Propylene Glycol Market - Growth, Trends, COVID-19 Impact, and Forecasts ( 2022 - 2027)

Key Highlights

• Petroleum-based propylene glycol is expected to lead the global market during the forecast period due to its increasing use in the transportation, building, and construction industries.
• Health hazards due to exposure to propylene glycol may slow down the market growth.
• The development of an industrial-scale direct synthesis method for propylene glycol production is the major factor that will drive the market in the future.
• The Asia-Pacific region is expected to dominate the market, and it is also expected to witness the highest CAGR during the forecast period.

Key Market Trends

Increasing Usage in the Transportation Industry

• Propylene glycol is used in fire-resistant brake and hydraulic fluids, as a coolant in the transportation industry for applications like engine cooling, as a raw material for de-icing planes, and as a heat transfer fluid for high-temperature applications.
• The unsaturated polyester resins can also be reinforced with fiberglass in order to produce products like corrosion-resistant tanks, pipe ducts, and others, which are widely used in the production of vehicles and ships.
• The growing developments in vehicles, specifically related to safety and comfort, and the rebound in consumer demand, are expected to support the demand for materials like propylene glycol in the coming years.
• According to ACEA, in 2021, hybrid electric vehicles accounted for 19.6% of all new passenger cars registered across the EU, compared to 11.9% in 2020. Electrically chargeable vehicles also saw a strong increase in sales, making up 18.0% of total car registrations, up from a 10.5% share in 2020.
• According to OICA, global automobile production rose from 52,146,292 in the first nine months of 2020 to 57,262,777 during the same period in 2021.
• Owing to all these factors, the market for propylene glycol is expected to grow across the world during the forecast period.

Asia-Pacific Region to Dominate the Market

• The increasing population in the region is leading to a rise in construction activities in the countries like China and India. This is projected to increase the demand in this region.
• It is used to prepare unsaturated polymer resins that have a wide range of applications. These resins are used to make construction products like duct pipes and floor sheets, among others. In the paint industry, propylene glycol is used as a solvent in paints.
• China is expected to spend nearly USD 13 trillion on buildings by 2030. According to the National Bureau of Statistics of China, the construction output value in the country increased from CNY 9.6 trillion in 2010 to CNY 26.59 trillion in 2020.​
• According to the Ministry of Statistics and Programme Implementation, the construction sector in India is estimated to rise in double digits in 2022, rebounding from an 8.6% contraction in 2020. Furthermore, according to India Brand Equity Foundation (IBEF), in 2021, the Indian Finance Ministry announced an outlay of USD 26,578.3 million that will be utilized over five years for the pharmaceutical PLI scheme.
• Propylene glycol is also used in various edible items such as coffee-based drinks, liquid sweeteners, ice cream, whipped dairy products, and sodas, which have a huge demand in this region.

Competitive Landscape

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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