Polytetramethylene Ether Glycol (PTMEG) Market Size, Share & Trends Analysis Report By Applications (Polyurethane Fibers (Spandex), Thermoplastic Urethane Elastomers, Other Applications), By End-User Industry (Paints and Coatings, Automotive, Textiles, Other End-user Industries) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The polytetramethylene ether glycol (PTMEG) market size was valued at USD 15,650 million in 2022. It is projected to reach USD 25,230.95 million by 2031, growing at a CAGR of 5.45% during the forecast period. (2023-2031).

Polytetramethylene ether glycol (PTMEG) is one of the primary raw materials used to produce various thermoplastic urethane elastomers, such as polyurethanes, polyesters, and polyamide elastomers. It is a waxy, white solid that melts to a clear, colorless, viscous liquid at or below room temperature. One reason for the sector's expansion is the widespread usage of spandex fibers in manufacturing products, including bandages, hosiery, sportswear, and infant diapers. The general use of the product in medical, home furnishings, fashion, and automotive textiles is also expected to boost market revenue throughout the projection period. 

Tetrahydrofuran (THF) is catalyzed into PTMEG through the polymerization process. At the end of 2018, the two biggest producers of PTMEG in the world—BASF and Dairen Chemical Corporation (Chang Chun Group)—totaled about 45% of the available capacity. Following Sinopec Great Wall Energy and Chemical with 6.5%, Hyosung Corporation came in third with almost 10%.
 

Market Dynamics

Global Polytetramethylene Ether Glycol (PTMEG) Market Drivers:

Increasing Demand for Thermoplastic Polyurethane (TPU)

The production of thermoplastic polyurethane frequently uses polytetramethylene ether glycol (PTMEG). Thermoplastic polyurethanes (TPU) based on PTMEG exhibit outstanding hydrolysis and microbiological resistance. Additionally, it has characteristics that can be applied when extremely low-temperature flexibility is needed. The demand for thermoplastic polyurethanes is rising across various end-user sectors due to their use in applications for creating extruded goods, injection-molded goods, adhesives, and others. Thermoplastic polyurethane is advantageous for many industrial applications because it possesses characteristics including resistance to oil and grease, abrasion, and good mechanical capabilities. TPU is elastic and melt-processable like other thermoplastic elastomers and may be colored easily. As a result, it is frequently applied to extruded product applications.

Global Polytetramethylene Ether Glycol (PTMEG) Market Restraint:

Declining Automotive Industry

Co-polyester ether elastomers are made using polytetramethylene ether glycol (PTMEG). These materials are frequently used in automotive applications such as airbag deployment, hoses, seals, gaskets, tubes, air intake ducts, etc. PTMEG-derived spandex is utilized to create materials for car seats and door panels that stick to doors for use in automobile interiors. The automobile industry saw positive development over the previous ten years, but the pace of growth has slowed recently. New car sales and production are declining in several regions, including Europe, Asia-Pacific, and the United States. This has an impact on the majority of countries' previously rising car output. Markets, business models, and the competitive environment are all evolving.

Global Polytetramethylene Ether Glycol (PTMEG) Market Opportunities:

Growing Demand for Apparel and Clothing in Emerging Economies

The foundation chemical utilized in the production of polyurethane fibers, which are employed in the textile industry to create textiles and clothing, is polytetramethylene ether glycol (PTMEG). Spandex is a synthetic polyurethane fiber with a weight percentage of 85% polyurethane. It is a segmented polymer with alternating polyurethane flexible and rigid segments. Due to its exceptional qualities, spandex is frequently used in sports fabrics, casual apparel, swimwear, and women's clothing to increase flexibility and comfort. It has high homogeneity, good strength, and high abrasion resistance. Throughout the forecast period, the market for polytetramethylene ether glycol (PTMEG) is anticipated to boost due to the rising demand for spandex and other polyurethane fibers in apparel production and clothing.

Regional Analysis

Asia Pacific Dominates the Global Market

The global polytetramethylene ether glycol (PTMEG) market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to boost at a CAGR of 5.95% during the forecast period. China has the largest GDP in the Asia-Pacific region. China's GDP grew to 6.7% in 2018 and 6.1% in 2019. The trade conflict with the United States significantly impacted trade. The start of COVID-19 had a significant impact on the nation's economy and industrial manufacturing activities. On the plus side, China lifted the nation's lockdown in March 2020 and began several industrial operations, while other countries actively engage in lockdowns and treatments. In the near future, this will likely impact the study market's demand in China.

North America is the major revenue contributor and is expected to grow at a CAGR of 4.90% during the forecast period. To stop the spread of this virus, several states in the U.S. have implemented complete lockdowns, while others have adopted partial lockdowns and are limiting various activities. Due to decreased consumer spending and business closures brought on by the sudden COVID-19 outbreak, the nation's economic growth has been negatively impacted. A raw material called polytetramethylene ether glycol (PTMEG) is needed to make polyurethane. Polyurethane is used to make items like spandex, PU fibers, paints, adhesives, sealants, leather, garments, and automobiles.

