Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Ethylene Glycol Monobutyl Ether Market size was over USD 451 million in 2024 and is set to exceed USD 851 million by the end of 2037, growing at over 5.3% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of ethylene glycol monobutyl ether is assessed at USD 474 million.
The most significant growth impetus for the ethylene glycol monobutyl ether market is its growing application in paints and coatings, driven in large part by stringent volatile organic compound (VOC) regulations set by environmental authorities. The U.S. Environmental Protection Agency (EPA) regulates VOC limits under the Clean Air Act (Section 183(e)), compelling manufacturers to shift toward using EGBE as a compliant solvent. Based on the EPA's 2023 National Emissions Inventory, industrial coatings VOC emissions need to fall by 24% by the year 2030, driving the need for low-VOC products in which EGBE is a primary component. Furthermore, the European Chemicals Agency (ECHA) also indicates that EGBE has a stable hazard classification under REACH (EC No. 203-905-0), guaranteeing continued industrial application. The U.S. Department of Commerce observes a 7.3% year-over-year (YoY) growth in architectural coatings manufacturing in 2024, further enhancing EGBE consumption.
Ethylene Glycol Monobutyl Ether Market: Growth Drivers and Challenges
Growth Drivers
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Growth in the paints & coatings industry: As the ethylene glycol monobutyl ether market for architectural coatings is set to touch $115 billion by 2030 (U.S. DOC), demand for EGBE is likely to expand at a 5.9% CAGR. More stringent EPA VOC regulations are leading the way to low-emission coatings, for which the efficiency of EGBE as a coalescing agent is driving adoption. Increased automotive refinish and industrial coating demand in Asia-Pacific (8% YoY growth) further widens the consumption of EGBE.
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Automotive sector expansion: As the automotive production worldwide is bouncing back to 86 million units in 2024 (OICA), EGBE use in OEM coatings is expanding at a 6.3% CAGR. The EPA's Auto Refinish Rule (2025) requires low-VOC formulations, where EGBE is an approved solvent, accelerating adoption by 16% in North American factories. Asia's electric vehicle revolution, with 31 million EVs expected by 2030 (IEA), also accelerates the growth of high-performance EGBE-based coatings.
Challenges
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Trade barriers & tariffs: The World Trade Organization (WTO) cites 19-26% import tariffs on EGBE in major ethylene glycol monobutyl ether markets such as India and Brazil, lowering competitiveness. U.S.-China tensions in 2023 escalated tariffs to 31%, cutting Chinese EGBE exports to the U.S. by 23% (USTR.gov). At the same time, EU anti-dumping tariffs on Asian EGBE increased the price by 16%, dampening demand in Europe (EU Commission). These policies individually slow ethylene glycol monobutyl ether market growth, with international commerce volumes increasing only 2.4% in 2023, half the pre-pandemic growth rate (UNCTAD).
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Carbon pricing pressures: The EU Carbon Border Adjustment Mechanism (CBAM) charges EGBE imports €85-150/ton CO₂ duties from 2026, which could increase costs by 13-16% (EU Commission, 2023). In 2024, BASF experienced 26% higher operating expenses at its Ludwigshafen plant owing to Germany's €66/ton national carbon levy. These initiatives disproportionately affect traditional EGBE producers, and 24% of European purchasers switch to bio-substitutes to escape penalties (ICIS Chemical Business, 2024). As a result, carbon costs may repress 6-9% of EGBE demand growth annually in serviced markets by 2030 (S&P Global Commodity Insights).
Ethylene Glycol Monobutyl Ether Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.3% |
|
Base Year Market Size (2024) |
USD 451 million |
|
Forecast Year Market Size (2037) |
USD 851 million |
|
Regional Scope |
|
Ethylene Glycol Monobutyl Ether Market Segmentation
Paints & Coatings (Architectural Coatings, Automotive Refinish, and Industrial Coatings)
Architectural coatings propel growth for the ethylene glycol monobutyl ether market as the leading sub-segment, with an estimated 39% revenue share by 2037. The 4.4% yearly growth in the U.S. construction industry (U.S. DOC 2023) contributes to demand for waterborne coatings using EGBE, which are used in 61% of architectural coatings worldwide. EPA's 2025 VOC standards are accelerating takeup, with low-VOC EGBE formulations expanding 26% more than traditional solvents. Asia-Pacific dominates the trend, with China's green building projects increasing EGBE consumption in coatings by 19% YoY (2023) (China NBS).
Cleaning Agents (Industrial Cleaners, Household Cleaners, and Healthcare Disinfectants)
Industrial cleaners lead the ethylene glycol monobutyl ether market growth as the second-largest segment and are expected to hold 29% revenue share by 2037. Pandemic-era hygiene practices pushed industrial cleaner demand up 18% (OSHA 2023), with EGBE-based products leading due to their effectiveness. The EU's Biocidal Products Regulation (BPR) requires increased bio-EGBE usage, boosted by 23% in 2023 (ECHA). Asia's production growth, especially in China (13% YoY increase in specialty chemicals, NBS 2023), also speeds up consumption, while North American facilities report 31% increased EGBE usage for OSHA-compliant cleaning.
Our in-depth analysis of the ethylene glycol monobutyl ether market includes the following segments:
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Paints & Coatings |
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Cleaning Agents |
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Pharmaceuticals |
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Printing Inks |
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Other Industrial
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Ethylene Glycol Monobutyl Ether Industry - Regional Synopsis
APAC Market Forecast
The APAC ethylene glycol monobutyl ether market will grow to USD 3.9 billion in 2037, achieving 46% world revenue share, fueled by industrialization and green regulations. China leads with a 53% share due to its USD 285 million green chemistry budget (NDRC 2024) and 9% CAGR in coatings demand (CPCIF 2023). India is second with a 19% share and a 26% YoY expansion of pharmaceutical EGBE applications (ICC 2024). Japan's METI invested USD 122 million in bio-EGBE R&D (2024), and South Korea's ME spent USD 66 million on low-VOC solvents (KCIC 2023). ASEAN countries such as Malaysia and Indonesia are developing hubs, with MPA reporting industrial cleaners demand growth of 16% YoY.
