Propylene Glycol Market size is estimated to reach USD 12.51 billion by the end of 2035, growing at a CAGR of 7.40% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of propylene glycol was USD 5.21 billion. The growth of this market can be attributed owing to the rising automobile industry as propylene glycol sustain various application in the automotive industry for brake fluids, antifreeze, polyester compound, hydraulic fluid, and others. The automotive sector is growing owing to increasing transportation activities, along with growing industrialization and an established production base. According to the data, there were 101,233 new vehicle registrations in Australia in March 2022 compared to March 2021, which was an increase of 1.2%. With higher prospects for the automotive sector, the propylene glycol application is growing which is anticipated to drive the propylene glycol market in the forecast period.
Propylene glycol comes from the family of alcohol, and it is widely used in the construction industry in various applications such as solvents, polyester resins, paints & coating, and others. The construction industry worldwide is growing owing to infrastructural development, increasing urbanization trends, and growth in residential projects. As per the European Construction Industry Federation, construction activity increased by 11% in France in 2021 as compared to 2020. With growing construction activities worldwide, the application of propylene glycol in the construction sector seems to increase which in turn is expected to drive the global market in the forecast period.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023 - 2035 |
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CAGR |
7.40% |
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Base Year Market Size (2022) |
USD 5.21 billion |
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Forecast Year Market Size (2035) |
USD 12.51 billion |
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Regional Scope |
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End-user (Transportation, Building & Construction, Food & Beverage, Pharmaceuticals, Cosmetics & Personal Care)
The global propylene glycol market is segmented and analyzed for demand and supply by end-user into transportation, building & construction, food & beverage, pharmaceuticals, and cosmetics & personal care. Out of these, the transportation segment is anticipated to hold the largest market share by the end of 2035. Propylene glycol is used in fire-resistant brakes and hydraulic fluids, as a coolant in the transportation industry such as engine cooling, as a raw material for aircraft deicing, and as a heat transfer fluid in high-temperature applications. Unsaturated polyester resins can also be reinforced with glass fibers to make products such as corrosion-resistant tanks and pipe transits that are widely used in vehicle and marine construction. Progress in vehicle development and recovery in consumer demand, especially in terms of safety and comfort, are expected to support the demand for materials such as propylene glycol in the coming years. Therefore, all these factors are predicted to provide opportunities for the growth of the segment in the market over the forecast period. As per the report of ACEA, in 2021, hybrid electric vehicles held 19.6% of all the latest passenger cars in the EU compared to 12% in 2020.
Source (Petroleum Based, Bio-Based)
The global propylene glycol market is segmented and analyzed for demand and supply by source into petroleum-based and bio-based. Out of these, the bio-based segment is anticipated to hold the largest market share by the end of 2035. This can be attributed owing to the demand for renewable sources and eco-friendly production methods. This growth is attributed to the increased adoption of greener alternatives as they produce 61% less greenhouse gas emissions compared to petroleum-based products. Growing demand for sustainable and eco-friendly products and growing awareness of the harmful effects of fossil fuels on the environment are the major growth drivers in the bio-based segment of the market by the end of the year 2035.
Our in-depth analysis of the global market includes the following segments:
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By Source |
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By End User |
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By Grade |
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APAC Market Statistics
The market in the Asia Pacific region is anticipated to account for the largest market share by the end of 2035. The growing population in the Asia Pacific region is giving rise to more and more construction activities, which further is driving the growth of the market in the region. Propylene glycol is used to make unsaturated polymer resins with a wide range of uses. These resins are used to make construction products such as sewer pipes and floor tiles. In the paint industry, propylene glycol is used as a solvent for paints. Therefore, it is expected to expand the growth of the market in the region. China is expected to spend about USD 13 trillion on buildings construction by 2030. China's construction output has increased from USD 9.6 trillion in 2010 to USD 26.59 trillion in 2020, according to China's National Bureau of Statistics. Furthermore, the increase in the number of working women in the countries such as India, and China is further predicted to drive the market’s growth in the region.
North American Market Forecast
The market in the North American region is anticipated to grow significantly in the forecast period. The growth of this market can be attributed to the growing construction industry promoted by rapid expansion in the residential sector in the North American region. In 2021, Canada's construction industry is expected to grow to USD 72.02 billion, with residential construction up 19.7%. Increased construction activity across the region may increase the demand for propylene glycol shortly.
Europe Market Forecast
The market in the Europe region is estimated to account for a significant market share by the end of 2035. The European propylene glycol market is driven by various factors such as increasing demand from the end-use industry, growing awareness of sustainable products, and the introduction of stringent regulations on the use of propylene glycol. Major end-use industries for propylene glycol in Europe include food and beverages, pharmaceuticals, cosmetics and personal care products, and industrial chemicals. Demand for propylene glycol from these industries is driven by factors such as changing consumer preferences, technological advancements, and government regulations. Propylene glycol is regulated in Europe for use in food, pharmaceuticals, and personal care products. Hence, it is anticipated to rise the growth of the market in the region.
Author Credits: Smruti Ranjan, Rajrani Baghel
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