Glycol Market Is Estimated To Witness High Growth Owing To Increasing Construction Activities And Rapid Industrialization
The Glycol market is estimated to be valued at USD 46.82 Billion in 2024, exhibiting a CAGR of 7% over the forecast period (2024-2031). Glycol finds wide application in the construction, HVAC, chemicals, automotive, and other industrial applications. Furthermore, the increasing construction of commercial and residential buildings worldwide is augmenting the demand for glycol.
Rising Construction Activities
The construction industry has been witnessing robust growth over the past few years owing to rapid urbanization, increasing population, rising income levels, and favorable government policies supporting infrastructure development. Glycol solutions such as ethylene glycol and propylene glycol find extensive usage in heating, ventilation, and air conditioning systems installed in residential, commercial, and industrial buildings. Thus, the upsurge in construction activities globally is expected to propel the demand for glycol during the forecast period.
Growing Automotive Production
Glycol plays a crucial role as anti-freeze and coolant agent in automobiles. With automakers increasingly focusing on thermal management of vehicles to enhance efficiency and reduce emissions, the demand for glycol from the automotive industry has strengthened. The escalating vehicle production worldwide on the back of increasing disposable incomes, availability of financing options, and expanding dealer networks will augment the consumption of glycol.
Growing demand for polyester fibers and resins is driving the glycol market
The global demand for polyester fibers and resins has seen significant growth over the past decade. Glycols like ethylene glycol and propylene glycol are key raw materials used in the production of polyester fibers and resins. As per projections, the polyester market is expected to grow at over 4% annually till 2026. This steady rise in demand for polyester from various end-use industries like clothing, packaging, and construction is driving the need for glycols. Leading glycol producers are ramping up their capacities to cater to the swelled requirements from the polyester industry. The growing textile sector in Asia Pacific and increasing fiber consumption in developed markets will continue propelling the glycol demand in the coming years.
Increasing usage of glycol ethers in paints & coatings boosting market growth
Glycol ethers have widely replaced conventional solvents in paints, coatings, cleaners, and other applications due to their favorable properties. They are environment-friendly, have low toxicity, and impart excellent wetting and dispersing qualities. The global paints and coatings industry has witnessed healthy growth over the past decade with rising infrastructure development and automobile manufacturing worldwide. Glycol ethers are extensively used as solvents, co-solvents, and viscosity-reducing agents in paint formulations. Leading players in the glycol ethers market are making heavy investments to develop bio-based and sustainable ether derivatives to meet the evolving standards. Steady demand from the coatings segment will drive the consumption of glycol ethers in the foreseeable future.
Volatile crude oil prices pose challenges for producers
Glycol production involves petroleum feedstock like ethylene and propylene. Therefore, fluctuations in crude oil prices directly impact the prices of glycols and major glycol derivatives. The crude market remains highly volatile with frequent price swings influenced by global economic and geopolitical factors. The recent supply concerns stemming from the Russia-Ukraine conflict raised crude prices to multi-year highs, hurting the margins of glycol manufacturers. Though producers pass on the hike through product price revisions, unstable feedstock costs still pose challenges. Companies remain exposed to raw material price risks. Any sharp and sustained rise in petroleum costs can dampen the demand as buyers may defer or reduce purchases. Stable crude prices are vital for ensuring sustainable growth in the glycol market.
Stringent environmental regulations restrain market expansion
Glycol production and formulations containing glycol derivatives require compliance with various health, safety, and environmental regulations enforced by authorities worldwide. As these materials are hazardous to the aquatic life, their disposal is strictly regulated. Similarly, the manufacture and transportation of glycols involve certain risks that demand adherence to stringent safety standards. Regulatory compliances bring operational complexities and additional infrastructural investments for companies. Moreover, the growing stringency around VOCs emissions especially in developed markets is prompting the replacement of conventional glycol ethers with bio-based and low-VOC substitutes. While environmental protection is paramount, tighter norms also threaten market potential to some degree by raising production costs and restricting certain applications.
Growing use of bio-based glycols presents opportunities
With rising awareness about sustainability, manufacturers are innovating bio-based and recyclable substitutes for petroleum-derived glycols. For instance, several proprietary technologies enable the manufacture of glycols from sugar beet, corn syrup, and other renewable feedstocks. These fossil fuel alternatives help reduce carbon footprint without compromising on performance. Bio-polymers and bio-composites development using bio-glycols is another avenue with high growth potential. Leading composite producers are exploring renewable options to expand their eco-friendly product portfolios. Moreover, glycol recovery systems reduce material wastage by recycling glycol solutions used in end-use segments like HVAC and de-icing. Such sustainability-oriented innovations present lucrative opportunities for glycol producers seeking new revenue streams.
3D printing filament production opens new doors
Additive manufacturing has transformed several industries by improving design flexibility and reducing material wastage. Glycols help impart important properties to 3D printing filaments, an essential raw material. A few common types use polyester glycol and polycarbonate glycol based resins for their filament compounds. The worldwide 3D printing market is witnessing over 20% annual growth driven by widespread industrial adoption. This emerging application opens new opportunities for glycol suppliers to enter specialized product development partnerships. Companies offering high-performance, specialty glycols can tap the huge unmet demands from additive manufacturing. Joint R&D efforts with filament producers will help address the evolving formulation needs and expand market presence.
Link: https://www.coherentmarketinsights.com/market-insight/glycol-market-5320
Key Developments
- March, 2024 – Dow launch two new sustainable varieties of propylene glycol (PG) solutions in North America featuring bio-circular and circular feedstocks.
- In May 2022, The Company has issued an emergency notice due to the accident of a supplier of upstream raw materials, its ability to supply key raw materials to Dow's business was interrupted. Due to this, the propylene glycol supply was declared force majeure, and the recovery time follow-up notice.
- In 2022, NEOS expands its P-Series Glycol Ether portfolio to meet growing demand in key downstream markets, and completes first sales
- In July, 2021, the polyurethanes and construction chemicals business of the company has increased propylene glycol (PG) capacity at its existing facility in Map Ta Phut, Thailand by 80,000 ton per year bringing the total capacity to 250,000 ton per year. This increased propylene glycol capacity optimizes Dow’s existing asset infrastructure to support continued growth in high-value applications. This also helps the company to gain a customer’s attention in fast-growing markets.
Key Players
BASF SE, China Sanjiang Fine Chemical Co. Ltd, Dow, Huntsman International LLC, India Glycols Limited, Indian Oil Corporation Ltd (IOCL), Indorama Ventures, Public Company Limited, INEOS, LOTTE Chemical Corporation, LyondellBasell Industries Holdings BV, MEGlobal International FZE, Mitsubishi Chemical Corporation, Nouryon, Petro Rabigh, PETRONAS Chemicals Group (PCG), Reliance Industries Ltd, SABIC, Shell PLC, Sinopec Zhenhai Refining & Chemical
