Ethylene Glycol Market

Ethylene Glycol Market Size:

The global ethylene glycol market size reached US$ 46.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 66.3 Billion by 2032, exhibiting a growth rate (CAGR) of 3.9% during 2024-2032. The market is growing rapidly driven by the increasing product utilization in polyester and PET production, rapid expansion of the automotive industry, widespread product utilization in various industrial applications, significant technological advancements, and rising demand for non-ionic surfactants.

Ethylene Glycol Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by the increasing product adoption in various industries and rising product demand in emerging economies, leading to an expansion in production capacities across the globe.
• Major Market Drivers: Key drivers influencing the market growth include the increasing demand for polyester fibers, expanding automotive industry, significant technological advancements, and rising product utilization in non-ionic surfactants.
• Technological Advancements: Recent innovations in production processes, leading to more efficient and cost-effective methods. Additionally, the development of bio-based ethylene glycol is supporting the market growth.
• Industry Applications: The market is experiencing high product demand in polyester productions, automotive coolants, oil and gas, medical applications, and as a raw material in the plastic industry.
• Key Market Trends: The key market trends involve an ongoing shift towards sustainable and eco-friendly products, influencing the demand for bio-based ethylene glycol. Additionally, rapid industrialization and expansion in the textile and automotive sectors are bolstering the market growth.
• Geographical Trends: Asia Pacific leads the market due to its booming textile and industrial sectors. Other regions are also showing significant growth, fueled by technological advancements and stringent environmental regulations.
• Competitive Landscape: The market is characterized by the involvement of key players that are focusing on capacity expansion, research and development (R&D), and sustainability initiatives. Additionally, they are engaging in strategic partnerships, mergers, and acquisitions to enhance market presence and diversify portfolios.
• Challenges and Opportunities: The market faces various challenges, such as volatility in raw material prices and environmental concerns related to traditional production methods. However, the development of bio-based alternatives and the expansion into emerging markets are creating new opportunities for the market growth.
   

Ethylene Glycol Market Trends:

The increasing product utilization in polyester and PET resin production

The growing demand for ethylene glycol in polyester production is a primary factor driving the market growth. Polyester is a synthetic fiber derived from ethylene glycol and terephthalic acid. It is extensively used in the textile industry due to its durability, wrinkle resistance, and affordability. Furthermore, the widespread product utilization in the synthesis of polyethylene terephthalate (PET) resins, and films that are employed in the food and beverage (F&B) industry as a packaging material is bolstering the market growth. Additionally, the rising consumption of packaged goods, driven by increasing urbanization and changing consumer lifestyles, leading to a surge in the demand for PET, is strengthening the market growth.

Rapid expansion of the automotive industry

Ethylene glycol is widely utilized in the automotive industry as an antifreeze and coolant, which is contributing to the market growth. The automotive industry relies heavily on ethylene glycol for manufacturing radiator coolants due to its properties, such as high boiling point and low freezing point, which ensure optimal engine performance in varying temperatures. Furthermore, the growing automotive sector, particularly in emerging economies, which directly increases the demand for ethylene glycol, is supporting the market growth. Additionally, the rising electric vehicle (EV) production, where ethylene glycol is used in cooling systems for batteries and other electronic components, is positively influencing the market growth. Moreover, the widespread adoption of EVs, owing to the increasing shifts towards sustainable and eco-friendly transportation, is driving the market growth.

Widespread product utilization in various industrial applications

Ethylene glycol finds diverse applications in various industries, contributing significantly to the market growth. It is used as a raw material in the production of antifreeze formulations and hydraulic fluids and as a medium for heat transfer in cooling systems. Furthermore, its application as a solvent in the paint and plastic industries is boosting the market growth. Additionally, the widespread utilization of ethylene glycol in the leather industry for tanning processes and in the electronics industry for manufacturing capacitors, owing to its chemical properties, such as low volatility and hygroscopic nature, is bolstering the market growth. Besides this, the ongoing innovation and technological advancements in these sectors, creating new applications for ethylene glycol, are fueling the market growth.

Rapid technological advancements

Technological advancements in the application and production of ethylene glycol are playing a pivotal role in the market growth. In line with this, innovations in production processes, leading to more efficient, cost-effective, and environmentally friendly methods of ethylene glycol synthesis, are boosting the market growth. Furthermore, recent developments in catalysis and process optimization that can increase yield and reduce energy consumption, making production more sustainable and economically viable, are positively influencing the market growth. Moreover, recent technological advancements that are enabling the production of bio-based ethylene glycol using renewable sources, such as biomass, are favoring the market growth. Apart from this, the growing environmental concerns and stringent regulatory policies aimed at reducing carbon footprints are driving the market growth.

Rising demand for non-ionic surfactants

Ethylene glycol is a component in the manufacturing of non-ionic surfactants, which are essential in various products like detergents, emulsifiers, and wetting agents. Non-ionic surfactants, owing to their stability and non-reactive nature, are preferred in many industrial and consumer products. They are widely employed in household cleaning agents, personal care formulations, and in industrial applications, such as emulsifiers in the food industry, agrochemicals, and textile processing. Furthermore, the rising consumer spending power, urbanization, and increasing awareness about hygiene and cleanliness are strengthening the market growth. Besides this, technological advancements in surfactant chemistry, leading to the development of new and improved formulations, are positively influencing the market growth.

