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Ethylene Vinyl Acetate Market - Forecast(2023 - 2028)
Ethylene Vinyl Acetate Market Overview
The Ethylene Vinyl Acetate Market is forecast
to reach US$11.3 billion by 2027, after growing at a CAGR of 5.7% during the
forecast period 2022-2027. Ethylene Vinyl Acetate (EVA) is a thermoplastic
copolymer that provides crack resistance, flexibility, along with adding
toughness to certain materials. Ethylene Vinyl Acetate copolymers are commonly
used in a wide range of applications such as solar cell encapsulation, film
manufacturing, wires and cables, adhesives, sealants, coatings, and as
redispersible polymer powder in plasters and cement renders. An increase in
demand from the agriculture, building, and construction industry acts as a major
driver for the market. Problems associated with the use of EVA in photovoltaic
packaging may act as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced construction, and production activities which in
turn, has resulted in the country-wise shutdown of construction sites, shortage of
labor, and the decline of supply and demand chain all over the world, thus,
affecting the market. Studies show that the outbreak of COVID-19 sharply
declined the production of raw materials in 2020 due to a lack of operations
across multiple countries around the world. However, a slow recovery in new
development and construction contracts has been witnessed across many countries
around the world since 2021. For instance, the Iron Bridge Magnetite project
that is expected to deliver 22mtpa of high-grade 67 percent Fe magnetite
concentrate product is currently undergoing development. The overall cost of
the project is expected to reach around £1.96 billion (US$2.35 billion)
Mota-Engil.
Since the use of EVA or thermoplastic
copolymers play a major role in the modern construction industry, a slow and steady increase in building and construction activities will require the use of
Ethylene Vinyl Acetate for construction materials like adhesives, sealants,
protective coating for steel and as redispersible polymer powder in plasters
and cement renders. This will eventually lead to an increase in demand for
Ethylene Vinyl Acetate indicates a slow and steady recovery of the market
in the upcoming years.
Report Coverage
The report: “Ethylene Vinyl Acetate Market –
Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the
following segments of the Ethylene Vinyl
Acetate Industry.
By Type: Low Density, Medium Density, and
High Density.
By Application: Solar Cell Encapsulation, Film
Manufacturing, Wire & Cable, Adhesives & Sealants, Coatings, Plasters
and Cement Renders, Others.
By End-Use
Industry:
Pharmaceutical, Packaging, Building & Construction, Agriculture, Footwear,
Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, and the Rest of Europe),
Asia-Pacific (China, Japan, India, South Korea, and the Rest of Asia-Pacific),
South America (Brazil, Argentina, and the Rest of South America), the Rest of
the World (the Middle East, and Africa)
Key Takeaways
- Building and Construction Industry in Ethylene Vinyl Acetate Market is expected to see the fastest growth, owing to increasing demand for thermoplastic copolymers (EVA) for the production of adhesives, sealants, cement, and other construction materials.
- EVA has properties such as longer durability, higher flexibility, crack resistance, and corrosion resistance that makes it ideal for the production of various construction materials.
- Asia-Pacific dominated the Ethylene Vinyl Acetate Market in 2021, with China most likely to drive the market growth. The major reason behind this is the increasing demand of adhesives and plastics from the packaging industry, along with construction activities that require the use of these thermoplastic copolymers (EVA), thus, boosting the market growth.
- The Solar Cell Encapsulation segment held the largest share in the Ethylene Vinyl Acetate Market since the demand for EVA has been increasing for this segment due to the ideal properties that the EVA holds.
Figure: Asia-Pacific Ethylene Vinyl Acetate Market Revenue, 2021-2027 (US$ Billion)
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Ethylene Vinyl Acetate Market Segment Analysis – By Type
High-Density thermoplastic copolymers (EVA)
held the largest share in the Ethylene Vinyl Acetate Market in 2021 and is
expected to grow at a CAGR of 5.5% between 2022 and 2027. High density
Ethylene Vinyl Acetate has better chemical resistance, better impact
resistance to a lower temperature, better UV resistance, and are more
cost-effective in comparison to low and medium Ethylene Vinyl Acetate.
