Polyalkylene Glycol Market

Polyalkylene Glycol Market Snapshot (2022 - 2032)

By 2032, the polyalkylene glycol market is anticipated to reach US$ 594.6 billion, expanding at a high CAGR of 6.1%. The market size is worth US$ 328.94 billion in 2022.

In industrial applications, turbine lubricants, and tunnel borings, the demand for polyalkylene glycol as a lubricant is booming. The overall benefits of polyalkylene glycol, including its superior lubricating properties, good water solubility, and FDA permission for usage as food additives, are dictating the growth rates of the market for this substance.

Moreover, high-performance polyether polyols and isocyanates are made by Bayer Material Science, a Covestro AG subsidiary, and are used to make polyurethane and polyurea systems. The business dominates the polyalkylene glycol market and offers a large range of products that are appropriate for numerous uses.

The demand for synthetic lubricants, which in turn is driving the sales of polyalkylene glycols, is being positively driven by the expanding industrialization in emerging economies like South Korea, China, Indonesia, and others like India, China, and Indonesia.

To meet consumer demand in the daily necessities, military, and aerospace industries, businesses in the polyalkylene glycol market are expanding their capacity to produce polypropylene (PP) foam.

Additionally, the production of polymer foams has expanded as a result of the packaging industry's explosive growth. Manufacturers in the polyalkylene glycol industry are seizing chances to expand the use of PP foam in the creation of insulating and shockproof materials. In order to implement novel foaming techniques, they are funding multiple research projects.

The high expansion of lubricants in the automotive industry has also been significantly fueled by lubricant makers' adoption of promotional efforts for synthetic vehicle crankcases and gear oils. By 2032, this is likely to increase the size of the global polyalkylene glycol market.

For instance, the construction sector is expanding quickly, especially in emerging economies, and is expected to surpass USD 15 trillion during the forecast period. This is likely to increase the demand for polyalkylene glycol and, as a result, have a favorable effect on the size of the market over the forecast period.

Major polyalkylene glycol manufacturers are making significant investments in growth and development to get a competitive edge in the market. For instance, in 2014, the German company BASF SE announced the opening of a new PAG-based lubricant manufacturing plant at its Ludwigshafen Verbund location. However, through backward integration with the company's raw material manufacturing facilities situated in Ludwigshafen, Germany, the new facility has comprehensive access to critical raw materials, including ethylene oxide and propylene oxide.

Polyalkylene glycols account for around 5-7% of the global base oil market.

The market for polyalkylene glycols is being driven by the increasing preference for lubricants among various industries, including the automotive, metalworking, textile, and food and beverage sectors. The demand for lubricants in the automotive industry has been surging, which has increased the demand for polyalkylene glycol. During the forecast period, the size of the polyalkylene glycol market is projected to be significantly impacted by incorporation of complex designs in various engines.

Historical (2017-21) Vs. Forecast (2022-32) Market Outlook

During the past five years (2017-2021), the Polyalkylene Glycol demand witnessed marginal decline during the COVID-19 outbreak. The market for Polyalkylene Glycols recorded CAGR (2017-21) between 5% and 6& during the same period. The suspension of transportation operations and the closure of industrial plants both had an impact on the demand for lubricants as well as the PAG market.

Whereas, as per the latest findings by FMI, the polyalkylene glycol market is expected to progress at a CAGR of 9.7% between 2022 and 2032. The growing use of polyethylene glycols in cancer drug delivery and targeted diagnostics is anticipated to fuel the expansion of the global polyalkylene glycol market within the course of projected period. Whereas, market expansion will be positively impacted by the robust global demand from PU foam industry.

Additionally, the substantial expansion of lubricants in the automobile industry has been significantly attributed to the adoption of promotional efforts for synthetic vehicle crankcase and gear oils by lubricant manufacturers.

Market Dynamics

Growing demand from metalworking fluid industry

Polyalkylene glycol is an ingredient of metalworking fluids that is primarily used in the metallurgy sector to provide lubrication and cooling during the machining and shaping of metals including iron, aluminium, manganese, and others. They are mostly utilised in metal cutting tools to lessen heat generation and friction between the cutting edge and the workpiece. The construction, manufacturing, and expanding automotive industries are all pushing up demand for metalworking fluids as well as PAG.

Increasing usage of synthetic base oil to promote polyalklene glycol consumption.

Polyalkylene glycol finds its suitability for metal-on-metal applications with temperatures ranging from -40 °C to 200 °C. Polyalkylene glycol is used as a base oil for lubricants including refrigeration oil, gear lubricants, hydraulic fluids, and metalworking lubricants, among others. Additionally, they are used in high-temperature environments where elastomeric compatibility and thermal stability are necessary.

