Forecast Period | 2026-2030 |
Market Size (2024) | 165.41 thousand Metric Tonnes |
CAGR (2025-2030) | 3.87% |
Fastest Growing Segment | Automotive |
Largest Market | West India |
Market Size (2030) | 207.31 thousand Metric Tonnes |
Market Overview
India Diethylene Glycol (DEG) Market
achieved a total market volume of 165.41 thousand Metric Tonnes in 2024 and is
poised for strong growth in the forecast period to reach 207.31 thousand Metric Tonnes, with a projected Compound
Annual Growth Rate (CAGR) of 3.87% through 2030.
The Diethylene Glycol (DEG)
market in India is poised for remarkable growth, reflecting the nation's ascent
in the global chemical industry. DEG, a crucial chemical compound with a wide
range of applications, is indispensable in sectors such as textiles,
automotive, pharmaceuticals, and more. The
DEG market in India has witnessed a substantial transformation over the years.
Historically, it primarily served domestic demand, supporting industries such
as textiles and pharmaceuticals. However, with increasing industrialization and
globalization, the market has expanded significantly. Today, India not only
consumes DEG but also plays a pivotal role in its production, solidifying its
position in the global chemical industry.
The
Indian DEG market has evolved into a significant contributor to the country's
chemical industry. Prominent players in this market include Reliance
Industries, SRF Limited, INEOS, and Shell, actively shaping market dynamics.
Reliance Industries, in particular, is a key player and holds a substantial
presence in the DEG market. DEG's
versatile properties render it an essential component in various sectors. It
finds applications in the production of resins, plasticizers, and coolants. The
textiles and automotive industries rely heavily on DEG, using it for processes
like glycol dehydration and antifreeze formulations. Additionally, it is used
in the pharmaceutical sector for the manufacture of medications. Several
factors contribute to the burgeoning demand for DEG in India. The textile
industry's growth fuels the need for DEG, as it is vital for moisture
management in textiles. The automotive sector's expansion relies on DEG for
antifreeze formulations, ensuring the smooth operation of vehicles.
While
the DEG market in India displays tremendous potential, it also faces notable
challenges. Price fluctuations of raw materials, environmental regulations, and
the demand for sustainability are key challenges. The price volatility of raw
materials, primarily ethylene oxide, can impact production costs. Compliance
with stringent environmental regulations and an increased focus on eco-friendly
practices are pushing the industry to adopt cleaner production methods.
As
environmental consciousness grows, regulations concerning emissions and waste
disposal have become stricter. The DEG industry in India is responding by
adopting eco-friendly production processes, focusing on reducing emissions, and
improving waste management. These measures not only align with regulatory
requirements but also contribute to global sustainability goals. The
Indian DEG market is witnessing several notable trends. Manufacturers are
exploring the potential of producing biobased DEG, reducing the carbon
footprint of the chemical. Additionally, there is a growing emphasis on
research and development to enhance the performance and eco-friendliness of
DEG-based products.
The
outlook for the Diethylene Glycol market in India is highly promising. With
continued growth in industries that rely on DEG, including textiles,
automotive, and pharmaceuticals, the demand for this chemical is expected to
remain robust. The industry's adaptability to changing market dynamics,
regulatory requirements, and environmental consciousness will play a crucial
role in shaping its growth trajectory.
The
Diethylene Glycol market in India offers a compelling narrative of growth,
transformation, and adaptation. Its diverse applications across various sectors
make it a critical chemical in the country's industrial landscape. As the
market confronts challenges and embraces sustainability, it is well-positioned
to meet not only domestic demand but also to make substantial contributions to
the global chemical industry. India's journey in the DEG market is a testament
to its resilience, innovation, and commitment to sustainable practices. The Diethylene Glycol market in India is set for growth, driven by
diverse applications, expanding end-use industries, and a growing focus on
sustainability. This versatile chemical is poised to play a significant role in
India's chemical sector, offering substantial growth opportunities and
contributing to global sustainability goals.
