PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886963
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886963
The global diethylene glycol (DEG) market continues to expand steadily, driven by its extensive applications in polyester resin production, automotive fluids, construction materials, and industrial solvents. According to the latest industry analysis, the global diethylene glycol market was valued at USD 5.0 billion in 2024 and is projected to rise to USD 5.2 billion in 2025, reaching USD 6.8 billion by 2032. This reflects a consistent CAGR of 3.9% during 2025-2032. The Asia Pacific region accounted for 61.4% of global share in 2024, making it the largest and fastest-growing regional market due to rapid industrialization and strong polyester resin manufacturing capacity.
Market Overview
Diethylene glycol is a colorless, odorless, water-soluble organic compound widely used in the production of unsaturated polyester resins, brake fluids, adhesives, softening agents, and coolants. Its versatility across industries-including automotive, construction, textiles, and consumer chemicals-ensures continuous market demand. As packaging and composite materials expand across global markets, DEG's role as a key feedstock strengthens further.
Major global players include Mitsubishi Chemical Group Corporation, BASF, Shell, SABIC, Sinopec, Reliance Industries, PETRONAS, and MEGlobal, all of which maintain large-scale production capacities and international distribution networks.
Market Trends
A significant trend shaping the market is the rising adoption of bio-based diethylene glycol, produced from renewable sources such as sugarcane, corn, and biodiesel byproducts. Advances in bio-ethanol conversion technology have improved the economics of bio-DEG production, making it increasingly competitive against petroleum-based alternatives. Countries like Brazil and India-where sugarcane is abundant-are emerging hubs for green glycol production. Companies such as Braskem and Sojitz are already investing in new commercial plants, supported by global sustainability mandates and green certification standards.
Market Dynamics
Drivers
The strongest demand for DEG comes from the unsaturated polyester resin (UPR) industry, where it is essential in producing fiberglass-reinforced plastics (FRP), coatings, marine components, and lightweight composites. Rapid construction growth in emerging economies, rising adoption of recyclable materials, and automotive weight-reduction initiatives further support UPR demand. As China and India expand their manufacturing activity, DEG consumption continues to climb across the region.
Restraints
A major limitation on market growth is the high toxicity of diethylene glycol. Even small amounts can lead to kidney failure, nervous system damage, or fatal poisoning. Historic incidents involving contaminated pharmaceuticals have led regulators to enforce strict quality controls. The absence of rapid diagnostic tests and lack of an antidote further complicate medical response, leading to tighter regulations that may restrict DEG use in sensitive applications.
Opportunities
Industrialization in Asia, Southeast Asia, and parts of Africa offers major growth opportunities. Expanding automotive fleets create rising demand for brake fluids and coolants-both of which rely on DEG for fluid stability and freeze resistance. Large-scale infrastructure construction in China, India, Indonesia, and Vietnam is increasing the consumption of polyester resins, adhesives, and coatings. Governments investing in transport, housing, and industrial corridors are expected to drive strong, long-term market growth.
Challenges
DEG production costs depend heavily on ethylene oxide prices, which fluctuate with global crude oil trends. Volatility in energy markets directly impacts DEG manufacturing margins. Sudden increases in oil prices can raise production costs, forcing manufacturers to adjust output or seek alternative supply strategies.
By End-use
The polyester resin synthesis segment led the market in 2024, driven by demand in automotive components, marine parts, construction composites, and FRP materials. Antifreeze blending also remains a prominent segment due to DEG's heat transfer and freezing point suppression properties.
Asia Pacific - Market Size 2024: USD 3.7 Billion
Asia Pacific dominated the market due to a strong chemical manufacturing base, low production costs, and booming infrastructure investment. China and India are major UPR producers and heavy consumers of DEG in automotive, coatings, packaging, and construction.
North America
The U.S. automotive sector uses DEG extensively in brake fluids and coolants. Rising electric vehicle manufacturing-requiring advanced thermal management-continues to strengthen regional demand.
Europe
Demand is shaped by sustainability regulations and recyclable material standards. DEG remains critical in construction composites, packaging, and industrial coatings.
Latin America
Steady growth in Brazil and Mexico is driven by construction, infrastructure upgrades, and expanding chemical manufacturing.
Middle East & Africa
Demand is increasing due to economic diversification projects and rapid urban development in Gulf countries and Africa.
Conclusion
With the global market rising from USD 5.0 billion in 2024 to USD 6.8 billion by 2032, diethylene glycol remains a vital component of the global chemical value chain. Driven by polyester resin expansion, industrial growth, and emerging bio-based glycol technologies, the market is positioned for stable long-term development.
CAGR CAGR of 3.9% during 2025-2032
Segmentation By End-use
By Geography