Polyol Ester Market Size, Share, Analysis & Forecast [2031]

Report Description

Market Outlook:

The Global Polyol Ester Market was estimated at USD 493.7 Million in 2022 and is anticipated to reach USD 748.2 Million by 2031, expanding at a CAGR of 4.8 % during the forecast period.

A polyol is an organic compound that contains multiple hydroxyl groups (−OH). Based on the number of hydroxyl groups, polyols are termed diols, triols, and tetrols, which contain two, three, and four hydroxyl groups, respectively. Polyol esters or POEs is a short term that refers to neopentyl polyol esters, which are synthesized by the reaction of monobasic fatty acids and polyhedric alcohol with a neopentyl structure. Polyol esters are widely used as plasticizers in plastics, coatings, sealants, and rubber products. They interact physically with high molecular weight thermoplastic substances, which form a homogeneous system and optimize mechanical properties, such as deformation capacity, elasticity, and strength.

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Macro-economic Factors

Industrial Production

Industrial production plays a crucial role in influencing the demand for polyol esters. Hydraulic fluids and high-performance lubricants are frequently produced using polyol esters. These substances are crucial to the industrial sector, as they guarantee the smooth operation of machines and reduce friction throughout multiple operations. Polyol ester-based compounds are used in many production processes, due to their superior lubricating and heat-resistant properties. This is particularly relevant in industries, such as automotive, aerospace, and machinery manufacturing. Polyol ester has thermal stability. Industries such as steel and metalworking benefits from this thermal stability, where high temperature is required. Thus, the demand for polyol ester is linked to industrial production. The demand for polyol esters is increasing, as industries grow, modernize, and strive for superior efficiency.

Raw Material Prices

Polyols are esterified with fatty acids to produce polyol esters. The primary raw materials utilized in the synthesis of polyol ester include polyols, fatty acids, acid catalysts, stabilizers, and antioxidants. For instance, industries faced fluctuations in the price of polyol during the first half of 2023. In the first quarter of 2023, the market condition was restrained, due to overstocking of stocks and weak downstream demand. The costs of the feedstock, including propylene oxide, began to decrease as the second quarter came to an end, which further reduced the prices of polyol. Furthermore, an estimated 11% decline in the price of propylene oxide was registered in the second quarter of 2023. This resulted in a reduction in the price of polyol. Therefore, fluctuations in the cost of raw materials significantly impact the total cost of producing polyol esters.

Market Dynamics

Market Driver- Increasing Demand from Aviation Industry

In recent years, the demand for commercial aircraft has been increasing, owing to a surge in international traffic as well as domestic air travel globally. Increase in passenger traffic, majorly from highly populated countries, such as China and India, has encouraged airlines to increase the number of flights, which is bolstering the production of commercial aircraft globally. Air India has placed orders for 840 planes from Airbus and Boeing, including options to purchase additional 370 aircraft. Boeing, which is one of the aviation giants in the aerospace industry, estimated global demand for 42,595 new commercial jets by 2042, at a value of around $8 trillion. The adjacent diagram shows the increasing passenger traffic in the aviation industry across the globe.

Rising passenger traffic is leading to the increased demand for jet turbine lubricants. Polyol esters are used in the production of jet turbine lubricants. This, in turn, supports the market growth.

Market Driver- Growing Demand from Lubricants Industry

Polyol esters are used as an additive in manufacturing lubricants. POE have excellent oxidative & thermal stability, and their structure frequently improves performance at extremely low temperatures. High polarity draws esters to metal surfaces, improving lubricity without sacrificing other beneficial aspects of diester. Lubricants are used to reduce wear & tear and friction between two moving elements.

Development of premium product choices, along with the growing focus on improving vehicle performance, is driving the demand for the product. For normal automobiles, consumers are looking for both standard and specialty lubricants to ensure smooth operation and save long-term maintenance expenses. Polyol esters offer high lubricity that lasts for a long time span and cuts the downtime of the industrial machinery or automotive. Increasing demand for lubricants from the automotive & industrial sectors is driving the market.

Market Restraint- High Costs of Polyol Esters

Polyol esters are costlier as compared to other synthetic base oils. This is attributed to the high cost of the base alcohols used to manufacture polyol esters. These products generally cost 20% to 70% high on a wholesale basis.

