Ethylene Carbonate Market to Reach Valuation of USD 1189 Million by 2030 – The Surging Demand for Lithium-Ion Batteries in Electric Vehicles, Portable Electronics, and Energy-Storage Devices Drives the Market

In terms of revenue, the Global Ethylene Carbonate Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 12.9 from 2023 to 2030.

Ethylene Carbonate, recognized for its high quality characterized by low impurity levels and minimal moisture content, is significantly transforming in response to the rising demand for sustainable energy solutions. Its crucial role in lithium-ion batteries and various industrial applications positions Ethylene Carbonate at the forefront of progress. As a significant component in the production of lithium-ion batteries, its utility extends to an extensive range of industries, including capacitor electrolytes, lubricants, surface coatings, dyes, fibers, plastics, plasticizers, resist strip solvents, organic solvents, fiber processing agents, soil hardening agents, and raw materials for organic synthesis. The versatility of Ethylene Carbonate is propelling its demand across diverse sectors. 

Key Highlights from the Report

· Based on the Form segmentation, the market was predominantly led by the Solid segment, attributed to its extended shelf life and capacity to withstand high temperatures without undergoing chemical changes. Ethylene Carbonate in its solid form is widely utilized across diverse sectors, such as automotive, chemical, medical, and industrial. It serves as an additive in manufacturing cosmetics, pharmaceuticals, and soldering fluxes.

· Furthermore, based on the End-Use segmentation, the Automotive segment will likely be responsible for a majority of market growth in 2022. This is primarily driven by manufacturers seeking to reduce the emission of volatile organic compounds associated with smog. Also, the surge in demand for electric vehicles, seen as a solution to address pollution and environmental issues, contributes substantially to this growth.

· Finally, based on the Region, Asia Pacific is contributing to the major market revenue in the Ethylene Carbonate market owing to enormous manufacturing facilities in the region. 

Market Dynamics

In the current era of sustainable energy, rechargeable batteries are ideal for achieving higher practical energy density across various applications such as electric vehicles, portable electronics, and energy-storage devices. Ethylene Carbonate is a critical component in the electrolytes of lithium-ion batteries, significantly contributing to improving efficiency and overall performance in these batteries. Traditionally, Ethylene Carbonate constituted 10% and 30% of the volume in a typical lithium cell, with variations based on manufacturers and intended battery use. Moreover, it is a crucial component reclaimed for usage in new batteries during the recycling process.

Recognizing the need for sustainability, the Ethylene Carbonate sector is actively investigating more environmentally friendly options for producing Ethylene Carbonate. Three environmentally friendly pathways have been proposed, involving the reaction of carbon-based reactants (CO2, urea, and dimethyl carbonate) with ethylene glycol derived from biodiesel waste. These initiatives aim to address the sustainability challenges posed by the current synthesis methods that rely on toxic, fossil-based epoxide reactants.

Asia Pacific region is leading the global market for Ethylene Carbonate, with countries like China, Japan, South Korea, and India being prominent consumers. Noteworthy developments include Asahi Kasei Corporation's licensing of technology to produce high-purity Ethylene Carbonate and dimethyl carbonate using CO2 as the primary feedstock. In addition, major players like Huntsman International LLC and LOTTE Chemical Corporation are expanding their production capacities and investing in future battery materials industries. For instance, LOTTE Chemical Corporation, a global chemical giant headquartered in South Korea, is breaking new ground by investing in producing four core materials for electrolyte organic solvents, including Ethyl Methyl Carbonate and Di Ethyl Carbonate. This strategic step is consistent with the rising requirement for materials crucial in producing lithium-ion batteries in electric vehicles.

The Global Ethylene Carbonate Market is Segmented as follows

• Form
  • Solid
  • Liquid
• Application
  • Lithium Battery Electrolyte
  • Lubricants
  • Surface Coatings
  • Plasticizers
  • Others (Capacitor Electrolyte, Resist Strip Solvent, Fiber Processing Agents, Soil Hardening Agents, Organic Solvents, and Pharmaceuticals)
• End Use
  • Automotive
  • Industrial
  • Oil & Gas
  • Medical
  • Personal Care & Hygiene
  • Others (Electronics, Textile, and Energy)
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Ethylene Carbonate Market is

Huntsman International LLC (U.S.), Mitsubishi Chemical Corporation (Japan), Oriental Union Chemical Corporation (Taiwan), BASF SE (Germany), Merck KGA (Germany), FUJIFILM Wako Pure Chemical Corporation (U.S.), Vizag Chemicals International (India), Asahi Kasei Corporation (Japan), Toagosei Co. Ltd. (Japan), Empower Materials (U.S.) 

The Global Ethylene Carbonate Market Scope can be Tabulated as below