Analysis by Type (Monoethylene Glycol, Diethylene Glycol, and Triethylene Glycol); by Manufacturing Process (Ethylene Oxide, Coal, Biological Route, and Others); by Application (Polyester Fibers, PET, Antifreeze & Coolants, Films, and Others); and by End-use Industry (Textile, Automotive, Packaging, Oil & Gas, Transportation, Medical, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global ethylene glycol market is estimated to garner a revenue of ~USD 27 Billion by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 17 Billion in the year 2022. The primary growth factor for the market is the expansion of the automotive sector. The various kinds of benefits offered by ethylene glycol are very much beneficial for varied purposes in the automobile sector. The latest report suggests that the revenue generation by the global automotive industry to reach approximately USD 9 trillion by 2030.
Ethylene glycol is being used to manufacture polyester fibers as a raw material. This raw material works efficiently as a coolant in automobile engines. Further, being a heat transfer agent, it helps in cooling down the parts of a vehicle. Furthermore, mixing ethylene glycol with water has the added advantage of eliminating corrosion, preventing acid degradation, and the growth of certain bacteria. Thus, the rise in the number of vehicles across the world is anticipated to garner high revenues in the ethylene glycol market by 2033. Recent reports estimated that by the end of the first quarter of 2022, approximately 1.50 billion vehicles were on roads worldwide. Out of these, around 1 billion were estimated to be passenger cars. In addition to the other factors, ethylene glycol is being heavily used as feedstock in a wide range of many end-use industries. It is also being used as PET bottle resins, polyester fiber, and films. Also, it has usage in the textile sector and apparel industries as well as manufacturing, home furnishings, carpets, and rugs. Hence, the wide utilization of ethylene glycol owing to the high potential for polyester applications in the upcoming years.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 17 Billion |
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Forecast Year Market Size (2033) |
~ USD 27 Billion |
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Regional Scope |
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Growth Drivers
Rapid Extension in Textile Industry - Ethylene glycol is the primary component in producing mono-ethylene glycol which is essential for producing polyester fabrics. These are then utilized in textile and apparel manufacturing, as well as garment manufacturing, home furnishings, carpets, and rugs. Hence, the expansion of the textile industry is expected to bring high potential to the market. For instance, the global textile industry accounted for around USD 920 billion in 2018, and is further projected to reach approximately USD 1,230 billion by 2024.
Rise in Demand and Production of Vehicles - Ethylene glycol is being widely used as an antifreeze in automobile engines. Another advantage such as a lower freezing point than water is being used in cooling automobile radiators throughout the winter. Thus, growing vehicle production and sales volumes of vehicles are responsible for the increase in ethylene glycol consumption. As per the Organization of Motor Vehicle Manufacturers (OICA), the global production of vehicles was 80,145,988 units in 2021 around the world. This is an increase from 77,711,725 units of vehicles in 2020.
Boom in Chemical Industry – Rapid industrialization and development in India have propelled the Indian chemical industry to reach a revenue of USD 300 billion by 2025.
Increased Expenditure in Research & Development – Key players of the global market is investing huge amounts in developing technologically developed activities such as ethylene glycol in the upcoming years. Thus, the high expenditure on research and development activities is expected to create a positive outlook in the upcoming years. The World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.
Challenges
The global ethylene glycol market is segmented and analyzed for demand and supply by end-use industry into textile, automotive, packaging, oil & gas, transportation, medical, and others. Out of these, the textile segment is expected to garner the highest market shares by 2033, owing to the large production of textile production. According to recent data, the worldwide production volume of textile fibers rose from 100 thousand metric tons in 2017 to 110 thousand metric tons in 2020. In addition, the rapid adoption of polyester fibers owing to its usage as a cushioning material in pillows, comforters, and upholstery padding is consequently projected to drive the segment for ethylene glycol in the forecast.
The global ethylene glycol market is also segmented and analyzed for demand and supply by application into polyester fibers, PET, antifreeze & coolants, films, and others. Out of these, the PET segment is projected to hold the most significant share of the market with a remarkable CAGR value during the forecast period. As a result of changing lifestyles of consumers and the rapid expansion of the packaging industry, the usage of polyethylene terephthalate (PET) is estimated to grow for a variety of consumer goods products. PET is being widely used for producing food containers and bottles which is effective in storing food items for a long period of time. Also, various advantages offered by PET containers such as low toxicity, high longevity, enhanced strength, and robust durability make it an ideal option for manufacturers and producers.
Our in-depth analysis of the global ethylene glycol market includes the following segments:
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By Type |
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By Manufacturing Process |
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By Application |
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By End User Industry |
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The Asia Pacific ethylene glycol market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The primary reason for the market growth in the region is the rising population along with the increasing demand and manufacturing of textiles. The recent statistics revealed that China was the top-ranked global textile exporter in 2021 with a value of approximately USD 120 billion, which is equivalent to 55% of the total textile export sector in Asia. Bangladesh is also a leading textile exporter with a value of around USD 40 billion. Further, the expansion of the automotive industry in the region is another growth factor for the utilization of ethylene glycol. As per recent estimates, India is set to become 3rd largest automotive industry in the world. Also, India’s automotive industry generated almost USD 220 billion in 2021, which is equivalent to 7% of total India’s GDP.
On the other hand, the North American ethylene glycol market is also projected to grow significantly on the account of the presence of major key players and the various end-use industries in the region. Furthermore, the rising investments in the research and development activities in the region along with the rising government support for aiding the development of manufacturing facilities of ethylene glycol is considered to impetus a significant revenue generation in the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The expansion of the textile and automotive industry along with other end-use industries are expected to propel market growth in the future.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2033.
Ans: Frequent fluctuation in prices of raw materials stringent regulatory policies, and high manufacturing costs are some of the factors that are expected to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Reliance Industries Limited, LOTTE Chemical Corporation, Kuwait Petroleum Corporation, Akzo Nobel N.V., Clariant International Ltd, Formosa Plastics Corporation, U.S.A., Exxon Mobil Corporation, Huntsman International LLC, SABIC, BASF, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, manufacturing process, application, end-use industry, and by region.
Ans: The textile segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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