Key Market Overview:
Ethylene Glycol Market size was valued at USD 36.4 Billion in 2022, accounting for a CAGR growth of 6.4% during the forecast period (2023-2030), and the market is projected to be valued at USD 63.62 Billion by 2030.
Ethylene glycol is a clear, colorless, and odorless liquid chemical compound with the chemical formula C2H6O2. It is an organic intermediate primarily deployed that is used in various industrial applications as a raw material in the production of polyester fibers, antifreeze formulations, and others. The various benefits associated with ethylene glycol include high energy density, high activity, high boiling point, and low volatility in comparison with other organic fuels such as ethanol and methanol. Moreover, ethylene glycol provides industrial coolants properties that enable them to flow through cooling systems, thereby withstanding extreme cold and hot temperatures. As a result, ethylene glycol is used in various end-use industries such as automotive, textile, and others.
For instance, according to the Organisation Internationale des Constructeurs dAutomobiles (OICA), in 2022, the total production of motor vehicles, at the global level was 85,016,728 with a 6% of growth rate from the previous year. Thus, the growth of the automotive industry at the global level is a major factor accelerating the ethylene glycol market growth. Furthermore, the government policies for the textile industry will further create a lucrative growth opportunity for the market in the long run.
Ethylene glycol Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||63.62 Billion|
|CAGR (2023-2030)||6.4 %|
|By Product Type||Monoethylene Glycol (MEG), Diethylene Glycol (DEG), and Triethylene Glycol (TEG)|
|By Application||Industries Manufacturing Fibers, Polyethylene Terephthalate (PET), Polyester Films, Antifreeze, and Others|
|By End-use Industry||Automotive, Textile, Packaging, Construction, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||BASF SE, Sinopec Group, Dow Inc., Formosa Plastics Corporation, Ineos Oxide Limited, Lotte Chemical Corporation, Lyondellbasell Industries Inc, Reliance Industries Limited, SABIC, and Shell plc|
Ethylene glycol is deployed in the automotive industry to ensure the automotive fluids to run efficiently in hot and cold conditions. Furthermore, ethylene glycol is primarily deployed in automotive applications such as ethylene glycol antifreeze, automotive coolants, seating, brake fluids, and others. For illustration, according to the Organisation Internationale des Constructeurs dAutomobiles (OICA), in 2021, the production of automotive vehicles at the global level was 80,205,102 units, and in 2022, it was 85,016,728 units, an increase of 6%. Thus, the growth of the automotive industry is a prime factor boosting the demand for ethylene glycol at the global level. This factor is driving the ethylene glycol market growth at the global level.
Moreover, ethylene glycol is a key raw material in the production of PET resins, which are widely used in the packaging industry which increases the demand of the market.
The high toxicity level associated with ethylene glycol is hampering the growth of the market. Furthermore, the utilization of ethylene glycol can lead to adverse health effects such as dysrhythmias and heart failure. For instance, the Environment Protection Agency (EPA) announced that ethylene glycol is a hazardous air pollutant as part of the Clean Air Act. Thus, the toxicity and regulations associated with the deployment of ethylene glycol is hampering the growth of the ethylene glycol market.
Polyester fiber manufactured from ethylene glycol is majorly deployed in the textile industry to ensure offers superior durability, static prevention, shrink proofing, and other properties, thereby creating a major demand in the textile industry. The rising investment in production facility developments, government initiatives, and others are the crucial aspects creating prominent growth opportunities for the textile industry growth. For illustration, according to the European Apparel and Textile Confederation (EURATEX), in Q2 of 2022, the total textile production in the European region was valued at 116.0, and in Q3 of 2022, it was valued at 117.1, representing a growth of approximately 1%. As a result, the demand for ethylene glycol is increasing, thereby creating a potential growth opportunity for the market in the upcoming years.
By Product Type
The product type segment is classified into monoethylene glycol (MEG), diethylene glycol (DEG), and triethylene glycol (TEG). In 2022, the monoethylene glycol (MEG) segment accounted for the highest market share in the ethylene glycol market. Monoethylene glycol (MEG) can efficiently protect engineered systems to extreme temperatures as low as -50° C. Monoethylene glycol (MEG) is used as a heat transfer fluid and industrial-grade coolant and is ideal for use in a various range of applications, including films, polyester (PET) resins, antifreeze, fibers, coolants, solvents, and aircraft anti-icer & deicers. For illustration, in October 2022, Braskem and Sojitz Corporation, a Japan-based material company introduced Sustainea, a bio-based monoethylene glycol. Thus, the increasing adoption of monoethylene glycol (MEG) in above mentioned applications is augmenting the segmental growth of the market.
