Triethylene Glycol (TEG) Market is forecast to reach $850.63 billion by 2025, after growing at a CAGR of 4.1% during 2020-2025. With rise in the consumption of solvent in various end use applications and increasing natural gas extraction activities, the triethylene glycol market is witnessing an increase in the demand. Further, growing demand of oil and gas in various industries including transportation and power generation will enhance the overall market demand for triethylene glycol during the forecast period of 2020-2025. The report covers Triethylene Glycol (TEG) market size by application, Triethylene Glycol market share by top 5 companies and also the market share by start-ups during the forecast period.
Download Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503386
Application – Segment Analysis
Natural gas dehydration application segment has been the primary market for triethylene glycol for many years and is expected to grow with a CAGR of 4.5% over the forecast period from 2020-2025. Natural gas demand has grown remarkably in 2018, increasing by 4.6%, its highest growth rate since the beginning of the decade. The future growth of natural gas will register above average growth due to majorly economic expansion in emerging markets of APAC region especially China and India and continued policy support to tackle air pollution in the People’s Republic of China. With strong growth in liquefied natural gas export capacity, international trade will play an increasing role in the development of natural gas markets as they move further towards globalization. All these factors are contributing in major demand of triethylene glycol coming from natural gas applications.
For natural gas dehydration, triethylene glycol is a better performer than diethylene glycol. Gas dehydration accounts for more than 50% of ovaerall TEG consumption. Apart from using as a dehydrating agent for natural gas, Triethylene glycol is used in solvent and lubricant, plasticizer, a raw material for the production of polyester resins and polyols, humectant, constituent of hydraulic fluids, selective solvent for aromatics, and many more.
Geography – Segment Analysis
APAC dominated the triethylene glycol market with a share of approximately 44%, followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing.
The gas demand is expected to be driven by APAC region in the coming years, which is expected to account for approximately 60% of the increase in total consumption by 2024. China will be the main driver of growth in gas demand, though slower than in the recent past as economic growth is slowing, but still accounting for roughly 40% of the increase in total gas demand by 2024. In China’s case, coal-to-gas conversion and residential uses play a major role in increasing demand, while power generation is the Middle East’s main driver. However, nearly half of the global increase in natural gas consumption is expected to account for the industrial sector, covering both process energy and chemical feedstock.
Drivers – Triethylene Glycol Market
Growing demand for natural gas
Global natural gas demand is set to continue to grow over the forecast period due to strong consumption in fast-growing Asian economies and supported by ongoing international trade in gas. As the China accelerated efforts to reduce local air pollution, gas demand in China increased by nearly 18%. In 2018, the United States led natural gas demand growth, with the switch from coal to gas accounted for almost half of the increase. Weather also had a major impact on the demand gas in US, with a colder than average winter and hotter than average summer driving demand in buildings and power generation. Thus, the growing demand for natural gas especially in power generation, transportation, and industrial sector is favoring market growth of triethylene glycol.
Challenges – Triethylene Glycol Market
Rising TEG prices
In contrast to diethylene glycol, TEG is not just a by-product of surplus. Producers also deliberately make TEG by adding ethylene oxide to diethylene glycol to meet any demand that exceeds the supply of ethylene glycol from coproduction. Due to which, TEG prices are increasing which may hamper the overall growth of the market in coming years.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the triethylene glycol market. In 2019, the market of triethylene glycol has been consolidated by the top five players accounting for xx% of the share. Major players in the Triethylene Glycol Market are The Dow Chemical Company, Huntsman Corporation, BASF AG, Royal Dutch Shell, Eastman Chemical Company, Exxon Mobil Corporation, Saudi Basic Industries Corporation, INEOS, LyondellBasell Industries Holdings B.V., and LOTTE Chemical Corporation, among others.
IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.