Tetrahydrofuran Market size is projected to surpass USD 10 Billion by the end of 2035, witnessing around 8% CAGR during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of tetrahydrofuran was USD 4 Billion. The growth of the market can be attributed to the attributed to increasing demand for tetrahydrofuran (THF) from end user industries, rising number of construction and infrastructural development projects in the world. 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.
In addition to these, factors that are believed to fuel the market growth of tetrahydrofuran include the growing requirement for spandex from textile industry. Tetrahydrofuran is highly used for the manufacturing of the chemical that are used for manufacture swimsuits, sportswear and casual wear. Moreover, 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.
Growth Drivers
Growing Building and Construction Sector – Tetrahydrofuran is used in polyurethane coating and paints. The demands for paints and coatings is expected to increase with rising construction. In 2021, France had more residential buildings than any other nation in Europe, with over 471,000 homes being built. Germany came in second with 310,000 homes being built.
Rising Demand of Polyurethane – THF is a major component of polyurethane fibers and urethane elastomers. An estimated of around 18 million tonnes of polyurethanes were consumed globally in 2019, and nearly 23 million tonnes are anticipated to be consumed by 2024.
Increasing Consumption of Prescribed Drugs – Tetrahydrofuran are the chemical intermediate that is used in the manufacturing of various drugs. Over 26% of adults in the UK use prescription drugs. Moreover, 35% of Australians use prescription drugs daily.
Growing Use of Plastic-Made Products – Tetrahydrofuran acts as a solvent for manufacturing polyvinyl chloride (PVC), which in turn is used in producing automotive plastics, packaging plastics, and others. According to the UN Environment Program, by 2050, 1,100 million tonnes of primary plastic are expected to be produced worldwide. Furthermore, single-use plastic goods for food and beverage containers make up about 36% of all plastics produced for packaging.
Growing Global Chemical Industry – It is frequently used to dissolve and react with different compounds. Moreover, it serves as a precursor in the synthesis of a number of other chemical. The global chemical industry rose by nearly 4% in 2022
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~8% |
|
Base Year Market Size (2022) |
~ USD 4 Billion |
|
Forecast Year Market Size (2035) |
~ USD 10 Billion |
|
Regional Scope |
|
End-user (Textile, Pharmaceutical, Paints, Coatings, Polymer)
The global tetrahydrofuran market is segmented and analyzed for demand and supply by end user into textile, pharmaceutical, paints and coatings, polymer, and others. Out of the five end-use industries of tetrahydrofuran, the textile segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing use of spandex made clothing followed by higher import and export of spandex material. Since people's need for comfortability has increased throughout the post-pandemic era, the added proportion of spandex in the textile and garment sectors has reportedly increased to around 10-25%. Furthermore, from January through November 2021, spandex exports increased by nearly 26% on a yearly basis to around 74 kt, with a monthly export of about 7,000 tonnes. In addition, from January to November 2021, imports of spandex increased by around 28%, or nearly 7,300 tonnes, on a yearly basis.
Application (Solvent, Polytetramethylene Ether Glycol (PTMEG)
The global tetrahydrofuran market is also segmented and analyzed for demand and supply by application into solvent, polytetramethylene ether glycol (PTMEG), and others. Amongst these three segments, the polytetramethylene ether glycol (PTMEG) segment is expected to garner a significant share. Rising use of polytetramethylene ether glycol (PTMEG) is the major growth driver of the segment. Tetrahydrofuran is converted into polytetramethylene ether glycol (PTMEG/PTG) using an acid-catalyzed polymerization process (THF). Tetramethylene ether units are repeatedly present in this straight-chain diol. Moreover, the segment growth is also expected on the account of rising use of polytetramethylene ether glycol (PTMEG) in increase the tensile strength of elastane. The PTMEG elastomer displayed around 67% retention of the initial tensile strength after 72 hours at 105°C and 100% RH.
Our in-depth analysis of the global market includes the following segments:
|
By Application |
|
|
By Technology |
|
|
By End User |
|
APAC Market Statistics
The Asia Pacific tetrahydrofuran market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the rising production of plastic made products and higher constructional activities. China produces over 7 million metric tonnes of plastic goods each month. Since January 2020, December 2021 saw the highest monthly production of plastic items, which was over 8 million metric tonnes. Furthermore, to establish the National Bank for Financing Infrastructure and Development (NaBFID), a $2.5 billion development finance institution, was approved by Parliament in March 2021 in order to finance infrastructure projects in India. Moreover, in India, where urbanization is predicted to increase from 33% to over 40% of the population by 2030, there will be a need for around 25 Million extra mid-range and inexpensive housing units.
North American Market Forecast
The North American tetrahydrofuran market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market in the region is expected to grow on the back of the rising consumption of medicines by the people. Adults in the United States who use prescription medicines comprise about 66% of the population. Moreover, around 65% of Canadians between the ages of 40 and 79 use one or more prescription medicines.
BASF
BASF announced that it will increase the selling prices for butanediol and its derivatives, including tetrahydrofuran in the European Union. These products are widely used for producing solvents, polyurethanes and elastic spandex.
Ashland Global Holdings, Inc. releases the new prices of various chemical products, including 1,4 butanediol, tetrahydrofuran, gamma-butyrolactone, n-methyl-pyrrolidone, and others. the price of tetrahydrofuran increases by USD 0.15 per pound.
Author Credits: Smruti Ranjan, Rajrani Baghel
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?