Moreover, high-density EVA is generally preferred for the production of construction
materials like adhesives, sealants, protective coatings, plasters, and cement
renders. Hence, these factors are most likely to increase their demand in the
upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By Application
The Solar Cell Encapsulation segment held the
largest share in the Ethylene Vinyl Acetate Market in 2021. This is mainly
because Ethylene Vinyl Acetate (EVA) layer is generally a thermoplastic that
contains cross-linkable ethylene vinyl acetate, which is primarily used for the
encapsulation of photovoltaic cells. The primary purpose of encapsulation is to
bind the multiple layers of the module together. A typical formulation of EVA
or thermoplastic copolymer for PV modules constitutes 28–33% of vinyl
acetate by weight that is compounded with additives such as ultraviolet (UV)
absorbers, curing agents, thermo-antioxidants, and photo antioxidants.
Furthermore, EVA materials are commonly used for encapsulation of around 80% of
photovoltaic or PV modules. EVA has lots of advantages, such as low processing
temperature, high adhesion strength, excellent adhesive property, and high
transparency, along with glass-like transmission properties. In addition to
this, the price of EVA is also comparatively low which makes it an ideal material
for solar cell encapsulation. Hence, the rise in demand for Ethylene Vinyl
Acetate (EVA) for the purpose of solar cell encapsulation will help increase
the market growth in the upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By End-Use Industry
The Building & Construction Industry held
the largest share in the Ethylene Vinyl Acetate Market in 2021 and is expected
to grow at a CAGR of 5.9% between 2022 and 2027. For instance, according to
Volvo CE, the construction sector saw an increase in the production and
manufacturing of construction materials across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%,
Europe by 20%, and China by 28% in 2020. All of these factors increased the demand
for construction materials like adhesives, sealants, protective coatings,
plasters and cement renders across the globe. This, in turn, increased the
demand for the use of Ethylene Vinyl Acetate required for the production of these
construction materials, thus, leading to the growth of the market in the
upcoming years.
Ethylene Vinyl Acetate Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Ethylene Vinyl Acetate Market in 2021 up to 28%, with China being the one to
dominate the market. For instance, China holds the largest market share around
the world when it comes to food packaging. According to a recent study
published on Interpack, the consumption of food packaging is expected to
increase to 447,066 million in 2023. Likewise, it also states that the Chinese
packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of
around $5.88 billion with end packaging. Since Ethylene Vinyl Acetate is the
primary component required in the production of packaging materials, it is expected to lead the growth of the Ethylene Vinyl Acetate Market in the upcoming
years.
Furthermore, the Middle East also saw significant growth in Ethylene Vinyl Acetate Market in 2021. EVA or thermoplastic copolymers are also widely used in the production of construction materials across the world. The FIFA World Cup that is to be held in 2022 in Qatar is expected to generate the huge potential for construction materials used in the country. A company called Larsen and Toubro signed a contract worth $360 million along with its joint venture partner in Qatar, in order to build a 40,000 seater stadium. This project required the use of construction materials like adhesives, sealants, plasters, protective coatings, cement renders, and other raw materials in order to build such a huge stadium. Likewise, other countries such as Kuwait, Morocco, and Iran are also estimated to have higher growth in the construction sector during the forecast period. All of the above factors will directly result in an increase in demand for Ethylene Vinyl Acetate that is required for the production of these raw materials in these regions, thus, boosting the market growth.
