Ethylene Dichloride Market size was over USD 33.5 billion in 2024 and is estimated to reach USD 43.5 billion by the end of 2037, expanding at a CAGR of 2.2% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of ethylene dichloride is estimated at USD 34.2 billion.
Ethylene dichloride is a key raw material in vinyl chloride monomer and polyvinyl chloride (PVC) production. 1-2-dichloroethane, popularly known as Ethylene dichloride (EDC) is an industrial VSLS, primarily used as a feedstock in the PVC production chain including pipes, fittings, and window profiles. Nolan Sherry and Associates' (NSA) analysis of EDC production comprising an assessment of downstream VCM and PVC products, discusses trade movements and other ethylene dichloride (EDC) market factors.
A detailed 2024 research states that VCM production uses ethylene and acetylene, which uses ethylene dichloride at a rolling ratio of 1.6 units EDC to VCM. The latter approach is widely prevalent in China, which makes the country’s EDC production comparatively modest than other key 115 economies. EDC production occurs at large volume worldwide and accounted for approximately 52,000 Gg in 2020, which was a 29% steep surge between 2002 and 2020. North America, Europe, and South, East and South-East Asia generated over 86% of the total EDC in 2020.
Noting that EDC’s principal industrial-scale end-product i.e. PVC production is 40 million tonnes each year, with a y-o-y growth rate of 3%, indicating a corresponding demand for EDC, says the European Council of Vinyl Manufacturers (ECVM). The annual EDC volume in the U.S. was 12,750 Gg in 2020 and U.S.-Canada collectively surpassed 16500 Gg in the same year. Between 2014 and 2018, import for consumption and general import of EDC in the U.S. were equal, while in 2022 the U.S. emerged as the top exporter of 1,2-dichloroethane, which stood at USD 516 million. Ethylene dichloride is the 1557th most traded commodity out of 4648 products.
Rapid urbanization, particularly in Asia Pacific and Africa, is driving large-scale infrastructure projects, including residential, commercial, and industrial developments. This surge in construction activity is increasing the demand for durable, cost-effective, and versatile PVC-based materials, such as pipes, fittings, and window profiles. As a primary precursor to PVC production, ethylene dichloride benefits directly from this growing demand.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
2.2% |
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Base Year Market Size (2024) |
USD 33.5 billion |
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Forecast Year Market Size (2037) |
USD 43.5 billion |
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Regional Scope |
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Application (Vinyl Chloride Monomer, Ethylene Amines)
By the end of 2037, vinyl chloride monomer segment is estimated to account for ethylene dichloride market share of more than 53.3%. The segment’s growth is owing to its critical role in polyvinyl chloride (PVC) production, widely used in the construction, automotive, and healthcare industries. The rising demand for durable, cost-effective, and lightweight materials drives PVC consumption, boosting VM demand. Additionally, advancements in ED production technologies enhance efficiency, supporting VM supply. Emerging economies' infrastructure development and urbanization further fuel this segment’s growth by increasing PV requirements for pipes, windows, and fittings.
End user (Construction, Automotive, Packaging, Furniture, Medical)
By end user, the construction segment is estimated to dominate the ethylene dichloride market. The segment is due to its extensive use in producing polyvinyl chloride (PVC), a key material in pipes, fittings, and building materials. Over 50%of all PVC produced is utilized in buildings for things like plumbing and siding. Rapid urbanization and infrastructure development, particularly in emerging economies, drive demand for durable and cost-effective materials like PVC. Additionally, ED’s role in manufacturing vinyl products, such as windows and flooring, further supports growth. Rising investments in green buildings and smart infrastructure also fuel the segment’s expansion.
Our in-depth analysis of the global ethylene dichloride (EDC) market includes the following segments:
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Application |
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End user |
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North America Market Statistics
North America ethylene dichloride market is estimated to hold revenue share of over 45% by the end of 2037. The construction industry in North America significantly drives EDC demand, as it is a key raw material in polyvinyl chloride production The region’s ongoing infrastructure projects and housing developments require PVC for pipes, windows, and siding, boosting EDC consumption. In the first quarter of 2023, there were over 919,000 construction establishments in the US, thus boosting the ethylene dichloride industry.
The automotive industry’s shift toward lightweight materials to improve fuel efficiency boosts PVC demand for car interiors, wiring insulation, and trim. The U.S. automotive sector’s recovery and the rise of electric vehicles making 12% of total sales as of June 2024, further support ethylene dichloride consumption. Growing emphasis on sustainability drives innovations in PVC recycling and the production of eco-friendly materials. This creates additional demand for ethylene as a key raw material, aligning with regulatory pressures for greener solutions.
Focus on sustainable development encourages the use of recyclable and eco-encourages the use of recyclable and eco-friendly materials in Canada. EDC-derived PVC is integral to green building practices and sustainable packaging, aligning with environmental policies and consumer preferences. In all, 210,668 construction jobs, or 17% of all construction jobs in Canada in 2018, were tied to green buildings. Additionally, innovations in vinyl-based applications, such as healthcare equipment and advanced packaging solutions, drive ethylene dichloride demand. Canada, investment in R&D and adoption of cutting-edge technologies enhance the versatility and appeal of ethylene dichloride market.
Europe Market Analysis
Europe is predicted to generate lucrative revenue from the ethylene dichloride market by the end of 2037. The region has a well-established chemical industry and its focus on innovation contributes to improved ethylene dichloride production processes. Investments in energy-efficient and low-emission technologies ensure the market’s competitiveness and compliance with stringent environmental regulations. The EU's ultimate energy consumption in 2022 was 23.3% higher than the 2030 target and 1.9% lower than the 2020 aim. Moreover, ethylene dichloride is crucial in producing vinyl-based medical products, such as IV bags and tubing. Increasing healthcare investments and demand for high-quality medical supplies drive this segment’s growth in Europe.
Germany automotive industry, particularly its shift toward electric vehicles (EVs). According to the Federal Statistical Office, 88 percent more EVs were produced in 2021 than were in the previous year. is a significant driver. PVC, made using EDC, is essential in lightweight vehicle components, interiors, and wiring, aligning with the industry’s focus on efficiency and innovation.
With increasing e-commerce activities and demand for durable, flexible packaging materials, PVC’s usage is growing. Ethylene's contribution to PVC production supports the expansion of this segment in the UK. Furthermore, the country has a robust chemical manufacturing industry that leverages advanced technologies to enhance the efficiency of ethylene dichloride production. This fosters innovation in downstream applications, ensuring steady ethylene dichloride market growth.
Key companies are dominating the ethylene dichloride market through vertical integration, ensuring control over feedstock supply like ethylene and chlorine. Their global manufacturing presence enables efficient distribution and resilience against regional disruptions. By leveraging advanced production technologies and investing in R&, these players enhance product quality, reduce costs, and comply with stringent environmental regulations, solidifying their market leadership. Some of the prominent players in the ethylene dichloride (EDC) market include:
Author Credits: Rajrani Baghel
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