The global neopentyl glycol market size is estimated to be valued at USD 1.0 Bn

Posted by Alex Werner on February 5th, 2018

Global Neopentyl Glycol Market Size Analysis

The global neopentyl glycol market size is estimated to be valued at USD 1,001.4 million in 2018 and will register a CAGR of 4.8% to create collective absolute revenue opportunity of USD 14 billion during the forecast period.

The product chemically known as 1,3-Propanediol, 2,2-dimethyl (CAS number 126-30-7) finds range of end-use applications in textiles, coatings and construction industries due to its thermal stability. It is primarily used as a building block in polyester resins for coatings, alkyd resins, unsaturated polyester, lubricants and plasticizers.

Global Neopentyl Glycol Market Drivers and Challenges

The industry is expected to witness healthy growth in Central and Eastern Europe and Asia Pacific. Much of the growth is expected to be fueled by improving macroeconomic conditions and high level infrastructure projects. For instance, China’s ambitious OBOR will create new market opportunity for construction industry verticals that will indirectly create demand for neopentyl glycol. Infrastructure projects is trailing GDP per capita in China and India wherein China could witness 70% urbanization by 2022. The companies are adding new technologies with advanced reaction efficiencies in order to boost production capacity. Well aligned systems has helped companies to lower down their operational cost by 30%. It is expected that neopentyl glycol market trend will witness increased spending on marketing channels and thus solidify market positioning globally.

Though the industry is growing at healthy rate, economic headwinds could prove a major challenge to overall stability of the industry.

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Global Neopentyl Glycol Market Analysis, By Application

Worldwide, neopentyl glycol (NPG) will finds its maximum usage in coatings. Total sales for coatings segment will account for 39% share in 2018. This will further increase by 68 basis points during the forecast period. As such, the segment will continue to be a profitable sector for neopentyl glycol manufacturers. It will register slowdown in demand from automotive sector. Industry saturation has led to stagnation in the industry. However, is expected to revert to normal growth by end of forecast period. Powder coatings is witnessing huge demand. This is likely to boost to boost overall NPG consumption.

Global Neopentyl Glycol Market Size and Forecast: Regional Analysis

Asia Pacific is expected to register not only the fastest growth in terms of consumption but will also lead in production value. As of 2017, China, India and Japan accounts to majority of the market share with production capacity located across China, South Korea and Japan. India is primarily a importer of NPG. However, changing macroeconomic scenario is expected to create new market opportunity for industry players. It is expected that India will take over China in terms of growth between 2018 and 2027. China will continue to dominate the market in terms of absolute revenue opportunity. By 2028, China will capture 17% of total neopentyl glycol market consumption. On the same period, India will growth by 2.8X to reach USD 157 million by 2028.

Asia Pacific production capacity will double by 2020 with most of the manufacturing centers located in China. Japan and South Korea will follow the trail.

Western Europe neopentyl glycol market size was valued at USD 287 million in 2017 and will grow by 1.4X to create collective absolute revenue opportunity of USD 3.8 billion during the forecast period. Germany will account for highest market share.

Global Neopentyl Glycol Market Size and Forecast: Competition Landscape

Some of the key neopentyl glycol market industry players are BASF AG, Eastman, LG Chem, Mitsubishi Gas Chemical, Shahid Rasuli, Celanese Corporation, Perstorp, OXEA, Polioli, Oleon, and Shandong Fufeng Perstorp Chemical Co. BASF and Eastman Chemicals are the market leaders and are expected to take inorganic growth strategy to further strengthen their positions in near future.

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Alex Werner

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Alex Werner
Joined: December 7th, 2017
Articles Posted: 25

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