Propylene Glycol Ethers Market Overview
The Propylene Glycol Ether market is expected to grow at a CAGR of 5.6% between 2023 and 2032 to cross USD 11 billion by 2032. This growth is attributed to the rising demand from various end-use industries such as Chemical, Industrial, and Inks & Coatings.
Propylene Glycol Ether are organic solvents produced by the reaction of propylene oxide and alcohols. They have low toxicity, increased electrolyte solubility, and excellent characteristics as compared to ethylene glycol ethers making them suitable for use in household products, paints, coatings, inks, and other formulations. One advantage of Propylene Glycol Ether is their relatively low volatility compared to some other solvents which can be beneficial in certain applications where the control of evaporation rates is important.
Propylene Glycol Ether Demand Overview
By type, the global Propylene Glycol Ether market is divided into: Propylene Glycol Mono Methyl Ether (PM), Dipropylene Glycol Mono Methyl Ether (DPM), and Tripropylene Glycol Mono Methyl Ether (TPM). DPM and PM are organic solvents that have similar properties and are used in various applications like solvents in varnishes, paints, printing inks as a coating material in architectural and automotive industries, and wood, coil coating, and metal finishing.
Global Propylene Glycol Ether Market, By Type 2016-2032 (Kilotons)
Source: Secondary & Primary Research and Prismane Consulting estimates
The major application of propylene glycol is its use in the production of propylene glycol methyl ether acetate (PGMEA) which is a key raw material used for manufacturing electronic products like cell phones and computers. Propylene Glycol Ether can be applied on metals during the electroplating process which helps in reducing the surface tension between water and ions. They are also used as high-performance industrial solvents for paints, inks, and other various applications.
In the semiconductor industry, PGMEA is a commonly used solvent, for the application of surface adherents such as HMDS on silicon wafers. PGMEA is preferred in the semiconductor industry because it leaves minimal residue after processing and high-purity solvents are crucial in semiconductor manufacturing to ensure the integrity and reliability of the electronic devices being produced.
Global Propylene Glycol Ether Market, By Region 2023 (Kilotons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Propylene Glycol Ether Regional Demand
Asia Pacific, Western Europe, and North America are the leading manufacturers and consumers of Propylene Glycol Ether together accounting for over 70% of the global Propylene Glycol Ether market. Asia Pacific will dominate the global Propylene Glycol Ether market in 2022. The region is estimated to show significant growth during the forecast period owing to the presence of strong automotive, electronics, and building & construction industries.
Several chipmakers in the region are reducing their imports of extreme ultraviolet processes for manufacturing semiconductors. In 2022, Jaewon Industrial Co. announced that it is the first company in South Korea to start the commercialization of PGMEA.
Propylene Glycol Ether Key Players
Dow, Eastman Chemical Company, LyondellBasell, Shell, BASF, Daicel, Hualun Chemical, Dynamic International, Jiangsu Yida, SKC, and Wuxi Baichuan are some of the top manufacturers of Propylene Glycol Ether.
Market Dynamics
Driver: Rapid growth in the electronics industry
In the electronics industry, propylene glycol ether is used as a photosensitive resin of semiconductor machining, electronic grade propylene glycol methyl ether acetate can be used to replace EEA, is mainly used in the processing of anode-sensitive materials.
They are also used in the manufacture of laminates and in semiconductor processes that are used in the electro-circuit boards in the electronics industry. Growing demand of electronics products like mobile phones, and home appliances, and increasing purchasing power will further drive the demand for propylene glycol ether in the forecast period.
Driver: Increase in the demand from the automotive industry
Propylene Glycol Ether is used in the automotive industry for manufacturing protective coatings. The attractive properties of propylene glycol ether like water solubility, fast evaporation rate, solvency, and fast solubility for various resins such as acrylic, polyesters, and polyurethanes are boosting the market growth of propylene glycol ether.
They have greater viscosity reduction properties as compared to other heavy molecular weight glycol ethers. Coatings formulators, resin manufacturers, and coating applicators apply these in protective coatings for applications in industry, automotive, and architecture.
Restraint: Volatility in prices of raw materials and Stringent rules
The prices of raw materials used in the production of PGE, such as propylene oxide, can fluctuate as they are petroleum-based products. Variability in raw material costs can affect the overall production costs and, in turn, the pricing and profitability of PGE. Volatility in raw materials and utilities severely constrains the profitability of manufacturers, and consequently acts as a negative stimulus on the global pricing scenario.
Some Propylene Glycol Ether may pose health and safety concerns, particularly with prolonged or high-level exposure which can lead to increased restrictions on their use in certain applications. The REACH regulations regarding the toxicity of ethylene oxide-based derivatives are said to have a constraining effect on the Propylene Glycol Ether market.
Recent Development in the Propylene Glycol Ethers Market
In 2021, LyondellBasell and SINOPEC signed a MoU to construct a Propylene Glycol Ether at their Ningbo ZRCC LyondellBasell New Material Co., Ltd. The plant is expected to start by 2024 with a manufacturing capacity of 125 Kiloton.
In 2022, Chemtronics Co., a South Korean company specializing in electronic parts and chemical materials, announced a significant achievement. The company revealed that it had self-developed propylene glycol monomethyl ether acetate (PGMEA) with ultra-high purity, leveraging its proprietary technology. Earlier Chemtronics used to import this material from China and Japan and supply it to domestic companies after refining. The company is further planning to invest $16.7 million to expand the current 10 Kiloton of PGMEA capacity to 25 Kiloton.
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