Market Insights
The monoethylene glycol market was estimated at USD 28.56 billion in 2022 and is likely to grow at a CAGR of 5.99% during 2023-2028 to reach USD 40.8 billion in 2028.
What is monoethylene glycol?
Monoethylene glycol is basically an organic compound that is produced by the reaction of ethylene oxide and water and can also be utilized as a corrosion inhibitor in antifreeze and in the manufacturing of polyester fibers.
COVID-19 IMPACT
The Covid-19 pandemic impacted almost every industry with lockdowns and restrictions being the major factor behind the downfall. Most refineries went non-operational following restrictions and regulations. Owing to the reduction in production and end-product demand, the monoethylene glycol market witnessed a decline in demand.
Market Dynamics
Monoethylene glycol is an indispensable chemical compound that plays a pivotal role in a wide array of industries, ranging from polyester fiber, packaging, and automotive to textile and construction. The remarkable expansion of the market can be attributed to a multitude of compelling factors:
- Rising Polyester Fiber Demand: The utilization of monoethylene glycol in the production of polyester fiber stands as a prominent application. The escalating demand for polyester fibers in the textile industry, fueled by factors such as population expansion, increasing disposable incomes, and evolving fashion preferences, significantly contributes to the flourishing market.
- Thriving Packaging Industry: Monoethylene glycol plays a vital role in the manufacturing of polyethylene terephthalate (PET), extensively employed in the packaging industry for the production of bottles, containers, films, and other packaging materials. The remarkable growth of the packaging sector, propelled by the surge in e-commerce, convenience foods, and consumer goods, drives the robust demand for monoethylene glycol.
- Advancements in the Construction Sector: Monoethylene glycol serves as a valuable raw material for paints, coatings, and adhesives in the construction industry. With the noteworthy development of the construction sector, particularly in emerging economies, the demand for monoethylene glycol for various construction-related applications witnesses a substantial rise, thus propelling the overall market growth.
- Booming Automotive Sector: Within the automotive industry, monoethylene glycol finds its crucial application in the production of antifreeze and coolants, which play a vital role in vehicle maintenance and performance. The relentless expansion of the automotive sector, propelled by surging vehicle production and the soaring demand for electric vehicles, serves as a pivotal driver for the remarkable growth of the market.
- Transition to Sustainable Bio-based Monoethylene Glycol: Escalating environmental concerns and stringent regulations have prompted a notable shift towards bio-based monoethylene glycol sourced from renewable resources like sugarcane. The mounting global interest in sustainable and eco-friendly materials fuels the advancement and widespread acceptance of bio-based monoethylene glycol, consequently propelling the growth of the market.
- Revolutionary Technological Advancements: Unceasing research and development endeavors aimed at refining the production process and optimizing the efficiency of monoethylene glycol manufacture play a pivotal role in the expansion of the market. Groundbreaking technological advancements empower manufacturers to produce monoethylene glycol in a more economically viable and environmentally sustainable manner, thus igniting an upsurge in market demand.
- Thriving Emerging Markets: Monoethylene glycol experiences robust demand, particularly in emerging economies, where rapid industrialization and urbanization serve as catalysts for the growth of diverse end-use industries. The expansion of manufacturing sectors augmented consumer spending, and extensive infrastructure development in these regions synergistically fuel the escalating demand for monoethylene glycol.
Segments Analysis
Based on the grade type, the market is segmented as a polyester grade, industrial grade, antifreeze grade, and low conductivity grade. The polyester grade is estimated to be the dominating segment of the market over the forecast period. It has a wide range of applications owing to some of its lucrative characteristics, such as moisture-absorbing features and low volatility.
Based on the application type, the market is segmented as polyester fiber, PET, antifreeze & coolants, chemical intermediates, and others. Polyester fiber is estimated to account for the major share of the market on account of its utilization in myriad end-use industries such as resins, electronics, and textiles. On the other hand, PET is estimated to register a high growth rate in the market due to the high consumption of products in the packaging industry.
In terms of regions, Asia-Pacific is estimated to be the fastest-growing region in the market during the forecast period on account of rising per capita income, growing textile sector, and the presence of some of the major manufacturers in the regional market. North America and Europe are also estimated to offer substantial growth opportunities over the forecast period.
Prominent players
Some of the major players operating in the Monoethylene Glycol market are-
- BASF SE
- Lotte Chemical Corporation
- LyondellBasell Industries N.V.
- Mitsubishi Chemical Corporation
- Nan Ya Plastics Corporation
- Reliance Industries Limited
- Royal Dutch Shell Plc
- Saudi Basic Industries Corporation
- Sinopec Zhenhai Refining & Chemical Company
- The Dow Chemical Company.
Analysis of regional growth patterns:
Several major regions have been examined to understand the development and demand patterns for this market. It analyses factors affecting the market both before and after COVID-19, in depth.
The report comes with –
• An in-depth evaluation of COVID-19’s outlook on the Monoethylene Glycol Market.
• A glimpse of top market players’ strategies and ideas to ensure their survival and growth in the market.
• An assessment of trends, CAGRs, yearly estimations, and growth rates.
• Identification of possible threats, challenges that could halt the market’s growth.
• Total market shares of top vendors.
Customisation of this study-
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