Global Esters Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Global Esters Market Growth

The global demand for esters is being primarily driven by the shift towards electric vehicles and the growing focus on sustainability. In 2022, the annual EV production surpassed 10 million cars, which was a sizeable growth from 6.7 million in 2021. The topmost EV producers substantially increased their EV production in 2022, such as BYD (211%), Geely Auto Group (251%), Cherry Auto Co. (136%), Changan Auto Co. (134%), and GAC Group (130%). Other major companies also increased their EV production y-o-y, such as Tesla (40%), Hyundai Motors (43%), BMW Group (32%), and Stellantis (34%).

Over the forecast period, an increasing consumer shift towards sustainable mobility solutions is expected to surge electric vehicle production, thereby necessitating the application of ethers for manufacturing battery coolants, immersion cooling systems, and transmission fluids. This is expected to fuel the ester market expansion. Ethers have excellent dielectric properties and resist varnish formation and oxidation, which ensures the cleanliness of EV systems. They are relatively less toxic, apart from being biodegradable, which makes them the ideal fuel choice for automotive companies seeking to reduce their environmental footprint.

Key Trends and Developments

Global Esters Market Trends

As the global demand for sustainable insulating fluids increases among commercial building owners and transformer manufacturers, the demand for natural esters is expected to increase the ester market value over the forecast period. The introduction of FR3r by Cargill can play a major role in enabling the power industry to shift towards sustainable industrial solutions for managing electricity transmission. FR3r contains zero halogens, sulphurs, petroleum, and silicones. It enhances the insulation life of transformers by nearly 8 times by providing superior moisture management and requires zero maintenance under normal conditions. This is expected to enhance the ester market development over the forecast period, especially since ester is a non-toxic and eco-friendly alternative to existing options.

Global Esters Industry Segmentation

Global Esters Market Share

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-32, the Asia Pacific is expected to grow at a CAGR of 6.4% due to the increasing adoption of electric vehicles in countries like India. Besides, as per the ester market analysis, the growing demand for cosmetic products and flavouring agents is also expected to play a critical role in driving the market growth in upcoming years.

Leading Companies in the Global Esters Market

Major players are utilising renewable resources for ester production, thereby driving the ester market development.

LANXESS

LANXESS was founded in 2004 and is headquartered in Cologne, Germany. It specialises in the production of high-performance materials, inorganic pigments, leather chemicals, and advanced industrial intermediates.

Teknor Apex Company, Inc.

Teknor Apex Company, Inc. is headquartered in Rhode Island, United States. It specialises in manufacturing cus...

Hallstar Innovations Corp.

Hallstar Innovations Corp. was founded in 1986 and is headquartered in Illinois, United States. It specialises...

Monument Chemical

Monument Chemical was founded in 2008 and is headquartered in Indiana, United States. It offers a large variet...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other players included in the esters market report are Mitsubishi Chemical Group Corporation, Exxon Mobil Corporation, Cargill, Incorporated, The Procter & Gamble Company, Arkema Group, and Evonik Industries AG, among others.