Glycol Market Analysis

Growing demand for ethylene glycol (EG) in the automotive industry is driving the market growth

Market CAGR for glycol is being driven by the rising demand for ethylene glycol (EG) in the automotive industry. EG is a vital ingredient in the formulation of engine coolants and antifreeze solutions. These products are essential for maintaining the optimal operating temperature of internal combustion engines, preventing freezing in cold climates, and protecting against overheating in hot conditions. With the global automotive industry continuously expanding, the requirement for engine coolants and antifreeze solutions remains consistently high.

The automotive sector has experienced substantial growth, particularly in emerging markets, as rising incomes and urbanization have led to increased vehicle ownership. As a result, the production of passenger cars, commercial vehicles, and other forms of transportation has been on the rise. This surge in automotive production directly correlates with the increased demand for EG. Governments worldwide have implemented stringent regulations aimed at reducing vehicle emissions and improving fuel efficiency. To comply with these regulations, automotive manufacturers are developing vehicles with more efficient engines that operate at higher temperatures.

This necessitates the use of high-quality EG-based coolants to ensure proper engine performance. The growing popularity of electric vehicles, which require effective thermal management for their batteries and electric drivetrains, has further fueled the demand for high-performance coolants and heat transfer fluids. EG-based solutions play a critical role in maintaining the temperature stability and performance of EVs, thus boosting EG consumption.

Beyond the initial fill-in new vehicles, the aftermarket for engine coolants and antifreeze solutions is substantial. Consumers regularly maintain and replace these fluids to ensure the longevity and efficient operation of their vehicles. This consistent need for aftermarket products contributes to ongoing EG demand. The automotive industry's global supply chain has expanded significantly, with manufacturing operations located in various regions. As a result, the glycol market benefits from this geographic diversity as EG is used in automotive production and maintenance worldwide.

Ongoing research and development efforts are focused on creating more advanced engine cooling solutions, including coolants with longer service life, improved corrosion protection, and enhanced heat transfer capabilities. These innovations stimulate the adoption of EG-based products in the automotive sector.

Further, the expanding use of propylene glycol (PG) in the food and beverage, pharmaceutical, and cosmetics sectors is also driving the market growth. PG is a versatile ingredient in these industries, serving as a non-toxic and food-grade heat transfer fluid, a humectant in personal care products, and a carrier for pharmaceuticals and flavorings, driving its market growth. Thus driving the Glycol market revenue.

The Global Glycol Market Industry is projected to experience substantial growth, with estimates indicating a rise from 47.4 USD Billion in 2024 to 103.0 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 7.3% from 2025 to 2035. The market dynamics are influenced by various sectors, including automotive, chemical manufacturing, and pharmaceuticals, which are expected to drive demand for glycols. The increasing applications of glycols across diverse industries indicate a robust future for the Global Glycol Market Industry.

The Global Glycol Market Industry is significantly influenced by the growth of personal care products, where glycols are utilized as humectants and solvents. The increasing consumer preference for moisturizing and skin care products drives the demand for glycols, particularly propylene glycol and butylene glycol. These compounds enhance product texture and stability, making them popular in formulations. As the personal care industry expands, the Global Glycol Market Industry is expected to benefit, with projections indicating a steady increase in glycol consumption in this sector, further solidifying its market position.

The Global Glycol Market Industry sees a notable increase in the use of glycols within the pharmaceutical sector. Glycols, such as propylene glycol, are widely used as solvents and carriers for active pharmaceutical ingredients. Their ability to enhance drug solubility and stability makes them indispensable in drug formulation. As the pharmaceutical industry continues to innovate and expand, the demand for high-quality glycols is likely to rise. This trend suggests a growing market share for glycols in pharmaceuticals, contributing positively to the overall growth of the Global Glycol Market Industry.

The Global Glycol Market Industry experiences a surge in demand driven by the automotive sector, where glycols are utilized as antifreeze agents and coolant fluids. With the automotive industry projected to grow significantly, the need for efficient thermal management solutions is paramount. Glycols, particularly ethylene glycol, are favored for their thermal stability and low toxicity. This trend is underscored by the industry's shift towards electric vehicles, which require advanced cooling systems. As the Global Glycol Market Industry is expected to reach 47.4 USD Billion in 2024, the automotive sector's contribution is likely to be substantial, indicating a robust growth trajectory.

The Global Glycol Market Industry benefits from the expansion of chemical manufacturing processes, where glycols serve as essential intermediates. They are integral in producing various chemicals, including plastics, resins, and solvents. The increasing production capacities in emerging economies, particularly in Asia-Pacific, are driving this growth. For instance, the rise in polyethylene terephthalate (PET) production, which utilizes glycol, is notable. This sector's growth is projected to propel the Global Glycol Market Industry to an estimated 103.0 USD Billion by 2035, reflecting a compound annual growth rate of 7.3% from 2025 to 2035.

The Global Glycol Market Industry is poised for growth due to emerging applications in renewable energy technologies. Glycols are increasingly being explored for use in biofuels and energy storage systems, where their properties can enhance performance and efficiency. As the world shifts towards sustainable energy solutions, the demand for innovative glycol applications is likely to rise. This trend indicates a potential diversification of the Global Glycol Market Industry, as it adapts to meet the needs of a changing energy landscape.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Glycol market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Glycol industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Glycol industry to benefit clients and increase the market sector. In recent years, the Glycol industry has offered some of the most significant advantages to several industries.

Major players in the Glycol market, including Dow, LyondellBasell Industries N.V., BASF SE, ADM, Global Bio-chem Technology Group Company Limited, DuPont Tate & Lyle Bio Products, SKC, Temix Oleo, INEOS Oxide, Huntsman International LLC, ADEKA CORPORATION, Chaoyang Chemicals, Inc., Manali Petrochemicals Limited, Haike Chemical Group Co., Ltd., Arch Chemicals Inc., Repsol, and others, are attempting to increase market demand by investing in research and development operations.

LyondellBasell is a global chemical company known for its operations in the production of polyolefins, chemicals, and refining. LyondellBasell is a major player in the chemical industry, with a diversified product portfolio that includes polyethylene, polypropylene, chemicals, advanced polymers, and refining. They serve a wide range of industries, including packaging, automotive, construction, and electronics. LyondellBasell places a strong emphasis on research and innovation. They invest in research and development to develop new materials, technologies, and solutions for various industries. Their focus on innovation often involves creating advanced plastics and polymers.

In May 2023, LyondellBasell and Neste announced a partnership to develop and commercialize sustainable glycol products made from renewable feedstocks. The two companies will collaborate on the development of new technologies and the construction of new production facilities.

BASF is a diversified company that produces a wide range of chemical products and materials with a focus on innovation and technology. Their products are used in various industries, including automotive, construction, agriculture, pharmaceuticals, and consumer goods. The company produces a broad spectrum of chemicals, polymers, and specialty materials, including engineered materials, acetyl products, and other high-performance products. Their offerings include materials used in the manufacture of everything from automotive components to consumer electronics and medical devices.

In June 2023, BASF and INVISTA announced a partnership to develop and market a new generation of sustainable glycols. The two companies will combine their expertise in catalysis and technology to develop new processes for the production of glycol from renewable feedstocks.