Ethylene oxide and Ethylene Glycol Market by Product Type (Ethylene Glycol, Ethoxylates, Ethanolamines, Glycol Ethers), Application (Polyester Fibers, Antifreeze & Coolants, PET Resins), End-Use Industries, and Region - Global Forecast to 2029
The global ethylene oxide and ethylene glycol market is expected to grow at a CAGR of 5.5% during the forecast period, from an estimated USD 39.7 Billion in 2024 to USD 51.9 Billion by 2029. The demand for ethylene oxide and ethylene glycol is increasing due to their crucial roles in various industries such as automotive, textiles, packaging, and healthcare. Additionally, the growing population, urbanization, and industrialization drive the need for products made from ethylene oxide and ethylene glycol, leading to higher demand.
Attractive Opportunities in the Ethylene Oxide and Ethylene Glycol Market
Note: e-estimated p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
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Ethylene Oxide and Ethylene Glycol Market Dynamics
Driver: Growing demand for antifreeze
Antifreeze is widely used in internal combustion engines and other heat transfer applications such as solar water heaters and HVAC (Heating, Ventilation and Air Conditioning) to prevent freezing of the coolant when the vehicle is unused in cold climates, and to prevent overheating and draw away heat from the hot engine parts during use. Antifreeze is primarily created by mixing ethylene glycol with distilled water. Strong growth is expected in countries such as China and India where increasing vehicle numbers will drive demand for the product. North America and Europe are expected to witness a very slow growth rate as these markets are mature and witnessing flat vehicle growth rate. The aftermarket for antifreeze accounts for approximately 80% of the global sales of antifreeze. The aftermarket includes workshops and automotive service centers, and the retail sector. The remaining 20% of the sale of antifreeze goes to Original Equipment Manufacturers (OEMs) for the first fill of the vehicle. Weather is a key factor in this market as manufacturers and retailers witness growth in sales when the weather turns cold; demand for ethylene glycol antifreeze goes up during frigid weather. This factor is especially influential in markets such as North America and Europe. Thus, it is expected that the growing antifreeze market will fuel the growth of the global ethylene glycol market in the next few years.
Restraint: Geopolitical factors affecting supply chain
Geopolitical factors affecting supply chains may significantly act as a restraint in the ethylene oxide and ethylene glycol market due to their potential to disrupt the flow of raw materials, intermediate products, and finished goods across global markets. Geopolitical tensions, trade disputes, sanctions, and regulatory changes in key producing or consuming regions may lead to supply chain disruptions, delays in shipments, and uncertainty in procurement processes for ethylene oxide and ethylene glycol manufacturers. For instance, trade tensions between major economies might result in tariffs or trade barriers that affect the cost and availability of key raw materials required for ethylene oxide and ethylene glycol production. This may disrupt supply chains, increase operational costs, and create logistical challenges for manufacturers relying on international trade for sourcing inputs or exporting products. Furthermore, geopolitical instability in regions with significant ethylene oxide and ethylene glycol production capacities may impact supply chain reliability and business continuity. Political unrest, labor disputes, or regulatory changes in these regions may lead to production disruptions, supply shortages, or quality issues, affecting the overall market dynamics and pricing strategies. Moreover, changes in geopolitical alliances or policies related to energy and trade may also influence investment decisions and market dynamics within the ethylene oxide and ethylene glycol industry. Uncertainty surrounding geopolitical developments may deter investors, delay infrastructure projects, and hinder the expansion of production capacities, thereby constraining the market.
Opportunities: Growing Asia Pacific Market
Asia-Pacific has emerged as not only one of the most popular production spots but also the highest consumer of ethylene oxide and ethylene glycol. Key end-user industries such as construction, automotive, packaging, and electronics are expected to grow for the next five years in Asia-Pacific, with China, India, Thailand, and Malaysia being the most promising prospects. In addition, rapid industrialization, urbanization, and population growth in countries such as China, India, and Southeast Asian nations have fueled demand for a wide range of products that use ethylene oxide and ethylene glycol as essential ingredients.
