Neopentyl Glycol (NPG) Market: Thriving Trend of Low-VOC Compounds to Create Innovation Opportunities: Global Industry Analysis 2013-2017 and Forecast 2018-2028

Neopentyl Glycol (NPG) Market: Thriving Trend of Low-VOC Compounds to Create Innovation Opportunities: Global Industry Analysis 2013-2017 and Forecast 2018-2028

Neopentyl Glycol Market: Key Research Findings

  1. Neopentyl glycol market size in 2018 – Approximately US$ 1.2 Bn
  2. The neopentyl glycol market is expected to observe a moderate growth rate of 4.7% over 2018-2028.
  3. Regulations regarding low-VOC to drive innovation of neopentyl glycol
    • There is increasing pressure from regulatory authorities, such as the US Environmental Protection Agency (EPA) and the European Commission, to reduce the volatile organic compound (VOC) content in all types of chemical products, including architectural and protective coatings, mainly due to health hazards.
    • Polyester resins manufactured by using neopentyl glycol as an intermediate provide an effective low-VOC alternative to other coating types, which is likely to play a key role in assisting the sustainability drive.
  4. Asia Pacific is projected to hold a relatively prominent share in the global neopentyl glycol market owing to the strong growth of automotive & transportation and building & construction industries. Rising demand for paints & coatings, and plasticizers will continue to generate demand for neopentyl glycol in APAC.
  5. In terms of growth opportunities in the neopentyl glycol landscape, India and China, will remain the most attractive markets.
  6. By physical form, neopentyl glycol flakes hold almost 3/4th share of the total market value. The increasing neopentyl glycol consumption in chemical manufacturing processes is projected to boost the neopentyl glycol market.

Top Factors Shaping the Neopentyl Glycol Market

Wide Applicability & Unique Attributes to Push Consumption Levels  

Neopentyl glycol is primarily used as an intermediate in the manufacturing of a number of chemical products, including resins for paints & coatings, plasticizers for plastic products, additives for printing inks, synthetic lubricants, hydraulic fluids, metal-working fluids, greases, and engine lubricants.

Neopentyl glycol is widely used in the manufacturing of these products, owing to the special properties it imparts to them, such as better scratch resistance and impact resistance for coatings. Thus, the wide variety of applications and the unique properties of NPG-based products are driving the demand for neopentyl glycol across the globe.

Growing Demand for Paints & Coatings, Especially Powder Coatings

Neopentyl glycol is used in the production of saturated and unsaturated polyester resins for the manufacturing of alkyd coatings, powder coatings, gel coats, etc. NPG-based powder coatings provide thermal protection and UV stability, better than the coatings manufactured from other types of glycols.

Moreover, the demand for powder coatings is increasing faster in the global market as compared to solvent-based coatings, which is also projected to help drive the demand for neopentyl glycol in the industry.

Growing Demand from End-use Industries

Key end-use industries for the products manufactured from neopentyl glycol (NPG) include automotive & transportation, building & construction, industrial plant & equipment, furniture & interiors, and others such as pharmaceuticals, textiles, consumer products, etc.

The need to provide best quality output, plus the introduction of stringent norms governing product quality, are helping drive the demand from key end-use industries for NPG-derived products, thus helping the growth of the neopentyl glycol (NPG) market.

Global Neopentyl Glycol Market: Structure Analysis

The global neopentyl glycol market is a moderately consolidated market, wherein, tier 1 companies hold more than 30-40% revenue share.

  • Top companies in the neopentyl glycol market include BASF SE, Perstorp AB and LG Chem, Ltd.
  • As a part of their business strategy, prominent players have been focusing on gaining market share in Asia Pacific and Europe, as these two regions account for prominent shares in terms of automotive & transportation and building & construction, and thus, are witnessing a rise in the demand for neopentyl glycol.
  • Some of the neopentyl glycol market players have also been showing keen interest in expanding their geographical presence in the North America & Western Europe regions, with increasing production facilities, transportation, and infrastructure, which is expected to create lucrative growth opportunities for market players.
  • As a differentiating strategy, neopentyl glycol market participants are focusing on cost reduction of neopentyl glycol products, and the development of new techniques used in the production of neopentyl glycol.

Versatile Neopentyl Glycol – Stability Enhancement in Chemical Manufacturing Becomes Mainstream

Superior properties of neopentyl glycol, such as non-polar chemical nature, high resistance to oxidation, and improved stability towards water, heat, and light, are driving its adoption as an intermediate in manufacturing numerous chemical products. Growing use of neopentyl glycol as a base product for pesticides, pharmaceuticals, fabric softeners, and plasticizers is creating lucrative growth opportunities for stakeholders.

The market for neopentyl glycol is expected to accelerate at a bullish pace due to its growing adoption in manufacturing paints and coatings, which are complementary to various end-use industries.

What Growing Demand for Protective Coatings Mean to Neopentyl Glycol Market?

The unique properties of neopentyl glycol, such as enhanced scratch resistance, are augmenting its traction for manufacturing protective coatings used in various industries. Growing demand for manufacturing paints and coatings especially powder coatings remains imperative to the growth of neopentyl glycol market.

The industry for paints & coatings is accelerating at a fast pace, in light of burgeoning demand from the building & construction and automotive & transportation sectors, primarily. Growing need and penetration of protective coatings in the ever-evolving industrial sectors are shaping the growth of neopentyl glycol market, positively.

Asia Pacific to Hold a Relatively Prominent Market Share

India and China will remain the most lucrative markets in terms of growth opportunities in the neopentyl glycol landscape. Asia Pacific is anticipated to hold a significant market share due to the robust growth of the automotive & transportation and the building & construction industries. Burgeoning demand for paints & coatings and plasticizers will continue to drive sales of neopentyl glycol in APAC.

The Broader Perspective

Neopentyl glycol is witnessing impressive demand in the form of flake and slurry for extensive applications across proliferating building & construction industry and industrial plants & equipment. Neopentyl glycol based powder coatings provide thermal protection and UV stability better than coatings manufactured from other types of glycol. Increasing adoption of technical grade neopentyl glycol in manufacturing stable chemical compounds will continue to underpin gains in the neopentyl glycol market.

Stringent Product Quality Norms – Widening Market Scope across Key End-Use Industry

Burgeoning need to provide optimal quality output, coupled with the introduction of stringent regulations governing product quality is bringing significant traction to neopentyl glycol for various applications across key end-use industries. Neopentyl glycol is witnessing increased adoption for manufacturing protective coatings that are widely used in building & construction and automotive & transportation industries.

Global Neopentyl Glycol Market: Segmentation

The global Neopentyl Glycol market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach in front of the reader.

Physical Form

  • Flakes
  • Molten
  • Slurry

Grade

  • Pharmaceutical Grade
  • Technical Grade

Application

  • Paints & Coatings
  • Adhesives & Sealants
  • Lubricants
  • Plasticizers
  • Insulation Materials
  • Others

End-Use Industry

  • Automotive & Transportation
  • Building & Construction
  • Industrial Plant & Equipment
  • Furniture & Interiors
  • Others

Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Southeast Asia & Pacific
  • China
  • India
  • Japan
  • Middle East & Africa

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