Furthermore, it is expensive, due to the complexity of the supply chain of raw materials required to manufacture polyol esters. Disruptions in the raw material supply chains result in price hikes of the products, thus leading to increased cost of the end product. Additionally, high maintenance cost of the final product to keep it away from contamination adds to the costs of manufacturers. It requires significant investments in laboratories and equipment associated with it. Thus, high production and maintenance costs restrain the market growth.

Scope of the Report  

The report on the Global Polyol Ester Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

Based on type, the global polyol ester market is categorized as neopentyl glycol esters (NPG), trimethylolpropane esters (TMP), pentaerythritol esters (PE), dipentaerythritol esters (DiPE), and others.

Neopentyl glycol esters (NPG) are a class of organic compounds that are derived from the esterification of neopentyl glycol (NPG) with carboxylic or fatty acids. NPG is a colorless, odorless, and water-soluble organic compound that is used in the synthesis of paints, polyesters, plasticizers, and lubricants.

TMP esters are known for their good stability and low-temperature performance, which makes them well-suited to use in a variety of applications, including automotive and industrial lubricants. Additionally, TMP esters are biodegradable and have low toxicity, which makes them an attractive alternative to traditional petroleum-based lubricants.

Pentaerythritol esters, specifically pentaerythritol tetrastearate or PETS, are polymer additives that have a strong release effect. They are commonly used in various plastics such as polycarbonate, ABS polymers, PET, and PA.

Dipentaerythritol esters have excellent heat and oxidation stability and high viscosity. Therefore, these are suitable base fluids for high-temperature greases such as heat conduction grease, high-temperature chain oil, and high-viscosity synthetic ester refrigerator oil.

Trimethylolethane is a compact polyol with three primary hydroxyl groups. It is resistant to light, heat, oxidation, and hydrolysis. TME esters are widely used as the base stocks for plasticizer lubricants.

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On the basis of application, the market is categorized as industrial lubricants, refrigeration oil, transformer coolant, and others. The industrial lubricants segment is further sub-segmented into greases, engine oils, hydraulic fluids, heat transfer fluids, and others.

Industrial lubricants are greasy or oily compounds used to reduce wear and friction on moving machine parts, such as bearings and gears.

Grease is a solid or semi-solid lubricant formed as a dispersion of thickening agents in a liquid lubricant. Grease generally consists of a soap emulsified with mineral or vegetable oil.

Motor oil, engine oil, or engine lubricant is one of the many substances used for the lubrication of internal combustion engines.

The primary function of a heat transfer fluid (HTF) is to move thermal energy from one location to another as effectively as possible, for the purpose of heating or cooling a particular system in an industrial process.

The others sub-segment includes metalworking fluids, dielectric fluids, compressor oils/gear oils, and others.

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On the basis of end-use industry, the market is categorized as aviation, automotive, energy & power, marine, chemical, food & beverage, and others.

Polyol esters are widely used in jet turbine engines in aerospace and aviation. Synthetic polyol ester fluids are the preferred choice for lubricating aircraft gas turbine engines.

Polyol esters are the ester of choice for blending with PAOs in passenger car motor oils. This reduces fuel consumption and lowers volatility in modern specifications. They are used in 2-cycle oils as well and for biodegradability.

Polyol esters are extensively utilized in the energy and power industry for their high-performance characteristics.

In marine hydraulic systems, polyol esters function as hydraulic fluids, offering reliable lubrication and performance even in harsh marine conditions.

Polyol esters act as plasticizers in the synthesis of polymers, enhancing the flexibility and processability of certain plastic types.

Polyol esters find use as food-grade lubricants in food processing applications where incidental food contact is possible.

The others segment includes personal care & cosmetics, textile, refrigeration & air conditioning, and others.

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Regional Outlook

On the basis of regions, the Global Polyol Ester Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific held more than 20% market share in 2022. The market in the region is driven by the growing demand for recycled copper scrap, due to the thriving construction and power generation industries in China, along with continuous investment efforts in the advancement of telecommunications and electronics fields over the years.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Polyol Ester Market

• Historical, Current, and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players