Ethylene Oxide (EO) Demand Analysis [construction, automotive, textiles, and healthcare], By Types, By Applications & Forecast Analysis, 2034
Ethylene Oxide Market Size
The global Ethylene Oxide Market Size is anticipated to grow from USD 32 billion in 2023 to USD 42 billion by 2034, with a projected CAGR of 2.8% from 2024-2034. The surge in demand for Ethylene Oxide can be attributed to its widespread applications, including its role as a crucial intermediate in the production of ethylene glycol, polyethylene glycol, polyether polyols, ethoxylates, and glycol ether.
Ethylene Oxide is a colourless and highly reactive organic compound produced by the oxidation of ethylene with oxygen in the presence of a silver catalyst. It serves as a key precursor in the synthesis of ethylene glycol, which is extensively used in the production of polyester fibres and antifreeze.
Global Ethylene Oxide Demand Supply Analysis till 2034 (Kiloton)
Source: Secondary & Primary Research and Prismane Consulting estimates
Ethylene Oxide Capacity Overview
The global Ethylene Oxide capacity is estimated to be around 37,700 kilo ton in 2023, with Asia Pacific accounting for the majority share. The forecast indicates significant capacity additions in China, driven by the country's strategic plan for self-sufficiency and reduced imports. In response to China's capacity expansions, manufacturers in Western Europe and North America have adjusted their capacities.
Key manufacturers in the global Ethylene Oxide market includes chemical companies such as Dow Chemical, BASF, Shell, SABIC, Indorama, Huntsman, Reliance Petrochemicals, Indian Glycols LTD, INEOS and Other manufacturers.
Global Ethylene Oxide Demand Analysis, By Region (kilo ton)
Source: Secondary & Primary Research and Prismane Consulting estimates
Ethylene Oxide Demand Overview
In 2023, global Ethylene Oxide demand reached approximately 31,800 kilo tons, with Asia Pacific being the largest consumer, constituting more than 50% of the total Ethylene Oxide demand. The rising need for ethylene oxide in the production of ethylene glycol, surfactants, and various chemicals is expected to drive the Ethylene Oxide market. China's Ethylene Oxide capacity additions over the last decade, fuelled by demand for ethylene glycol and other derivatives, further contribute to the global demand growth. Increasing usage of Ethylene Oxide in industries such as construction, automotive, textiles, and healthcare, coupled with rapid urbanization and infrastructure projects in developing nations, is expected to fuel the Ethylene Oxide market during the forecast period.
Ethylene Oxide Trade Overview
Germany is a major Ethylene Oxide exporter in the world with over 50% of the exports destined for Italy and Belgium. Germany’s Ethylene Oxide exports have averaged 145 Kiloton in the last 5 years. Germany is estimated to be a net exporter of Ethylene oxide during the forecast period and no new major capacity addition is expected in the same period. BASF, INEOS Oxide, Clariant, and Sasol are the Ethylene Oxide manufacturers with a total installed capacity of over 1070 kilo tons as of 2023.
Germany holds the top position as the primary importer of Ethylene Oxide, importing 94 Kiloton in 2022. Italy secures the second position with 82 Kiloton, while Belgium ranks third, importing 74 Kiloton. Other importing nations have annual imports of less than 20 Kiloton each.
Global Ethylene Oxide Demand, By Application (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Ethylene Oxide Market Dynamics
Driver: Growing Applications in Various Industries
Ethylene Oxide is a crucial raw material in the manufacturing of ethylene glycol, which is extensively used in the production of polyester fibres, antifreeze, and other industrial applications. The versatile nature of ethylene oxide makes it a vital component in the production of surfactants and various chemicals, contributing to its increased demand across industries such as textiles, automotive, and healthcare. The expanding applications in diverse end-use sectors are expected to drive market growth.
Restraint: Petrochemical-Based Feedstocks and Environmental Impact
The production of Ethylene Oxide relies on petrochemical-based feedstocks, specifically ethylene. Any disruptions in the supply chain, including price fluctuations or geopolitical tensions affecting raw material sourcing, may impact the Ethylene Oxide market. Additionally, the production process releases volatile organic compounds (VOCs), posing environmental and health concerns. Increasing awareness of environmental issues and stringent emission regulations may result in higher compliance costs for Ethylene Oxide manufacturers, potentially affecting the market in the forecast period.
Recent Developments in the Ethylene Oxide Market
- In December 2023, INEOS announced acquisition of the LyondellBasell Ethylene Oxide & Derivatives business and production facility in Bayport, Texas, at a cost of $700 million.
- The deal includes a 420 Kiloton Ethylene Oxide plant, a 375 Kiloton Ethylene Glycols plant, and a 165 Kiloton Glycol Ethers plant, along with all associated third-party business on the site.
- The European Commission s rapid alert system for food and feed issued a notification on April 7 2023, revealing the presence of unauthorized pesticide residue ethylene oxide in salsa dips from Mexico. This caught the Indian exporting community off guard. The surprise stemmed from the EC's reclassifying ethylene oxide as a "pesticide residue" instead of a "fumigant." Consequently, the EC has mandated European members to test food samples for the chemical from 2023 to 2026.
- BASF has invested over USD 500 million in Antwerp to boost its production capacity by 400 Kiloton per year. This expansion involves the construction of a world-scale ethylene oxide plant and the addition of capacities for EO derivatives.
Companies Covered:
- BASF SE
- Reliance Industries
- Sasol
- BP Plc
- INEOS
- SABIC
- Formosa Plastics
- Al-Jubail Petrochemical Company (KEMYA)
- Nippon Shokubai
- Huntsman Corporation
- Sinopec
- Dow
- Other Manufacturers
