Triethylene Glycol (TEG) Market - Global Industry Size, Market Share, Trends, Analysis And Forecast, 2012 - 2018
Albany, NY -- (SBWIRE) -- 04/06/2015 -- Triethylene glycol is used extensively across the oil and gas industry to dehydrate natural gas. Driven by the expansion of the natural gas market and growing demand for plasticizers in end-use industries, the global triethylene glycol market is poised to grow at a 4.6% CAGR between 2013 and 2018. Triethylene glycol is commercially obtained as a compound of the ethylene glycol family. It is an odorless, transparent, viscous, and water-soluble liquid, which is completely miscible with a wide range of liquids other than water. TEG naturally exhibits properties similar to other glycol compounds. It is widely used in applications which require compounds with a high boiling point, lower volatility, and higher molecular weight as compared to diethylene glycol.
When compared to other compounds of ethylene glycols family, triethylene glycol market is relatively smaller. However, owing to its remarkable hygroscopic properties, TEG is being increasingly used across end-use industries that require dehydration of air conditioning systems and natural gas for producing plasticizers and solvents. According to a recent research, the global market for TEG, which stood at US$1676.9 million in 2010, is slated to be worth US$237.2 million by the end of 2018.
Increase in Application Across End Use Industries to Propel the Global TEG Market
The demand for TEG in the global scenario is fuelled by factors such as growing demand for plasticizers and its increasing application as a solvent across various end-use industries. The expansion of the global natural gas market has also significantly contributed to the rising demand for triethylene glycol globally. However, despite registering impressive growth prospects, the market could be hampered by fluctuating raw material prices and stringent regulations associated with the manufacture and application of TEG.
Nevertheless, these hurdles must not deter manufacturers from exploring opportunities for growth. Asia Pacific will continue to demonstrate high demand for natural gas, thereby boosting market opportunities for the leading vendors to capitalize on. Natural gas dehydration represents the largest application segment for triethylene glycol. It accounted for almost 58.6% of the global demand registered in the TEG market in 2011. Apart from being the biggest market, natural gas dehydration is also projected to emerge as the fastest growing segment for TEG, growing at a 4.8% CAGR from 2012 to 2018. Other application segments such as plasticizers, solvents, polyester resins, humectants, and polyurethane will remain stagnant during the same period.
TEG Vendors Need to Address the Issue of Oversupply
Along with addressing the challenges of volatile raw material prices, the global market for triethylene glycol also faces the threat of oversupply. Capacity additions in the Gulf Council Cooperation over the last couple of years have posed a threat to the market. The TEG market will have to strategize its method of selling and exploring newer markets to achieve equilibrium between the existing supply and demand trends. The Kingdom of Saudi Arabia accounted for maximum demand for triethylene glycol within the GCC in 2011; Saudi Arabia alone emerged as the consumer of 63.4% of the TEG produce in the GCC. The GCC will still have to seek other potent windows of marketing the capacity addition as well.
The global TEG market is highly fragmented with a large number of small- and medium-scale players vying for the lion's share. Some of the leading players in the market are SABIC (KSA), Sinopec (China), Clariant AG, Honam Petrochemical (Korea), Huntsman Corporation, Dow Chemical (U.S.), Ineos, Akzonobel, and Exxon Mobil.
Asia Pacific to Remain Largest Market for TEG
The global market for triethylene glycol was led by Asia Pacific in 2011. The region accounted for 66.2% of the global market in terms of volume, followed by North America and Europe. After evaluating the present market dynamics, expert analysts conclude that Asia Pacific would remain the undisputed market leader over the forthcoming years as well.
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