However, the increasing disposable incomes and changing consumer lifestyles in Asia-Pacific have led to rising demand for consumer goods, including household and personal care products, where ethylene oxide derivatives play a crucial role. The shift towards premium and specialized products further enhances the demand for ethylene oxide and ethylene glycol in the region. Furthermore, the expanding manufacturing base and investments in infrastructure projects create opportunities for ethylene oxide and ethylene glycol producers to supply raw materials to a diverse range of industries. This includes the development of new production facilities, technological advancements, and collaborations with local partners to meet the growing market demands efficiently. Moreover, supportive government policies, investments in research and development, and initiatives promoting sustainability and innovation present avenues for growth and differentiation in the Asia-Pacific ethylene oxide and ethylene glycol market. Market players may capitalize on these opportunities by expanding their market presence, developing tailored products for regional markets, and establishing strategic partnerships to enhance competitiveness and market share in the dynamic Asia-Pacific region.
Challenges: Price volatility and fluctuations in raw material costs
Price volatility and fluctuations in raw material costs pose significant restraints in the ethylene oxide and ethylene glycol market, impacting production costs, profitability, and market competitiveness. Ethylene oxide and ethylene glycol production heavily rely on feedstocks such as ethylene, which is derived from crude oil or natural gas liquids. Any fluctuations in crude oil prices, geopolitical tensions, supply-demand imbalances, or unforeseen market events may lead to sudden spikes or declines in raw material costs, creating challenges for manufacturers in managing cost structures and pricing strategies. Moreover, the interconnected nature of global energy markets and the petrochemical industry amplifies the impact of price volatility on ethylene oxide and ethylene glycol markets. For instance, disruptions in oil production, changes in OPEC (Organization of the Petroleum Exporting Countries) policies, or geopolitical conflicts may trigger rapid shifts in crude oil prices, cascading down to affect ethylene and subsequently ethylene oxide and ethylene glycol prices. Furthermore, price volatility may also impact supply chain dynamics, procurement strategies, and investment decisions within the ethylene oxide and ethylene glycol industry. Manufacturers may face challenges in forecasting raw material costs, managing inventory levels, and hedging against price risks, leading to uncertainties in planning production schedules and meeting customer demands. Additionally, price volatility and fluctuations in raw material costs may influence market dynamics, competitive pressures, and profitability margins for ethylene oxide and ethylene glycol producers. In a highly price-sensitive market environment, companies may encounter difficulties in passing on increased costs to customers, balancing operational expenses, and maintaining sustainable growth strategies amidst market uncertainties.
Based on product type, ethoxylates is the fastest growing product segment in ethylene oxide and ethylene glycol market.
Ethoxylates have emerged as the fastest-growing product type in the ethylene oxide and ethylene glycol market due to their diverse applications and high demand across industries. Ethoxylates are versatile surfactants used in various products such as detergents, personal care items, agrochemicals, and industrial cleaners. Their ability to enhance the effectiveness of formulations, improve solubility, and provide excellent emulsification properties has led to increased adoption in multiple sectors. Moreover, the rising emphasis on eco-friendly and biodegradable solutions has further boosted the demand for ethoxylates, driving their significant growth in the market.
Based on application, antifreeze and coolants is the fastest growing application in the ethylene oxide and ethylene glycol market.
Antifreeze and coolants have emerged as the fastest-growing application in the ethylene oxide and ethylene glycol market due to several key factors. With the automotive industry witnessing steady growth globally, the demand for ethylene glycol-based antifreeze and coolants has surged. These products play a crucial role in maintaining engine temperature stability, preventing freezing in cold climates, and protecting against overheating in warm conditions. Additionally, advancements in automotive technology and increased vehicle production have further propelled the demand for high-quality antifreeze and coolants, driving significant growth in this application segment of the market.
Based on end-use industry, medical & pharmaceuticals is the fastest growing end-use industry in the ethylene oxide and ethylene glycol market.
