Dichloroethane Market is segmented by Application (Vinyl Chloride Monomer, Ethylene Amines, Others); by End Use Industry (Construction, Automotive, Packaging, Furniture, Medical, Others); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2023-2032

Dichloroethane Market Overview

The global dichloroethane market was valued at USD 32.1 billion in 2023. The market is expected to expand at a CAGR of 2.5% from 2023-2032, and is expected to cross value of USD 39.6 billion by the end of 2032.

Dichloroethane, also known as ethylene dichloride or 1,2-Dichloroethane, is a colorless liquid and is used widely in the production of vinyl chloride, further used for making PVC pipes. The chemical compound is known to have chloroform-like odor and is used as a solvent, or as an intermediate for organic chemical compounds. The surge in demand for polyvinyl chloride from different end-use industries is one of the major factors expected to drive the growth of the dichloroethane market during the forecast period. Olin Corporation, Formosa Plastics Corporation, and Westlake Chemical Corporation are some of the significant parties in the market for dichloroethane.

Dichloroethane Market Drivers

Some key drivers for the dichloroethane market are:

• Increasing Demand for PVC from Construction Industry: The surge in the number of commercial and residential buildings being constructed globally, is raising the demand for water and drainage pipes, window profiles, flooring and roofing materials that are made mostly by polyvinyl chloride (PVC). With the growing demand for these products, and the increasing demand for PVC, the demand for ethylene dichloride is also projected to increase, and in turn, contribute to the growth of the dichloroethane market.
• Expanding Automotive Sector: The chlorinated hydrocarbon dichloroethane, is widely used for producing vinyl chloride, a material which is used for manufacturing automotive upholstery and other parts of the vehicle. Hence, with the expanding automotive sector globally, the demand for 1,2-dichloroethane is also expected to increase, and in turn, push the market forward for dichloroethane.
• Growing Production of Rubber: Ethylene dichloride is widely used as a dispersant in the production of rubber. During the extraction process of natural rubber, 1,2-dichloroethane is used as a low-temperature solvent for heat-sensitive substances. As a result, with the increasing production of rubber globally, the demand for dichloroethane is also expected to increase and push the market growth ahead.
• Rapid Demand for Gasoline: Backed by the rise in the number of vehicle fleet worldwide that run on gasoline, the demand for gasoline is expected to grow massively. As ethylene dichloride is used as a lead scavenger in gasoline, hence, with the increasing demand for gasoline, the need for 1,2-dichloroethane is also expected to increase.

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Dichloroethane Market Challenges

Some challenges facing the dichloroethane market are:

• Stringent Environmental Regulations: The production of dichlorothane is associated with the emission of various toxic chemicals that are harmful for the environment. The production of PVC in itself has been under strict vigilance by the regulatory bodies, owing to the numerous environmental disadvantages associated with the product.
• High Production Cost: The production cost of dichloroethane is usually very high, which also hampers the final price of the product, in turn, hampering the demand for the product.
• Concern for Chemical Toxicity: The handling of toxic chemicals has always been under monitoring by regulatory bodies as several workplace accidents have been registered due to mishandling of toxic chemicals. Such a factor is also poised to hinder the growth of the market in the coming years.

Dichloroethane Market Segmentation

Segmentation of dichloroethane market are:

• By Application
  • Vinyl Chloride Monomer
  • Ethylene Amines
  • Others
• By End Use Industry
  • Construction
  • Automotive
  • Packaging
  • Furniture
  • Medical
  • Others
• By Region
  • North America (U.S., and Canada)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Middle East and Africa

Timeline considered for all these studies will be:

2023 – Base Year

2023 – Estimated Year

2023-2032 – Forecast Period

Dichloroethane Market Regional Synopsis

The dichloroethane market in North America is projected to register the largest market share by the end of 2032, supported majorly by the growth in PVC manufacturing capacity in the region. Owing to the rapid demand for PVC from different end-user industries, the region has been witnessing an upsurge in upgrading the existing PVC production chain, thereby raising the demand for raw materials that are used for producing this chemical.

Besides this, the European dichloroethane market is driven majorly by the rise in demand for crude oil products, supported by the gradual demand for gasoline and fuel. The market in the Asia Pacific is also poised to display promising growth in the coming years by registering the highest CAGR during the forecast period, backed by the rapid urbanization and the increasing efforts of the government of the nations in the region to develop private and public infrastructure.

Dichloroethane Market Key Players

Some key players in the dichloroethane market are:

• Olin Corporation
• Formosa Plastics Corporation
• Westlake Chemical Corporation
• Axiall Corporation
• Occidental Petroleum Corporation
• PPG Industries
• The Dow Chemical Company
• PT Asahimas Chemical
• Horizon Chemical Industry Co., Ltd.
• Punjab Chemicals & Crop Protection Limited