Ethylene Dichloride Market

Rising urbanization is driving the market growth

The market CAGR for the ethylene dichloride market, or EDC is another name for dichloroethane. Dichloroethane is an odorless liquid with a color similar to chloroform. Dichloroethane is a chlorinated hydrocarbon typically used to make vinyl chloride monomer, the main polyvinyl chloride (PVC) precursor. Dichloroethane is extremely flammable, toxic, and carcinogenic. Dichloroethane is conveniently recyclable and reusable within the same facility. PVC and the construction sector are major drivers of the dichloroethane market.

When making vinyl chloride monomer, used in PVC pipes, upholstery for furniture and automobiles, wall coverings, and other things, ethylene dichloride is frequently used as a starting material. Iron (III) chloride is used as a catalyst in the reaction between ethane and chlorine to produce ethylene dichloride in industrial quantities. When producing vinyl chloride monomer using ethylene dichloride, hydrogen chloride is also created as a byproduct. Additionally, ethylene dichloride is used as a precursor in the synthesis of ethylene amines. EDC-related health problems, however, are a significant market restraint.

Regarding both production and consumption, polyvinyl chloride (PVC) is the third-largest plastic. PVC is used in many different products, including wires, power & signal cables, films, sheets, and pipes and fittings. Ethylene dichloride is one of the main raw materials used to produce PVC or vinyl chloride monomer. As a result, demand for this chemical is anticipated to increase at a healthy rate.

Growth of the ethylene dichloride market will be complemented by increased demand for gasoline. While vendors have focused on expanding refinery capacities to meet the rising demand for crude oil products, the oil industry has been predicted to grow steadily due to the rising demand for gasoline and fuels. Since ethylene dichloride is typically used as a lead scavenger in gasoline, an increase in demand is predicted to fuel the ethylene dichloride market soon.

Ethylene dichloride is consumed due to rising urbanization and government efforts to develop infrastructure for both public and private gain. Additionally, ethylene dichloride is used to make ethylene amines, which are used as corrosion inhibitors, lubricant and fuel additives, surfactants, and wood preservatives. The production of other chemicals like vinylidene chloride, trichloroethylene, and trichloroethane also uses it. It is primarily used in the automotive industry to produce parts for vehicles like instrument panels and electrical cable sheathing. Thus, driving the ethylene dichloride market revenue.

In 2021, Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) and Reliance Industries Limited (RIL) have agreed to establish TA'ZIZ EDC & PVC, a global chemical production collaboration at the TA'ZIZ Industrial Chemicals Zone in Ruwais, UAE. The new joint venture (JV) will build and run a chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC) production facility for more than $2 billion.

The Global Ethylene Dichloride Market Industry experiences a notable surge in demand for polyvinyl chloride (PVC), a primary derivative of ethylene dichloride. PVC is extensively utilized in construction, automotive, and electrical applications, contributing to its increasing consumption. In 2024, the market is projected to reach 33.3 USD Billion, driven by the construction sector's growth, particularly in emerging economies. The demand for durable and cost-effective materials in infrastructure projects further propels this trend. As urbanization accelerates globally, the need for PVC in various applications is expected to sustain the market's expansion in the coming years.

The Global Ethylene Dichloride Market Industry is influenced by stringent environmental regulations aimed at reducing harmful emissions and promoting sustainable practices. Governments worldwide are implementing policies that encourage the use of safer alternatives and the reduction of hazardous substances. This regulatory landscape compels manufacturers to innovate and adopt cleaner production methods, thereby impacting the demand for ethylene dichloride. While these regulations may pose challenges, they also present opportunities for companies to enhance their sustainability profiles. As the industry adapts to these changes, it is likely that the market will witness a shift towards more environmentally friendly practices.

The Global Ethylene Dichloride Market Industry is poised for growth due to the expansion of emerging markets. Countries in Asia-Pacific and Latin America are witnessing rapid industrialization and urbanization, leading to increased demand for ethylene dichloride in various applications. The construction and automotive sectors in these regions are particularly significant contributors to market growth. As infrastructure development accelerates, the need for PVC and other derivatives of ethylene dichloride is expected to rise. This trend indicates a promising outlook for the market, with a projected CAGR of 2.01% for the period from 2025 to 2035, reflecting the ongoing demand in these burgeoning economies.

