Glycol ether market worth $10-billion by 2024

10th March 2017

     

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A market research report titled ‘Glycol Ether Market: Global Industry Analysis and Forecast, 2016–2024’ compiled by American market research company Persistence Market Research (PMR) concluded that the glycol ether market, currently worth about $6- billion, is expected to exceed a value of about $10-billion by the end of 2024, expanding at a compound annual growth rate (CAGR) of over 6%.

The report adds that, in terms of volume, the glycol ether market will witness a moderate CAGR of 5.4% over the eight-year period, with Asia Pacific and Europe remaining the key markets. Glycol ethers are commonly used in paints and cleaners, and can be found in some pharmaceutical and cosmetic products.

The PMR report notes that the growing consumption by various end-use industries will continue to be the primary factor driving the sales of glycol ether. “The rising introduction of new variant products with the help of a wide variety of ecofriendly and renewable technologies will be another key driver of market growth, and the development of innovative, cost-effective products is anticipated to further boost the market for glycol ether.”

Further, the report notes that glycol ethers are considered an appropriate alternative to perchloroethylene (PCE), which is widely used in degreasing and dry cleaning agents but is said to be hazardous to human health and the environment. “Some forms of glycol ether on the market [have been] identified to be decent alternatives to PCE, [and this will] eventually fuel their demand over the next few years.”

In the section covering key trends and opportunities, the report comments that several governments are increasingly promoting the use of P-series glycol ethers over the use of E-series glycol ethers – which are named depending on their chemical structure, the former referring to glycol ethers made from propylene oxide, and the latter, ethylene oxide.

PMR states that this trend is likely to present new opportunities for leading players within the paints, coatings and adhesives, cleaners, printing inks, and cosmetic sectors, which typically use P-series glycol ethers and are already consuming a significant amount of glycol ethers.

The company expects that the cleaners, printing inks and electronics and semiconductors sectors will also continue to create new growth opportunities. “Moreover, as manufacturing and healthcare industries continue to thrive at pace, the demand for cleaning chemicals will also remain on the rise through 2024.” The company adds that manufacturers are likely to capitalise over such end-use opportunities in the near future.

“By product type, the E-series glycol ether segment will witness a decline by 470 basis points (BPS) over the 2016 to 2024 period. The P-series glycol ether segment will, however, exhibit significant growth, accounting for an exceptional 71.6% revenue share in 2024.”

The report further states that based on application, the paints, coatings and adhesives segment will remain dominant throughout the forecast period, capturing a value share of over 53% by 2024. With its expected gain of over 100 BPS, the cleaners segment will represent the second largest segment, reaching beyond $1.8-billion in 2024. It is reported that other application segments are likely to witness a drop in terms of BPS.

The Asia Pacific region is expected to retain the leading regional market position and expand at the fastest CAGR of 9.9% over the forecast period. Accounting for more than 40% of the market value in 2024, this region will experience a massive boost in BPS. This growth is attributed to the expected substantial consumption by the paints and printing ink sectors within this region, especially by water-based flexo inks manufacturing companies. Europe, despite a slight decline over the assessment period, will remain the second-largest market for glycol ether.

The PMR report profiles some of the top companies competing in the global glycol ether marketplace. The report was compiled by reviewing insights from a few of the key players within the sector. These include; the American chemicals corporation Dow Chemical Company, German chemicals manufacturer BASF, Dutch plastics and chemicals company LyondellBasell Industries Holdings, multinational petrochemicals company Royal Dutch Shell, American speciality chemicals manufacturer Eastman Chemical Company, South African petrochemicals giant Sasol, Chinese chemicals manufacturer Hannong Chemicals, Hong Kong-based chemicals manufacturer Dynamic International Enterprises and Chinese chemicals company Jiangsu Ruijia Chemistry.

Prominent trends among leading manufacturers include increased focus on P-series glycol ether production and companies seeking inorganic expansion. Through vertical or horizontal expansions and acquisitions, a majority of manufacturers are aspiring to strong partnerships and long-term contracts with raw material distributors.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

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