAAM), China's vehicle sales accelerated 12% to a record 30.09 million units in 2023. In April 2023, India's state-owned Oil and Natural Gas Corporation (ONGC) announced an investment of over $5 billion to develop the Cluster-II region of its flagship KG-DWN-98/2 asset in the Krishna Godavari basin offshore India's eastern coast.
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. Ever since the pandemic, there has been growing awareness about the usage of cleaning products. To combat the spread of germs and transmission of COVID-19, consumers developed a new habit of washing clothing more often to get rid of anything harmful that was potentially clinging to fabrics. As per the survey results by Novozymes, in the US 2 out of 5 consumers started doing laundry more frequently than before, and 31% of US consumers admitted to using the dishwasher more frequently. 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 lead to an increase in the usage of ethylene oxide to make 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. SABIC
4. Shell
5. The Dow Chemical Company
6. India Glycols Limited
7. Indorama Ventures
8. Reliance Industries Limited
9. Clariant
10. LOTTE Chemical Corporation
Relevant Reports
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Ethers Market – Industry
Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast
Analysis
Report Code – CMR 0127
Ethylene Glycols Market – Industry Analysis, Market Size, Share, Trends,
Application Analysis, Growth and Forecast Analysis
Report Code – CMR 76463
Mono-ethylene Glycol Market - Industry Analysis, Market Size,
Share, Trends, Application Analysis, Growth and Forecast Analysis
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