Monoethylene Glycol (MEG) Market to Record Sturdy Growth by 2023
The
top three players in the monoethylene glycol (MEG) market held a
combined share of 29.3%, in the global market, finds Transparency
Market Research. These leading companies are Royal Dutch Shell Plc.,
SABIC, and the Dow Chemical Company. The sizeable shares held by
these players notwithstanding, the competitive landscape is still
fairly fragmented. This is due to the substantial clout held by
several regional and indigenous producers of monoethylene glycol. The
market is increasingly competitive with regional players constantly
striving to subvert the dominance of the leading incumbents by
focusing on capacity expansions. In the coming years, the intensity
of competition is likely to rise further.
Read
Report Overview @
TMR
observes that the threat of entry by new players is low and is
expected to remain so until the end of the assessment timeline. The
entrants must maneuver the stringent regulatory frameworks prevailing
in the market and also manage substantial funds upfront required for
the infrastructure.
The
global market for monoethylene glycol is projected to expand at a
CAGR of 6.1% during 2015–2023. The market estimated valuation at
the end of 2016 was US$26.93 billion and is anticipated to reach a
worth of US$40.84 billion by the end of the forecast period.
The
various applications for which MEG can be used are polyester fiber,
polyethylene terephthalate, and antifreeze. Of all the segments, MEG
are extensively used in manufacturing polyester fibers. The segment
is expected to occupy a share of 55.1% in the global market by the
end of 2023.
On
the geographical front, Asia Pacific holds the sway with the dominant
demand for monoethylene glycol. By the end of the forecast period,
the regional market is expected to reap a revenue of US$25.88
billion. The growth is fueled by the vast application of MEG in the
textile industry, particularly for making polyethylene terephthalate
(PET) and polyester fibers.
Extensive
Demand for Manufacturing Polymer Fabrics especially in Emerging
Economies key to Growth
The
burgeoning usage of monoethylene glycol in producing polymer fabrics
and PET resins, especially in emerging economies, across the world is
a key factor driving the market. The extensive demand for polymers in
the textile manufacturing industries is a notable factor accentuating
the market. The attractive demand for polyesters is underpinned by
their physical and chemical properties that make them suitable for
usage in tropical climates.
The
vast strides being made by the textile industry, coupled by the
rapidly rising disposable incomes of urban populations in developing
countries, is a crucial trend supporting the swift expansion of the
monoethylene glycol market. The rising uptake of MEG in making a
range of textile and packaging solutions is also boosting the market.
The burgeoning demand for PET in making packaging for food and
beverages and pharmaceutical is a case in point.
Large
Fluctuation in Conventional Raw Material Prices glaring Bottleneck
The
volatility of raw material prices, particularly of feedstock that
comes from crude oil, is a notable factor that has adversely affected
the expansion of the market. This is attributed to the fast declining
reserves of crude oil in several parts of the world and the large
supply fluctuations persisting in several economies. Moreover, the
glut of cheap MEG from overseas has also impeded the smooth expansion
of the market. Furthermore, of late, the demand for PET and other
polymer resins has been cutting flak among end users due to their
role in aggravating plastics pollution.
Request
to view Sample Report:
The
above concern is allayed by initiatives by manufacturers and
producers in making bio-based MEG. The use of raw material such as
ethanol derives from sugarcane help manufacturers get over the price
volatility and also create more environmental-friendly products.
Comments
Post a Comment