Ethylene Oxide Market Forecast 2023 - 2031

By Application :

The application is categorized into ethylene glycol, acrylonitrile, ethoxylates, ethanolamine, sterilant, and others. In 2022, the ethylene glycol segment accounted for the highest market share of 38.95% in the ethylene oxide market, and it is also expected to grow at the highest CAGR over the forecast period. Ethylene oxide plays a pivotal role in the production of ethylene glycol, which is a versatile chemical compound with a wide range of applications. Ethylene glycol is a crucial component in the production of antifreeze, as well as in various industrial and consumer products. The demand for ethylene glycol is closely tied to its use in various industries. The automotive industry heavily relies on ethylene glycol as a key component in antifreeze and engine coolant. Other sectors, such as textiles, packaging, and construction, also use ethylene glycol in various applications. Ethylene glycol is also used in the manufacturing of food-grade polyethylene terephthalate packaging materials. Significant growth in the sale of processed food is increasing the demand for PET containers and bottles. For instance, according to the report by the Government of Canada in March 2022, 2020, retail sales of packaged food in China totaled USD 284 billion.

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By End-user Industry :

The end-user segment is categorized into chemical, pharmaceutical and healthcare, food & beverages, cosmetics, automotive, oil & gas, detergents, textile, and others. In 2022, the automotive segment accounted for the highest market share in the overall ethylene oxide market. Ethylene glycol derived from ethylene oxide is used in the automotive industry for the manufacturing of antifreeze and coolants. Ethylene glycol-based coolants are used in automotive cooling systems to regulate engine temperature. It prevents freezing in cold weather and overheating in hot conditions. As the automotive industry continues to produce more vehicles globally, the demand for ethylene glycol-based coolants grows in tandem. For instance, according to the report by the European Automobile Manufacturers Association in August 2023, the European passenger car market continued its growth trajectory, expanding by 15.2% in the twelfth consecutive month of growth. New car registrations reached 851,156 units as the bloc recovers from last year's component shortages. Therefore, the growing automobile industry is driving the segment growth worldwide.

Moreover, the pharmaceutical and healthcare segment is expected to hold the highest CAGR over the forecast period. Ethylene oxide is widely used for the sterilization of medical devices, such as surgical instruments, implants, and single-use medical products. The demand for sterile medical equipment continues to grow with the increasing need for surgeries, diagnostics, and healthcare services.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, Asia Pacific accounted for the highest market share at 38.50% valued at USD 12,302.38 Million in 2022 and USD 12,621.21 Million in 2023, it is expected to reach USD 16,146.00 Million in 2031. In Asia Pacific, China accounted for the highest market share of 24.15% during the base year of 2022. The significant growth in the automotive, food and beverages pharmaceutical healthcare, textile, and chemical industries across the Asia Pacific is driving the ethylene oxide market growth over the forecast period. For instance, according to the report by the International Trade Administration in April 2023, China's total annual sale of passenger vehicles accounted for 26 million vehicles in 2021 which is a 7.1% increase from the previous year 2020. Furthermore, the growing pharmaceutical industry in the Asia Pacific region is also driving market growth. For instance, according to the report by the International Trade Administration in May 2020, China's food and beverage sector reached approximately USD 595 billion in 2019, a 7.8% increase over 2018. The significant growth in the food and beverage industry across the country is increasing the demand for ethylene oxide for the manufacturing of ethylene glycol which is used for the manufacturing of PET resins. for various packaging applications. Significant growth in the pharmaceutical industry in Asia Pacific is driving the market growth. According to the report by the Indian Brand Equity Foundation in August 2023, the market size of the Indian pharmaceuticals industry is expected to reach USD 65 billion by 2024, and USD 130 billion by 2030.

Furthermore, the North America region is expected to witness significant growth over the forecast period, growing at a CAGR of 3.7% during 2023-2031. The growing use of ethylene oxide in the pharmaceutical and healthcare industry for the sterilization of medical devices and equipment, along with the growing demand for ethylene oxide in the natural gas purification application of the oil and gas industry is expected to drive the growth of ethylene oxide market in North America region over the forecast period.