Ethyl Ether market size is forecast to reach $XX.X million by 2025, after growing at a CAGR of 4.5% during 2020-2025. Ethyl ether is also known as diethyl ether, is a highly flammable, volatile organic compound. It is synthesized from vapor phase dehydration of ethanol. It is used in fuels, anesthetic agents, laboratory solvents, recreation drugs and pharmaceutical applications. Its main application is in reaction and extraction medium of fragrances, chemicals and pharmaceuticals due to its inertness. Growing demand from Automotive industry is expected to drive the ethyl ether market owing to its various applications in the industry.
Report Coverage
The report: “Ethyl Ether Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Ethyl Ether Industry.
By Application: Fuel and Fuel Additives, Propellants, Solvents, Chemical Intermediates, Extractive Mediums and Others.
By End-Use Industry: Automotive, Plastics, Pharmaceutical, Fragrance, Petrochemicals, Paints & Coatings, Military & Defense and Others.
By Geography: North America, South America, Europe, APAC, and RoW
New product developments and increasing investments in research and development of ethyl ether are expected to drive the growth of this market.
Among application, solvents segment is projected to lead the ethyl ether market during the forecast period.
North America dominated the ethyl ether market.
By Application - Segment Analysis
Solvents segment held a significant share in ethyl ether market in 2019. Ethyl ether is a widely used solvent for bromine, iodine, most fatty and resinous substances, volatile oils, pure rubber and certain vegetable alkaloids. Ethyl ether is claimed to excellent solvent for waxes, resins and gums. It also used as solvent for cellulose nitrate in manufacture of pyroxylin when combined with ethanol and for smokeless gun powder. The ethyl ether additive can be of higher interest in the starting fluid in countries with cold climates, as it helps in cold-starting of an engine at sub-zero temperatures.
By End-User Industry - Segment Analysis
Automotive segment held a significant share in ethyl ether market in 2019 growing at a CAGR of XX% during the forecast period. Ethyl ether is used in the automotive sector as an octane and oxygen enhancer in gasoline and as a blend in lubricating oils. The other application includes the use of diethyl ether as an additive for diesel starting fluids. The cold-starting performance of the CI engine is improved by blending the fuel with ethyl ether, due to its high cetane number and high energy density. Ethyl ether is a highly flammable substance, so it gives a sudden engine start by increasing the pressure in the cylinder to almost double. The consumption of ethyl ether in diverse ways in the Automotive industry is likely to drive the demand of ethyl ether in the coming years. According to OICA, the number of passenger vehicles production increased from 68,539,516 units in 2015 to 71,750,946 units in 2018. Hence, increase in automotive sector is expected to drive the ethyl ether market.
However, due to the outbreak of the novel coronavirus (COVID-19), automobile and component manufacturing plants are being shuttered around the world, consumer footfalls in showrooms have fallen sharply, vehicle sales are dropping dramatically and almost every major industry event is either being cancelled or going the digital way. The impact of coronavirus on other markets, and particularly China, has also led to disruption in supply chains. This is particularly concerning considering that the global automotive industry reportedly imports more than $34 billion in parts from China.
North America dominated the ethyl ether market with a share of more than XX%, followed by Europe and Asia Pacific. The United States is the largest producer and consumer of ethyl ether across the world. It accounts for more than 90% production among the combined North and South America. The largest market for ethyl ether in the country being engine-starting fluids and industrial and laboratory reagents, it is estimated to have more than 65% of total consumption. In addition, smokeless gunpowder formulations for the defense and military industry are likely to contribute to one-fourth of the total consumption in the United States.
Moreover, pharmaceutical spending in the United States is also increasing from the past few years. Ethyl ether is used as a solvent for drugs. The spending on medicines is likely to grow to USD 610 million by 2021. The growth is likely to come from large therapy chronic areas, such as hypertension and mental health. With an increasing demand for pharmaceutical drugs and laboratory reagents, the market for ethyl ether is likely to grow at a good pace, during the forecast period. Growing demand from Asia Pacific countries due to rising disposable income and changing lifestyle is contributing significantly to the automotive industry growth.
Drivers – Ethyl Ether Market
Increasing usage of ethyl ether in automotive industry
Growing demand from automotive industry is expected to drive the ethyl ether market owing to its various applications in the industry. Its main applications in automotive is its use as an octane and lubricating oil that improves the fuel efficiency of the vehicle. It is used as starting fluid in combination with petroleum for diesel and gasoline engines. Due to ever rising crude oil prices, government and automotive manufacturers are focusing on improving fuel efficiency of vehicles. Ethyl ether is one of major constituent that is used as oxygen enhancer in gasoline and octane in diesel engines to ensure efficient burning of fuel and less smoke emissions. Additionally, ethyl ether is an excellent compression ignition fluid with higher energy density as compared to ethanol and can be used as second-generation fuel. Further, demand from laboratory and industrial solvents applications is expected to boost the market. Pharmaceutical uses of ethyl ether as solvent and extraction agent are expected to show limited growth owing to scarcity and increasing demand from other applications.
Challenges – Ethyl Ether Market
Raw material prices
Fluctuation in supply and prices of raw material is expected to hamper the market growth. Ethyl ether is synthesized from ethanol which is petroleum derivative and subjected to crude oil price volatility. The high cost of ethyl ether and the harmful effects it causes to the environment and health are the major restraints of the diethyl ether market.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the ethyl ether market. In 2019, the market of ethyl ether has been consolidated by the top five players accounting for xx% of the share. Major players in the ethyl ether market are BASF SE, Dow Chemical Company, Americhem Sales Corporation, Halocarbon Products Corporation, LyondellBasell, Spectrum Chemical, Tokyo Chemical Industry Co., Ltd., Weill Cornell EHS, Camlab UK and Austin Chemical, Inc. among others.
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