Market Trends of Polyalkylene Glycols (PAGs) Industry
This section covers the major market trends shaping the Polyalkylene Glycols PAGs Market according to our research experts:
Increasing Demand from Lubricants Segment
- Polyalkylene glycol, also named as polyalkylene oxide, is a polyether compound. It is a polymer obtained by addition of one of more repeating epoxide units.
- Growing application of polyalkylene glycol in gear lubricants, hydraulic fluids lubricants, turbine oils, industrial air compressor fluids, amongst others is propelling the polyalkylene glycols market demand.
- Furthermore, polyalkylene glycols have superior lubricity properties, great viscosity index, environment-friendly nature, and low volatility in high temperature applications. Owing to these properties the demand of PAGs is anticipated to increase in the near future.
- The global lubricants market was valued at USD 164.3 billion in 2019 and is expected to grow at a CAGR of over 3% during the forecast period and reach USD 188 billion by 2024. Due to this, the demand of synthetic lubricants is likely to increase, which would boost the demand of polyalkylene glycols and thus, propel its market during the forecast period.
- Owing to all the above-mentioned factors for polyalkylene glycols, its market is expected to grow rapidly over the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for polyalkylene glycols during the forecast period. Owing to rapid expansion in the lubricants industry in countries like China and India and presence of major lubricant manufacturers, the demand for polyalkylene glycols has been increasing in the region.
- The increasing usage of polyalkylene glycol lubricants in engine oils, bearing oils, gear oils, compressor oil, grease, heat transfer fluids, metalworking fluids and transmission fluids owing to their ability to withstand high temperature and shock loading and superior friction properties, is stimulating the polyalkylene glycol market in the region.
- Additionally, the rising demand of polyurethane foams in various applications in construction & building, adhesives, electronics, furniture, automobiles and footwear is fueling the demand of polyalkylene glycols and is likely to have positive impact on the PAGs market.
- The construction & building sector in Asia-Pacific is expected to grow at a CAGR of 8% during the forecast period, which would increase the demand of polyurethane foams and consequently propel the polyalkylene glycols market in the region during the forecast period.
- Apart from polyurethane foams and lubricants, polyalkylene glycols finds application in the pharmaceuticals sector in making hydrogels which are used in tissue engineering. The pharmaceuticals sector in Asia-Pacific is expected to grow at a CAGR of over 7% during the forecast period and is likely to provide lucrative opportunities for the growth of polyalkylene glycols market during the forecast period.
- Some of the major companies operating in Asia-Pacific region are - Dow, BASF SE, and Idemitsu Kosan Co.,Ltd.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for polyalkylene glycols during the forecast period.
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