NewYork, NY -- (SBWIRE) -- 10/08/2021 -- Neopentyl Glycol market size is forecast to reach $1.6 billion by 2026, after growing at a CAGR of 6.8% during 2021-2026. Owning to its great thermal and chemical stability, neopentyl glycol has a promising future in the manufacturing of automotive and aircraft engine lubricants, greases, and hydraulic fluids. Changing patterns towards the usage of low/non-VOC chemical compounds as an alternative to standard resins will help the sector thrive in the coming years. Growing demand for paint and coatings, particularly powder coatings, will open up new business prospects for industry players. The use of products as an intermediary in the manufacture of various chemical products such as synthetic esters, polyester resins encouraged by factors such as high oxidation resistance, non-polar chemical character, and availability in flake, molten, and slurry form. Rising energy prices, shifting preferences toward sustainability, and rising global emissions owing to unsustainable fossil fuel burning are expected to boost product usage in the coming years.

COVID-19 Impact

The Covid-19 pandemic is having a huge impact on various industries including automotive, electronics, and furniture, and so on. Automobile production has been disrupted, resulting in a significant loss in the whole automotive sector. For instance, the number of passenger automobiles registered in the European Union declined by 53.4 percent to 526,645 units in the second quarter of 2020, according to the European Automobile Manufacturers Association. In addition, Toyota Motor Corporation reported a YoY sales loss of 26%, although unit sales in May were nearly double those in April, which were down 56% YoY. The demand for neopentyl glycol has decreased dramatically as the functioning of the automotive sector has deteriorated, thus impacting market growth in several countries.

Neopentyl Glycol Market Segment Analysis - By Type

Flakes held the largest share in the Neopentyl glycol market in 2020, this is due to the flake structure's unique features. Neopentyl glycol is easier to store in the form of flakes, which is driving up demand in the resin and coatings business. Powder coatings, stove enamels, gel coats, coil coatings, reinforced plastics, and esters for the creation of synthetic lubricants are all made with neopentyl glycol flakes. The demand for neopentyl glycol flake is increasing due to key benefits such as simplicity of handling during storage, enhanced usability, and low maintenance in terms of transportation and application. However, if these flakes are stored for an extended period of time, they may form a cake, introducing pollutants into the product and lowering its quality. During the predicted period, the neopentyl glycol slurry type will also expand at a significant rate. The market for neopentyl glycol will develop significantly due to its unique structure and high thermal stability, making it an appealing choice for a variety of applications such as alkyd coating resins, powder coating resins, plasticizer, synthetic esters, polyester resin, fiberglass reinforced resins, hydraulic fluids and so on.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=508121
Report Price: $ 5900 (Single User License)

Neopentyl Glycol Market Segment Analysis – By Application

Coating & insulation held the largest share in the neopentyl glycol market in 2020. Neopentyl glycol is extensively utilized in insulation and coating applications due to its strong chemical and thermal durability. The growing demand for automotive insulation to reduce engine heat problems will boost neopentyl glycol's use in the automotive industry. The usage of neopentyl glycol provides for greater performance standards, such as thermal stability, fire safety, and mechanical stability in end-use products. Industry participants in electronic appliances such as refrigerators, DVD players, television sets, and washing machines would benefit from the rising demand for decorative color and coating designs. In addition, product demand will be boosted by aspects such as attractive appeal and protection from damage during regular use.

Neopentyl Glycol Market Segment Analysis - By End Use Industry

Building & Construction held the largest share in the neopentyl glycol market in 2020 and is growing at a CAGR of 7%, due to its wide use in paint & coatings applications. Neopentyl glycol is frequently used in the painting and coating industries due to its excellent scratch resistance. The market for neopentyl glycol is growing due to the effective penetration of protective coatings in expanding industrial sectors. In 2019, China government invested 1.9 billion on 13 public housing projects. According to International Trade Administration (ITA), the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. By 2022, the Indian government's "Housing for All" plan aims to build over 20 million affordable homes for the urban poor. This will further drive paint and coatings demand, in turn, neopentyl glycol market growth.

