Ethylene Glycol Market Trends

Growth Drivers

• Rapid Extension in Textile Industry - Ethylene glycol is the primary component in producing mono-ethylene glycol which is essential for producing polyester fabrics. These are then utilized in textile and apparel manufacturing, as well as garment manufacturing, home furnishings, carpets, and rugs. Hence, the expansion of the textile industry is expected to bring high potential to the market. For instance, the global textile industry accounted for around USD 920 billion in 2018, and is further projected to reach approximately USD 1,230 billion by 2024.

• Rise in Demand and Production of Vehicles - Ethylene glycol is being widely used as an antifreeze in automobile engines. Another advantage such as a lower freezing point than water is being used in cooling automobile radiators throughout the winter. Thus, growing vehicle production and sales volumes of vehicles are responsible for the increase in ethylene glycol consumption. As per the Organization of Motor Vehicle Manufacturers (OICA), the global production of vehicles was 80,145,988 units in 2021 around the world. This is an increase from 77,711,725 units of vehicles in 2020.

• Boom in Chemical Industry – Rapid industrialization and development in India have propelled the Indian chemical industry to reach a revenue of USD 300 billion by 2025.

• Increased Expenditure in Research & Development – Key players of the global market is investing huge amounts in developing technologically developed activities such as ethylene glycol in the upcoming years. Thus, the high expenditure on research and development activities is expected to create a positive outlook in the upcoming years. The World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.

 Challenges

• High Manufacturing Costs – Although ethylene glycol has many benefits, the production process requires huge investments. Such high manufacturing costs subsequently result in increased costs for the end users. This trend is anticipated to lower the adoption rate of products manufactured with ethylene glycol owing to the presence of a large population base with low and middle income. Hence, it is estimated to hamper the market growth during the assessment period.
• Fluctuation in Prices of Raw Materials
• Stringent Regulatory Policies