Europe Pentane Market Size, Share & Covid-19 Impact Analysis, By Type (n-Pentane, Isopentane, Pentane-Blends), Application (Blowing Agent, Chemical Solvent, Electronic Cleansing, Automotive, Geothermal, Others), and Regional Forecast, 2020-2027

The Europe pentane market size was USD 23.19 million in 2019 and is projected to reach USD 26.62 million by 2027, growing at a CAGR of 3.4% during the forecast period.

Pentane is an organic compound available in a clear, colorless liquid with a gasoline-like odor. The product is majorly consumed as a blowing agent in the manufacturing of polymer foams, including polystyrene and polyurethane foams. It is also used as a refrigerant, reaction media, solvent, and aerosol propellant in various industries, including chemical and consumer electronics industries. The rising adoption of the product in applications, such as electronic cleansing and automotive, coupled with the increasing product innovation, will flourish the market growth. However, regulations imposed by the government and environmental bodies on the use of pentane owing to its detrimental effects on the human and environment would act as a key restraining factor.

Disruption in Oil & Gas Industry Due to Spread of COVID-19 Resulted in Declining Demand

Since the spread of the coronavirus in January 2020, various countries have announced restrictions on the distribution and transportation of materials, affecting the value chain of the market. Also, oil & gas exploration activities had faced a shutdown during COVID-19, with companies either shutting down their operations or reducing their capabilities due to restrictions on manpower and material availability. Moreover, the demand for pentanes for application in the foam industry declined. For instance, according to the European Association of Flexible Polyurethane Foam Blocks Manufacturers, the production of PU flexible foam during the period of March-April 2020 witnessed a reduction between 30%-80% than the normal.

Even though the foam industry faced shutdowns, plants in countries such as the U.K., Ireland, Scandinavia, Ukraine, and Poland are functioning at reduced capacities. The demand for foams and medical mattresses increased significantly during the lockdown period. The exponential rise in patients infected with coronavirus resulted in the increased demand for medical mattresses due to their ability to provide better comfort to patients and their easy disinfection.

LATEST TRENDS

Blending of Specialty Fuels with Pentane to Create Growth Opportunities for the Market

The rising use of the product as an additive in specialty fuels will boost the market growth. Specialty fuels help the equipment or machine in delivering high performance with better efficiency. The addition of the product in fuels aids in facilitating their viscosity, combustion point, and minimizing the emission of unburnt pollutants, according to their needs. Many companies are incorporating pentane as an additive in the fuel to improve its efficiency. Hence, some of the key market players have introduced pentane and its blends for use in specialty fuels. For instance, Phillips 66 Company, Halterman-Carless, and ChemPoint have made available pentane with the purity of more than 99% for fuel blending applications. The above factors will create growth opportunities for the Europe pentane market.

DRIVING FACTORS

Growth of Polyurethane Foam Industry to Boost the Product Consumption

The key driver for the market is the rapid growth of the polyurethane foam industry. The product is showcasing high demand from foam manufacturers owing to its lower cost than other blowing agents and its ability to provide dimensional stability to foams. The use of physical blowing agents such as cyclopentane and n-pentane as foaming agents allows the formation of smaller cells in comparison with foams produced with chemical blowing agents such as water. Additionally, the use of PU foams as cushioning in several industries, including furniture, automotive, and building & construction, is gaining impetus. Hence, the increasing demand for PU foams will contribute to flourishing market growth. 

RESTRAINING FACTORS

Stringent Regulations on the Use of Pentane to Hamper Growth

Pentane is on the list of Special Health Hazard Substances. Direct contact or inhalation of this product can irritate the nose and throat, burns on the skin and eyes, and severely creates an impact on the lungs. Its high exposures may cause the build-up of fluid in the lungs, further leading to breathing issues. The OSHA has set the airborne permissible exposure limit of pentane to 1,000 ppm during an average 8-hour work shift. Similarly, ACGIH set the threshold limit value to 600 ppm during the 8-hour work shift. Stringent regulations imposed by governments and environmental bodies are limiting its use in various applications. Hence, these norms would act as a restraint for the market growth.

SEGMENTATION

By Type

N-Pentane Segment to Hold Dominant Share during the Forecast Period

Based on the type, the market is segmented into n-pentane, isopentane, and pentane-blends. N-pentane is the dominant segment and is expected to show the fastest growth during the review period. The growth is attributed to the increasing demand for n-pentane from the foam industry, owing to its cost-effectiveness and the ability to provide dimensional stability in foams. The growth of the isopentane type is due to its low boiling point. It is highly used as a working medium in geothermal power stations. Similarly, the growth of the pentane-blends segment is associated with its high demand from auto fuel, electronic cleansing, and chemical industries.

By Application

Blowing Agent is the Largest Application Segment in the Market

Based on the application, this market is segmented into blowing agents, chemical solvents, electronic cleansing, automotive, geothermal, and others. Amongst these, the blowing agent segment accounted for the largest market share in 2019. The growth is due to the rising demand for foams from various industries, including furniture & bedding, automotive, and building & construction for the purpose of cushioning. In addition, pentane creates a honeycomb structure within the foam, which imparts excellent thermal properties in the final products.

The chemical solvent segment is the second leading segment in the market. The pentane industry is exhibiting a rise in the demand for chemical applications due to its favorable nature. The product assists the reaction between other chemicals without interfering in the process and its low boiling range helps in maintaining a constant temperature during the reaction, thereby leading to less product variability. The expansion of electrical & electronics and automotive industries are expected to fuel the demand for pentane from electronic cleansing and automotive fuel applications, respectively.

REGIONAL INSIGHTS

The Europe pentane market size was USD 23.19 million in 2019. In this region, Germany and France are the leading contributors. The growth of the market is associated with introducing favorable initiatives by the government promoting the manufacturing and industrial sectors of these countries. During March-April 2020, the PU foam plants located in Germany operated at a much-reduced capacity for special orders from medical and online sales. Similarly, in France, few production plants for medical foams were operational.

The growth of the market in Russia is owing to increasing foreign investments and investments by the country to meet the rising energy demand. Additionally, the growing chemical industry is expected to create a wide opportunity for market growth in this country. In Italy, the growth is due to a rise in automobile production and increasing building and construction activities. The high demand for polymer-based products such as polyurethane and polystyrene from the building & construction industry will fuel the market growth in Turkey.

KEY INDUSTRY PLAYERS

Phillips 66 Company and Royal Dutch Shell plc are Leading Backed by Their Adoption of Various Strategies

Phillips 66 Company is a diversified energy manufacturing and logistics company with unique businesses in refining, midstream, chemicals, marketing, and specialties. The company has 13 refineries in the U.S. and Europe. It also has 30 global manufacturing facilities and two U.S. research and development centers. Royal Dutch Shell, commonly known as Shell, is involved in the exploration, production, refining, and marketing of oil & natural gas and the manufacturing & marketing of chemicals. It has a wide presence across 70 countries.

LIST OF KEY PLAYERS PROFILED IN THIS REPORT:

• Phillips 66 Company (U.S.)


• Royal Dutch Shell plc (Netherlands)


• HCS Group GmbH (Germany)


• Thai Oil Public Company Limited (Thailand)


• INEOS (UK)


• Air Liquide (France)


• Harp International Ltd (UK)


• ChemPoint (U.S.)


• BRENNTAG (Austria)


• Inventec (France)

REPORT COVERAGE

The Europe pentane market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, and applications. Also, it offers insights into market trends, highlights vital industry developments and competitive landscape. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth over recent years.

In-depth Coverage of Segmentation