Ethylene Dichloride Market Analysis

Global Ethylene Dichloride Market Overview

Ethylene Dichloride Market Size was valued at USD 32.531 Billion in 2023. The ethylene dichloride industry is projected to grow from USD 33.28 Billion in 2024 to USD 39.021 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.01% during the forecast period (2024 - 2032). Rising demand for gasoline and fuels, rising urbanization, and government efforts to develop infrastructure for public and private gain are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Ethylene Dichloride Market Trends

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  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.

Ethylene Dichloride Market Segment Insights

Ethylene Dichloride Application Insights

Based on application, the ethylene dichloride market segmentation includes vinyl chloride monomers, ethylene amines, and others. The vinyl chloride monomers segment dominated the market, The versatile synthetic plastic material polyvinyl chloride (PVC) is primarily made using vinyl chloride monomer (VCM). In numerous applications across numerous industries, PVC is used. Plumbing, drainage systems, irrigation, and underground cable protection use PVC pipes extensively. PVC, which is then molded into pipes, fittings, and other associated parts, is created by polymerizing VCM.

Figure 1: Ethylene Dichloride Market, by Application, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Ethylene Dichloride End-User Insights

The ethylene dichloride market segmentation, based on end users, includes construction, automotive, packaging, furniture, medical, and others The construction category generated the most income. Glues and adhesives are made using ethyl dichloride. As a solvent, it can dissolve rubber, resins, and other ingredients found in adhesive formulations. The resulting adhesive can join different building materials, including metal, plastic, and wood. Ethyl dichloride can stabilize soil in some construction projects, especially road building or foundation work. When injected into the soil, it interacts with the soil particles to strengthen and cohere them. This stabilizes the construction site, increases load-bearing capacity, and lessens soil erosion.

Ethylene Dichloride Regional Insights

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, MRFR 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.

Ethylene Dichloride Key Market Players & Competitive Insights

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.

Dow Chemical Company (U.S.), The mission of Dow Chemical International Private Limited (Dow India) is to be the world's most cutting-edge, environmentally friendly, inclusive, and customer-focused materials science company. Dow Chemical Company are dedicated to providing the best answers to your challenges. Delivering differentiated science-based products and solutions for our customers in high-growth industries like packaging, infrastructure, and consumer care, they have one of the broadest technology portfolios spanning performance materials, industrial intermediates, and plastics. With six locations nationwide, we are a Great Place to Work® certified company that employs over 1000 people. One commercial office, three centers of excellence, and three manufacturing facilities are among them.

Key Companies in the ethylene dichloride market include

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  Olin Corporation (U.S.)

  
  


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  Formosa Plastics Corporation (U.S.)

  
  


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  Westlake Chemical Corporation (U.S.)

  
  


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  Axiall Corporation (U.S.)

  
  


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  Occidental Petroleum Corporation (U.S.)

  
  


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  PPG Industries (U.S.)

  
  


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  The Dow Chemical Company (U.S.)

  
  


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  PT Asahimas Chemical (Indonesia)

  
  


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  Horizon Chemical Industry Co. Ltd (China)

  
  


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  Punjab Chemicals & Crop Protection Limited (India)

  
  

Ethylene Dichloride Industry Developments

March 2022: A recent decline may be expected after such a significant rise. The only way to decide whether the current price is reasonable is to weigh the company’s advantages. Let's see if fundamentals were the primary factor in the company’s performance over the past three years since the past week has been profitable for Olin investors.

Ethylene Dichloride Market Segmentation

Ethylene Dichloride Application Outlook

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  Vinyl Chloride Monomer

  
  


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  Ethylene Amines

  
  


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  Others

  
  

Ethylene Dichloride End-User Outlook

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  Construction

  
  


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  Automotive

  
  


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  Packaging

  
  


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  Furniture

  
  


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  Medical

  
  


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  Others

  
  

Ethylene Dichloride Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America