Key Market Drivers
Rising Automotive Industry is
expected to Propel Indian Diethylene Glycol (DEG) Market Growth
The
Indian Diethylene Glycol (DEG) market is poised for significant growth, largely
driven by the rising automotive industry in the country. Diethylene Glycol, a
versatile chemical compound with diverse applications, plays a pivotal role in
the automotive sector, serving as a crucial component in various processes and
products. The expanding influence of the automotive industry on the demand for
DEG is expected to propel market growth and contribute to India's economic
development.
The
automotive sector in India is currently experiencing rapid expansion, driven by
a combination of factors including increasing disposable incomes, a growing
middle class, and the government's push for electric and sustainable mobility.
Diethylene Glycol is a key player in this sector, as it is widely used in the
formulation of engine coolant and antifreeze solutions. These coolants are
essential for maintaining the temperature and performance of internal
combustion engines and electric vehicle battery systems. As India's automotive
manufacturing sector and electric vehicle market continue to grow, the demand
for engine coolant and antifreeze solutions containing DEG is projected to
witness robust expansion. Diethylene Glycol serves as a crucial ingredient in the production of brake
fluids. Brake fluids are integral to the safe and efficient operation of
vehicles, as they transmit the force applied to the brake pedal to the brake
system. DEG's properties make it an ideal choice for formulating
high-performance brake fluids that ensure reliable stopping power and safety on
the road. As the automotive industry places a strong emphasis on safety and
performance, the demand for brake fluids containing DEG is expected to surge.
DEG plays a significant role in the manufacturing of air conditioning systems
in vehicles. It is used as a refrigerant in air conditioning systems to
regulate the temperature inside the vehicle's cabin. With India's hot and
tropical climate, the demand for efficient and reliable air conditioning in
vehicles is substantial. This drives the need for air conditioning systems that
rely on DEG as a refrigerant. Diethylene Glycol is employed in the production of electrical connectors and
wiring harnesses in vehicles. These components are essential for the
transmission of electrical signals and power throughout the vehicle's various
systems. DEG's properties, including its ability to prevent freezing and ensure
electrical conductivity, make it an ideal choice for the production of these
crucial components. As the automotive industry continues to integrate advanced
electronic systems and technologies in vehicles, the demand for electrical
connectors and wiring harnesses containing DEG is expected to grow. As
the automotive industry in India continues to flourish, the Diethylene Glycol
market is well-positioned for growth. Its versatile applications in engine
coolants, brake fluids, air conditioning systems, and electrical components
highlight its significance and wide-ranging applications in the automotive
sector. The increasing need for safe, reliable, and high-performance vehicles,
combined with the growing adoption of electric and sustainable mobility
solutions, is projected to drive the demand for Diethylene Glycol. This growth
not only benefits the chemical industry but also plays a crucial role in
supporting the broader economy by catering to the needs of an expanding
automotive sector, pivotal for India's progress and modernization.
Growing Demand from the
Polyester Resins and Polyurethanes Industries Propels India's Diethylene Glycol
(DEG) Market Growth
The
Indian Diethylene Glycol (DEG) market is experiencing robust growth, primarily
driven by the increasing demand from the polyester resins and polyurethanes
industries. Diethylene Glycol, a versatile chemical compound with diverse
applications, plays a pivotal role in these sectors, serving as a crucial
component in various processes and products. The expanding influence of the
polyester resins and polyurethanes industries on the demand for DEG is expected
to propel market growth and contribute to India's economic development.
The
polyester resins industry in India is witnessing remarkable growth, driven by
factors such as construction and infrastructure development, increasing
urbanization, and a surge in manufacturing activities. Diethylene Glycol is a
vital component in this sector, as it serves as a key raw material in the
production of unsaturated polyester resins (UPRs). UPRs are widely used in the
manufacture of composite materials, including fiberglass-reinforced plastics,
boat hulls, automotive parts, and various construction components. The
increasing need for high-strength, durable, and lightweight materials in
India's construction and manufacturing sectors has led to a rising demand for
UPRs, which, in turn, fuels the demand for DEG as a crucial precursor.
