Market Overview:
Neopentyl glycol, also known as Dimethylolpropan,
is a hydroscopic crystalline organic chemical compound, colorless-to-white in
color. Neopentyl glycol is industrially synthesized by the aldol reaction of
formaldehyde and isobutyraldehyde, which results in formation of intermediate
hydroxypivaldehyde. This can be converted to neopentyl glycol through catalytic
hydrogenation of aldehyde group to an alcohol group.
The major driver for global neopentyl glycol market
is the increasing use of neopentyl glycol as a base resin for coatings,
hydraulic fuels, greases, and aircraft engine lubricant. Resistance to
oxidation, non-polar chemical nature, and enhanced stability towards heat,
light, and water are some of the superior properties it possess.
Neopentyl glycol is soluble in water, benzene,
chloroform, ethanol, and diethyl ether. Furthermore, its demand is increasing
due to its growing use as a chemical intermediate for the synthesis of resins,
polyester, alkyd resins, paints, synthetic lubricants, adhesives, and others.
It is also used as a base product for plasticizers, pharmaceuticals,
pesticides, fragrances, fabric softeners, vibration dampers, and others.
The global neopentyl glycol market is expected to
witness a substantial growth due to the increasing penetration of nepentyl
glycol in paints and coatings, which is complementary to various end-use
industries such as automotive, aerospace, ship building, construction, among
others. Heavy investments in infrastructure projects in emerging countries and
the new product development in pharmaceuticals and personal care products are
likely to offer substantial opportunities to neopentyl glycol over the
assessment period. However, the threat of substitution by availability of
cheaper alternative, for instance, ethylene glycol may challenge the market
growth in the coming years.
Some of the key developments observed in the market
include product launch and capacity expansion. For instance, in 2015, Perstorp
invested in capacity expansion of neopentyl glycol at its advanced facility in
China. Moreover, in December 2017, BASF SE and SINOPEC expanded the production
capacity of neopentyl glycol of their 50-50 joint venture in Nanjing, China,
which was established in 2015. The new annual production capacity will be 80,
000 metric tons and the plant will be operational in 2020.
Competitive Analysis
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BASF SE
Ø
Celanese
Corporation
Ø
Eastman
Chemical Company
Ø
LG Chem
Ø
MITSUBISHI
GAS CHEMICAL COMPANY, INC.
Ø
OXEA GmbH
Ø
Perstorp
Orgnr
Ø
Polioli
S.p.A.
Ø
Oleon NV
Ø
Shandong
Dongchen New Technology Co,Ltd.
Industry
Segmentation:
The global neopentyl glycol
market is segmented by type, application, end-use industries, and region.
Neopentyl glycol is available in
various types including flakes, molten, and slurry. The type to be used is
determined on the basis of the conditions specified for manufacturing and
application. The molten type neopentyl glycol is used in saturated polyesters,
unsaturated polyesters, and esters for powder coatings, gel coats, and
reinforced plastics, and synthetic lubricants respectively. The molten form is
leading the market due to its wide consumption for manufacturing powder
coatings, which emit less VOC. The slurry or suspension form is 90% neopentyl
glycol by weight in water and is transported at a temperature ranging from
50–70ºC. The slurry form allows rapid esterification and high chemical &
thermal stability. The neopentyl glycol flake is shipped at below 30ºC to
prevent cake formation.
The application segment includes
coatings, adhesives & sealants, insulation, plasticizers, fibers,
agrochemicals, fuel additives, dyes, emollient, and others. Among these
applications, the coatings emerged as the leading segment due to high demand
from construction, automotive, aerospace, shipbuilding, and other industries.
This can be attributed to the corrosion resistant nature and high thermal
stability of neopentyl glycol. The demand for neopentyl glycol based adhesives
& sealants is increasing due to their durability, stability, moisture &
chemical resistance, and heat-resistant properties. Moreover, its usage in
automotive insulation and agrochemicals is another factor propelling the
product demand.
On the basis of the end-use
industries, the market is segmented into paints & coatings, automotive,
construction, chemicals, plastics, textiles, pharmaceuticals, cosmetics &
personal care, and others. The paints industry is dominating the market owing
to its use for applications such as powder coating, can & coil coating. The
product is highly consumed for the manufacturing of adhesives & sealants
and additives used in construction and automotive, which is expected to drive
the market growth further. Also, it is used as a dye in the textile industry,
which is likely to augment its demand over the review period. Growing
opportunities for the product in pharmaceuticals such as the production of
ibuprofen drug for generic diseases are likely to propel the market growth. The
increasing penetration of personal care products as skin-conditioner and
viscosity increasing agent is projected to augment the market growth over the
assessment period.
Regional Analysis
Regional Analysis
Regionally, the global neopentyl
glycol market is segmented into five regions namely Asia Pacific, North
America, Europe, Latin America, and the Middle East & Africa.
Asia Pacific was leading the
global neopentyl glycol market in 2017 on account of the high demand for
manufacturing paints & coating, which are further used in automotive and
construction industries. Moreover, the rising demand for neopentyl glycol in
agrochemicals, textiles, and personal care products is expected to spur the
market growth during the forecast period 2018-2023.
The high demand for neopentyl
glycol as an additive in the powder coatings for resistance and stability led
the North American market in 2017.
The European market is projected
to witness a moderate growth due to the demand from automotive production in
Western Europe.
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