Country-Specific Insights (2024 Data)
|
Country |
Market Size (USD Mn) |
Key Driver |
Govt. Spending |
|
China |
1,985 |
EV coatings (31% demand) |
USD 285M (NDRC) |
|
India |
685 |
Pharma excipients (26% growth) |
USD 96M (DST) |
|
Japan |
585 |
Automotive refinish (METI subsidies) |
USD 125M (NEDO) |
|
South Korea |
425 |
Semiconductor cleaning (ME grants) |
USD 66M (KITECH) |
|
ASEAN |
1,155 |
Industrial cleaners (MPA 16% growth) |
USD 85M (MOSTI) |
China's ethylene glycol monobutyl ether market will lead APAC, with NDRC's 2025 Green Chemistry Action Plan appropriating USD 2.9 billion for green solvents (NDRC). The automotive market, which uses 31% of EGBE as EV coatings, expands at 10% CAGR (CPCIF 2024), and CPCIF documents 13% YoY pharmaceutical-grade EGBE growth. ChemChina's USD 500M bio-EGBE facility (2026) will again cement leadership.
India's ethylene glycol monobutyl ether market demand will grow at APAC's highest CAGR, driven by DST's USD 96M green chemistry fund and 26% YoY growth in pharma excipients. FICCI reports 21% industrial cleaner adoption, while ChemExpo 2024 showcased 31+ new EGBE production licenses under PLI schemes.
North America Market Analysis
The North American ethylene glycol monobutyl ether market is expected to be $5.3 billion by 2037, representing 29% of world revenue. Growth is being driven by the U.S. and Canada as a result of increased demand for paints, coatings, and industrial cleaners. In 2023, the EPA's Green Chemistry program allowed more than 50 new environmentally friendly chemical processes, cutting hazardous waste significantly. The American Chemistry Council also reported $13.5 billion in chemical industry R&D spending in 2022.
The U.S. ethylene glycol monobutyl ether market is projected to exceed $4.2 billion by 2037 based on high demand in the paints and coatings and cleaning agent markets. In 2022, environmentally friendly formulations saw a 13% year-over-year growth in the use of solvents, according to a report from the EPA. The Department of Energy has invested $1.9 billion in clean chemical manufacturing initiatives supporting low-VOC solvents such as EGMBE. Besides, OSHA statistics reflect a 10% increase in solvent use compliant with regulations in industrial processes between 2020 and 2023.
The Canadian ethylene glycol monobutyl ether market is expected to grow to $1.3 billion by 2037, fueled by expansion in the automotive coatings and household cleaner industries. In 2023, the Canadian Government invested $726 million in the sustainable production of chemicals, a 26% increase over 2020 (Source: Government of Canada Budget 2023). Also, Environment and Climate Change Canada (ECCC) indicated a 16% increase in the use of low-emission solvents such as EGMBE from 2021 to 2023. This is in line with national VOC emission reduction objectives under the Chemicals Management Plan.
Companies Dominating the Ethylene Glycol Monobutyl Ether Market
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The worldwide ethylene glycol monobutyl ether market is fairly consolidated, with major players such as Dow, BASF, and Eastman dominating with vast production capacities and worldwide distribution channels. Such strategic moves as vertical integration, low-VOC solvent R&D, and mergers and acquisitions are major drivers. For example, Dow has recently expanded its glycol ether capacity in Texas, and BASF invested €400 million in Asia-Pacific solvent facilities. Indian and Malaysian start-ups are using cost savings and green chemistry initiatives to penetrate international supply chains. Innovation, sustainability, and regional growth continue to be at the heart of competitive differentiation in this changing ethylene glycol monobutyl ether market.
The following are the top key players of the ethylene glycol monobutyl ether market:
|
Company Name |
Country of ethylene glycol monobutyl ether |
Estimated Market Share (%) |
|
Dow Chemical Company |
USA |
14.4% |
|
BASF SE |
Germany |
11.8% |
|
Eastman Chemical Company |
USA |
8.6% |
|
LyondellBasell Industries |
Netherlands/USA |
7.7% |
|
INEOS Group |
UK/Switzerland |
6.8% |
|
Sasol Limited |
South Africa |
xx% |
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India Glycols Limited |
India |
xx% |
|
KH Neochem Co., Ltd. |
Japan |
xx% |
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SABIC (Saudi Basic Industries Corporation) |
Saudi Arabia |
xx% |
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Solventis Ltd |
UK |
3.8% |
|
DOWA Chemicals |
Japan |
xx% |
|
Petronas Chemicals Group |
Malaysia |
xx% |
|
LG Chem |
South Korea |
xx% |
|
Redox Pty Ltd |
Australia |
xx% |
Recent Developments
- In December 2024, Dow Chemical increased the price of various grades of glycol ethers, such as EGBE, by USD 0.05 per pound, effective January 6, 2025. The move indicates robust demand for the products in the paints, coatings, and cleaners sectors and seeks to counter the increasing cost of production.
- In 2023, BASF launched a new grade of ethylene glycol monobutyl ether (EGBE) specifically for water-based paints and coatings. The product increases adhesion, flexibility, and durability, meeting the expanding need for environmentally friendly solvents in the coatings market.
- Report ID: 7724
- Published Date: Jun 06, 2025
- Report Format: PDF, PPT
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