- Summary
- Table Of Content
- Methodology
Alkylene Carbonates Market Size:
Alkylene carbonates market size is estimated to reach over USD 1,529.20 Million by 2032 from a value of USD 1,208.04 Million in 2024, growing at a CAGR of 3.1% from 2025 to 2032.
Alkylene Carbonates Market Scope & Overview:
Alkylene carbonates are a class of organic compounds formed by the reaction of alkylene oxides with carbon dioxide (CO2). These compounds are characterized by cyclic carbonate structure and are used as solvents, electrolytes, and intermediaries in applications such as lithium-ion batteries, high-performance coatings, fabrics, and more. Furthermore, carbonates such as ethylene carbonate and propylene carbonate exhibit high polarity, low toxicity, and biodegradability. These carbonates are environmentally free and are used in various industries such as automotive, oil & gas, paints & coating, agriculture, textile, and others. The recent development of propylene carbonate-based material for biomedical applications such as masks, surgical gowns, drug carriers, medical dressings, and others is driving the alkylene carbonates market.
Alkylene Carbonates Market Dynamics - (DRO) :
Key Drivers:
Rising incorporation of Ethylene Carbonate and Propylene Carbonate in Lithium-ion Battery Production is driving Market Growth
Alkylene carbonates, particularly ethylene carbonate and propylene carbonate are essential components in the manufacturing of electrolytes in Lithium-ion batteries. These carbonates are used as solvents in the electrolyte solution of lithium-ion batteries. It improves the electrochemical stability and ionic conductivity of electrolytes, which is crucial for battery performance. The demand for lithium-ion batteries is expanding due to the growing electric vehicle sector and consumer electronics, which rely heavily on lithium-ion batteries for energy storage.
- In 2022, according to the India Brand Equity Foundation, lithium-ion battery manufacturing in India will be 20 gigawatt hours (GWh) and it is expected to grow to 220 GWh by 2030. These batteries use alkaline carbonates, particularly ethylene carbonate and propylene carbonate as a solvent for the electrolytes. The production of lithium-ion batteries is rising due to the growing shift towards electric vehicles, further propelling the market.
Thus, the increase in the demand for lithium-ion batteries is driving the alkylene carbonates market growth due to the need for solvents in electrolytes.
Growing Adoption of Propylene Carbonate in Plastic Manufacturing is creating Alkylene Carbonates Market Demand
Traditional plastic is derived from fossil fuels and results in the emission of greenhouse gases such as methane and ethylene. To address this issue, Propylene carbonate, a type of alkylene carbonate is largely used in the manufacturing of plastic, offering alternatives to traditional plastics. Its unique properties such as excellent gas barrier properties, flexibility, and ability of carbon sequestration make it ideal for use in plastic production. Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide, thereby reducing the greenhouse effect.
- In 2021, according to Plastics Europe, global plastic production rose 4% to more than 390 million tonnes as compared to the year 2020. Propylene carbonate mitigates the greenhouse effect in plastic manufacturing through the function of carbon sequestration. The surge in plastic production has fueled the need for propylene carbonate due to its good ductility, oxygen barrier and biocompatibility further accelerating the market.
Thus, the use of propylene carbonate in plastics manufacturing is leading to alkylene carbonates market expansion reducing the greenhouse effect and promoting sustainability.
Key Restraints:
Stringent Environmental Regulations regarding Raw Materials is constraining Alkylene Carbonates Market Growth
Stringent environmental regulations pose restraint in the alkylene carbonates market, particularly concerning the raw materials used in their production, such as ethylene oxide and propylene oxide. These compounds are classified as hazardous due to their potential toxicity, flammability, and environmental impact, leading to stringent regulations on their handling, transportation, and usage. Compliance with these regulations often requires manufacturers to invest in advanced safety measures, specialized equipment, and rigorous monitoring systems, increasing operational costs. Moreover, changes in regulatory frameworks across different regions disrupt the supply chain and create compliance challenges for global manufacturers.
Hence, stringent environmental regulations are constraining the production and adoption of alkylene carbonates, impacting market proliferation and innovation.
Future Opportunities :
The development of Alkylene Carbonates Materials for Biomedical Applications is expected to Create Market Opportunities
Alkylene carbonates, particularly propylene carbonate, exhibit low toxicity, biodegradability, and excellent solvent properties which are crucial in biomedical applications such as drug carriers, medical dressings, implants, and others. In these applications, mainly polylactic acid-based material is used which has high toxicity, and less solvent properties as compared to propylene carbonate. Hence, propylene carbonate-based material is being used in biomedical applications.
- In 2024, according to a research paper published in the International Journal of Molecular Sciences, Propylene carbonate-based material has shown superior biocompatibility in biomedical applications such as drug carriers, medical dressings, masks, and others as compared to polylactic acid-based material. Propylene carbonates are one of the types of alkylene carbonates with low toxicity and biodegradability further creating alkylene carbonates market opportunities.
