Neopentyl Glycol Market Research Report Information by Physical Form (Flakes, Molten), By Production Method (Hydrogenation of HPA), By End Users (Paints & Coatings, Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.
ID: MRFR/CnM/4661-HCR | 100 Pages | Author: Anshula Mandaokar | October 2023
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Global Neopentyl Glycol Market Overview
The Neopentyl Glycol Market Size was valued at USD 1.47 Billion in 2022. The Neopentyl Glycol market industry is projected to grow from USD 1.56 Billion in 2023 to USD 2.1 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.1% during the forecast period (2023 - 2030). Key factors responsible for driving market revenue growth are increased demand for pharmaceuticals, insecticides, plasticizers, & fabric softeners and surging urbanization, particularly in emerging countries. Neopentyl glycol is a natural chemical molecule derived mostly from formaldehyde and isobutyraldehyde. It has a minty odor and is a white crystalline substance. Neopentyl glycol is utilized in a variety of applications, including lubricating oils and greases, coating base resins, hydraulic fluids, medicines, pesticides, and textiles. It is also used in the production of several polyesters because of its capacity for enhancing heat, light, and water stability.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Neopentyl Glycol Market Trends
- The rising demand for Neopentyl Glycol across different end-use markets will drive market growth.
Increasing demand for neopentyl glycol from a wide range of industries, such as automotive, building & construction, and transportation is expected to propel market growth. This chemical is non-polar and has strong oxidation resilience. Coupled with this, increasing the development of oil and pain coatings would contribute to market growth. Apart from that, rising demand for advanced sealants & adhesives with easy functionality & low VOC content, economic growth by regional authorities, rising housing subsidies, and production of multiple industrial chemicals are anticipated to drive the neopentyl glycol market growth shortly.
Additionally, the implementation of advanced industrial synthesis, the use of highly industrialized synthesis, such as the green catalytic process, and changing patterns in the manufacturing of chemicals utilizing organic molecules are likely to contribute to the growth of the neopentyl glycol industry. Besides, the usage of neopentyl glycol in a variety of industrial & commercial applications, stringent federal regulations on VOC emissions, and an increasing supply of raw materials would have a favorable impact on the neopentyl glycol market. Furthermore, the development of various agrochemicals, pharmaceuticals, and skincare products requiring neopentyl glycol would also accelerate growth.
The increasing inclination towards electronics and the increasing penetration of the internet across the globe are propelling the overall growth of the Neopentyl Glycol industry in recent times. The etching processes in the printed circuit boards are crucial and they are carried out by this Neopentyl Glycol. Such factors are expected to boost the overall growth of the Neopentyl Glycol industry during the forecast period.
Neopentyl Glycol Market Segment Insights
Neopentyl Glycol physical form Insights
The Neopentyl Glycol market segmentation, based on physical form, includes flakes, molten, and slurry. The Flake segment is expected to witness potential growth during the forecast period 2019-2026. This is attributed to the unique properties of the flake structure. NPG in the form of flakes can be convenient to handle during storage, thereby increasing the demand in the resins and coatings industry.
Neopentyl Glycol production method Insights
Based on the production method, the Neopentyl Glycol market segmentation includes hydrogenation of HPA and disproportionation. Hydrogenation of the HPA method includes adding hydroxypivaldehyde solution and hydrogen to a hydrogenation reactor that includes a hydrogenation catalyst, which formed the neopentyl glycol. The method is widely used for small-scale or industrial scale of production, as the process reduced the heat integration and optimized the purification process.
Neopentyl Glycol end users Insights
Based on end users, the Neopentyl Glycol market segmentation includes paints & coatings, automotive, construction, chemicals, plastics, textiles, pharmaceuticals, cosmetics & personal care, and others. The paints & coatings segment is expected to hold the highest share, owing to its use for applications such as powder coating, & coil coating. The powder coating industry is growing in 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 product demand.
Figure 2:Â Neopentyl Glycol Market, by Resin type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Neopentyl Glycol Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The growing automotive industry in Asia-Pacific is likely to fuel the demand for eco-efficient powder coatings and resins and further stimulate 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 emerging economies of such as China, India, Indonesia, and Malaysia is expected to boost the growth of the market in the region.
Figure 3: NEOPENTYL GLYCOL MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America is expected to witness significant growth in the neopentyl glycol market owing to rapid industrialization. The growth of steel, cement, and automobile industries in this region has been a key factor in the increasing demand and growth of the automotive lubrication systems market.
Developing regions of the Middle East & Africa are likely to have steady growth owing to increasing demand for adhesives and construction insulation from the ongoing infrastructural programs in the Gulf Cooperation Council countries.
