Polyalkylene Glycol is a type of synthetic lubricant with a high viscosity index, high viscosity, a lower vapor pressure, a higher flash point, and has higher solvency when compared to petroleum-based lubricants. They are a range of ethylene oxide and propylene oxide derivatives which are odorless, non-toxic, and a water-soluble substance. PAGs are manufactured through polymerization by combining ethylene oxide and/or propylene oxide with a nucleophilic starter such as water or alcohol.
Asia Pacific accounts for more than 75% of the total demand with China accounting for the majority of the demand globally which is more than 50%. The region’s demand is increasing due to the rapid expansion in the lubricants industry in countries like China and India and the presence of major lubricant manufacturers, the demand for PAGs will see positive growth in the region. North America and Western Europe account for 15% and 12% respectively.
In Europe, the largest producer is Inspec, with ICI being the largest in the region. In Asia Pacific, Nippon Oil and Fat is the largest producer followed by Sanyo and Idemitsu.
In terms of PAG demand by type, the market is segmented into Polyethylene Glycol, Polypropylene Glycol, and Others. Polyethylene Glycol (PEG) dominates the market owing to its wide range of uses in various industries and applications. It is a polymer made of ethylene glycol that is repeated. PEG can be a viscous liquid or a solid at normal temperature, depending on its molecular weight with both its boiling point and volatility being high. PEG is hygroscopic, which means it can take in and hold onto water from its surroundings.
Polyalkylene Glycol’s application is spilled including Lubricants & Functional fluids, Personal Care, Pharmaceuticals, Concrete Admixtures, Surfactants, Chemical Intermediates, and Others. Lubricants & Functional fluids dominate the market as PAGs are widely used for providing lubrication for metal-to-metal applications where the temperature ranges between -40C to 200C.
PAGs are commonly used for their low volatility in high-temperature applications and for resistance to form residue and deposits. Their biodegradability makes them ideal for environmentally sensitive applications.
It is used as a base oil for lubricants such as gear lubricants, metalworking lubricants, refrigeration oil, and hydraulic fluids, as they can withstand high temperatures where elastomeric compatibility and thermal stability are required.
Global PAG manufacturers operating in lubricants production are adopting synthetic base oils for developing high-performance lubricants for different end-use industries such as automotive, textile, food & beverage among others which will positively impact the Polyalkylene Glycol market.
The top lubricant companies such as Shell, Castrol, Cargill, and Exxon among others are developing PAG-based hydraulic and gear lubricants. In October 2020, Shell Plc expanded its lubricants business and added Polyalkylene Glycol (PAG)-Based Fire-Resistant Fluids to its product portfolio which will provide outstanding performance in extreme operating conditions among end-use industries.
The increasing use of PAG lubricants in engine oils, bearing oils, gear oils, compressor oil, grease, metalworking fluids, and transmission fluids due to their ability to withstand high temperature and shock loading and superior friction properties will boost the Polyalkylene Glycol market in the upcoming years.
The use of PAGs as lubricants and oil in the industry has faced some challenges due to compatibility issues with other materials such as oils, paints, and seal materials. PAGs have been used for over 75 years, and operators still express concerns about the compatibility of lubricants. Low nitrile-containing seals might face compatibility issues. It is essential to avoid using polyurethane seals as the chemistry of PAGs is similar to polyurethanes. PAGs are also not compatible with phenolic or alkyd paints and can also affect leather, rubber, or cork seals.
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