Polyurethanes,
on the other hand, represent another significant sector where Diethylene Glycol
plays a pivotal role. Polyurethane foams and elastomers are widely used in
various applications, including furniture, mattresses, insulation materials,
and automotive components. DEG is used as a component in the production of
polyurethane systems, such as rigid foams and flexible foams, enhancing their
properties and performance. As India's construction industry expands and the
demand for energy-efficient insulation materials grows, the polyurethanes
sector is expected to witness increased demand, driving the need for DEG. Diethylene
Glycol also serves as a critical ingredient in the production of coolants and
antifreeze solutions for various industrial and automotive applications. These
solutions are essential for maintaining the temperature and performance of
machinery, engines, and other mechanical systems. The growth of industrial
manufacturing and the automotive industry in India has contributed to the
rising demand for these cooling solutions, leading to increased consumption of
DEG. DEG is employed in the production of high-quality paints and coatings. It
enhances the viscosity and flow characteristics of paints, contributing to
their smooth application and durability. The construction and automotive
sectors in India, which have been experiencing substantial growth, rely on
these high-performance coatings for aesthetic appeal and protection against
environmental factors. This has increased the demand for Diethylene Glycol in
the paints and coatings industry.
As
the polyester resins and polyurethanes industries continue to thrive in India,
the Diethylene Glycol market is poised for substantial growth. Its diverse
applications in the production of UPRs, polyurethane systems, coolants, and
high-performance coatings underscore its significance and wide-ranging uses in
these sectors. The increasing need for durable and efficient materials in
construction, manufacturing, and other industries, coupled with the growth of
India's automotive and industrial sectors, is expected to drive the demand for
Diethylene Glycol. This growth not only benefits the chemical industry but also
contributes to India's economic development by supporting sectors that are
pivotal for the nation's progress and industrial diversification.
Growing Demand from Textile
Industry is Propelling the India Diethylene Glycol (DEG) Market Growth
The
Indian Diethylene Glycol (DEG) market is experiencing significant growth,
primarily driven by the growing demand from the textile industry. Diethylene
Glycol, a versatile chemical compound with diverse applications, plays a
pivotal role in the textile sector, serving as a crucial component in various
processes and products. The expanding influence of the textile industry on the
demand for DEG is expected to propel market growth and contribute to India's
economic development.
The
textile industry in India is witnessing remarkable growth, driven by factors
such as increasing population, rising disposable incomes, and the country's
position as a global textile manufacturing hub. Diethylene Glycol is a vital
component in this sector, serving as a key raw material in the production of
polyester fibers and yarns. Polyester is one of the most widely used synthetic
fibers in the textile industry, and DEG is an essential ingredient in the
polymerization process that produces polyester fibers. The increasing demand
for polyester textiles, which are valued for their durability, affordability,
and versatility, has led to a surge in the demand for DEG as a key precursor. DEG is used in the production of cooling solutions for the textile industry.
These solutions are essential for maintaining the temperature and performance
of machinery and equipment used in various textile manufacturing processes,
including dyeing and printing. As the textile industry in India continues to
expand and modernize, the demand for cooling solutions, and consequently, DEG,
is expected to witness substantial growth. Diethylene
Glycol also serves as a critical ingredient in the production of high-quality
inks and dyes used in the textile printing and dyeing processes. The quality
and performance of inks and dyes are essential for achieving vibrant and
long-lasting colors on textiles. The growing emphasis on creating innovative
and appealing textile products has led to an increased demand for DEG as an
essential component in ink and dye formulations.
