Global Ethylene Oxide Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Bottles, Coolants, Detergents, Others), By Industry Verticals (Pharmaceuticals, Medical, Textile, Plastic, Others), And By Geography - Forecasts From 2021 To 2026

The global ethylene oxide market is expected to grow at a CAGR of 4.62%, reaching a market size of US$ 42.833 billion in 2030 from US$34.218 billion in 2025.

Ethylene Oxide is a highly flammable gas at room temperature and is used in the manufacturing of ethylene glycol. This man-made chemical is dissolved readily in water. Ethylene glycol has wider applications, creating a significant demand for ethylene oxide. The former is used to make an anti-freezer and polyester. Furthermore, ethylene glycol is used in the medical industry to sterilize medical equipment and supplies. Robust growth in the end-user industries of ethylene oxide and/ or ethylene glycol is anticipated to drive the market for ethylene oxide.

However, being highly flammable, ethylene oxide requires caution and a superior storage facility. Further, prolonged exposure to this gas has been observed to cause leukemia and other cancers in workers. The hazardous potential of ethylene oxide, coupled with its adverse effect on the human body, raises concerns in the industry and requires government and other institutions' interference and regulation. Increased restrictions and regulations by the government can potentially hinder market growth.

Segment analysis of the global ethylene oxide market

• The global ethylene oxide market by end-user industry is segmented into pharmaceuticals, medical, textile, plastic, and other end-user industries.

The global ethylene oxides are broadly applied in the pharmaceuticals, medical, and textile industries.  With the growing economies of Asia and Africa, the demand for ethylene oxides in the plastic industry will also play a significant role in market growth.

• The pharmaceutical industry is calculated to account for the largest share in ethylene oxide demand and grow fastest during the studied period.

Based on the end-user industry, the global ethylene oxide market is segmented into pharmaceuticals, plastic, textiles, and others. The pharmaceutical industry's demand for ethylene oxide is expected to account for the largest market share and grow fastest. In this industry, it is primarily used for the sterilization of pharmaceutical products. The chemical provides a wide option for material compatibility, excluding those materials that are moisture and/ or temperature-sensitive. For the industry, ethylene oxide is an enhancement over radiation sterilization. The pharmaceutical industry is expected to grow at an exponential rate during the forecasted period, which is, in turn, predicted to support the ethylene oxide market growth.

The Medical industry is the other prime driver of the market. According to Invest India, the hospital sector of India in 2021 was valued at INR 790.87 billion in terms of revenue, and by 2027, it is expected to reach INR 18,348.78 billion. This growth in the medical sector will further require the proper sterilization of medical equipment, as it has the potential to impact the patient, which may cause loss of life. Ethylene oxide will be used for sterilizing the equipment, ensuring safety. Additionally, the chemical is also used as an anti-freeze and has wider application.

• The Asia Pacific region will dominate the global ethylene oxide market during the forecast period.

Based on geography, the global ethylene oxide market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The North American and European ethylene oxide market is predicted to dominate the global industry owing to the concentration of larger pharmaceutical companies. Further, the expansion of production units by major market players in these regions is expected to drive this market. However, the Asia Pacific ethylene oxide market is calculated to grow at a significant rate during the forecasted period. Growth of medical infrastructure and pharmaceutical companies is expected to support the market growth.

Major challenges in the global ethylene oxide market

• Government intervention in the industry is expected to hinder the market growth of ethylene oxide.

Ethylene oxide is a highly flammable gas with a few disadvantages. Recent medical studies have discovered symptoms and development of leukemia and cancers in workers who have prolonged exposure to ethylene oxide gas. Increased cases have raised concerns among workers. Further, ethylene gas has a severe environmental impact. The gas easily catches fire in atmospheric air and has hazardous capabilities. Hence, the industry is under scrutiny by the government and other environmental agencies, potentially hindering market growth. Action has been taken against industry growth by several government authorities to establish a safe working environment.

Key developments in the global ethylene oxide market:

• In October 2023, BASF started with the expansion of its capacities for ethylene oxide and ethylene oxide derivatives at its Verbund site in Belgium with the investment of Euro 500 million, further resulting in the addition of 400,000 metric tons per year to its production capacity.   
• In April 2022, SINOPEC and BASF collaborated to expand their Verbund sire operated by BASF-YPC Co., Ltd, a 50-50 joint venture for both these companies. This collaboration resulted in the expansion of new capacities for several downstream chemical plants along with the new tert-butyl acrylate plant, which served the increasing demand. Furthermore, the collaboration of BASF-YPC to date is regarded to be the most successful joint venture for BASF globally.
• In January 2022, SABIC and ExxonMobil collaborated on starting a startup based on Gulf Coast Growth Ventures in San Patricio County, Texas. This new facility operation includes a mono-ethylene glycol unit wherein the plant capacity will revolve around 1.1 million metric tons per year.

The global ethylene oxide market is segmented and analyzed as follows:

• By Application
  • Bottles
  • Coolants
  • Detergents
  • Others
• By Industry Verticals
  • Pharmaceuticals
  • Medical
  • Textile
  • Plastic
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.2.1. Threats from Substitutes

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GLOBAL ETHYLENE OXIDE MARKET BY APPLICATION

5.1. Introduction

5.2. Bottles

5.3. Coolants

5.4. Detergents

5.5. Others

6. GLOBAL ETHYLENE OXIDE MARKET BY INDUSTRY VERTICALS

6.1. Introduction

6.2. Pharmaceuticals

6.3. Medical

6.4. Textile

6.5. Plastic

6.6. Others

7. GLOBAL ETHYLENE OXIDE MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of the Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. BASF SE

9.2. DuPont Company

9.3. Shell Global

9.4. SABIC

9.5. Akzo Nobel N.V.

9.6. Nippon Shokubai Co., Ltd.

9.7. Ineos Oxide

9.8. LyondellBasell Industries Holdings B.V.

9.9. China Petrochemical Corporation

BASF SE 

DuPont Company 

Shell Global 

SABIC 

Akzo Nobel N.V. 

Nippon Shokubai Co., Ltd. 

Ineos Oxide 

LyondellBasell Industries Holdings B.V. 

China Petrochemical Corporation