Ethyl 3 Ethoxypropionate Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Purity :

The purity segment is categorized into less than 99% and more than 99%. In 2022, the less than 99% segment accounted for the highest market share in the overall ethyl 3 ethoxypropionate market. The growth of the market is attributed to the ability of less than 99% pure EEP to cause less harm to the environment and enhance solvent release from the coating films. In addition, the rising concerns among governments of various countries regarding the VOC emissions (Volatile Organic Compounds) is also proliferating the demand for less the 99% pure EEP. For instance, the Chinese government sanctioned a 4% tax on any type of coating that has a VOC level exceeding 420g/l. Therefore, the above-mentioned factors are anticipated to propel the market growth.

Moreover, the more than 99% segment is expected to register the fastest CAGR in the market over the forecast period. The wide adoption of high-purity coatings that offer exceptional flow, solvency, and high stability is expected to increase the demand for more than 99% pure EEP. For instance, Thermo Fisher Scientific Inc, offers Ethyl 3-ethoxypropionate, 99+% that is pure and highly stabilized for coating applications. Hence, the rising demand for solvents that are highly stable and offer excellent solvency is expected to accelerate the growth of the segment.

Based on the Application :

The application segment is categorized into ink cleaners, cleaning agents, general industrial coatings, refinish painted film additives, initiators for PVC, photoresist coatings, wood coatings, appliance topcoats, polymerization solvents, and others. The initiator for the PVC segment accounted for the highest market share in the ethyl 3 ethoxypropionate market. The extensive application of ethyl 3-ethoxypropionate as a solvent for a wide variety of coating polymers owing to the characteristics such as slow evaporation rate and high electrical resistance is increasing the demand for EEP in polymer coating production. For instance, according to the PlasticsEurope AISBL, in 2021, the European plastics industry had a turnover of about USD 441.8 billion. Hence, the aforementioned factors are fueling the market growth.

However, the general industrial coatings segment is expected to register the fastest CAGR during the forecast period. The growth of the market is attributed to the wide deployment of ethyl 3-ethoxypropionate as a solvent in the coating solutions. Such types of coating are further used in general industries such as automotive and construction. The rising need for coating to protect products from harsh environmental conditions such as UV radiation, acid rain, and foreign particles is anticipated to propel segment growth.

Based on the End-Use :

The end use segment is categorized into automotive, paints & coatings, packaging, marine, and others. In 2022, paints & coatings segment held the highest market share of 38.50% in the overall ethyl 3 ethoxypropionate market. Ethyl 3-ethoxypropionate is widely deployed in paints & coatings due to the excellent solvency power, high stability, and slow evaporation rate. The extensive use of paints & coatings owing to the application in various end use industries such as building & construction, and wood industries. For instance, according to American Coatings Association (ACA) in 2020, the U.S. contributed USD 26 billion in the paint and coating industry. Hence, the increasing consumption of industrial coatings in numerous sectors is propelling the market growth.

However, the automotive segment is expected to witness fastest CAGR in the ethyl 3 ethoxypropionate market during the forecast period. The extensive use of ethyl 3 ethoxypropionate in automobile coating to provide a durable surface, enhanced appearance, and protection from extreme weather conditions is growing the demand for EEP. The growing automotive industry due to rising advancements such as the development of electric vehicles and enhanced safety features is expected to drive the ethyl 3-ethoxypropionate market growth.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, Asia Pacific accounted for the highest market share at 45.21% and was valued at USD 1,134.25 million, and is expected to reach USD 1,813.63 million in 2030. In Asia Pacific, China accounted for the highest market share of 67.71% during the base year of 2022. The growing automotive industry in the region due to the rising advancement in technology is surging market growth. In addition, stringent regulation imposed by the government of various countries regarding VOC emissions is also driving market growth. For instance, in 2018 Chinese government set policies to reduce VOCs by 10% by 2020 for coating application industries, ink, and coating manufacturers. Hence, the above-mentioned factors are contributing to the growth of the market.

However, North America is expected to register the fastest CAGR over the forecast period. The region is the hub of major global ethyl 3 ethoxypropionate manufacturers, such as Eastman Chemical Company and Honeywell International Inc. that have a strong presence and influence in the region. Additionally, the well-established automotive industry is also expected to boost the demand for ethyl 3 ethoxypropionate in automotive coatings, as a result, propelling the market growth over the forecast period.