(MENAFN- GlobeNewsWire - Nasdaq) NEW YORK, Dec. 22, 2022 (GLOBE NEWSWIRE) -- Here are some of the most interesting takeaways from a recent report by IndexBox on the global ethylene oxide market.
Market Analysis
The global ethylene oxide market size was valued at USD 56.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% over the next eight years to USD 72.8 billion by 2030. Ethylene oxide is a highly reactive chemical used in numerous industries such as detergents , textiles, and pharmaceuticals. It is a colorless, flammable gas with a sweet, ether-like odor. Ethylene oxide is produced by the catalytic oxidation of ethylene in the presence of oxygen . It has been used as a starting material for many products including ethylene glycol , glycol ethers and alcohols, monoethylene glycol, and many other compounds.
The major end-use industries for ethylene oxide are chemicals, detergents, and plastics. Ethylene oxide is used as a starting material for the production of ethoxylates, which are used as surfactants in detergents and cleaning products.
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The market is driven by the growing demand for ethylene oxide from the packaging industry . The increasing use of ethylene oxide in the production of polyethylene terephthalate (PET) and polyurethane (PU) foam is also fuelling the growth of the market. The stringent environmental regulations regarding the use of chlorine-based products are expected to restrain the growth of the market.
More than 60% of ethylene oxide produced is used to make ethylene glycol, which is a major component of automotive antifreeze and coolant fluids. Ethylene oxide is also used to make detergents, thickeners, solvents, and other industrial chemicals.
On a country basis, china represents the largest market for ethylene oxide with a share of approximately 30%, followed by the united states and Western Europe. Other major markets include saudi arabia , india , and canada .
Market Challenges
The major challenges faced by the global ethylene oxide market are as follows:
1. Stringent environmental regulations: Ethylene oxide is classified as a carcinogenic substance by several regulatory bodies such as the International Agency for Research on Cancer (IARC) and the United States Environmental Protection Agency (EPA). This has led to strict regulations on its use and production, which is hampering the growth of the market.
2. High cost of production: Ethylene oxide is produced through complex processes which incur high costs. The high cost of production is restraining the growth of the market.
3. Volatility in raw material prices: Ethylene oxide is derived from ethylene, which is a petrochemical product. The prices of ethylene and other raw materials used in its production are subject to volatile swings, which impact the cost and availability of ethylene oxide. This poses a challenge to market players operating in this space.
Market Segmentation
The global ethylene oxide market is segmented into two major types, namely, monoethylene oxide and diethylene oxide. Monoethylene oxide is further classified into two types, i.e., normal butylenes and isobutylenes. Diethylene oxide is also classified into two types, i.e., cyclohexane and toluene.
Monoethylene oxide is the largest segment of the global ethylene oxide market and is projected to grow at the highest CAGR during the forecast period. The growing demand for monoethylene oxide from the chemicals & plastics industry is expected to drive the growth of this market segment during the forecast period.
Diethylene oxide is the second-largest type in the global ethylene oxide market and is projected to grow at a moderate CAGR during the forecast period. The growing demand for diethylene oxide from the pharmaceutical & medical industry is expected to drive the growth of this market segment during the forecast period.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Dow Chemical Company, LyondellBasell Industries NV, Huntsman International LLC, Reliance Industries Limited, BASF SE, Sibur Holding PJSC.
Sources
world - ethylene oxide - market analysis, forecast, size, trends and insights
eu - ethylene oxide - market analysis, forecast, size, trends and insights
asia - ethylene oxide - market analysis, forecast, size, trends and insights
u.s. - ethylene oxide - market analysis, forecast, size, trends and insights
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