Also,
DEG is employed in the production of various textile auxiliaries, including dye
carriers and wetting agents. These auxiliaries enhance the quality and
functionality of textiles, providing attributes like softness, wrinkle
resistance, and color fastness. As the textile industry focuses on meeting
consumer demands for high-quality and aesthetically pleasing textile products,
the need for textile auxiliaries containing DEG is expected to grow. As
the textile industry in India continues to thrive, the Diethylene Glycol market
is well-positioned for growth. Its diverse applications in the production of
polyester fibers, cooling solutions, inks, dyes, and textile auxiliaries
highlight its significance and wide-ranging uses in the textile sector. The
increasing demand for durable, high-performance, and visually appealing
textiles, coupled with the growth of India's textile manufacturing and fashion
industry, is expected to drive the demand for Diethylene Glycol. This growth
not only benefits the chemical industry but also contributes to India's
economic development by supporting a sector that is pivotal for the nation's
progress, employment generation, and global competitiveness in the textile
market.
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Key Market Challenges
Volatile Raw Material Prices
The
volatility in raw material prices has been a significant hindrance to the
growth of the Diethylene Glycol (DEG) market in India. DEG is a crucial
chemical used in various applications, such as the production of resins,
solvents, and antifreeze. It depends on several raw materials, most notably
ethylene glycol and ethylene oxide, the prices of which can fluctuate
dramatically due to global market dynamics. The
unstable costs of these raw materials can disrupt the production economics of
DEG, making it challenging for manufacturers to predict and control their
operational expenses. As a result, market players often find themselves
grappling with cost uncertainties and variable profit margins. These
fluctuations in raw material prices can hinder the growth potential of the DEG
market by affecting the competitiveness of domestically produced DEG against
imported alternatives, which may have more stable pricing.
To
promote the growth of the DEG market in India, it is imperative for
manufacturers to employ effective risk management strategies, including
diversifying their supply sources, exploring cost-effective technologies, and
closely monitoring global market trends to navigate the challenges posed by
volatile raw material prices. Additionally, government support and policies
that provide stability to the supply chain can further contribute to the
industry's growth.
Stringent Environmental
Regulation
Stringent
environmental regulations have emerged as a significant impediment to the
growth of the Diethylene Glycol (DEG) market in India. DEG is a versatile
chemical compound widely used in various industries, including textiles,
pharmaceuticals, and automotive, but its production can generate environmental
concerns. To address these issues, Indian authorities have implemented rigorous
environmental standards and regulations, which place a considerable compliance
burden on DEG manufacturers. Meeting
these stringent environmental requirements demands substantial investments in
pollution control equipment, waste management systems, and emissions reduction
measures, leading to higher operational costs. Additionally, the need for
extensive monitoring and reporting adds administrative complexities, affecting
both the cost structure and operational efficiency of DEG production
facilities. This not only hampers the competitiveness of domestically produced
DEG but also discourages new investments in the industry.
To
foster the growth of the DEG market in India, a collaborative approach between
the government, regulatory bodies, and industry stakeholders is essential. This
includes streamlining and simplifying environmental regulations, providing
incentives for cleaner and sustainable production practices, and fostering
innovation in eco-friendly technologies. Such measures can help strike a
balance between environmental protection and economic growth within the DEG
sector.
Key Market Trends
Finding New Applications in
Industries Such as Pharmaceuticals, Cosmetics & Food and Beverages
The
India Diethylene Glycol (DEG) market is currently witnessing a notable growth
trend driven by the discovery of new applications in industries such as
pharmaceuticals, cosmetics, and food and beverages. This diversification of DEG
usage represents a significant shift in the market dynamics and opens exciting
opportunities for its expansion, aligning with the changing demands of various
sectors. In
the pharmaceutical industry, DEG has gained prominence as an essential
ingredient in the formulation of various medications and drugs. Its properties
make it an ideal solvent, coupling agent, and stabilizer in pharmaceutical
products. The versatility of DEG has led to its increased adoption for drug
formulations, underscoring its importance in enhancing the effectiveness and
stability of pharmaceuticals.
