Ethylene Glycol Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Product Type:

The ethylene glycol market is segmented into Monoethylene Glycol (MEG), Diethylene Glycol (DEG), Triethylene Glycol (TEG), and Bio-Based EG.

Trends in the Product Type:

• DEG is increasingly used in unsaturated polyester resins and plasticizers, both are used as raw materials in the production of durable and corrosion-resistant materials.
• TEG is used in various natural gas dehydration processes due to its better hygroscopic properties and finds its application in natural gas processing and systems of air conditioning.

The MEG accounted for the largest revenue share of 65.02% in 2023.

• MEG is a chemical liquid that has no color or smell and is hygroscopic. It is represented by the formula C₂H₆O₂.
• It possesses a boiling point of 197.3° C and has very good solvent properties; hence, it is a useful compound for many industrial purposes.
• It is a raw material for manufacturing polyester fibers and PET resins that are used in textile and packaging industries.
• It is also utilized in antifreeze formulations, chiefly in the prevention of freezing in cold climates and overheating in warm ones.
• Hence, MEG plays an essential role in many industrial applications and secures its position as the largest segment in the ethylene glycol market share.

The bio-based EG is anticipated to register the fastest CAGR during the forecast period.

• Bio-based EG has the same chemical formula as conventional MEG, C₂H₆O₂, produced from renewable resources like biomass and agricultural waste.
• It possesses the same chemical properties as MEG: hygroscopic and soluble, hence equally effective in many industrial applications, particularly in the manufacture of bio-PET.
• It confers sustainability to meet the green chemistry standards that help reduce carbon footprints.
• The advances in biotechnology have made bio-based production quite efficient.
• In July 2021, new technology was developed to produce glycolic acid from EG through a novel process using biomass energy. Accordingly, in this method, the use of PtMn/MCM-41 nanocatalysts increased energy efficiency by 19.7%, while fossil energy requirement, greenhouse gas emissions, and water consumption were very significantly less when compared to coal-based processes.
• As per the analysis, the segment bio-based EG is fast-growing, with the change of trends toward sustainability combined with advancements in the production processes.

By Application:

The market is segmented into polyester fibers, polyethylene terephthalate (PET), antifreeze & coolants, chemical intermediates, and others.

Trends in the Application:

• Ethylene glycol is used as a raw material in the manufacture of surfactants and emulsifiers, particularly in personal care and cleaning products.

The polyester fibers sector accounted for the largest revenue share in 2023.

• Polyester fibers are in huge demand in the textile sector owing to their strength, resistance to stretching and shrinkage, and quick-drying properties.
• Due to their versatile chemical and physical properties, these fibers, produced are used to manufacture apparel, home textiles, and industrial textiles.
• With increased disposable income, the heightening in consumer spending on fashion has accelerated the polyester fibers growing need across the world.
• For instance, Eastman offers EG-Polyester Grade of utmost purity. It is used in the manufacture of polyester fibers and PET resins, which in turn are used in water bottles, textiles, and carpet fibers. It possesses specific properties, including good solvent properties, high boiling point, moderate viscosity, and noncorrosive nature, which make the product suitable for uses such as heat transfer fluids, antifreeze, and conditioning agents.
• Thereby, the growing need for this compound in the manufacturing of polyester fibers drives the global ethylene glycol market.

The antifreeze & coolants sector is anticipated to register the fastest CAGR during the forecast period.

• Antifreeze & coolants are mainly comprised of ethane 1,2 diol, possessing excellent thermal properties such as low freezing and high boiling points, hence, they are very suitable to retain the temperature of the engine.
• Such formulations have applications in the automotive and industrial fields, as they prevent the freezing of engines in cold countries and overheating in warm conditions.
• The electric vehicles are dependent on improved antifreeze/coolants that can maintain optimum thermal characteristics of the battery toward their effective performance.
• For instance, Chemtex manufactures glycol-based engine coolant antifreeze liquid, designed as an alternative to water-based coolants. These coolants, including Tropical Car Coolant and Extended Life Coolant (ELC), are inhibited with anti-corrosion, anti-scaling, and anti-microbial properties. They protect engines from extreme temperatures, prevent cracking, reduce pressure buildup, and avoid radiator contamination and blockage, ensuring optimal engine performance and longevity.
• Hence, the antifreeze and coolants segment will accelerate ethylene glycol market expansion due to the dynamic progress witnessed in the automotive industries.