Ethylene Vinyl Acetate Market Drivers
An increase in building and construction activities in the Asia-Pacific region is most likely to increase demand for the product
Building and Construction activities are
considered to be the pillar of growth for a country and also play a major role
in increasing the overall global economy. According to recent studies,
Asia-Pacific is expected to be the largest market for Ethylene Vinyl Acetate in
the building and construction sector. Since 2019, countries like China and
India has come up with multiple construction projects. For instance, the Indian government had made an announcement of the World One Tower project worth
$321 million which is to be built in Mumbai region and is currently undergoing
development in 2021. Similarly, the Indian government has also invested in
another construction project for building Gujarat International Finance
Tec-City is undergoing development in 2021. The project is valued at a total cost of US$20 billion and is expected to cover a construction area of
around 8.5 million square meters which will include 200 skyscrapers. The
project also includes the construction of buildings and towers for the powerhouse.
Furthermore, the government of China approved
26 infrastructure projects with an estimated total investment of 981.7 billion
yuan ($ 142 billion) in 2019. Other countries like Bangladesh also have two
ongoing power plant projects estimated at $17.65 billion in total which is due
delivery by 2025. In this way, an
increase in building and construction activities will most likely increase the
demand for raw materials such adhesives, sealants, protective coatings, plasters
and cement renders, and other raw materials. Since EVA or thermoplastic
copolymers are widely used for the production of these construction materials
due to the properties that it provides like longer durability, higher
flexibility, high strength, better chemical resistance, crack resistance and
better resistance to corrosion, this can lead to significant growth in Ethylene
Vinyl Acetate Market in the upcoming years.
An increase in agricultural activities is most likely to increase demand for the product
Ethylene Vinyl Acetate (EVA) is also used in agrochemicals such as pesticides, insecticides, and herbicides. The major advantage of using EVA is that it has a lower frequency of applications in soil, it provides a continuous and regular supply of nutrients to plants, it helps reduce the nutrient loss caused by leaching, provides greater convenience over handling fertilizers help in the mitigation of root damage caused by a high concentration of salts, along with a reduction in production costs. Recent insights from “Statistics Times” show that China is the leading contributor to the agricultural economy with 19.49% of the total global agricultural output, followed by India with 7.39%. Furthermore, other countries like the US, Brazil, Indonesia, Mexico, and Sweden obtain 0.9%, 6.2%, 13.9%, 3.9%, and 50% respectively of their GDP from the agricultural sector. An increase in agricultural activities and production also increases the use of agrochemicals that require EVA during their production, thus, resulting in the growth of the Ethylene Vinyl Acetate Market in the upcoming years.
Ethylene Vinyl Acetate Market Challenges
Problems associated with the use of EVA in photovoltaic packaging can cause an obstruction to the market growth
According to recent research published on
U.S. Department of Energy Office of Scientific and Technical Information, EVA
when exposed to UV rays or atmospheric water, generally tends to decompose in
order to produce acetic acid, which in turn, lowers the pH and increases the
surface corrosion rates of embedded devices. In most cases acetic acid is
produced at a very slow rate, however, it usually does not take much to
catalyze reactions that can lead to rapid deterioration of the module. Hence, this
problem associated with the use of EVA in photovoltaic packaging is likely to
confine the market growth.
Ethylene Vinyl Acetate Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in this market. Ethylene Vinyl Acetate top 10 companies include:
- Arkema S.A.
- Braskem S.A.
- Celanese Corporation
- DOW Inc.
- Exxon Mobil Corporation
- Formosa Plastics Corporation
- Hanwha Chemical Co, Ltd.
- Lyondell Basell Industries N.V.
- Sinopec Corporation
- Lotte Chemical Corporation.
Acquisitions/Technology Launches
- In August 2021, BASF and SINOPEC announced to further expand their Verbund site functioned by BASF-YPC Co., Ltd. (BASF-YPC), which is a 50-50 joint venture of both companies in Nanjing, China. It involves the capacity extension of numerous downstream chemical plants, including a new tert-butyl acrylate plant in order to support the growing Chinese market.
- In Nov 2019, Repsol signed an agreement in order to license a high-pressure technology that is capable of producing EVA/EBA copolymers (ethylene vinyl acetate/ethylene butyl acrylate) along with the American company called Engineers & Constructors International (ECI).
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Acetate-Ethylene Emulsions Market – Forecast (2021 - 2026)
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Ethylene
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