The medical and pharmaceuticals industry is experiencing rapid growth in the ethylene oxide and ethylene glycol market due to several key factors. Ethylene oxide is widely used in this sector for sterilization purposes, ensuring the safety and efficacy of medical devices, equipment, and pharmaceutical products. With the increasing focus on healthcare and advancements in medical technology, the demand for ethylene oxide for sterilization applications has significantly risen. Additionally, the pharmaceutical industry's expanding research and development activities, coupled with the growing demand for healthcare products globally, further drive the demand for ethylene oxide and ethylene glycol in this sector, making it the fastest-growing end-use industry in the market.
Asia Pacific is expected to be the fastest-growing market during the forecast period.
The Asia Pacific region is experiencing rapid growth in the ethylene oxide and ethylene glycol market due to several key factors. The region's rapid industrialization, burgeoning population, and expanding middle class drive the demand for products such as textiles, automotive components, packaging materials, and pharmaceuticals, all of which heavily rely on ethylene oxide and ethylene glycol. Moreover, the availability of raw materials, competitive manufacturing costs, and favorable government policies supporting industrial growth further boost market expansion in Asia Pacific. Additionally, the region's strategic location as a global manufacturing hub attracts investments from multinational companies, fostering technological advancements and infrastructure development, thereby propelling the growth of the ethylene oxide and ethylene glycol market in Asia Pacific.
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Key Market Players
The ethylene oxide and ethylene glycol market is dominated by a few major players that have a wide regional presence. The key players in the ethylene oxide and ethylene glycol market are as as BASF SE (Germany), SABIC (Saudi Arabia), Shell Plc (UK), Dow Chemical Company (US), ExxonMobil Corporation (US), Clariant AG (Switzerland), LyondellBasell Industries Holding B.V (US), Huntsman Corporation (US), Nippon Shokubai Co., Ltd. (Japan), INEOS Group (UK), Thermo Fisher Scientific Inc. (US), Reliance Industries Limited (India). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the ethylene oxide and ethylene glycol market.
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Report Metric |
Details |
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Years considered for the study |
2020-2029 |
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Base Year |
2023 |
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Forecast period |
2024–2029 |
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Units considered |
Value (USD Million), Volume (Kiloton) |
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Segments |
Product type, Application, End-use Industry, and Region |
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
BASF SE (Germany), SABIC (Saudi Arabia), Shell Plc (UK), Dow Chemical Company (US), ExxonMobil Corporation (US), Clariant AG (Switzerland), LyondellBasell Industries Holding B.V (US), Huntsman Corporation (US), Nippon Shokubai Co., Ltd. (Japan), INEOS Group (UK), Thermo Fisher Scientific Inc. (US), Reliance Industries Limited (India) |
This report categorizes the global ethylene oxide and ethylene glycol market based on product type, application, end-use industry, and region.
On the basis of product type, the ethylene oxide and ethylene glycol market has been segmented as follows:
- Ethylene Oxide
- Ethoxylates
- Ethanolamines
- Glycol Ethers
- Others
- Ethylene Glycol
- Monoethylene Glycol
- Triethylene Glycol
- Diethylene Glycol
- Others
On the basis of application, the ethylene oxide and ethylene glycol market has been segmented as follows:
- Polyester Fibers
- Antifreeze and Coolants
- PET Resins
- Others
On the basis of end-use industry, the ethylene oxide and ethylene glycol market has been segmented as follows:
- Textile
- Packaging
- Automotive
- Chemical Manufacturing
- Medical & Pharmaceuticals
- Others
On the basis of region, the ethylene oxide and ethylene glycol market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In December 2023, INEOS has acquired the LyondellBasell ethylene oxide and derivatives business and production facility at Bayport Texas for USD 700 Million. This deal includes the 420kt Ethylene Oxide plant, the 375kt Ethylene Glycols plant and the 165kt Glycol Ethers plant, together with all associated third-party business on the site.
- In July 2023, INEOS has signed a deal to acquire TotalEnergies’ 50% share of Naphtachimie (720 ktpa steam cracker), Appryl (300 ktpa polypropylene business), Gexaro (270 ktpa aromatics business) and 3TC (naphtha storage), which are all currently joint ventures between the two companies. A number of other infrastructure assets are also contained in the deal including part of TotalEnergies ethylene pipeline network in France.