Technological advancements play a crucial role in shaping the Global Ethylene Dichloride Market Industry. Innovations in production processes and methodologies enhance efficiency and reduce costs, making ethylene dichloride more accessible to manufacturers. The adoption of advanced technologies, such as continuous production techniques and improved separation methods, contributes to higher yields and lower environmental impact. As companies strive to optimize their operations, these advancements are likely to drive market growth. Furthermore, the integration of digital technologies in manufacturing processes may lead to increased productivity and competitiveness within the industry.

The Global Ethylene Dichloride Market Industry benefits from the robust growth in the chemical manufacturing sector. Ethylene dichloride serves as a vital feedstock for various chemical processes, including the production of solvents, adhesives, and coatings. As global industrial activities expand, the demand for chemical products is anticipated to rise, thereby bolstering the ethylene dichloride market. The compound's versatility and effectiveness in diverse applications make it a preferred choice among manufacturers. Projections indicate that by 2035, the market could reach 41.4 USD Billion, reflecting the ongoing expansion of the chemical industry and its reliance on ethylene dichloride.

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American ethylene dichloride market will dominate this market, with rapid growth in PVC manufacturing capacity. This required extending the entire PVC production chain at the company's Plaquemine, Louisiana, complex, which now houses a new vinyl chloride monomer unit with a production capacity of roughly 1 million mt/year and an ethylene dichloride unit with a production capacity of 680,388 mt/year. These changes may favorably affect the forecast for the ethylene dichloride market.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ETHYLENE DICHLORIDE MARKET SHARE BY REGION 2022 (USD Billion) 

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s ethylene dichloride market accounts for the second-largest market share due to rising demand for crude oil products, the oil industry has been predicted to grow steadily due to the rising demand for gasoline and fuels. Since ethylene dichloride is typically used as a lead scavenger in gasoline, an increase in demand is predicted to fuel the ethylene dichloride market soon. Further, the German ethylene dichloride market held the largest market share, and the UK ethylene dichloride market was the fastest-growing market in the European region.

The Asia-Pacific Ethylene Dichloride Market is expected to grow at the fastest CAGR from 2023 to 2032. Rising urbanization and government efforts to develop infrastructure for public and private gain. Additionally, ethylene dichloride is used to make ethylene amines, which are used as corrosion inhibitors, lubricant and fuel additives, surfactants, and wood preservatives. Moreover, China’s ethylene dichloride market held the largest market share, and the Indian ethylene dichloride market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the ethylene dichloride market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The ethylene dichloride industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the ethylene dichloride industry to benefit clients and increase the market sector. In recent years, the ethylene dichloride industry has offered some of the most significant advantages to medicine. Major players in the ethylene dichloride market, including Olin Corporation (U.S.), Formosa Plastics Corporation (U.S.), Westlake Chemical Corporation (U.S.), Axiall Corporation (U.S.), Occidental Petroleum Corporation (U.S.), PPG Industries (U.S.), The Dow Chemical Company (U.S.), PT Asahimas Chemical (Indonesia), Horizon Chemical Industry Co.

Ltd (China), Punjab Chemicals & Crop Protection Limited (India) and others, are attempting to increase market demand by investing in research and development operations.

Axiall Corporation (U.S.), the communities where they live and work, are important business partners to Axiall, which is already proud to employ more than 1,600 people in Louisiana. They have two well-established plant locations in Lake Charles and are actively involved in the neighborhood. They always want to keep you up to date on our development. Once construction is complete, two billion pounds of ethylene will be produced annually at the LACC facility. The most frequently used organic compound for chemical building blocks is ethylene, a colorless, odorless gas.

Since ethylene production requires much energy, improving efficiency and lowering costs requires careful consideration of steam usage and heat recovery. Nearly half of the ethylene Axiall requires for its current manufacturing facilities will come from the ethylene produced at LACC.

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