The German economy is the biggest in Europe and ranks fifth globally. German economic growth in 2019 was only approximately 0.5%, the worst expansion in the previous six years. As struggling manufacturers held back activity in 2019, GDP was supported in 2019 by increased state investment and more vigorous private consumption. By announcing the availability of funds to support growth and smooth operation in various public sectors shortly, the nation hopes to avert the further decline of the economy caused by the COVID-19 impact. The second-largest consumer goods sector in Germany is the textile and apparel sector.

Brazil's economy has been growing since its downturn due to the current political climate and government policies. In addition, economic growth is only anticipated in 2020 as a result of the economy's diminishing growth as a result of the COVID-19 impact. The nation's economy has shrunk due to political unrest, high inflation, low export prices, and low consumer confidence levels. The goal of Saudi Arabia is to become the region's new center for the automobile industry.

Segmental Analysis

The global polytetramethylene ether glycol (PTMEG) market is segmented by application and end-user.

Based on application, the global polytetramethylene ether glycol (PTMEG) market is bifurcated into polyurethane fibers (spandex), thermoplastic urethane elastomers, and others.

The polyurethane fibers (spandex) segment is the highest contributor to the market and is estimated to boost at a CAGR of 5.60% during the forecast period. The primary end-user use of PTMEG is polyurethane fibers or spandex, which accounts for over 80% of the total demand. This demand is primarily driven by the manufacture of stretchy sportswear and textiles, as well as rising global healthcare standards. To address the rising demand for polyurethane fibers, Chinese producers have announced plans to increase their production capacity and the opening of new facilities. It is predicted that the market will experience significant growth due to the expanding demand for polyurethane fibers in the electrical and electronics, packaging, and construction industries. The fibers are typically employed in form-fitting consumer garments and can grow up to 5-8 times their standard size.

TPU elastomers are mainly employed as insulating materials in the building sector. They are considered a novel technology for high-performance building envelopes because of their exceptional ability to reduce air leakage and even strengthen foundations, walls, and roofs. They're employed in the automotive industry to create doors, windows, spoilers, interior ceiling portions, and bumpers. As a result, manufacturers are able to give drivers and passengers much better mileage while also lightening and improving the fuel efficiency of their vehicles. In addition, they provide insulation, comfort, corrosion resistance, and sound absorption qualities in cars. TPUs can be woven into fine threads and mixed with nylon to create more breathable, stretchable clothing. These methods enable producers to create a wide variety of footwear.

Based on end-user, the global polytetramethylene ether glycol (PTMEG) market is bifurcated into paints and coatings, automotive, textiles, and other end-user industries.

The textiles segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.45% during the forecast period. The primary basic material used to create the highly elastic spandex fibers used in numerous fabrics is PTMEG. They are easy to dye, lightweight, durable, and smooth to the touch. Additionally, they withstand moisture and microorganisms over a wide temperature range. PTMEG is used in the sporting goods sector for swimwear, cycle clothes, and other clothing worn during competitive team sports. One of the oldest and biggest export sectors in the world is clothing. As the majority of emerging countries produce textiles for the global textile and apparel markets, it is also one of the industries with the fastest international growth rates. Asia-Pacific's largest garment and clothing market is expanding strongly due to rising demand in nations like China and India. One of the key sectors in China is the textile and garment sector, the world's top clothing exporter.

Coating materials are formulated using PTMEG. It improves water resistance and surface finishing. Additionally, it functions as an abrasion- and microbe-resistant substance. It is, therefore, perfect for use in radiation- or waterborne-curable coatings for timber or plastic surfaces. Fabrics and textiles that are waterproof but still breathable can be made using layers based on PTMEG. The use of paints and coatings is mainly driven by the automotive and construction industries, with machinery construction, infrastructure, and other applications rounding out the list. Due to its distinctive uses in production across numerous sectors, the paints and coatings industry is one of the biggest consumers of PTMEG globally.

The manufacturing of thermoplastic polyurethane and polyether ester elastomers requires using PTMEG as a crucial intermediary (TPU and TPEEs). Automotive services for these elastomers include gaskets and seals, hoses, airbag covers, transmission boots, seat coatings, adhesives, and constant velocity joints. There has been a move toward lighter cars in recent years. To make cars lighter, stronger, and recyclable, automakers are substituting plastic for the metal in the design of their automobiles. The market is thriving due to the rising demand for lightweight cars. However, there has been a recent decline in the global automotive industry. Several industrialized and emerging nations, including Sweden, Switzerland, the United Kingdom, the Czech Republic, Russia, the United States, India, and China, saw a fall in vehicle manufacturing in 2019.

Recent Developments

January 2023- INVISTA completed the previously announced sale of its Apparel and Advanced Textiles business to an affiliate of Shandong Ruyi Investment Holding. The transaction included ERATHANE® polytetramethylene ether glycol (PTMEG), 1,4 butanediol (BDO), and tetrahydrofuran (THF) production assets.