Ethylene Carbonate Market

Market Definition

Ethylene carbonate is an organic compound that appears as a clear, odorless, and slightly viscous liquid or solid at room temperature. It is widely used as a solvent and electrolyte component in lithium-ion batteries, as well as in the production of lubricants, plastics, and pharmaceuticals. 

Ethylene carbonate is valued for its high dielectric constant, good chemical stability, and ability to dissolve a wide range of compounds.

Ethylene Carbonate Market Overview

The global ethylene carbonate market size was valued at USD 741.5 million in 2024 and is projected to grow from USD 799.8 million in 2025 to USD 1361.8 million by 2032, exhibiting a CAGR of 7.89% during the forecast period. 

This growth is attributed to the increasing adoption of Electric Vehicles (EVs), which is driving the demand for ethylene carbonate. Ethylene carbonate plays a vital role as an electrolyte solvent in lithium-ion batteries, supporting battery performance and safety. 

The market is growing, due to significant investments in large-scale production facilities which are expanding supply capacity to meet the growing need for high-purity ethylene carbonate in battery manufacturing operations across global markets.

Major companies operating in the ethylene carbonate industry are Asahi Kasei Corporation, BASF, Empower Materials, FUJIFILM Wako Pure Chemical Corporation, Huntsman International LLC, Liaoning Oxiranchem Inc, Mitsubishi Chemical Group Corporation, TOAGOSEI CO., LTD, Otto Chemie Pvt. Ltd, RXMARINE, Tokyo Chemical Industry Pvt. Ltd, Vizagchemical, ZIBO DONGHAI INDUSTRIES CO., LTD, Zhengzhou Meiya Chemical Products Co., Ltd, and Merck KGaA.

The market is registering growth, due to increasing strategic investments in advanced production infrastructure for carbonate compound. 

The new facilities for ethylene carbonate are designed with integrated carbon capture technologies to utilize emissions from upstream processes, enabling the production of high-purity ethylene carbonate through more sustainable methods. 

These infrastructure developments are strengthening regional supply chains and aligning with industry-wide efforts to promote low-carbon manufacturing across the market.

•  In March 2024, Dow planned to invest in a new world-scale carbonate solvents production facility on the U.S. Gulf Coast. The facility will utilize captured CO₂ from ethylene oxide manufacturing to produce high-purity carbonate solvents, including ethylene carbonate, supporting the rising demand from EVs and energy storage applications.

Key Highlights:

1. The ethylene carbonate market size was valued at USD 741.5 million in 2024.
2. The market is projected to grow at a CAGR of 7.89% from 2025 to 2032.
3. Asia Pacific held a market share of 33.82% in 2024, with a valuation of USD 250.8 million.
4. The solid segment garnered USD 460.8 million in revenue in 2024.
5. The lubricants segment is expected to reach USD 382.8 million by 2032.
6. The industrial segment is anticipated to register the fastest CAGR of 8.42% over the forecast period.
7. The market in Europe is anticipated to grow at a CAGR of 8.27% through the forecast period.

Market Driver

Rising Adoption of Electric Vehicles

The market is driven by the increasing adoption of EVs, as ethylene carbonate is a vital component in lithium-ion battery electrolytes which improve battery efficiency and stability. 

The global shift toward sustainable transportation, fueled by environmental concerns and government incentives, is increasing EV production and demand for high-performance batteries. The growing shift to cleaner mobility is driving higher demand for ethylene carbonate as automakers expand their EV portfolios and governments pursue net-zero targets.

• In 2024, according to the U.S. Department of Energy's Vehicle Technology, plug-in electric vehicles (PEVs) accounted for 9.1% of all light-duty vehicle sales in the U.S. in 2023, up from 6.8% in 2022.

Market Challenge

Volatility in Raw Material Prices

The volatility of raw material prices presents a significant obstacle for the ethylene carbonate market, as it heavily depends on ethylene oxide and carbon dioxide which are vulnerable to supply chain disruptions, energy cost shifts, and geopolitical tensions. 

These unpredictable price movements are increasing production costs, reducing profit margins and creating uncertainty for manufacturers operating in this space.

Companies are adopting strategic measures, such as securing long-term supply agreements with raw material providers, to maintain cost stability and minimize risks. They are also investing in backward integration, exploring alternative feedstocks and improving production efficiency through process optimization to strengthen their market position.

Market Trend

Focus on Battery Innovation

A key trend shaping the market is the growing focus on battery innovation in next-generation lithium-ion and solid-state batteries. Manufacturers are increasingly optimizing and customizing ethylene carbonate to improve battery performance, safety, and energy density. 

