Ethylene Oxide Catalyst Market Size, Share & Analysis | 2031

Report Description

Market Outlook:

The Global Ethylene Oxide Catalyst Market was estimated at USD 298.7 Million in 2022 and is anticipated to reach USD 429.8 Million by 2031, expanding at a CAGR of 4.2% during the forecast period.

Ethylene oxide is a colorless gas with a sweet smell that is flammable at room temperature. It is mainly used in the production of other chemicals such as antifreeze. It is also be used as a sterilizing agent and pesticide in small quantities. Ethylene oxide can damage DNA and can cause cancer, due to its sterilizing. Ethylene oxide (EO) is mainly used for producing ethylene glycol (EG), which is a vital component in the production of polyester fibers, antifreeze, PET bottles, and other products. EG has various industrial applications, including serving as a coolant, heat transfer fluid, and raw material for polymers & resins. Ethylene oxide (EO) is an important chemical used in various industries.

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Macro-economic Factors

Industrialization

Industrialization drives the demand for ethylene oxide catalyst in manufacturing, automotive, healthcare, and others, making positive impact on the market. According to the Netherlands Bureau for Economic Policy Analysis (CPB), the global industrial production increased by 3.3% in 2022. This reflects an increase in output than the 2.8% annual average for the previous ten years. China, the US, Japan, Germany, India, South Korea, Italy, France, the UK, and Indonesia are the top 10 manufacturing nations across the globe. In advanced economies, industrial production exceeded pre-pandemic levels in 2022. The main factor driving the production is rising output in other advanced economies. Industrial production has increased in 2022 by 4% compared to the previous year (2021). This has brought industrial production in these advanced economies to more than 8% above pre-pandemic levels.

Technological Advancement

Silver catalyst is widely used in the production of ethylene oxide. Silver catalyst has approximately 2 to 5 years of lifespan, after which it is sent for recycling purposes and is reused. Advances in ethylene oxide catalyst performance have enabled operation at high work rates while improving selectivity and stability.
The ethylene oxide production process has been optimized to take advantage of improvements in catalyst performance. These developments help to increase output and reduce capital or operating costs of core projects. Existing plants also benefit from this advancement. Facilities across the globe that have replaced old catalysts with the latest generation catalysts have reaped significant value, which influences the market.

Market Dynamics

Market Driver- Increasing Demand for Ethylene Oxide (EO)

Demand for ethylene oxide (EO) and its catalyst is driven by a multitude of industries and applications that rely on this chemical compound. EO is a crucial intermediate in the petrochemical industry, and it is used in a number of essential goods. Ethylene oxide is employed in the production of numerous consumer goods as well as non-consumer chemicals and intermediates, despite being toxic for direct domestic use and often unfamiliar to consumers. Detergents, thickeners, solvents, polymer compounds, and numerous organic chemicals, including polyglycol ethers, ethylene glycol, ethanolamines, simple and complex glycols, and other substances, are among these products. Ethylene oxide, a surface disinfectant, is frequently used in hospitals and the medical equipment industry instead of steam to sterilize heat-sensitive devices and equipment, such as disposable plastic syringes. According to the Food and Drug Administration, ethylene oxide is used to sterilize around 20 billion sterile medical equipment annually. Some food products, including spices, some dried herbs, dried vegetables, sesame seeds, and walnuts, are sterilized using this chemical compound. As a result, the demand for EO catalysts increases along with the demand for EO. EO catalysts are crucial in the manufacture of EO, as they aid in the production of ethylene oxide. The synthesis of ethylene oxide depends on the selectivity and efficiency of the reaction, which is improved by these catalysts. These factors are expected to fuel the demand for ethylene oxide catalysts.

Market Driver- Replacement & Upgrade of Ethylene Oxide Catalyst

Replacement & upgrade of ethylene oxide catalysts is driving the demand for EO catalysts. The life of the catalysts used to produce ethylene oxide is limited. They gradually lose their catalytic activity over time, due to factors such as fouling, deactivation, and wear. They must be replaced to maintain the efficiency of ethylene oxide synthesis. Additionally, catalyst technology is always evolving and improving. New catalysts frequently have better conversion rates, greater selectivity, and longer catalytic lifetimes, as they are effective and selective. Companies increase the overall efficiency of the ethylene oxide manufacturing process by switching to these advanced catalysts. This boosts productivity and results in cost savings. New catalysts must be purchased as a result of the replacement and upgrade of ethylene oxide catalysts, which boosts the demand for catalyst suppliers and manufacturers.

Market Restraint- Costs of Raw Materials

Silver and other precious metals are used as active components in ethylene oxide catalysts. Prices for these metals make up a sizeable amount of the total cost of the catalyst. For instance, the price of silver per ounce fluctuates approximately at USD 21.80 on the global market. Silver prices are currently rising, due to the uncertainties following the Middle East turmoil. Silver price volatility makes it difficult for catalyst producers to adequately forecast and control expenses. Therefore, changes in the price of raw materials have a direct effect on the price of ethylene oxide catalysts as well as the demand for ethylene oxide, which in turn has an impact on the demand for ethylene oxide catalysts.

Scope of the Report  

The report on the global ethylene oxide catalyst market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

Based on type, the global ethylene oxide catalyst market is categorized as high selectivity catalyst, high-performance catalyst, and others. The high selectivity catalyst segment held a XX% market share in 2022. High-selectivity catalysts offer exceptional initial selectivity and remarkable stability, making them highly desirable for industrial applications. Companies are investing in research and development to create efficient and cost-effective catalysts that meet the increasing demand for ethylene oxide production. Demand for high-selectivity catalysts is expected to continue to rise, as many industries adopt ethylene oxide in their processes.

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Based on distribution channel, the global ethylene oxide catalyst market is categorized as manufacturers and wholesalers/distributors. The manufacturers segment held XX% share of the market in 2022. Manufacturers of ethylene oxide catalysts have more control over pricing than wholesalers, as they produce it in large quantities at lower costs. Manufacturers set and enforce their own prices without having to share margins or commissions with distributors or retailers.

The wholesalers/distributors segment held XX% share of the market in 2022. A product is sold indirectly through a partner or affiliate rather than the company. Wholesalers buy large quantities of ethylene oxide catalysts from manufacturers and resell them in bulk quantities at discounted prices to other businesses.

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Regional Outlook

On the basis of regions, the Global Ethylene Oxide Catalyst Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA).

On the basis of region, the ethylene oxide catalyst market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is projected to hold XX% share of the global market in 2031. The automotive, chemical, and healthcare industries are major consumers of ethylene oxide in the region. This, in turn, increases the demand for ethylene oxide catalyst in North America. The increasing demand for ethylene oxide in various chemical products such as ethylene glycol is expected to drive the demand for ethylene oxide catalyst during the forecast period. In 2021, the US spent XX% of gross domestic product (GDP) on health care, nearly double the OECD average.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Ethylene Oxide Catalyst Market

• Historical, Current, and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Ethylene Oxide Catalyst Market Performance