- In July 2023, LyondellBasell has completed the acquisition of Mepol Group, a manufacturer of recycled, high-performing technical compounds located in Italy and Poland. Mepol S.r.l. and its subsidiaries Polar S.r.l. and Industrial Technology Investments Poland Sp.z.o.o, will be subsidiaries in LyondellBasell's Advanced Polymer Solutions (APS) business unit. This acquisition also strengthens the I&D business unit of LyondellBasell through which it offers ethylene glycol and ethylene oxide.
- In December 2022, Clariant is set to expand its Care Chemicals facility in Daya Bay, Huizhou, China, to boost its support for pharmaceutical, personal care, home care, and industrial application customers. The CHF 80 million investment will see capacity increases for existing products as well as the introduction of new products by the end of 2024. By successfully obtaining the drug GMP certificate, the Clariant Daya Bay manufacturing site has become the first API manufacturer in China with certified polyethylene glycol Polyglykol 3350.
- In July 2021, Clariant, a focused, sustainable, and innovative specialty chemical company, and India Glycols Limited (IGL), a leading company in the manufacturing of green technology-based chemicals, today announced the successful creation of their 51-49% joint venture for renewable ethylene oxide (EO) derivatives after receiving all necessary regulatory approvals. The joint venture will operate under the name Clariant IGL Specialty Chemicals Private Limited.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the ethylene oxide and ethylene glycol market?
The growth of ethylene oxide and ethylene glycol is fueled by the their versatile applications across various industries. Ethylene glycol is extensively used in the production of PET resins, polyester fibers, antifreeze solutions, and other products in automotive, textiles, plastics, and packaging sectors.
Which are the key applications driving the ethylene oxide and ethylene glycol market?
The key applications driving the demand for ethylene oxide and ethylene glycol are polyester fibers, antifreeze and coolants, PET Resins, and others.
Who are the major manufacturers?
Major manufacturers include BASF SE (Germany), SABIC (Saudi Arabia), Shell Plc (UK), Dow Chemical Company (US), ExxonMobil Corporation (US).
What will be the growth prospects of the ethylene oxide and ethylene glycol market?
Technological advancements in production processes and Increasing demand for household and personal care products are driving the market.
What will be the growth prospects of the ethylene oxide and ethylene glycol market in terms of CAGR in next five years?
The CAGR of the market will be in between 5-6% in next five years. .
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The study involved four major activities in estimating the market size of the ethylene oxide and ethylene glycol market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key ethylene oxide and ethylene glycol, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The ethylene oxide and ethylene glycol market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the ethylene oxide and ethylene glycol market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the ethylene oxide and ethylene glycol industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to product type, application, end-use industries, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of ethylene oxide and ethylene glycol and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
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Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for ethylene oxide and ethylene glycol for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on product type, application, end-use industry, and country were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Ethylene Oxide And Ethylene Glycol Market: Bottum-Up Approach
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Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Ethylene Oxide And Ethylene Glycol Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the total market size from the estimation process ethylene oxide and ethylene glycol above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
Ethylene oxide is a key chemical compound used primarily as a precursor in the production of various industrial chemicals, including ethylene glycol. It is commonly utilized in the manufacturing of detergents, solvents, plastics, and textiles. Ethylene glycol, on the other hand, is a vital component in the production of polyester fibers, antifreeze solutions, and other industrial products. The market for ethylene oxide and ethylene glycol is influenced by factors such as demand from end-user industries like automotive, textiles, and packaging, as well as global economic conditions and regulatory trends related to environmental sustainability and safety standards.
Key Stakeholders
- Ethylene oxide and ethylene glycol Manufacturers
- Ethylene oxide and ethylene glycol Traders, Distributors, and Suppliers
- Raw Type Suppliers
- Government and Private Research Organizations
- Associations and Industrial Bodies
- R&D Institutions
- Environmental Support Agencies
Report Objectives
- To define, describe, and forecast the size of the ethylene oxide and ethylene glycol market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market.
- To estimate and forecast the market size based on product type, application, end-use industry, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and impact on ethylene oxide and ethylene glycol market
Growth opportunities and latent adjacency in Ethylene oxide and Ethylene Glycol Market