The Asia neopentyl glycol market is expected to expand its roots at an average CAGR of 5.0% during the forecast period. The market is likely to hold a revenue of USD 760.5 million in 2023 while it is anticipated to cross a value of USD 1.23 billion by 2033.
The research report on the Asia neopentyl glycol market states that the higher construction and renovation activities due to the rapidly rising urbanization are flourishing the market growth. Furthermore, the Asian region and emerging economies like China and India are building their infrastructure while expanding the research and development around synthesizers. Neopentyl glycol has been proven an advanced synthesizer that is used in the synthesis of lubricants, adhesives, paints, and polyesters.
The higher demand for polyesters with enhanced protection against light, heat, and water also garners market growth. It is due to the stability it provides to polyester while being produced. Apart from its industrial and construction usage, neopentyl glycol is widely used as an additive for printing inks. Its indirect association with the automotive industry as a metal-working fluid, grease, and engine lubricant also contributes to the market growth.
Asia neopentyl glycol (NPG) market analysis explains that the growing cosmetic industry in India is also increasing the demand for neopentyl glycol. The product in its diheptanoate form is applied for formulation enhancement purposes and can be used in a cosmetic product targeting a larger area of skin.
Expansion of the automotive and construction sectors has fuelled demand for paint & coatings, which is expected to have a direct impact on neopentyl glycol demand in Asia. The recent addition to the market dynamics is its use as a phase change material with higher sustainability. The rising concerns around energy conservation, environmental protection, and reducing reliance on fossil fuels are pushing authorities to investigate the thermal stability of neopentyl glycol.
| Attributes | Details |
|---|---|
| Asia Neopentyl Glycol (NPG) Market CAGR (2023 to 2033) | 5.0% |
| Asia Neopentyl Glycol (NPG) Market Size (2023) | USD 760.5 million |
| Asia Neopentyl Glycol (NPG) Market Size (2033) | USD 1.23 billion |
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Short-term Growth (2023 to 2026): The restoration of pending construction and renovation projects is helping the paint industry. It further garners the neopentyl glycol market in Asia. Furthermore, the industrial application of NPG in plasticizers, polyesters, and adhesives is expected to contribute to market success in this period. With a long range of applications, the market is expected to hold USD 760.5 million in 2023 while it is anticipated to reach USD 880.37 million by 2026.
Mid-term Growth (2026 to 2029): Apart from the construction activities, the expanding cosmetic startups with innovative ideas are applying NPG in their skin-softening products. It is because it carries glycol and grape-derived fatty acids that further act as a non-aqueous formulary thickening agent. These cosmetic applications are projected to take the market value from USD 880.37 million in 2026 to USD 1.01 billion in 2029.
Long-term Growth (2029 to 2033): This period is likely to witness growth attributed to NPS’s high UV, hydrolytic, and chemical resistance. Through these qualities, the automotive consumes a huge chunk of the neopentyl glycol market in the Asian region. Expanding the automotive paint and coating industry is positively impacting the market growth. Thus, the market is anticipated to thrive at an average CAGR of 5.0% between 2023 and 2033.
The higher demand for chemical agents that protect objects, automotive, and skin from UV lights, chemicals, and temperature. Furthermore, the usage of neopentyl glycol as a phase change material is transforming the search for alternative energy materials. Extended research and development have shown positive results for NPG being a heat recovery agent. Alongside this, the application of neopentyl glycol in the recycling process of polyethylene terephthalate. Higher applications of paints and coatings in the automotive and building construction industry are expected to boost the market during the forecast period. These coatings provide scratch resistance, impact resistance, corrosion resistance, and improved appearance to final products. Lastly, the strong control and reactivity during the esterification and curing process also provide potential space for neopentyl glycol.
A few of the restraints for the market are the lack of awareness, higher prices, and alternate coating materials available in the market. Also, environment and nature-friendly paint additives are being preferred in some cases and also restrict the market growth. The fewer production facilities and brands are also limiting the growth trajectory of the Asia neopentyl glycol market.
| Region/Country | Revenue Share % (2023) |
|---|---|
| Japan | 11.0% |
| Australia | 1.5% |
| Country | CAGR % (2023 to 2033) |
|---|---|
| China | 5.5% |
| India | 6.0% |
Rising Sales of NPG in the Paints & Coatings Sector in India May Augment Growth
The Indian neopentyl glycol (NPG) market leads in terms of market share in the Asian region. The Indian market is expected to thrive at a CAGR of 6.0% between 2023 and 2033.
The applications of neopentyl glycol (NPG) in the production of paints & coatings are likely to record a booming sales graph during the forecast period. Rapid urbanization and increasing establishments of infrastructure projects are favoring the growth of the NPG market. Alongside this, the expanding urbanization and industrialization in leading cities of the country are contributing to regional growth. The ongoing expansion of the pharmaceutical sector in the country may create opportunities for growth in the market.
Increasing Adoption in the Industrial Sector is expected to Boost Market Size in China
The Chinese neopentyl glycol market thrives at a CAGR of 5.5% between 2023 and 2033. The growth is attributed to the new facilities settling in the country. Different domestic manufacturers are applying neopentyl glycol to enhance, improve and customize the formulation as per the end-user requirements. Furthermore, the growth is caused by rowing applications in the industrial sector. Also, manufacturers are offering a wide variety of paints and coating solutions at competitive prices. Last year, BASF decided to build a neopentyl glycol plant at the Verbund site in China with a focus on the powder coatings market. It is anticipated to boost the capacity from 255,000 metric tons to 335,000 metric tons annually.
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| Category | By Application |
|---|---|
| Leading Segment | Paints & Coatings |
| Market Share (2022) | 63.0% |
| Category | By End-user Industry |
|---|---|
| Leading Segment | Automotive & Transportation |
| Market Share (2022) | 36.0% |
Based on application, paint & coating sensor lead as it holds a substantial market share of 63.0% in 2023. The growth of this segment is attributed to the restored construction and industrial projects. Furthermore, NPG is the key element while producing paints and coating is helping the segment thrive during the forecast period. Other than this, rapid industrialization and urbanization are also impacting the market positively.
Based on the end-user industry, the automotive & transportation segment leads as it is projected to hold a market share of 36.0% in 2023. The growth of this segment is expected to be garnered through the higher consumption of luxury passenger automobiles. Along with increased leisure-based activities.
The key players are focusing on setting up their production facilities along with the adoption of acquisition and expansion strategies. Furthermore, the companies are integrating the NPG with other sustainable materials, applying it as the phase change material. To create high-quality products, players are focusing on research and development activities to get an edge over their competitors.
How can Asia Neopentyl Glycol (NPG) Vendors Providers Scale their Businesses in the Market?
Market players in the market are working on three key strategies.
Market Developments
The market is valued at USD 760.5 million in 2023.
BASF SE, Shandong Chemichase Chemical Co., and Zibo Ruibao Chemical Co. are key market players.
Building and construction industry is the key consumer of NGP.
The market is estimated to reach USD 1.23 billion by 2033.
The market is forecast to register a CAGR of 5.0% through 2033.
| Market Estimation (2023E) | USD 57,444 million |
|---|---|
| Market Projection (2033F) | USD 85,786.4 million |
| Value CAGR (2023 to 2033) | 4.4% |
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Asia Neopentyl Glycol (NPG) Market
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