As ethylene carbonate is a highly polar solvent and dissolves large amounts of electrolyte, it is mainly used in lithium batteries electrolyte solution. According to BlueQuark Research & Consulting, the global Ethylene Carbonate Market is expected to grow significantly during the forecasted period. Factors such as the rising adoption of electric vehicles have been the critical factor behind the growth of Li-ion battery electrolytes and are expected to propel the ethylene carbonate market in the forecasted period. Further, the expansion of automotive manufacturing activities has increased the demand for ethylene carbonate as a lubricant is expected to drive the ethylene carbonate market in the forecasted period. However, on the flip side, rising health hazards due to the toxicity of ethylene carbonate and replacement prospects by other substitutes are expected to hinder the market's growth.

Ethylene carbonate is used as raw material for lubricant production as it is a high polar solvent dissolving many electrolytes and is used in lithium batteries in electrolyte solutions. It finds applications in various industries, including automotive, industrial, medical, oil & gas, personal care, and hygiene.

Ethylene carbonate is a type of organic solvent utilized as a component in the electrolyte solution of lithium-ion batteries. The electrolyte solution is a crucial component of lithium-ion batteries because it provides the ionic conductivity that enables lithium ions to travel between the anode and cathode, allowing the battery to store and release energy. In addition to acting as a solvent, ethylene carbonate stabilizes the electrolyte solution, avoiding the production of lithium metal on the anode. It is crucial, as lithium metal can create short circuits and other battery performance difficulties. New and exciting industries with commercial and industrial uses have increased the need for lithium-ion batteries. In recent years, demand for lithium-ion batteries from the data centre and material handling industries surged, particularly in developing countries. The need for batteries is driven by the increasing number of electronic devices, the growing demand for mobile devices, the increase in energy-efficient sources, and technological breakthroughs in developed nations. Ethylene carbonate boiling point is higher, more polar, is highly soluble in polymers and has no odour. Nowadays, ethylene carbonate uses have increased because it has a low natural level of toxicity. Due to the rising electrolyte production in lithium-ion batteries employing ethylene carbonate, the ethylene carbonate market is in great demand. Electric vehicles are also widely used because they are simple to maintain, economical, fuel efficient, and have lower fuel expenses. The growth in demand for ethylene carbonate can be attributed to the surging adoption of electric vehicles and the surging demand for energy storage systems. It is a critical component in formulating electrolytes for lithium-ion batteries widely used in electric vehicles, portable electronics, and renewable energy storage. The product finds applications beyond batteries, such as in producing plastics, coatings, adhesives, and pharmaceuticals.

Asia-Pacific is expected to lead the market due to its highly developed electronic industry and more production of li-ion batteries in China and Japan, with continuous investments in the region over the forecasted period to advance lithium technology. Besides, the increasing government regulations on combustion engines in Asia surged the need for various electric vehicles in China, Japan, and India, increasing the demand for ethylene carbonate in multiple applications. Electronic coatings, adhesives, and dielectrics can be made using ethylene carbonate as a solvent. Ethylene carbonate can dissolve and mix other components, and its low volatility can increase product stability. Ethylene carbonate can also make polycarbonates and other polymers for electronics applications. The automotive end-use dominated the market with a revenue share. This is attributed to the increasing product usage in the automotive industry, particularly in manufacturing components like ignition cable sets, spark plugs, and battery terminals. This is primarily due to the high dielectric strength of ethylene carbonate, which enhances safety and protects against electric shock in automotive applications. The solid ethylene carbonate form is a lubricant solvent, a crosslinking agent in super absorber polymer production, and an intermediate in synthesizing polycarbonate diol and separating the gas washing process and oil field. It's also used as a fibre processing agent, soil hardening agent, plasticizer, resist strip solvents, medical products, solid battery electrolytes, and solid capacitor electrolytes. Oil & gas was the second largest end-use segment. This is attributed to its increasing utilization as a solvent in various extraction processes within the oil and gas industry. It can effectively dissolve certain substances, such as aromatic hydrocarbons, and separate them from the desired products. Additionally, the product is used as a component in drilling fluids. It can help reduce viscosity and enhance the lubricity of the mud, improving the drilling efficiency and reducing friction between the drill bit and the wellbore. Ethylene carbonate is employed as a solvent or co-solvent in formulating pharmaceutical drugs. It can dissolve and solubilize various active pharmaceutical ingredients (APIs) or other components, aiding in developing drug formulations with improved bioavailability and stability. It can act as a stabilizer, plasticizer, or viscosity modifier, enhancing the performance and functionality of the final drug product.

The market's key players are Alchem Chemical Company, Alfa Aesar, Asahi Kasei, BASF, and Empower Materials.

In February 2022, Lotte Chemical announced the construction of a new plant at Daesan, South Korea, for manufacturing high-purity organic solvents, such as ethylene carbonate, that are used in electric vehicle batteries as a part of its US$ 502 million investment in sustainable speciality materials business.

In June 2022, Lotte Chemical, a major South Korean chemical company, will collaborate with a chemical division of Sasol, a South African energy and chemical company, to evaluate the viability of constructing and operating a joint plant to produce electrolyte solvents, which are essential components of lithium-ion batteries for electric vehicles. The two companies will conduct a pre-feasibility study to determine whether Sasol's locations near Lake Charles, Louisiana, and Marl, Germany, are suitable for a facility that produces electrolyte solvents using feedstock from Sasol and third parties and technologies from LOTTE and third-party licensors.

The Global Ethylene Carbonate Market report provides deep insight into the market's current and future state across various regions. The study comprehensively analyses the market by segmenting it based on By Application (Lithium batteries, Lubricants, medical products, Intermediates, Agents, and Other applications), End-user Industry (Automotive, Pharmaceutical, Oil and gas, and Other end-user industries), and geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa). The report examines the market drivers and restraints and the impact of COVID-19 on market growth in detail. The research examines emerging market trends, developments, opportunities, and challenges in the industry. This report also covers extensively researched sections on the competitive landscape with prominent companies and profiles, including their market shares and projects.