With its high dielectric constant and strong solvating properties, ethylene carbonate is becoming essential in enhancing ion transport and enabling more efficient energy storage. 

This shift is supporting advancements in electrolyte formulations to align with new battery chemistries, reinforcing ethylene carbonate’s role in the development of durable, high-efficiency, and sustainable battery technologies.

Ethylene Carbonate Market Report Snapshot

Segmentation	Details
By Form	Solid, Liquid
By Application	Lubricants, Surface Coatings, Lithium Battery Electrolyte, Plasticizers, Others
By End Use Industry	Automotive, Industrial, Oil & Gas, Medical, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Form (Solid, Liquid): The solid segment earned USD 460.8 million in 2024, due to its wide use in lithium-ion battery electrolytes and industrial applications.
• By Application (Lubricants, Surface Coatings, Lithium Battery Electrolyte, and Plasticizers): The lubricants segment held 28.08% share of the market in 2024, due to the growing demand for high-performance and eco-friendly lubricant additives.
• By End Use Industry (Automotive, Industrial, Oil & Gas, and Medical): The automotive segment is projected to reach USD 357.6 million by 2032, owing to the increasing production of EVs and advanced lubricant requirements.

Ethylene Carbonate Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for 33.82% share of the ethylene carbonate market in 2024, with a valuation of USD 250.8 million. This market dominance is attributed to a strong manufacturing base in the region supported by large-scale chemical facilities that allow efficient and high-volume production. 

The market is also gaining momentum from Asia Pacific’s leadership in EV and lithium-ion battery production where ethylene carbonate plays a vital role as an electrolyte solvent.

The adoption of advanced CO₂-based production technologies by regional manufacturers indicates a move toward cleaner and more sustainable processes. Continuous investments in innovative production methods by regional players are further boosting technological advancement and enhancing the region’s competitiveness in the market.

• In November 2024, Jiangsu Sailboat Petrochemical commenced commercial production of high-purity ethylene carbonate at its new plant in China. The facility utilizes technology licensed from Asahi Kasei Corporation, which employs carbon dioxide as the main raw material. This innovative CO2-based process supports sustainable manufacturing and addresses the growing demand for electrolyte solvents in lithium-ion batteries used for electric vehicles.

The ethylene carbonate industry in Europe is set to grow at a robust CAGR of 8.27% over the forecast period. This growth is attributed to the rapid adoption of EVs and renewable energy storage systems that require high-performance lithium-ion batteries where ethylene carbonate is used as a key electrolyte solvent. 

Environmental regulations in Europe are promoting sustainable energy solutions, leading to the increasing need for ethylene carbonate as a key electrolyte solvent. Additionally, the expanding applications of ethylene carbonate in lubricants, plastics, and pharmaceuticals, fueled by its high polarity and low toxicity, contribute to the market growth.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) regulates the use, manufacture, and disposal of ethylene carbonate under the Toxic Substances Control Act (TSCA) and sets limits for environmental emissions.
• The Central Pollution Control Board (CPCB), under the Ministry of Environment, ensures environmental compliance and pollution control during the production and use of chemicals such as ethylene carbonate.
• In China, the Ministry of Ecology and Environment (MEE) enforces environmental protection laws concerning chemical manufacturing and emissions.

Competitive Landscape

Major players in the ethylene carbonate market are enhancing their competitiveness by initiating commercial-scale production using advanced and licensed technologies to improve efficiency and consistency. 

They are focusing on sustainable manufacturing processes that rely on cleaner raw materials to support global de-carbonization efforts and reduce environmental impact. 

They are focusing on high-purity output to meet the growing quality requirements of lithium-ion battery manufacturers, especially in the EV sector. These strategic efforts are helping companies strengthen their market presence while supporting the broader transition to green energy solutions.

List of Key Companies in Ethylene Carbonate Market:

• Asahi Kasei Corporation
• BASF
• Empower Materials
• FUJIFILM Wako Pure Chemical Corporation
• Huntsman International LLC
• Liaoning Oxiranchem Inc
• Mitsubishi Chemical Group Corporation
• TOAGOSEI CO., LTD
• Otto Chemie Pvt. Ltd
• RXMARINE
• Tokyo Chemical Industry Pvt. Ltd
• Vizag chemical
• ZIBO DONGHAI INDUSTRIES CO., LTD
• Zhengzhou Meiya Chemical Products Co., Ltd
• Merck KGaA.

Recent Developments (Agreements)

• In November 2024, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical committed to advancing their feasibility study on carbon-neutral ethylene production in western Japan. The collaboration focuses on shifting to biomass and low-carbon fuels, optimizing production and reducing capacity.