Moreover, the diethylene glycol (DEG) segment is expected to grow at the fastest CAGR during the forecast period, owing to the increasing adoption of diethylene glycol (DEG) in various end-use industries such as automotive, agrochemical, oil and gas, and textiles, among other. Thus, the growth of the above-mentioned industries will drive the segmental growth of diethylene glycol (DEG) in the long run.
The application segment is divided into industries manufacturing fibers, polyethylene terephthalate (PET), polyester films, antifreeze, and others. In 2022, the polyethylene terephthalate (PET) accounted for the highest market share in the ethylene glycol market. The key properties associated with the ethylene glycol molecular weight/ molar mass of 62.07 g/mol, density of 1.11 g/cm³, boiling point at 197.3 °C, melting point at -12.9 °C, and others. These properties of ethylene glycol are ideal for polyethylene terephthalate (PET) to ensure superior durability and performance elements in such polymers. For instance, according to the recent data published by Plastics Europe, in 2020, the production growth of polyethylene terephthalate (PET) in Europe was 4.14% as compared with 2020. As a result, due to the above-mentioned benefits, the deployment of ethylene glycol is increasing in the manufacturing of polyethylene terephthalate (PET).
Furthermore, the polyester films segment is anticipated to be the fastest-growing segment during the forecast period due to the increasing use of polyester films in the production of various types of packaging, including labels, flexible packaging, and others. The growth of the packaging industry is benefiting the demand growth for polyester films, which, in turn, is augmenting the growth of the ethylene glycol market.
By End-use Industry
The end-use industry segment is categorized into the automotive, textile, packaging, construction, and others. In 2022, the automotive segment accounted for the highest market share in the ethylene glycol market. The development of infrastructure projects, and the growth of public transportation, among others are vital determinants accelerating the demand for commercial vehicles. These factors are contributing to the growth of automotive production. For illustration, according to the Organisation Internationale des Constructeurs dAutomobiles (OICA), in 2020, the production of commercial vehicles at the global level was 21,787,126 units, and in 2021, it was 23,091,693 units. For instance, in 2021, the year-on-year growth rate for commercial vehicle production was 5.9%. Henceforth, the growth of the automotive industry is projected that the demand for ethylene glycol is increasing. This, in turn, is fostering market growth.
In addition, the textile industry is expected to be the fastest-growing segment over the forecast period, owing to the increasing use of ethylene glycol based in the production of polyester fiber. The recent trends for the adoption of sports clothing, new product development, and others are some of the primary factors amplifying the growth of the textile industry. In line with the textile industrys growth, ethylene glycol is registering growth.
By region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. In 2022, Asia Pacific accounted for the highest market share in the ethylene glycol market. The primary factors such as the rapidly growing industrial sector, booming transportation & logistics sector, are some of the major determinants accelerating the automotive industry growth in the Asia Pacific region. For instance, according to the OICA, in 2022, the Asia Pacific region manufactured the highest number of total automotive vehicles at the global level, holding a share of 58.84%. Therefore, the booming automotive industry in the Asia Pacific region is fostering the demand for various automotive components such as automotive coolants, seating, brake fluids, and others. This, in turn, is boosting the demand for ethylene glycol in the Asia Pacific, thereby proliferating the market growth.
However, North America is expected to be the fastest-growing region over the forecast period due to growth of the various industries such as automotive, packaging, and others. Thus, the growth of the above-indicated industries in the North America region is driving the demand for ethylene glycol for the production of polyester films, PET, and others. As a result, driving the growth of the ethylene glycol market.
Ethylene Glycol Market Competitive Landscape:
The ethylene glycol market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
• BASF SE
• Sinopec Group
• Dow Inc.
• Formosa Plastics Corporation
• Ineos Oxide Limited
• Lotte Chemical Corporation
• Lyondellbasell Industries Inc
• Reliance Industries Limited
• Shell plc
• In January 2022, SABIC and ExxonMobil launched the Gulf Coast Growth Ventures production facility in Texas. The newly developed manufacturing facility includes the production of monoethylene glycol units with a per annum manufacturing capacity of approximately 1.1 million metric tons in a year.
• In January 2020, the Indorama Ventures Public Company acquired Huntsman Corporations chemical intermediate and surfactant business, including monoethylene glycol, ethylene oxide, propylene oxide, and others as production assets in Texas.