Global Statistics Representing Neopentyl Glycol (NPG) Market Scenario
Neopentyl glycol (NPG) is an industry standard organic chemical glycol component, also referred as 2, 2-Dimethyl-1,3-propanediol. The chemical formula of the compound is C5H12O2 and molecular weight is 104.1476. This compound can be made available in the form of molten, flakes and slurry. The product is used in synthesis of various products to enhance the stability of product towards heat, water and light. The product has high thermal and chemical stability which gives superior performance advantage to the customers. It is primarily used as an intermediate in the manufacturing of a number of chemical products including powder coating resins, high-quality polyester resins, and fiberglass-reinforced plastics applications.
In the last couple of years, there has been a substantial rise in the demand of NPG and its derivatives owing to industrialization and increasing commercial zone. Growing usage of paints and coatings along with flourishing industrial sector including automotive, construction, shipbuilding, aerospace, healthcare and many others drives the growth of the market. Highly funded infrastructure projects, various product launch, and development in personal care and pharmaceuticals tend to open new doors for the neopentyl glycol market.
Global neopentyl glycol market was valued at USD 3.25 billion in 2018 and is expected to reach USD 4.17 billion by 2026 at a CAGR of 3.15% during the forecast period, 2019–2026.
Global neopentyl glycol market is segmented into physical form, production method, and industrial verticals.
On the basis of physical form, neopentyl glycol market is segmented into flakes, molten, slurry. Flake segment is expected to witness a potential growth during the forecast period 2019-2026. This is attributed to the unique properties of flake structure. NPG in form of flakes can be convenient to handle during storage, thereby increasing the demand in the resins and coatings industry.
Based on the production method, neopentyl glycol market is segmented into hydrogenation of HPA and disproportionation. Hydrogenation of HPA method includes adding hydroxypivaldehyde solution and hydrogen to a hydrogenation reactor that including a hydrogenation catalyst, which formed the neopentyl glycol. Method is widely used for small scale or industrial scale of production, as the process reduced the heat integration and optimized the purification process.
On the basis of end users, market is segmented into paints & coatings, automotive, construction, chemicals, plastics, textiles, pharmaceuticals, cosmetics & personal care, and others. Paints & coatings segment is expected to hold highest share, owing to its use for applications such as powder coating, & coil coating. Power coating industry is growing at huge demand substance is mainly used in powder coating to give resistance and durability. Moreover, its usage in automotive insulation and agrochemicals is another factor propelling the product demand.
Global neopentyl glycol market geographically is segmented into North America, Europe, Asia-Pacific, Latin America and MEA.
Europe is expected to witness a potential growth owing to the increasing use of powder coating chemicals in the region. Additionally, usage of NPG as an additive in the powder coating for stability and resistance adds to the growth of the neopentyl glycol market. Market growth for NPG in Europe is supported primarily by growing production capacities. For instance, Oxea Germany based company that offers a vast product portfolio of oxo-chemicals has recently expanded its production limit to 45000 metric tons that directly lifts up the overall market of Europe.
Growing automotive industry in Asia-Pacific is likely to fuel the demand for eco-efficient powder coatings and resins further stimulates the growth of the neopentyl glycol market. NPG is an important substance in the production of cement and concrete that provides durability and reliability. This will drive the demand for NPG in Asia-Pacific. Thus, the burgeoning construction sector in the emerging economies of such as China, India, Indonesia, and Malaysia is expected to boost the growth of market in the region.
North America is expected to witness a significant growth in the neopentyl glycol market owing to the rapid industrialization. The growth of steel, cement, and automobile industries in this region has been a key factor for the increasing demand and growth of automotive lubrication systems market.
Developing regions of Middle East & Africa is likely to have a steady growth owing to increasing demand for adhesives and construction insulation from the ongoing infrastructural programs in the Gulf Cooperation Council countries.
Latin America is expected to showcase a considerable growth in the region owing to growing automotive industry in the region. Growing opportunities for the product in the region in pharmaceuticals industry for the production of ibuprofen drug for generic diseases are likely to spur the neopentyl glycol market growth.
Some of the major players in neopentyl glycol market are Oxea (Germany), BASF SE (Germany), LG Chem (Korea), MGC (Japan), Eastman (U.S.), Celanese (Germany), Perstorp (Sweden), Wanhua (China), BJNC (China).
Global Neopentyl Glycol Market Segmentation
By Physical Form
By Production Method
By End Users