Neopentyl Glycol Market Segment Analysis - By Geography

The Asia-Pacific region held the largest share in the neopentyl glycol market in 2020 up to 30% owing to the rapid growth of the automotive and transportation industries, as well as the building and construction sectors. For instance, the Singapore government spends at least S$2 billion on public infrastructure each month, according to the Australian Trade and Investment Commission. Furthermore, the Government-wide Circular Economy Initiative, which aims to create a circular economy in the Netherlands by 2050, is boosting the country's construction industry. India expects to invest US$ 1.4 trillion in infrastructure over the next five years, according to the India Brand Equity Foundation (IBEF). In addition, in India, construction project like "100 smart cities" is influencing neopentyl glycol demand. In addition, according to the International Trade Administration (ITA), the Chinese government is expecting that automobile production will reach 35 million by 2025. This will boost the demand for paints and coatings, lubricants, adhesives, and so on, in turn complementing neopentyl glycol market growth.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=508121

Neopentyl Glycol Market Drivers

Unique properties of Neopentyl Glycol

The special features of neopentyl glycol, such as better scratch resistance, are gaining a lot of popularity these days. The compound is widely utilized in the creation of protective coatings, which are employed in industries such as automotive, building, and construction. Manufacturers use the chemicals to make synthetic esters, polyester resin, hydraulic fluids, alkyd resins, and synthetic lubricants. Physical scratches and neopentyl glycol both have high heat resistance. When spacecraft re-enters the Earth's atmosphere, this characteristic is extremely beneficial. The covering prevents the craft from burning to ashes due to high friction and extreme cold. The better qualities of neopentyl glycol, such as its non-polar chemical nature, high oxidation resistance, and improved water, heat, and light stability, are driving its use as an intermediate factor in the synthesis of a wide range of chemical products. The increasing usage of neopentyl glycol as a basic product for insecticides, medicines, fabric softeners, and plasticizers presents lucrative growth opportunities for the market.

Stringent legislations Regulating VOC Content

Low-VOC legislation are expected to encourage the development of neopentyl glycol. Because of the health risks, regulatory organizations such as the US Environmental Protection Agency (EPA) and the European Commission are progressively being pushed to minimize the level of volatile organic compounds (VOCs) in all types of chemical goods, including architectural and protective coatings. Polyester resins processed as an intermediate with neopentyl glycol provide a low-VOC option to other types of coating, and are likely to play a vital part in advancing the sustainability movement. Burgeoning needs to provide maximum quality performance in conjunction with the installation of tight rules controlling product quality, which gives neopentyl glycol a lot of traction in a variety of applications across key end-use sectors.

Neopentyl Glycol Market Challenges

Availability of Substitutes Such as Ethylene Glycol, at a Much Cheaper Price

In the coming years, the threat of substitution through the availability of cheaper alternatives, such as ethylene glycol, could challenge market development. Compared to other organic fuels including methanol and ethanol, the benefits of ethylene glycol are high operation, high energy density, low volatility, and high boiling point. The mixture of water with ethylene glycol offers additional benefits for refrigerant and antifreeze solutions, such as preventing corrosion and acid degradation, as well as inhibiting the growth of most microbes and fungi. Therefore, these factors may hamper market growth.

Neopentyl Glycol Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Neopentyl Glycol Market. Major players in the Neopentyl Glycol market include BASF, Eastman Chemicals, LG Chem, Mitsubishi Gas Chemical, OXEA, Perstorp AB among others.

Key Takeaways

Asia Pacific dominates the neopentyl glycol market, owing to the increased construction activities and various government initiatives such as 100 smart cities and Housing for all by 2022 in the region.

Due to various government regulations governing chemical manufacture and VOC emission limits, demand for neopentyl glycol is increasing.

The paint and coatings demand is growing quickly, owing to the increased demand from the building and construction, as well as the automotive and transportation industries. The increasing demand for and penetration of protective coatings in the ever-changing industrial sectors have a beneficial impact on the neopentyl glycol industry.

Related Reports:

A. Glycol Ethers Market
https://www.industryarc.com/Report/11707/glycol-ethers-market.html

B. Antifreeze Coolant Market
https://www.industryarc.com/Report/15598/antifreeze-coolant-market.html

For more Chemicals and Materials related reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.