Cosmetics
is another industry where DEG has found new applications, primarily in the
production of skincare and personal care products. Its hygroscopic properties
and ability to improve the texture and consistency of cosmetics make it a
valuable component in a range of products, from moisturizers to makeup. The food and beverages industry has embraced DEG for various purposes,
including as a food-grade solvent and humectant. It enhances the texture and
shelf life of products, serving as an important ingredient in food
manufacturing, particularly in the production of certain types of flavorings
and extracts. The
diversification of DEG applications across these industries reflects the
substance's adaptability and its role as an enabling agent for product
improvement. This trend not only bolsters the growth of the India DEG market
but also underlines the pivotal role it plays in supporting advancements in
pharmaceuticals, cosmetics, and the food and beverages sector. As these
industries continue to expand and innovate, DEG's significance is poised to
increase, driving further growth and demand within the Indian market.
Focusing on Developing
Sustainable DEG Products
One
of the pivotal trends fueling the growth of the India Diethylene Glycol (DEG)
market is the industry's focused commitment to developing sustainable DEG
products. This trend underscores the growing awareness of environmental
sustainability and the imperative to reduce the ecological footprint of
chemical production processes. India is actively embracing this paradigm shift
by concentrating on the development of more eco-friendly and sustainable DEG
variants.
In
this endeavor, research and development activities are instrumental, striving
to optimize DEG production methods while prioritizing eco-friendliness. These
efforts aim to reduce the environmental impact of DEG production and enhance
its sustainability by exploring alternative feedstocks, improving energy
efficiency, and adopting greener technologies.
This
sustainable approach resonates with both domestic and international consumers
and industries that are increasingly conscious of the environmental and social
implications of their choices. As a result, India's DEG market is in a prime
position to meet the rising demand for sustainable DEG products, not only
within the country but also in the global marketplace. The focus on developing sustainable DEG products represents a
pivotal growth trend in the India DEG market. As the world shifts towards a
more environmentally responsible and sustainable future, this trend ensures
that DEG remains a key player in the chemical industry, offering eco-conscious
solutions to a diverse array of applications. It underscores India's commitment
to harmonizing economic growth with environmental preservation and positions
the country as a progressive and influential player in the global DEG market.
Segmental Insights
End User Industry Insights
Based
on the end user industry, the textiles segment emerged as the dominant segment in the Indian market for Diethylene Glycol (DEG) in 2024. This dominance can be
attributed to the significant role that DEG plays in various applications
within the textile industry, making it an essential component in the production
of textiles and related products.
DEG
is widely used in the textiles sector as a crucial ingredient in the
manufacturing of polyester and other synthetic fibers. It serves as a vital
component in the production of polyethylene terephthalate (PET) resin, which,
in turn, is used to make polyester fibers. These fibers are widely employed in
the textiles industry for a broad range of products, including clothing,
upholstery, home textiles, and industrial fabrics. The
Indian textiles sector has experienced substantial growth, driven by domestic
demand and exports. The versatility and performance-enhancing properties of DEG
in polyester fiber production have made it the preferred choice for
manufacturers, ensuring the quality, durability, and versatility of textile
products.
DEG's
dominance in the textiles segment is further emphasized by its role in the
dyeing and finishing processes. It is used as a solvent for dyes and as a
carrier in the application of colorants to textiles. This ensures that the
textiles retain their vibrant colors and meet the high-quality standards
demanded by consumers. As India's textiles industry continues to expand, the
demand for DEG is expected to persist, ensuring the continued dominance of the
textiles segment in the DEG market.
Application Insights
Based
on the application, the polyester resin segment is projected to experience
rapid growth during the forecast period. This growth is attributed to the vital
role that DEG plays in the production of polyester resins, which are widely
used in various industries, including the manufacture of plastics, paints,
coatings, and adhesives. DEG
serves as a critical feedstock in the production of polyester resins,
specifically in the formation of unsaturated polyester resins (UPR). These
resins are fundamental in the manufacturing of a broad spectrum of products,
such as fiberglass-reinforced plastics, composite materials, laminates, and
synthetic marble. They are valued for their versatility, excellent adhesion
properties, and resistance to environmental factors, making them integral in
several applications. The
Indian market has witnessed substantial growth in industries that rely on
polyester resins. This includes the construction, automotive, and marine
sectors, where UPR-based materials are used for diverse applications. DEG's
role in ensuring the quality and performance of these materials has solidified
its position as the dominant type in the market.