Thus, the use of Propylene carbonate-based materials for biomedical applications such as drug carriers, medical dressings, implants, and others is creating alkylene carbonate market opportunities.
Alkylene Carbonates Market Segmental Analysis :
By Product Type:
By product type, the market is divided into ethylene carbonate, propylene carbonate, butylene carbonate, hexylene carbonate, and others.
Trends in Product Type:
- According to alkylene carbonates market trends, ethylene carbonate is widely used in lithium-ion batteries due to low volatility and excellent solvency.
- Propylene carbonate is being widely used in paints and coatings, to improve viscosity and environmental compliance as per current market trends.
The ethylene carbonate accounted for the largest market share of 43.26% in the year 2024.
- Ethylene carbonate is widely used alkylene carbonate known for its high potency, low volatility, and excellent solvency.
- It is extensively utilized as a solvent in lithium-ion batteries, enhancing electrical stability and performance.
- Companies are expanding their production facilities for ethylene carbonate, due to the growing need for lithium-ion batteries in electric vehicles.
- In 2024, Asahi Kasei launched a plant for the production of high-purity ethylene carbonate. These high-purity ethyl carbonates are used as electrolyte solvents in lithium-ion batteries for electric vehicles, further enhancing the market.
- Thus, ethylene carbonate is widely used in the alkylene carbonates market, due to the rise in the production of lithium-ion batteries supported by an increasing shift towards electric vehicles.
The propylene carbonate is expected to grow at the fastest CAGR over the forecast period.
- The use of propylene carbonate is growing significantly, due to its versatile applications and eco-friendly characteristics.
- The propylene carbonate is derived from propylene oxide and carbon dioxide. It is a polar, low-toxic solvent with excellent thermal stability, making it ideal for use in lithium-ion battery electrolytes.
- In the paint and coating, propylene carbonate serves as a solvent and dispersing agent contributing to improved viscosity and environmental compliance due to its low volatile organic compound (VOC) content.
- Its compatibility with polymers also makes it valuable in sealants and adhesives in paints and coatings.
- Thus, the use of propylene carbonate is witnessing significant growth driven by sustainability and environmental compliance as per current trends.
By End-Use Industry:
By end-use industry, the market is divided into automotive, oil & gas, paints & coating, agriculture, textile, and others.
Trends in End-Use Industry:
- As per alkylene carbonates market trends, ethylene carbonate, and propylene carbonate are extensively utilized in automotive, particularly in lithium-ion batteries to improve battery performance
- The paints and coating are rapidly incorporating alkylene carbonates due to their low VOC emissions and high viscosity as per market trends.
Automotive accounted for the largest market share in the year 2024.
- Alkylene carbonates, particularly ethylene carbonates and propylene carbonates are widely used in the automotive.
- These carbonates are used as solvents in the electrolyte solution of lithium-ion batteries in electric vehicles.
- It improves the electrochemical stability and ionic conductivity of electrolytes, which is crucial for battery performance.
- Alkylene carbonates such as ethylene carbonate, propylene carbonate, and others are formed through the reaction of CO2 and respective oxides, which require high production costs.
- Companies are largely investing in the development of solid alkylene carbonate, further improving the cost efficiency.
- For instance, in 2024, Donglian Chemical collaborated with the Industrial Research Institute to develop solid-state electrolytes. It will utilize carbon dioxide to synthesize lithium battery electrolytes such as ethylene carbonate and propylene carbonate.
- Thus, the market is growing in the automotive sector, driven by increasing preference towards electric vehicles which require lithium-ion batteries.
The paints and coating are expected to grow at the fastest CAGR over the forecast period.
- Alkylene carbonates are cyclic organic esters made from reacting oxide with carbon dioxide.
- They are used to replace highly volatile and hazardous solvents in paints and coatings due to their relatively low toxicity and readily biodegradable properties.
- Further alkylene carbonates, particularly butyl carbonates and propylene carbonates are widely used in paints and coatings which improves viscosity, flow, and leveling properties of formulations while reducing volatile organic compound emissions.
- The growing shift towards sustainability and reduction in carbon footprints in paints and coating, has further fueled the alkylene carbonates market demand.
- In conclusion, the paints and coating industry is rapidly expanding in the alkylene carbonates market due to their low VOC emissions and high viscosity as per market trends.
Regional Analysis:
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2024, Asia Pacific accounted for the highest market share at 40.15% and was valued at USD 485.03 Million and is expected to reach USD 616.11 Million in 2032. In Asia Pacific, China accounted for the highest market share of 23.89% during the base year of 2024.
The alkylene carbonates market share of Asia-Pacific is driven by rapid industrialization, urbanization, and expanding end-use industries. Countries like China, India, Japan, and South Korea are major contributors to the market due to their strong manufacturing bases and rising preference for sustainable materials. The companies in this region are heavily expanding their production capacity of alkylene carbonates to cater to expanding lithium-ion battery incorporation in the electric vehicle sector.
