by Ethanol derivatives such as ethyl acetate, ethylene glycol, and ethanolamines are highly useful industrial chemicals, that have applications in cosmetics, paints & coatings, plastics, and many other industries. Ethyl acetate is used as a solvent in paints, varnishes and lacquers. Ethylene glycol is used as an industrial antifreeze and in polyester resins. Ethanolamines are widely employed in cleaning compounds, cosmetics, and fabric softeners.
The global Ethanol Derivatives Market is estimated to be valued at US$ 10.2 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing usage in construction and automotive industries is one of the key trends in ethanol derivatives market. Ethylene glycol is widely used as an antifreeze in automotive radiators and heat exchangers. It also finds application as polyester resins which are used to produce fiberglass and glass-reinforced pipes for construction purposes. The growth in automotive and construction sectors globally is boosting the demand for ethylene glycol and thereby driving the growth of the overall ethanol derivatives market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the ethanol derivatives market size requires high initial investments for production facilities and R&D. However, growing demand provides opportunities.
Bargaining power of buyers: The bargaining power of buyers is moderate as the market has several global players offering differentiated products. However, buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is high as key raw materials like corn and sugarcane are agricultural commodities subject to price fluctuations and supply uncertainties.
Threat of new substitutes: The threat of substitutes is low as ethanol derivatives have limited substitutes for their diverse applications in automotive, industrial solvents, chemicals etc.
Competitive rivalry: The rivalry is high among global players to gain market share and expand their product portfolio through innovations.
Key Takeaways
The global ethanol derivatives market is expected to witness high growth at a CAGR of 9.7% during the forecast period.
Regional analysis: Asia Pacific is expected to be the fastest growing region during the forecast period supported by the expanding automotive and chemical industries in major economies like China and India. Also, governments in the region are promoting the production and usage of biofuels.
Key players: Key players operating in the ethanol derivatives market are Kingston Technology Corporation, Apple Inc., SanDisk Corp., Samsung Electronics Co. Ltd., Skullcandy, Inc., Microsoft Corporation, Sony Corp., Capdase International Limited, and Moshi, by Aevoe Group. The companies are focused on strengthening their market position through capacity expansions, product launches, and partnerships.