The usage of synthetic base oils by global lubricant industry manufacturer is assisting in the development of high-performance lubricants for numerous end-use industries, including food and beverage, automotive, textile, and others. Usage of synthetic base oils will further promote the consumption of polyalkylene glycol.

Additionally, the advantages of polyalkylene glycol, such as best lubrication for compressors, low volatility in high-temperature applications, residue resistance property, water and oil solubility, notable energy efficiency that makes equipment cleaning simple are anticipated to create great potential and display favourable opportunities during the forecast period.

Polyalkylene glycol substitutes to curb the market growth

The market growth is impeded due to presence of several alternatives present in the market, including artificial esters, ionic fluids, and mainly polyalphaolefin. Substitutes are limiting the expansion of the polyalkylene glycol market since they have favourable chemical properties such as viscosity and temperature range.

Polyalkylene glycol has certain limitation when compared to polyalphaolefin in terms of mineral oil solubility because only some mineral oils are soluble in it, whereas polyalphaolefin is entirely soluble. Polyalkylene glycol has a weaker rolling wear characteristic than polyalphaolefin. Such factor are limiting the polyalkylene glycol market growth.

Nikhil Kaitwade

Principal Consultant

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Category-wise Insights

What is Polyalkylene Glycol Market Outlook by Solubility?

In the wake of reducing greenhouse gas emissions, the water soluble polyalkylene glycol significantly reduces the GHG emission when compared to oil soluble polyalkylene glycol. Water-soluble PGA is made from entirely renewable feedstock. The water-soluble PGA estimated to hold significant share in solubility type and expected to grow at a CAGR of 9.9% during the forecast period.

Water-soluble PGA have low eco-toxicity as compared to oil soluble materials and are biodegradable in nature. Water-soluble PAG oil has qualities such as high shear stability, high heat stability, low volatility and high viscosity, making it ideal for high-temperature lubrication. They are utilised in a variety of applications, including water-based hydraulic fluid formulations and metalworking fluids, among others.

Region-wise insights

How is East Asia fortifying in the global the polyalkylene glycol market?

East Asia is anticipated to dominate the polyalkylene glycol by region in 2022 and is expected to follow the same pattern during the forecast period owing to growing end-use industry. The region has presence of several key manufacturer which has strengthen polyalkylene glycol market.

The increasing automobile vehicle production in region such as China and Japan has increased the automotive lubricant consumption which in turn is bolstering the East Asia polyalkylene glycol market. The region is projected to grow with a high growth rate of 10.4% in period of 2022-32.

What are the future prospects for the polyalkylene glycol market in the North America?

The significant expansion of the pharmaceutical and personal care sectors in North America is boosting polyalkylene glycol consumption. Due to polyethylene glycol solubility, good biocompatibility, non-toxicity, and low immunogenicity, polyethylene glycol can be widely employed in wound adhesion, hemostasis, anti-leakage, and anti-adhesion therapy in various surgical operations equipment materials.

Increasing demand for multifunctional personal care products, as well as ageing population are driving growth in the pharmaceutical and personal care industries in North America. Furthermore, the expanding construction and automotive industries are driving up demand for PU foam, lubricants, and functional fluids industry which significantly consumes polyalkylene glycol.

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Competitive Landscape

In order to meet the environment regulation restriction, key player are emphasizing on utilizing the water bases PAG lubricant and are developing polyethylene glycol based gear lubricant and hydraulics. To increase their global footprint and better position themselves to take advantage of the burgeoning market opportunity, some major companies in the market are engaging in mergers and acquisitions as well as expanding their production capacities to meet the market demand.

For Instance,

• In July 2021, Dow a material science company announced the plan to expand propylene glycol (PG) production capacity to 250,000 tons per year by introducing a production facilities in Thailand. The Thailand facilities expansion comprises an increase in propylene glycol capacity of 80,000 tonnes per year.
• In October 2020, BASF announced that the company will nearly double its synthetic ester base stock production capacity at its Jinshan, China facility. The investment responds to increased demand for high-performance lubricants in Asia Pacific, and it further solidifies BASF's position as a dependable supplier that strongly supports customers' expansion in the region.

Similar development have been tracked by Future Market Insights in its latest market study.

Scope of the Report

Market Segmentation

By Product Type:

• Polyethylene Glycol
• Polypropylene Glycol
• Others

By Solubility:

• Water Soluble
• Oil Soluble

By Application:

• Polyurethane Foam
• Lubricants
• Surface Active Agents
• Pharmaceuticals
• Personal Care
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia Pacific
• East Asia
• Middle East & Africa