Ethylene Dichloride Market

Ethylene Dichloride Market: Expansion of PVC Production Capacities to Boost Demand Growth: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2028

Ethylene Dichloride Market – Key Research Findings

  1. Global ethylene dichloride market value in 2017 - Nearly US$ 16 Bn
  2. Ethylene dichloride market estimated to expand at a 3.7% value CAGR over 2018-2028
  3. East Asia and North America are poised to remain most lucrative markets for ethylene dichloride (EDC) manufacturers
    • North American market for ethylene dichloride is driven by strong presence of major manufacturers of polyvinyl chloride (PVC), such as Solvay, Shin-Etsu Chemical, and Axiall Corporation.
    • Ethylene dichloride consumption rate within North America is considerably high.
    • East Asia is also projected to grow at a healthy CAGR through 2028 owing to rapid industrialization, particularly in China
  1. Vinyl chloride monomer likely to remain a prominent segment in the global ethylene dichloride market
    • The demand for PVC has been increasing, primarily driven by the thriving construction industry.
    • Increasing acceptance and execution of ‘smart city’ concept will further boost PVC consumption.
  2. Oxy chlorination production process is most favoured for ethylene dichloride production
    • In a bid to reduce harmful emissions from EDC production as well as ensure high accuracy, the oxy chlorination process has gained preference over the conventional direct chlorination production process.

Top 3 Factors Shaping the Ethylene Dichloride Market

Increasing Applications of PVC Resins to Drive Demand for Ethylene Dichloride

Poly Vinyl Chloride (PVC) is the third largest plastic in terms of production and consumption. PVC finds a wide range of applications in pipes & fittings, flooring, wires, power & signal cables, films and sheet, and other applications. In terms of PVC or vinyl chloride monomer production, ethylene dichloride is used as one of chief raw materials, which in turn is expected to drive the demand for ethylene dichloride at a healthy growth rate.

Upsurge in Demand for Gasoline to Complement Ethylene Dichloride Market Growth

While the oil industry has been slated for steady growth owing to the increasing demand for gasoline and fuels, vendors have been concentrating on expansion of refinery capacities to cater to rising demand for crude oil products. Conventionally, ethylene dichloride is used as a lead scavenger in petrol and as a result, an increase in petrol or gasoline demand is expected to fuel the ethylene dichloride demand in the near future.

Stringent Regulations Dictate Production and Consumption of Ethylene Dichloride

Attributing to the toxic nature of ethylene dichloride, it causes nausea and drunkenness in humans and also creates a negative impact on the environment. Thus, government authorities have implemented strict rules and regulations on the consumption pattern of ethylene dichloride.

For instance, ethylene dichloride is included under the Clean Air Act, section 112(b) List of Hazardous Air Pollutants regulated by the U.S. Environmental Protection Agency. Thus, stringent environmental regulations on ethylene dichloride are expected to hamper the global market in the near future.

Ethylene Dichloride Market Structure Analysis

  • The ethylene dichloride market is highly fragmented as a large number of smaller players exist in the competitive landscape, besides established international companies.
  • Tier 1 & tier 2 companies hold more than half the market share, according to FMI’s report.
  • Key vendors of the ethylene dichloride market include Occidental Chemical Corporation, Formosa Plastic Corporation, Olin Corporation, Vynova Group, Tosoh Corporation, and SABBIC among others.
  • While most of the key players maintain strategic emphasis on North American and East Asia markets, research highlights that the environmental regulations on ethylene dichloride have negatively impacted the market position of a few players
  • Over the past few years, the captive consumption rate of ethylene dichloride has increased due to the increasing number of PVC production plants across EDC players
  • In 2017, Olin Corporation signed an agreement with The NRC Group for the distribution of chemical products including ethylene dichloride, epoxy resins and curing agents for coating, civil engineering, adhesive and composite industries across Europe.

Key Segment

By Application

  • Vinyl Chloride Monomer (VCM)
  • Ethylene Amines
  • Other Solvents 

By Production Process

  • Direct Chlorination 
  • Oxy Chlorination 

By Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Middle East & Africa

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Ethylene Dichloride Market