- In 2024, Jiangsu Sailboat Petrochemical launched a production plant in Lianyungang, Jiangsu Province, China. It will include the production of high-purity ethylene carbonate with a total amount of CO2used approximately 300,000 tons annually. Ethylene carbonate is one of the types of alkylene carbonates and is widely used in lithium-ion battery electrolytes to improve electrical stability and battery performance.
Thus, Asia-Pacific is expected to dominate the market supported by the expanding electric vehicle sector and a growing shift towards sustainable coatings as per analysis.
North America is expected to witness the fastest CAGR of 3.7% over the forecast period of 2025-2032. As per alkylene carbonates market analysis, North America is experiencing rapid growth in the market, driven by the increasing proliferation of diverse industries such as automotive, electronics, paints & coating, and others. The region’s strong focus on sustainability and carbon utilization technologies has further accelerated the adoption of alkylene carbonates, particularly in lithium-ion batteries. The growing electric vehicle market in the United States and Canada is a major contributor as ethylene carbonate and propylene carbonate are essential components in battery electrolytes. Additionally, the region’s advanced chemical manufacturing infrastructure and significant investments in research and development foster innovations and new applications for alkylene carbonates. Thus, the alkylene carbonates market share in North America is rising due to the expanding electric vehicle sector and advanced chemical manufacturing as per market analysis.
According to the alkylene carbonates market analysis, the Europe region is growing steadily, driven by the region’s astringent environmental regulations focus on sustainability. European industries are increasingly adopting eco-friendly chemicals such as propylene carbonate to meet the European Union’s targets for reducing carbon emissions and promoting circular economy practices. The growing preference for ethylene carbonate and propylene carbonate in applications such as electric vehicle batteries, paints and coatings, and pharmaceuticals is a major driver in this region. The region’s strong automotive sector coupled with increasing electric vehicle adoption, further accelerates the use of alkylene carbonates in battery electrolytes. Additionally, the region’s advancement in carbon capture and utilization (CCU) technologies promoted the production of ethylene carbonates through sustainable methods as per market analysis.
The Middle East and Africa region is growing steadily in the market driven by expanding industrialization and rising demand for sustainable chemical solutions. The region’s developing automotive, construction, and pharmaceutical sectors are driving the use of ethylene carbonate and propylene carbonate in applications such as paints and coatings, adhesives, and lubricants. Countries like Saudi Arabia, South Africa, and the UAE are investing in renewable energy and sustainable technologies, promoting the adoption of eco-friendly chemicals like propylene carbonate and ethylene carbonate. The growing interest in lithium-ion batteries for renewable energy storage is another factor contributing to market proliferation. Additionally, increased investments in sustainable projects and industrial growth are further driving alkylene carbonates market expansion in the region as per the analysis.
The alkylene carbonates market in Latin America is gradually expanding, driven by the region’s growing industrial base and increasing preference for sustainable solutions. Key applications, such as paints and coatings, adhesives, and lubricants, are contributing to the market growth, especially in countries like Brazil, Mexico, and Argentina. The region’s focus on improving infrastructure and expanding the construction and automotive sectors has boosted the adoption of propylene carbonate and ethylene carbonate in coatings and battery electrolytes. Additionally, the rise in electric vehicle initiatives and renewable energy projects is creating demand for alkylene carbonates in lithium-ion battery production. However, challenges such as economic instability, limited domestic production capabilities, and dependence on imports hinder the rapid proliferation of the market in this region.
Top Key Players and Market Share Insights:
The alkylene carbonates industry is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D) and product innovation to hold a strong position in the global alkylene carbonates market. Key players in the alkylene carbonate industry include-
- Huntsman International LLC (United States)
- Mitsubishi Chemical Group Corporation. (Japan)
- Shandong Senjie Cleantech Co., Ltd (China)
- Tongling Jintai Chemical Co., Ltd. (China)
- Qingdao Shinda Chemical Co., Ltd. (China)
- BASF (Germany)
- Merck KGaA (Germany)
- TOAGOSEI CO., LTD. (Japan)
- Tokyo Chemical Industry Pvt. Ltd (Japan)
- Dongwha Group (Republic of Korea)
Recent Industry Developments:
Launches:
- In 2022, LOTTE Chemical will expand production of ethylene carbonate in South Korea to cater to the rising demand for lithium-ion batteries. It includes the investment of USD 97.4 million at the Daesan Plant in South Korea.
Alkylene Carbonates Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 1,529.20 Million |
| CAGR (2025-2032) | 3.1% |
| By Product Type |
|
| By End-Use Industry |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the alkylene carbonates market? +
In 2024, the alkylene carbonates market is USD 1,208.04 Million.
Which is the fastest-growing region in the alkylene Carbonates market? +
North America is the fastest-growing region in the alkylene carbonates market.
What specific segmentation details are covered in the alkylene Carbonates market? +
Product type and end-use industry are covered in the alkylene Carbonates market.
Who are the major players in the alkylene Carbonates market? +
Huntsman International LLC (United States), Mitsubishi Chemical Group Corporation. (Japan) and BASF (Germany)are some of the major players in the market.
