Ethylene Oxide Market
Ethylene Oxide Market Analysis by Application (Ethylene Glycol, Ethoxylates, Ethanolamines, Glycol Esters, Polyethylenes) and by Region - Global Forecast 2022-2032
Analysis of Ethylene Oxide market covering 30+ countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Ethylene Oxide Market Growth Outlook (2022-2032)
The global ethylene oxide market is valued at US$ 51.7 billion in 2022, and is predicted to expand at a CAGR of 5.8% to reach a market valuation of US$ 90.6 billion by 2032.
Market growth is being driven primarily due to rising ethylene oxide demand from the textile industry.
Market Size in 2021
US$ 49.5 Billion
Market Size in 2022
US$ 51.7 Billion
Forecasted Forecast Value in 2032
US$ 90.6 Billion
Global Market Growth Rate (2022-2032)
North America Market Share (2021)
North America Growth Rate (2022-2032)
United States Growth Rate (2022-2032)
Market Share of Top 5 Companies
Key Companies Profiled
Ethylene Oxide Consumption Analysis (2017-2021) Vs. Market Forecast Outlook (2022-2032)
Ethylene oxide is produced from ethylene through the process of direct oxidation, and is a colorless and a flammable gas with a mildly sweet odor. It is also known as oxirane as it is industrially produced by the oxidation of ethylene in the presence of silver catalyst.
Ethylene is produced from materials such as ethane, naphtha, and propane, which are petrochemical-based raw materials that are obtained from the distillation of crude oil. Ethylene oxide finds great usage in industries such as chemicals and healthcare and in other industrial applications as well.
- Short Term (2022 Q2 to 2025): Growing use of PET in food and beverage industry along with escalating demand in household and personal care industry.
- Medium Term (2025-2028): Demand likely to grow in Asia Pacific on the back of increasing demand for PET from end-user industries.
- Long Term (2028-2032): Global ethylene oxide (EO) market set to witness moderate to high growth because of enhanced application in end-use industries.
During the years 2017-2021, global ethylene oxide sales registered a CAGR of 4.7%, and according to this Fact.MR analysis, the market is projected to witness growth at 5.8% CAGR from 2022 to 2032.
Market share analysis of applications and regions is provided in the above image. Under the application segment, ethylene glycol leads the market with 38.8% share in 2021.
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What’s Driving Consumption of Ethylene Oxide across the World?
“Augmented Ethylene Oxide Demand from Textile Industry”
The textile industry is one of the key users of ethylene oxide, wherein, the derivatives are used for treating synthetic and natural fibers and as precursors for compounds leading to light stabilization of spandex fibers, durable press, shrink proofing wool, mothproofing, static prevention, etc.
Escalating demand, rising investments, and growing infrastructural facilities in major textile manufacturing countries across the world are supporting increased demand in the ethylene oxide market. The growing textiles & apparel industry along with favorable demographics with a shift in preference for branded products is boosting market growth in the ethylene oxide market.
“PET Bottles to Account for More than Half Ethylene Oxide Usage”
Escalating demand for detergents, household and industrial cleaners, laundry softeners, etc., are expected to propel ethylene oxide demand growth. In addition, escalating demand for PET bottles from the packaging industry is likely to fuel market demand as PET bottles account for more than 50% of the production of all ethylene oxide globally.
Thus, rising demand for PET bottles from premium beverage brands is aiding the expansion of the ethylene oxide market.
What Restraints Do Ethylene Oxide Manufacturers Face?
“Harmful Effects of Ethylene Oxide to Hamper Demand Growth”
The main usage of ethylene oxide is as a chemical intermediate in the manufacturing of ethylene glycol and as a fumigating agent for spices and sterilizing agents for medical equipment. However, its exposure can lead to central nervous system depression in humans along with irritation in the eyes, skin, lungs, throat, and nose, and also damage to the nervous and brain system.