Polyester
resins are also widely used in the production of paints, coatings, and
adhesives, further reinforcing the importance of the polyester resin segment in
the DEG market. DEG's involvement in these applications contributes to the
creation of durable and high-quality coatings and adhesives. As India's
industrial and manufacturing sectors continue to expand, the demand for
polyester resins and, consequently, DEG is expected to persist, ensuring the
continued dominance of the polyester resin segment in the market.
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Regional Insights
Based
on the region, the West region has clearly asserted its dominance, marking its
significance in the production and distribution of this essential chemical
compound. This regional prominence can be attributed to several factors,
including well-established industrial infrastructure, proximity to key
resources, and access to transportation networks. The
West region of India, particularly the states of Gujarat and Maharashtra, hosts
a substantial portion of the country's chemical and petrochemical manufacturing
facilities. This region is renowned for its industrial clusters and parks
dedicated to the chemical and petrochemical industries, which have been pivotal
in the production and distribution of DEG. These facilities support the
region's dominance in the DEG market. The West region benefits from its strategic location near major ports and
petrochemical complexes along the western coastline. This positioning
facilitates efficient access to the import of crucial raw materials, such as
ethylene oxide, which is a primary feedstock for DEG production. This
logistical advantage ensures a steady supply chain for DEG manufacturers in the
region. The skilled workforce, supportive business environment, and
well-developed transportation infrastructure in the West region further
contribute to its dominance in the DEG market. As
India's chemical and petrochemical sectors continue to grow and evolve, the
West region's robust capabilities and strategic advantages make it a key
contributor to the country's industrial development and the DEG market.
Key Market Players
- Reliance
Industries Limited
- Indian Oil Corporation Limited (IOCL)
- Tata Chemicals Limited
- Acuro Organics Limited
- Vizag Chemical International
|
By
Application
|
By End User Industry
|
By
Region
|
- Plasticizer
- Solvent
- Polyester
Resin
- Chemical
Intermediate
- Freezing
Point Depressant
- Lubricant
- Dehydrant
- Brake
Fluids
- Cosmetic
& Personal Care
- Others
|
- Plastic
Industry
- Paints
and Coatings
- Automotive
- Agrochemical
- Oil
and Gas
- Cement
- Textiles
- Cosmetic
and Personal Care
- Others
|
- West
India
- North
India
- South
India
- East
India
|
Report Scope:
In this report, the India Diethylene Glycol (DEG)
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
·
India Diethylene
Glycol (DEG) Market, By Application:
o Plasticizer
o Solvent
§ Printing Inks
§ Paint Pigments
§ Dye Formation
o Polyester Resin
o Chemical Intermediate
§ Unsaturated Resin
§ Thermoplastic Polyurethanes
§ Polyester PolyolsPEG
§ TriEG
§ TetraEG
§ Emulsifiers
§ Morpholine
o Freezing Point Depressant
§ Antifreeze Coolant
§ Heat Transfer Fluids
o Lubricant
§ Glass Cement Grinding
§ Polishes
§ Mold Release Agents
o Dehydrant
o Brake Fluids
o Cosmetic & Personal Care
o Others
- India Diethylene Glycol (DEG) Market, By End
User Industry:
o Plastic Industry
o Paints and Coatings
o Automotive
o Agrochemical
o Oil and Gas
o Cement
o Textiles
o Cosmetic and Personal Care
o Others
- India Diethylene Glycol (DEG) Market, By
Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Diethylene
Glycol (DEG) Market.
Available Customizations:
India Diethylene Glycol (DEG) Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Diethylene Glycol (DEG) Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
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