Ethylene Glycol Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product, manufacturing process, application, and end-use industry.

Breakup by Product:

• Monoethylene Glycol (MEG)
• Diethylene Glycol (DEG)
• Triethylene Glycol (TEG)
   

Monoethylene glycol (MEG) accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product. This includes monoethylene glycol (MEG), diethylene glycol (DEG), and triethylene glycol (TEG). According to the report, monoethylene glycol (MEG) represented the largest segment.

Monoethylene glycol (MEG) represents the largest segment due to its extensive use in the production of polyester fibers and polyethylene terephthalate (PET) resins. Furthermore, MEG is a key raw material in the textile industry for manufacturing polyester, which is used in various applications like clothing, upholstery, and carpets, owing to its desirable properties, such as durability, superior strength, and resistance to wrinkles and shrinking. In addition to this, MEG is used as an automotive antifreeze and industrial coolant, adding to its extensive application base.

Diethylene glycol (DEG) finds applications in various industries due to its hygroscopic nature and solvent properties. It is commonly used in the manufacturing of unsaturated polyester resins, which are essential in producing fiberglass-reinforced plastics. Additionally, DEG is employed as a humectant in the tobacco, paper, and cork industries and as a solvent in printing inks, paints, and plasticizers.

Triethylene glycol (TEG) is used in the oil and gas industry for dehydration of natural gas. It is crucial for preventing the formation of hydrates and subsequent pipeline corrosion, ensuring the safe and efficient transportation of natural gas. Additionally, TEG finds application as a plasticizer in the production of vinyl polymers and as a solvent in various applications, such as textile dyeing and printing.

Breakup by Manufacturing Process:

• Ethylene Oxide
• Coal
• Biological Route
• Others
   

A detailed breakup and analysis of the market based on the manufacturing process have also been provided in the report. This includes ethylene oxide, coal, biological route, and others.

The ethylene oxide process involves the reaction of ethylene oxide with water under high pressure and temperature, resulting in the production of ethylene glycol. The primary advantage of this method is its high efficiency and ability to produce ethylene glycol with a high purity level, which is crucial for applications in sensitive industries like food and pharmaceuticals.

The coal-based process for manufacturing ethylene glycol is an alternative method that has gained attention, especially in regions with abundant coal reserves and limited access to petrochemical feedstocks. This process involves the gasification of coal to produce syngas, which is then converted into ethylene glycol. Coal-based process offers a degree of energy independence and can be more cost-effective in coal-rich regions.

The biological route for producing ethylene glycol involves the use of bio-based feedstocks, such as sugars from biomass, to produce ethylene glycol through fermentation or other biological processes. It decreases reliance on fossil fuels and lowers the carbon footprint of ethylene glycol production. Additionally, recent innovations and technological advancements in biotechnology and biochemical engineering, making it easier to produce ethylene glycol, are fueling the market growth.

Breakup by Application:

• Polyester Fiber
• PET
• Antifreeze and coolant
• Film
• Others
   

PET represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes polyester fiber, PET, antifreeze and coolant, film, and others. According to the report, PET represented the largest segment.

PET (polyethylene terephthalate) holds the largest market share, owing to its extensive use in packaging materials, especially in the food and beverage (F&B) industry. PET is favored for its lightweight, non-reactive, and durable nature, making it ideal for manufacturing bottles, containers, and packaging films. Additionally, the demand for PET is fueled by the growing consumption of packaged goods globally, driven by factors such as urbanization, changes in consumer lifestyles, and the convenience of packaged and processed foods. Additionally, PET is recyclable, which aligns with the escalating focus on sustainability and waste reduction in packaging.

Polyester fibers are widely employed in the textile industry owing to their advantageous properties, such as high strength, durability, wrinkle resistance, and quick-drying capability. They are used in a variety of textiles, from everyday clothing to specialized uses like upholstery, curtains, and industrial materials. Furthermore, continuous innovations in the textile industry, like fast fashion and the increasing use of technical textiles, are supporting the market growth.

Ethylene glycol is a vital ingredient in the production of antifreeze and coolant, owing to its ability to reduce the freezing point and raise the boiling point of water, which is essential for maintaining engine performance in varying climatic conditions. Additionally, the development and expansion of the electric vehicle (EV) market, where effective cooling systems are critical for battery efficiency and longevity, is supporting the market growth.

The film segment is a notable application area for ethylene glycol. It is used in the production of various types of films, including photographic films, packaging films, and safety films. Ethylene glycol imparts desirable properties, such as flexibility, strength, and resistance to moisture. Additionally, the use of films in various industries, ranging from packaging and photography to agriculture and consumer goods, is driving the market growth.