In addition, its exposure can have harmful reproductive effects and may be carcinogenic to humans. Therefore, its exposure can have acute effects, chronic effects, and reproductive & developmental effects.
As such, the harmful effects of ethylene oxide are expected to hamper market growth to some extent over the assessment period.
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Why is the U.S. Ethylene Oxide Market So Prominent?
The United States ethylene oxide market holds 90.6% share in North America. The United States ranks second in the exports of textile-related products.
- According to the National Council of Textile Organizations, value of United States textiles, fibers, and apparel exports stood at US$ 25.4 billion in 2020, in addition to the value of shipments for apparel and textiles standing at US$ 64.4 billion in the same year.
The United States is one of the major textile manufacturing countries in the world, anticipated to support market demand over the coming years. Due to the above-listed factors, the market in the United States is projected to expand rapidly at 6.6% CAGR during the assessment period.
Why is Asia Pacific Market Growth Being Driven by India and China?
China dominates the Asia Pacific ethylene oxide market with 44.3% share. China is one of the major consumers of ethylene oxide and its derivatives in the region.
The textile industry in China is growing at a rapid pace with the country being the largest clothing exporter in the world. The country is also the chief producer of PET resins with the presence of prominent manufacturers in the country.
Thus, increasing demand for PET from end-user industries is anticipated to drive ethylene oxide market growth in China over the coming years. As such, the Chinese ethylene oxide market is projected to expand at 6.2% CAGR through 2032.
The Indian ethylene oxide market holds 12.5% share in the Asia Pacific region and is projected to register 4.9% CAGR over the assessment period. Market growth is attributed to high demand and growth in the cosmetics and personal care industry along with rising production and consumption of surfactants.
Which Application of Ethylene Oxide Brings in Higher Revenue?
Under application, the ethylene oxide market is segmented into ethylene glycol, ethoxylate, ethanolamines, glycol ethers, polyethylenes, and other applications. Amongst them, ethylene glycol dominates the market with 38.8% share, and its application is projected to rise at 6.7% CAGR over the decade.
High segment growth is attributed to ethylene glycol having high activity, high energy density, high boiling point, and low volatility as compared to other fuels. It has a low freezing point, making it a great component in the manufacturing industry.
As ethylene glycol is a long-lasting compound, inexpensive, and miscible solvent, its demand has been increasing rapidly.
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Prominent players in the global ethylene oxide market are focusing on capacity expansion; for instance, they are opening their own manufacturing facilities in emerging nations and establishing state-of-the-art plants to carry out production.
Key ethylene oxide manufacturers are also focusing on introducing water-soluble products, and have excellent compatibility with numerous additives such as corrosion inhibitors, antioxidants, etc. All these factors are making the market highly competitive and dynamic.
For instance :
- BASF and SINOPEC, as a joint venture in 2021, decided to expand the Verbund site to increase the production capacity of ethanolamines, ethylene amines, and purified ethylene oxide. They are also going to build new tert-butyl acrylate plants over the coming years
- India Glycols Limited entered into a joint venture with Clariant AG in 2021 for the creation of renewable ethylene oxide derivatives after receiving regulatory approvals. This joint venture is likely to be operated as Clariant IGL Specialty Chemicals Private Limited.
Ethylene Oxide Industry Survey by Category
By Application :
- Ethylene Glycol
- Glycol Ethers
- Other Applications
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- FAQs -
The global ethylene oxide market is currently valued at US$ 51.7 billion in 2022.
Revenue from the sales of ethylene oxide is anticipated to reach US$ 90.6 billion by 2032.
From 2017 to 2021, global demand for ethylene oxide increased at 4.7% CAGR.
Key ethylene oxide producers are BASF, SABIC, India Glycol Ltd., DowDupont, and Indorama Venture Public Company Ltd.
The North America ethylene oxide market accounts for 32.7% market share in 2022.
Ethylene glycol accounts for a high 38.8% market share.