Ethylene Oxide Market Size, Share & Industry Report, By Appliances (Ethylene Glycol, Acrylonitrile, Ethoxylates, Ethanolamine, Sterilant, and Others), By End-user Industry (Chemical, Pharmaceutical and Healthcare, Food & Beverages, Cosmetics, Automotive, Oil & Gas, Detergents, Textile, and Others), Regional Analysis & Forecast, 2023-2031

Ethylene Oxide Market Dynamics - (DRO) :

Key Drivers :

Growing demand for PET resins and polyester fibers

Ethylene oxide is used in the manufacturing process of polyethylene terephthalate (PET) and polyester fibers. Ethylene oxide is used as a key precursor in the production of a critical intermediate chemical called ethylene glycol. Ethylene oxide is used to manufacture ethylene glycol by polymerization. In the textile industry, ethylene oxide is used to make durable fabrics for clothing, carpets, upholstery, and pillows. Polyester fibers are used in conveyor belts, building materials, filtration, automotive textiles, ropes, and cords. The high demand for these polyester fiber-based production from various end-user industries is driving the ethylene oxide market worldwide. PET resin is used for the manufacturing of a variety of products such as packaging for food and beverages, shampoo and conditioner bottles, medical devices, microwave containers, carpets, automotive parts, electronic components, clothes and housing materials, and other products. The high consumption of PET (Polyethylene Terephthalate) in the packaging industry is driving the ethylene oxide market worldwide. For instance, according to the report by the National Institute of Health in June 2022, polyethylene terephthalate (PET) packaging accounted for 44.7% of single-serve beverage packaging. Hence, the high demand for polyester fiber for the manufacturing of a variety of industries along with the growing demand for PET in packaging applications is driving the growth of the global ethylene oxide market worldwide.

Increasing demand for antifreeze in the automotive industry

Ethylene oxide is a flammable gas with a sweet odor that is used to make other chemicals, including antifreeze. It is used to make ethylene glycol, which is used in automotive antifreeze and coolant. Automotive antifreeze protects automotive engines from overheating and freezing. It also lubricates moving parts, which can prevent damage to the water pump, head gasket, cylinder, and piston timing. The significant growth in the sale of automobiles across the globe is increasing the demand for ethylene glycol for the manufacturing of automotive antifreeze and coolants. For instance, according to the report by the International Energy Administration report in April 2023, 10 million electric vehicles were sold in 2022 worldwide and this sale is expected to grow by 35% in 2023 accounting for 14 million units. Thus, the growing sale and production of electric vehicles across the globe is improving the demand for ethylene glycol for the production of antifreeze and coolants. This growing demand for ethylene glycol is driving the ethylene oxide market growth globally.

Key Restraints :

The high toxicity of ethylene oxide and growing health concerns

Ethylene oxide is a highly versatile chemical with a range of industrial applications, but its toxicity poses risks to human health and the environment. Ethylene oxide is classified as a Group 1 carcinogen by the International Agency for Research and Cancer (IARC), prolonged exposure to ethylene oxide is associated with the risk of cancer, particularly for workers in industries where it is used such as sterilization facilities and chemical manufacturing plants. Short-term exposure to high levels of ethylene oxide can cause immediate health effects, including respiratory irritation, headaches, dizziness, and nausea, workers handling ethylene oxide are at risk of acute exposure. Furthermore, the use of ethylene oxide in sterilization processes, particularly in healthcare facilities, has raised concerns among nearby communities about emissions and potential health effects. This has led to increased scrutiny and stricter emissions controls. Thus, these above-mentioned factors hamper the growth of the ethylene oxide market.

Future Opportunities :

Increasing innovations in the bio-based ethylene oxide

There is a growing consumer demand for eco-friendly and sustainable products, including those made with bio-based materials. Companies in sectors such as textiles, personal care, and packaging are increasingly seeking bio-based alternatives to meet consumer preferences. Bio-based ethylene oxide is produced from renewable resources such as biomass agricultural waste, or sugarcane, making it a more sustainable alternative to conventional ethylene oxide, which relies on fossil feedstocks. This aligns with the growing global emphasis on sustainability and reduced carbon emissions. Furthermore, bio-based ethylene oxide production methods often generate fewer toxic byproducts, reducing health and safety risks for workers and nearby communities. This improved safety profile can alleviate regulatory and public concerns. The growing innovations in the manufacturing of bio-based ethylene oxide are expected to create lucrative growth opportunities for the ethylene oxide market over the forecast period. For instance, in July 2022, INEOS OXIDE launched a new Bio-Attributed Ethylene Oxide (EO), based on certified bio-based sources. This new product drives INEOS' commitment to developing more sustainable ways to produce the materials.

Top Key Players & Market Share Insights:

The ethylene oxide market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-