MOSCOW (
MRC) -- Economic recovery in the US and Europe has increased the demand for automotive products. The recovery has also increased employment, increased per capita income, and accessible credit facilities, increasing the buying power of consumers, as per
Plastemart.
This demand will compel automotive manufacturers to increase their production levels by either installing new capacities or expanding the existing ones. The global automobiles market is expected to grow at a CAGR of 5%-6% during the forecast period. Bio-based propylene glycol is used for different applications in the automobile industry such as sheet molding compounds and antifreeze agent.
APAC is the strongest growing market for bio-based propylene glycol. The rapid increase in industrialization and developments in infrastructure in China, India, and South Korea are the primary drivers for bio-based propylene glycol in this region. The construction market in China is expected to rise to USD 2.49 trillion by 2019, growing at a CAGR of 12.14% during 2016-2020. Unsaturated polyester resins made from propylene glycol are widely used for construction. Therefore, the growth in construction market will translate into the demand for bio-based propylene glycol over the forecast period.
Propylene glycol is produced from propylene oxide and is widely used in the manufacture of plastics, food products, electronics, and pharmaceuticals. However, growing environmental concerns such as the use of perishable resources (petroleum) and hazardous petrochemical process pollutants released during the production and use of propylene glycol have compelled vendors to develop advanced bio-based processing technologies.
Although propylene glycol is recognized safe, the acceptable intake is only 25 mg per kg of body weight (according to WHO). Bio-based propylene glycol is eco-friendly and complies with stringent government regulations regarding emission. ADM, a US-based company, has been manufacturing bio-based propylene glycol in its Illinois, US plant since 2011. It has a plant capacity of 100 kilotons per year. The company also manufactures industrial-grade bio-based propylene glycol using refined glycerin as feedstock. In addition, the company has developed an innovative technology for the production of bio-based propylene glycol using sorbitol. Realizing the potential of this market, many new entrants are anticipated to flock to this market in the next four years.
We remind that, as MRC
wrote before, Growing demand from automotive and electronics is expected to boost growth in the global plastics market, as per Transparency Market Research.
MRC