Polyalkylene Glycols (PAGs) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Polyalkylene Glycols (PAGs) is expected to grow at a CAGR of over 11% during the forecast period. Major factors driving the market studied are increasing demand of polyalkylene glycol in lubricants and rising demand from pharmaceuticals segment. On the flipside, higher cost of polyalkylene glycol on comparing to conventional mineral oils and unfavourable conditions arising due to COVID-19 outbreak are the major restraints, which are expected to hinder the growth of market.

Key Highlights

• Growing application of polyalkylene glycols in making polyurethane foams is expected to offer various lucrative opportunities for the growth of market.
• By application, lubricants segment is expected to dominate the market owing to the increase in the consumption in various end-user industries namely synthetic lubricants industry, refrigeration lubricants industry, and automotive lubricants industry.
• Asia-Pacific region dominated the polyalkylene glycols market across the globe with the largest consumption from countries such as china and India.

Key Market Trends

Increasing Demand from Lubricants Segment

• Polyalkylene glycol, also named as polyalkylene oxide, is a polyether compound. It is a polymer obtained by addition of one of more repeating epoxide units.
• Growing application of polyalkylene glycol in gear lubricants, hydraulic fluids lubricants, turbine oils, industrial air compressor fluids, amongst others is propelling the polyalkylene glycols market demand.
• Furthermore, polyalkylene glycols have superior lubricity properties, great viscosity index, environment-friendly nature, and low volatility in high temperature applications. Owing to these properties the demand of PAGs is anticipated to increase in the near future.
• The global lubricants market was valued at USD 164.3 billion in 2019 and is expected to grow at a CAGR of over 3% during the forecast period and reach USD 188 billion by 2024. Due to this, the demand of synthetic lubricants is likely to increase, which would boost the demand of polyalkylene glycols and thus, propel its market during the forecast period.
• Owing to all the above-mentioned factors for polyalkylene glycols, its market is expected to grow rapidly over the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market for polyalkylene glycols during the forecast period. Owing to rapid expansion in the lubricants industry in countries like China and India and presence of major lubricant manufacturers, the demand for polyalkylene glycols has been increasing in the region.
• The increasing usage of polyalkylene glycol lubricants in engine oils, bearing oils, gear oils, compressor oil, grease, heat transfer fluids, metalworking fluids and transmission fluids owing to their ability to withstand high temperature and shock loading and superior friction properties, is stimulating the polyalkylene glycol market in the region.
• Additionally, the rising demand of polyurethane foams in various applications in construction & building, adhesives, electronics, furniture, automobiles and footwear is fueling the demand of polyalkylene glycols and is likely to have positive impact on the PAGs market.
• The construction & building sector in Asia-Pacific is expected to grow at a CAGR of 8% during the forecast period, which would increase the demand of polyurethane foams and consequently propel the polyalkylene glycols market in the region during the forecast period.
• Apart from polyurethane foams and lubricants, polyalkylene glycols finds application in the pharmaceuticals sector in making hydrogels which are used in tissue engineering. The pharmaceuticals sector in Asia-Pacific is expected to grow at a CAGR of over 7% during the forecast period and is likely to provide lucrative opportunities for the growth of polyalkylene glycols market during the forecast period.
• Some of the major companies operating in Asia-Pacific region are - Dow, BASF SE, and Idemitsu Kosan Co.,Ltd.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for polyalkylene glycols during the forecast period.

Competitive Landscape

The polyalkylene glycols market is fragmented with top players accounting for a marginal share of the market. Some of the key companies in the market include Dow, BASF SE, Royal Dutch Shell plc, Idemitsu Kosan Co.,Ltd., and Clariant.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support