Neopentyl Glycol Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Neopentyl Glycol market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Neopentyl Glycol industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Neopentyl Glycol. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Neopentyl Glycol industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Neopentyl Glycol industry to benefit customers and expand the market sector. The Neopentyl Glycol market has recently given medicine some of the most important advantages. Major Neopentyl Glycol market players, including BASF SE (Germany), Celanese Corporation (US), Eastman Chemical Company (US), LG Chem (South Korea), and others, are attempting to increase market demand by funding R&D initiatives.
BASF is a company that provides petrochemicals, intermediates, performance materials, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. It conducts its operations through six business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions. The company serves transportation, energy, and resources.
Also, LG Chem is a chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. It provides basic materials, chemicals, renewable plastics, as well as energy solutions, including automotive and energy storage system (ESS) batteries. In addition, the company offers advanced materials, specialty drugs, and vaccines.
Key Companies in the Neopentyl Glycol market include
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BASF SE (Germany)
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Celanese Corporation (US)
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LG Chem (South Korea)
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MITSUBISHI GAS CHEMICAL COMPANY, INC. (Japan)
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OXEA GmbH (Germany)
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Perstorp Orgnr (Sweden)
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Polioli S.p.A. (Italy)
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Oleon NV (Belgium)
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Shandong Dongchen New Technology Co, Ltd. (China).
Neopentyl Glycol Industry Developments
In September 2020, BASF-YPC (a 50-50 joint venture between BASF and SINOPEC) expanded the production capacity of neopentyl glycol at its state of art Verbund site in Nanjing, China. The new expansion is aimed at strengthening the company's market position.
IN December 2021, QQ Chemicals, a manufacturer of oxo intermediates and OXO derivatives, increased the prices for neopentyl glycol.
Neopentyl Glycol Market Segmentation
Neopentyl Glycol Physical Form Outlook
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Flakes
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Molten
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Slurry
Neopentyl Glycol Production method Outlook
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Hydrogenation of HPA
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Disproportionation
Neopentyl Glycol End-users Outlook
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Paints & coatings
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Automotive
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Construction
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Others
Neopentyl Glycol Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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Report Scope:
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.47 Billion |
| Market Size 2023 | USD 1.56 Billion |
| Market Size 2030 | USD 2.1 Billion |
| Compound Annual Growth Rate (CAGR) | 5.1% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019-2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Physical Form, Production Method, End-users, and Region |
| Geographies Covered | North America, Europe, Asia-Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE (Germany), Celanese Corporation (US), Eastman Chemical Company (US), LG Chem (South Korea), MITSUBISHI GAS CHEMICAL COMPANY, INC. (Japan), OXEA GmbH (Germany), Perstorp Orgnr (Sweden), Polioli S.p.A. (Italy), Oleon NV (Belgium), and Shandong Dongchen New Technology Co, Ltd. (China). |
| Key Market Opportunities | Increasing penetration of neopentyl glycol in paints and coatings. |
| Key Market Dynamics | Increasing use of neopentyl glycol as a base resin for coatings, hydraulic fuels, greases, and aircraft engine lubricant Heavy investments in infrastructure projects in emerging countries and new product development in pharmaceuticals and personal care products. |
Frequently Asked Questions (FAQ) :
The Neopentyl Glycol market size was valued at USD 1.47 Billion in 2022.
The market is projected to grow at a CAGR of 5.1% during the forecast period, 2023-2030.
Asia Pacific had the largest share of the Neopentyl Glycol market.
The key players in the market are BASF SE (Germany), Celanese Corporation (US), Eastman Chemical Company (US), LG Chem (South Korea), MITSUBISHI GAS CHEMICAL COMPANY, INC. (Japan), OXEA GmbH (Germany), Perstorp Orgnr (Sweden), Polioli S.p.A. (Italy), Oleon NV (Belgium), and Shandong Dongchen New Technology Co, Ltd. (China).
The Flakes categories dominated the market in 2023.
The Hydrogenation of HPA had the largest share in the market for Neopentyl Glycol.
Key Questions Answered
- ✅Global Market Outlook
- ✅In-depth analysis of global and regional trends
- ✅Analyze and identify the major players in the market, their market share, key developments, etc.
- ✅To understand the capability of the major players based on products offered, financials, and strategies.
- ✅Identify disrupting products, companies, and trends.
- ✅To identify opportunities in the market.
- ✅Analyze the key challenges in the market.
- ✅Analyze the regional penetration of players, products, and services in the market.
- ✅Comparison of major players’ financial performance.
- ✅Evaluate strategies adopted by major players.
- ✅Recommendations
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