Breakup by End-Use Industry:

• Oil and Gas Industry
• Plastic Industry
• Transportation Industry
• Medical Industry
• Textile Industry
• Others
   

A detailed breakup and analysis of the market based on the end-use industry have also been provided in the report. This includes oil and gas industry, plastic industry, transportation industry, medical industry, textile industry, and others.

The oil and gas industry uses ethylene glycol for natural gas dehydration. This process involves removing water vapor from natural gas to prevent the formation of hydrates and subsequent pipeline corrosion, which is crucial for the safe and efficient transportation of natural gas. Additionally, ethylene glycol finds use in hydraulic and drilling fluids within the industry.

Plastic Industry utilizes ethylene glycol as a vital component in the production of polyethylene terephthalate (PET), a widely used plastic. PET is utilized in various applications, from packaging materials, such as bottles and containers, to fibers for textiles. Additionally, the growing demand for sustainable and lightweight packaging solutions is supporting the market growth.

The transportation industry, encompassing the automotive and aviation sectors, is a vital end-use segment for ethylene glycol. In automotive applications, ethylene glycol is predominantly used as an antifreeze and coolant in vehicle cooling systems, which is essential for maintaining engine performance and longevity. Additionally, ethylene glycol is used in the aviation industry for producing deicing solutions for aircraft.

In the medical industry, ethylene glycol finds its application in various pharmaceutical products and medical processes. It is used as a solvent and stabilizer in the formulation of pharmaceuticals and as a desiccant in packaging to protect medications from moisture. Ethylene glycol is also used in the production of medical devices and equipment, where its chemical stability and compatibility with other materials are beneficial.

The textile industry utilizes ethylene glycol in the production of polyester fibers. It is widely used in fabrics due to its durability, resistance to wrinkling, and ease of maintenance. Additionally, the growing demand for polyester fibers in the fashion industry, home furnishings, and industrial applications, is contributing to the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest ethylene glycol market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific represents the largest market segment due to the rapid industrialization and economic growth. Additionally, the region dominates the textile industry, with a substantial demand for polyester fibers, thus driving the consumption of ethylene glycol. Besides this, the increasing demand for PET in packaging, driven by the growing food and beverage (F&B) industry and rising consumer spending, is contributing to the market growth. Furthermore, the expanding automotive sector in the Asia Pacific also presents substantial demand for ethylene glycol as a coolant and antifreeze.

North America's ethylene glycol market is characterized by a well-established industrial sector and advanced technological infrastructure. Furthermore, the region's demand for ethylene glycol is primarily driven by its robust automotive, textile, and plastic industries. Additionally, the presence of a mature pharmaceutical industry in the region, creating a steady demand for ethylene glycol in medical applications, is favoring the market growth.

Europe's ethylene glycol market is driven by its advanced automotive, textile, and plastic industries. Furthermore, the region's stringent environmental regulations, leading to a heightened focus on sustainable and eco-friendly practices, are catalyzing the market growth. Additionally, Europe's strong pharmaceutical sector, which uses ethylene glycol in various medical applications, is fueling the market growth.

The ethylene glycol market in Latin America is growing, driven by the expansion of the industrial sectors. Additionally, the rising product demand in the textile and plastic industries, with a growing emphasis on polyester fiber production and PET for packaging applications, is driving the market growth. Besides this, the increasing investments in industrial development and the rising middle-class population in the region are supporting the market growth.

The ethylene glycol market in the Middle East and Africa (MEA) region is primarily driven by the oil and gas industry, where ethylene glycol is used for natural gas dehydration processes. Furthermore, the burgeoning construction and automotive sectors in the region are contributing to the market growth. In addition, the expansion of industrial activities and infrastructural development in the region is stimulating the market growth.

Leading Key Players in the Ethylene Glycol Industry:

Major players are focusing on expanding their production capacity to meet the global demand for ethylene glycol. It involves upgrading existing facilities and building new plants, especially in regions with high demand. Additionally, they are focusing on developing advanced production technologies to increase yield and efficiency. Furthermore, leading ethylene glycol manufacturers are engaging in partnerships, joint ventures, and collaborations with other companies and organizations to share technological expertise, expand market reach, and reduce operational costs. Moreover, they are collaborating with research institutions to explore new production methods and applications.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Akzo Nobel N.V.
• Ashland Global Specialty Chemicals Inc.
• BASF SE
• China Petrochemical Corporation (Sinopec Group)
• Dow Inc.
• Formosa Plastics Corporation
• Huntsman Corporation
• Ineos Oxide Limited (INEOS Holdings Limited)
• Lotte Chemical Corporation
• Lyondellbasell Industries Inc.
• Reliance Industries Limited
• SABIC
• Shell plc
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• In October 2023, BASF SE started the expanded ethylene oxide and derivatives complex at its Verbund site in Antwerp.
• In April 2022, Sinopec Group and BASF began the expansion of their product capacity at Nanjing, which will produce ethyleneamines, ethylene oxides, and other chemicals.
• In November 2023, Dow’s board of directors approved final investment decision for Path2Zero project, which will enable the production of sustainable ethylene and its derivatives.

Ethylene Glycol Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ethylene glycol market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global ethylene glycol market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ethylene glycol industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.