By End Use Industry:

The market is segmented into textile, automotive, packaging, construction, healthcare, and others.

Trends in the End Use Industry:

• Bio-based EG is increasingly being used to produce bio-PET, which finds its applications in new eco-friendly packaging materials.

The textile sector contributed the highest revenue share in the year 2023.

• The main application of ethylene glycol is in the textile sector, primarily for making polyester, which is a chemical-resistant, strong, and versatile synthetic fabric.
• This compound has wide applications in the fashion and home textile sector, as well as industrially in geotextiles and car upholstery.
• The sector of fast fashion is marked by an insatiable consumer appetite for cheap and fashionable clothes.
• For instance, MTROYAL COMPANY produces MEG, primarily used as a raw material in the production of polyester fibers used in the textile sector. MEG is crucial for manufacturing fabrics, clothing, and various packaging materials, making it a key component in the global textile markets.
• According to the analysis, the various applications of the compound in the textile sector are at the forefront of the ethylene glycol market.

The automotive sector is anticipated to exhibit the fastest growth in CAGR during the forecast period

• The automotive sector requires ethylene glycol to provide efficient cooling and lubrication for modern engines, which are required to be more efficient and perform better.
• The chemical nature of this compound maintains a uniform temperature and prevents corrosion, which makes it important in automotive cooling systems.
• Better fuel efficiency, along with increased regulation of emissions, has also given a boost to such formulations because these help bring down the temperature of the engine and reduce fuel consumption.
• For instance, EQUATE produces premium-quality MEG and DEG. This petrochemical product is essential in automotive applications, particularly in the manufacturing of antifreeze and coolant.
• Hence, the ethylene glycol market opportunities are very likely to be witnessed in the automotive sector due to the rising penetration of EVs, and advanced engine technologies.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 22,473.49 Million in 2023. Moreover, it is projected to grow by USD 23,356.49 Million in 2024 and reach over USD 35,398.09 Million by 2031. Out of this, China accounted for the maximum revenue share of 45.9%. This is due to the fast-growing automotive industries in major developing markets like China and India. The increased production of vehicles and growing demand for antifreeze and coolant applications are also some of the contributing factors. Besides, rapid urbanization and industrialization in the region drive the usage of the compound in various industries.

• For instance, BASF and SINOPEC celebrated the inauguration of a new, expanded chemical plant at the BASF-YPC Verbund site in Nanjing in November 2023. With this operation, the supply capacity is being increased with the joint effort between the two companies due to rising demand in China, leading to the ethylene glycol market expansion.

North America is estimated to reach over USD 13,956.50 Million by 2031 from a value of USD 9,194.93 Million in 2023 and is projected to grow by USD 9,526.45 Million in 2024. This could be attributed to this region's strong automotive and industrial sectors, which are considered key end-users for the product. Surging demand for antifreeze and coolant applications in vehicles and increased industrial production give further thrust to market growth.

Besides, manufacturers have been developing new technologies that push for increased efficiency and greener production processes.

• In May 2023, Dow and New Energy Blue, announced a collaboration to produce renewable EG from corn residue. This partnership in North America involves New Energy Blue creating bio-based ethylene from agricultural waste, which Dow will use to manufacture renewable plastics.

The European market is driven by the region's prevalence of sustainable and energy-efficient technologies. Antifreeze and de-icing applications of this compound are gaining usage in the automotive and construction industries, respectively.

As per the ethylene glycol market analysis, the key driving factor in the Middle East and Africa is the growing industrial sector of the region that immensely needs the use of this compound in its manufacturing processes. Increasing investments in petrochemical infrastructures and expansion of industrial activities become some major growth contributors.

In Latin America, the developing automobile and industrial sectors are the primary causes of market growth. The growing automotive sector and increasing applications of this compound in antifreeze and coolants have grown the market in the region.