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1,6-Hexanediol Market Forecast to Reach $1.51 Billion by 2025
1,6-Hexanediol Market Forecast to Reach $1.51 Billion by 2025
The Increasing Use as Feedstock for the Manufacture of Chemical Compounds and Increasing Demand From the Wind Energy Industry Are Major Factors Driving the 1,6-Hexanediol Market.

1,6-Hexanediol Market is forecast to reach $1.51 billion by 2025, after growing at a CAGR of 6.8% during 2020-2025. In recent years the demand for 1,6-hexanediol has improved due to its increased use in the APAC region. Moreover, the increasing use of 1,6-hexanediol in a variety of applications, such as coatings, polyurethanes, acrylates and polyester resins, has further led to this market's growth. As Polyurethanes is the main end-user of 1,6-hexanediol, it is used in the application segments of Polyurethanes and other resins as a chain extender. It transforms polyurethanes into transformed polyurethanes with a considerably high resistance to corrosion. Polyurethanes have various properties such as high mechanical power, low transition temperature of the glass and high heat tolerance.

1,6-Hexanediol Market Segment Analysis - By Application

The polyurethanes segment is the largest application segment of the global 1,6-hexanediol market, by growing at a CAGR of 7.2%. Demand for its sub-applications or derivatives, such as thermoplastic polyurethane elastomers, coatings, and foams, across various regions, is a major factor in polyurethane development. With a growing appetite for polyurethanes, the APAC region is further propelling the development of the global market for 1,6-hexanediol. Furthermore, developing countries in the APAC region have seen an increase in polyurethane demand, such as China, Korea, India and Vietnam. Growing demand for polyurethanes has thus led to the growth of the polyurethane market across numerous industry verticals.

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1,6-Hexanediol Market Segment Analysis - Geography

APAC dominated the 1,6-Hexanediol Market share with more than 46.7%, followed by North America and Europe, due to the rising demand for 1,6-hexanediol from Japan, India, China, and South Korea. As a result of the rise in production of polyurethane and coatings due to an increase in construction activities, China is expected to lead the market for 1,6-hexanediol. Leading to massive investments in new infrastructure builds, new housing schemes, and renovation/repainting of residential and commercial buildings in the US, China, India and Brazil, the construction industry is expected to see substantial growth in the next five years. There has been a substantial increase in demand for coatings in the APAC region, and this trend is expected to continue in the near future. As top coating players are absorbing other local and international firms, the coating industry is heading to consolidation.

1,6-Hexanediol Market Drivers

Increasing Demand

In emerging APAC nations, including Japan, the global demand for 1,6-Hexanediol is estimated to see steady growth. The growing penetration of new players and the significant presence of Chinese producers in the 1,6-Hexanediol market serve as key factors influencing the region's overall output rate. Due to the increase in R&D, government regulations, cost advantage, low-cost workers, and better manufacturing facilities, the polyurethane industry is expected to expand in the APAC region, thus driving the consumption rate in the 1,6-Hexanediol market. Demand for its sub-applications or equivalents, such as thermoplastic polyurethane elastomers, coatings and foams, across various regions, is a major factor responsible for the growth of polyurethanes. Furthermore, due to the growing demand for polyurethanes in APAC, the field is projected to fuel the growth of the global market for 1,6-Hexanediol. Moreover, developing countries in the APAC region have seen an increase in polyurethane production since 2017, such as China, South Korea, India, and Vietnam. The rising demand for polyurethanes across a variety of vertical industries has therefore led to the growth of the polyurethane segment in the region.

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1,6-Hexanediol Market Challenges

Storage and transportation is a major challenge

However, as it is highly hygroscopic in nature, storage and transportation is a major challenge for 1,6-Hexanediol, and measures need to be taken to minimize its exposure to air or humidity. To optimize its utility, the temperature of the product should be kept between 55°C and C at all times. 1,6-Hexanediol has been found to exhibit low toxicity, and while handling the chemical, proper precautions need to be taken. It causes eye irritation and upon contact with the eyes, diffuses the opacity of the cornea. Vapors or 1,6-Hexanediol dust also cause inflammation of the respiratory tract. In addition, to avoid skin exposure, adequate protective protection is needed to be worn by people handling the drug.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the 1,6-Hexanediol Market. In 2019, the market of 1,6-Hexanediol has been consolidated by the top five players accounting for xx% of the share. Major players in the 1,6-Hexanediol Market are BASF SE, Fushun Tianfu Chemicals Co., Ltd., Lanxess, Linshui Nanming Chemical Co., Ltd., Perstorp AB, Ube Industries, Ltd., Shandong Yuanli Science and Technology Co., Ltd., Zhengzhou Meiya Chemical Products Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., and Prasol Chemicals Pvt. Ltd., and among others.

Acquisition/Product Launches:

In September 2018, BASF SE announced that it will raise its 1,6-Hexanediol output potential at its Ludwigshafen Verbund site by more than 50% after start-up in 2021. The output capacity of 1,6-Hexanediol will be more than 70,000 metric tonnes per year after this extension. In high-growth sectors such as automobile, furniture, and packaging, 1,6-Hexanediol produced from the facility will be used.

In April 2017, Lanxess has invested USD 111.96 million in expanding the production of intermediates. The Lanxess Market Division, Advanced Industrial Intermediates, is expanding its manufacturing facilities which is planned to be finished by 2020. It is expected to invest around USD 44.78 million in the Leverkusen and Krefeld-Uerdingen sites. The company plans to expand its trimethylolpropane, hexanediol, benzyl alcohol and menthol production facility at the Krefeld-Uerdingen site to meet global market demand.

Key Takeaways

The expansion of the demand for mechanical coatings due to the solid development of the end-use industry is driving business growth. In applications, such as vehicles, foundations and instruments and machinery, protective coatings are used on a massive scale to enhance the quality and cosmetic properties of the component. Therefore, rapid industry growth is also projected to increase the global demand for 1,6 hexanediol.

Advancements in technology and the production of bio-based raw materials are projected to provide the 1,6-Hexanediol industry with new opportunities.

The increasing use as feedstock for the manufacture of chemical compounds and increasing demand from the wind energy industry are major factors driving the studied market. On the other hand, the existence of sub-institutes such as butanediol and pentanediol and unfavorable conditions due to the outbreak of COVID-19 are the key constraints that impede the market growth.

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