Neopentyl Glycol Market Analysis

Neopentyl Glycol Market Analysis

Neopentyl glycol sales from flakes generated over USD 900 million in 2018 and expected to  hold a significant industry share. Key benefits including ease of handling during storage, enhanced usability, and low maintenance in terms of transportation and application have enhanced the demand neopentyl glycol flake demand across the resins & coatings industry. Increasing product adoption rate in saturated polyesters for coil coatings, powder coatings & stoving enamels fueling neopentyl glycol market growth.

Neopentyl glycol slurry market is set to witness over 6.5% CAGR up to 2025. The market will witness a substantial growth due to neopentyl glycol’s unique structure and high thermal stability, making it an attractive option for a wide variety of applications including fibreglass reinforced resins, alkyd coating resins, polyester polyols plasticizer, powder coating resins, etc. High crystalline and weatherability assistance of the product are among the key factors supporting the market demand.

Automotive parts/insulation hold over 18% of the market share in the neopentyl glycol market in 2018. Neopentyl glycol is widely used in insulation and coatings application owing to its high chemical and thermal stability. Growing necessity for insulation in automotive to reduce the heat-related issues with the engine will boost the neopentyl glycol application in automotive sector. Applicability of neopentyl glycol enables high performance standards including greater thermal stability, fire safety and mechanical stability of the end-use product.

Electronics products by the application are expected to register 8% gains in the forecast period. Increasing demand for decorative colour and coating styles in electronic appliances like refrigerators, television sets, DVD players and washing machines will provide strong business outlook for industry participants. Factors such as aesthetic appearance and protection against any damage during its everyday usage will foster product demand.

Asia Pacific neopentyl glycol market, led by China, Japan and India holds the largest industry share and generated over USD 500 million in 2018. Manufacturers inclination towards producing environment-friendly powder coatings with low emission of VOC’s will propel the demand for neopentyl glycol in forecasted time frame. For instance, BASF and SINOPEC have decided to double the production capacity which will be available in the market from 2020. With the increased production, company will support the high-quality NPG demand in China and rest of the Asia Pacific.

Middle East & Africa neopentyl glycol market is expected to register over 7% growth up to 2025. Growth in the region is expected to be driven by investments in the construction sector and the emergence of new technologies in manufacturing and pharmaceutical industry. The increasing number of expatriates, business opportunities and investments has resulted in the growth of real estate sector in commercial and residential segments in the region. Rapid growth in automotive production and domestic appliances sector in the region will propel the demand for neopentyl glycol in forecasted time frame.