The global glycols market size was estimated at 19,399.5 kilo tons in 2015. The product derivatives are used to manufacture engine antifreeze and coolant products predominately applied in automotive and HVAC systems. The growing demand across key end-use industries are expected to the increase the consumption of glycols globally.
Ethylene glycol can be used for applications that require chemical intermediates for solvent couplers, resins, freezing point depression, humectants, chemical intermediates, and other solvents. These applications are important to manufacturing a broad range of products, including deicing fluids, resins, automotive coolants and antifreeze, heat transfer fluids, asphalt emulsions and latex paints, water-based adhesives, electrolytic capacitors, leather, paper, and textile fibers.
U.S. glycols market revenue by product, 2014 - 2025 (USD Million)
Majority of the product is current synthetically derived from petrochemical feedstock. Volatile petrochemical prices owing to unstable supply-demand regime along with stringent environmental regulations regarding manufacturing and disposal of the product are expected to remain a major setback for the industry growth.
The availability of bio-based glycols derived from molasses as alternatives to the petrochemical counterparts are anticipated to provide immense opportunities for the market participants for future expansions. Some of the key companies are engaged in developing innovative solutions in the form of new products, increasing processing efficiency, developing tailored supply chain solutions or support for quality requirements.
The U.S. market is driven by high demand for conventional propylene glycol which is utilized in manufacturing wide range of end-use products such as antifreeze, functional fluids, and unsaturated polyester resins. Moreover, increasing implementation of advanced technologies and production lines to support the rising product demand are some of the factors augmenting the industry growth in the region.
Technological advancements to recycle industrial virgin glycol is adopted and transformed into green products such as plastic bottles, polyester fiber, recycled antifreeze, and concentrates. OEM, ASTM and other regulatory bodies have developed regulations and guidelines that govern the quality, quantity and disposal of recycled chemical solvents. Moreover, increasing consumer spending towards high-quality products especially in China and India is anticipated to influence the industry over the forecast period positively.
Ethylene glycol dominated the product segment, accounting for over 83% of total market in 2015. It is mixed with water in a specific concentration to adjust viscosity and varies with the percent of the ethane-1,2-diol and the temperature of the fluid. Raw material required to manufacture the product is cheaply available; hence it finds many niche applications in pharmaceuticals and textile industries. Tri-Ethylene Glycol (TEG) segment is anticipated to have some sluggish growth over the next few years.
Propane-1,2-diol is preferred as a substitute for ethylene owing to its chemical properties such as water-solubility, non-toxic and easily metabolized; due to which its demand is expected to rise over the period.
HVAC applications dominated the market in 2015 and accounted for over 21% of the overall industry, owing to its broad glycol usage of in heating and cooling systems such as inhibitors, electrolytic capacitors, and heat transfer fluids. Growing demand for high-quality and bio-based product in the production of antifreeze and coolant is expected to boost the product utilization in automotive applications. Antifreeze and coolants prevent expanding of engine fluids after freezing preventing pipes or other containment vessels from breaking.
Glycol demand in polyester fibers and resins is projected to grow at a CAGR of 4.4% from 2016 to 2025. Propylene glycol is the preferred product for manufacturing high-performance unsaturated polyester resins (UPR) for many thermoset composite applications. Common applications include pipes, ducts, electrical components, tanks, sheet molding compounds (SMC), reinforced laminated for bath ware, shower stalls, marine construction and others.
Other uses include aircraft deicing, manufacturing quenchants, inks, plasticizers, solvents, resins, surfactants and plasticizers, solvents, inks, surfactants, and consumer goods.
Global glycols market revenue by application, 2015, (USD Million)
Asia Pacific accounted for over 43% of total volume in 2015 and is expected to dominate the global demand in the next nine years. Rising demand in countries such as China, Indonesia, India, Vietnam, and Thailand is anticipated to drive the consumption in the regional market. Growing polyester fiber production for manufacturing textiles and PET is expected to dramatically promote market penetration.
In addition, application growth in the automotive and industrial sectors is anticipated to have a positive impact. Key glycol manufacturing players are focused on developing novel products with higher efficiency level and quality. China emerged as the dominant country accounting for over 70% of the region revenue in 2015. It is projected to grow significantly over the forecast period because of the rapid industrialization coupled with urbanization in the country.
Middle East and Africa is estimated to witness high growth over the forecast period. Expanding domestic production capabilities especially in Saudi Arabia, UAE, and Qatar along with growing end-use industries such as HVAC, auto-OEM, and polyester fibers & resin manufacturing in the region is anticipated to steer glycols demand. The region is estimated to grow at a CAGR of over 6% in terms of value.
Key participants including Dow Chemical, BASF, Royal Dutch Shell, Huntsman International LLC, SABIC, AkzoNobel, DuPont, and Reliance Industries dominated the global glycol industry accounting for the lion’s share in 2015. Moreover, a significant number of regional players such as MEGlobal, INEOS, SABIC, H.B. Fuller, Jebro, are also active participants in the market, which makes it a highly competitive.
Expansions and mergers are the primary business strategies adopted by global players to increase its manufacturing capacity and consumer base. The innovation of unique products and technological advancements to improve efficiency and quality are some of the key approaches implemented by companies to increase share and sustain the competition over the long-term.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Volume in Kilo tons and Revenue in USD Million & CAGR from 2016 to 2025
North America, Europe, Asia Pacific, Central & South America & Middle East & Africa
U.S., Canada, Mexico, UK, Germany, France, China, India, Japan, Brazil
Revenue forecast, competitive landscape, growth factors and trends
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Segments covered in the report
This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the glycols market on the basis of product, application and region:
Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Polyester Fibers & resin
Food & Beverage Processing
Regional Outlook (Kilo tons, USD Million 2014 - 2025)
Central & South America
Middle East & Africa
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