The tetrahydrofuran market is estimated to garner a sizeable revenue by recording a CAGR of ~6% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to increasing demand for tetrahydrofuran (THF) from end user industries, rising number of construction and infrastructural development projects in the world, and growing requirement for spandex from textile industry. In 2020, the revenue of the construction industry in the United States alone reached to USD 1.3 billion. The value was almost USD 1 billion in 2018. Along with these, rise in usage of THF as adhesive, coating agent and reaction medium is also expected to boost market growth in the upcoming years. Furthermore, high demand for polyvinyl chloride (PVC) and polyurethane manufacturing is projected to offer lucrative opportunities to the market in the near future.
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The market is segmented by application into solvent, polytetramethylene ether glycol (PTMEG), and others, out of which, the PTMEG segment is anticipated to hold the largest share in the tetrahydrofuran market on account of the growing usage of PTMEG for the production of tetrahydrofuran and increasing application of the chemical to manufacture swimsuits, sportswear and casual wear. In addition, the development of chemical industry across the globe is also assessed to lead the growth of the market segment in the future. Moreover, on the basis of technology, the Reppe process segment is evaluated to occupy the largest share during the forecast period, which can be credited to the low investment required to perform the process, high production effectiveness and its suitability for mass production of THF.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the tetrahydrofuran market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the Asia Pacific region is estimated to grab the largest share and witness the highest CAGR over the forecast period on the back of increasing demand for THF from countries such as Japan, China and India, and rising usage of the chemical in the textile and pharmaceutical sectors of the region. Apart from these, escalating growth of automotive and packaging industries in China and India is also anticipated to drive market growth in APAC the coming years. Furthermore, the market in North America is also assessed to occupy notable share in terms of revenue owing to the growing sales of automobiles and fuel oils, coupled with high manufacturing of petroleum solvents in the region. For instance, the car sales in the United States reached more than 4.5 million in 2018. However, the sales declined to a large extent owing to COVID-19 pandemic.
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The tetrahydrofuran market is further classified on the basis of region as follows:
Our in-depth analysis of the tetrahydrofuran market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing TFH demand from end users and high spandex requirement in the textile industry are the major growth drivers for the market.
The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2022 – 2030.
Harmful effect of tetrahydrofuran on health is estimated to hamper the market growth.
Asia Pacific will provide more growth opportunities to the market owing to the increasing demand for THF from countries such as Japan, China and India.
The major players in the market are BASF AG, Mitsubishi Chemical Corporation, Banner Chemicals Limited, Ashland Global Holdings Inc., DCC plc, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by end user, application, technology, and by region.
The PTMEG segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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