Albany New York - The global market for triethylene glycol (TEG) is forecast to reach a value of $237.2 million by 2018, growing at a CAGR of 4.6 percent from 2013 to 2018, according to a new market report from Transparency Market Research (TMR).
TEG demand in 2010 was estimated at $167.9 million, says the report, "TEG -- Global Industry Size, Market Share, Trends, Analysis and Forecast, 2012 - 2018," more details of which can be found at www.transparencymarketresearch.com.
Asia Pacific led the global market for TEG accounting for 66.2 percent of global volume in 2011, followed by North America and Europe. Asia Pacific along with being the largest market is also the fastest growing market for TEG.
Major factors driving demand for TEG include growth in the global market for natural gas and growing demand for plasticisers. Increasing use as a solvent is also driving growth. The researchers say, however, that volatility in raw material prices and regulatory issues associated with production and use of TEG are expected to have a negative impact on growth.
Natural gas dehydration accounted for about 58.6 percent of the global TEG demand in 2011 and is the fastest growing application for TEG at a CAGR of 4.8 percent from 2013 to 2018.
Other applications -- solvents, plasticisers, polyurethane, humectants and polyester resins -- are smaller markets and are expected to remain stagnant till 2018.
TMR says the TEG market is threatened with oversupply, mainly owing to massive capacity additions in the Gulf Council Cooperation (GCC) region in recent years. Saudi Arabia is the major consumer of TEG in the GCC, accounting for about 63.4 percent of its demand in 2011.
Major participants in TEG include, Sabic (Saudi Arabia), Dow Chemical (US), Shell (Netherlands), Sinopec (China), Honam Petrochemical (Korea).
TMR does not give a price for the 117-page report.