Strong demand from paints & coatings industry to formulate products with better durability, good chemical and mechanical resistance will support the market expansion. Increasing powder coating applications in automotive, aerospace, electronic appliances and construction industry is expected to boost the market share. In addition, excellent properties including scratch & stain resistance, weather durability and better aesthetic appearance will support the product application scope.
Growth in the construction industry as a result of increasing government spending in residential construction will boost the neopentyl glycol market. Key properties such as corrosion resistance, better insulation and durability will support product demand in construction insulation and additives. Growing demand for insulating building materials owing to the rising energy cost and increasing global pollution due to the excessive use of fuels will also promulgate the product sales.
Stringent government regulations pertaining to emission of VOC and solubility of the product in a wide array of solvents including in diethyl ether, water, ethanol, benzene, and chloroform will enhance product usage in protective coatings manufacturing. Continuous government support via numerous revised regulations & policies will create new growth opportunities for industry participants.
Flakes form hold the highest share in the market and are expected to witness over 7% CAGR up to 2025. Flakes are easy to handle during usage and transportation compared to molten and slurry form. Factors such as ease of handling and wide range of applications including reinforced plastics gel coats, powder coatings, coil coatings and synthetic lubricants fueling segment growth. However, stacking of pellets for a longer duration during storage may increase the risk of cake formation, hampering the quality of the product.
Automotive parts and insulation hold the highest share in the application segment and is expected to gain over USD 300 million by 2025. Increasing demand for automotive owing to the rising purchasing power of the customer and rapid urbanization will propel the product demand in the forecasted time frame. Increasing concern to reduce vehicle weight by implementing the use of advanced composites, high strength materials and efficient electronics will boost the demand for neopentyl glycol in forecasted period.
Asia Pacific is expected to grow over 7.5% CAGR up to 2025. Rapid industrialization and urbanization in the emerging economies like China, India, Japan and Indonesia in the region will positive outlook for the business expansion. Initiatives taken by the government to boost the economy will promulgate the neopentyl market expansion and providing better opportunities for the manufacturers. Growing usage of electronic appliances in rural areas due to the penetration of internet network will boost the product sales.
Global neopentyl glycol market is highly consolidated with the presence of industry participants including OXEA, Mitsubishi Gas Chemical, BASF, Eastman Chemicals, Perstorp AB and Wanhua Chemical Group. Manufacturers adopt strategies such as technological advancement, production capacity expansion, mergers, process innovation and vertical integration. In August 2019, Eastman Chemical Company announced its extended collaboration agreement with NC State University and the University of North Carolina for research, committing USD 10 million to the partnership for next six years which will accelerate the growth of the company.