Pentane Market Forecast 2023 - 2031

Report ID : CBI_1375 |  Category : Materials And Chemicals   | Published Date:     |  Format :   ms word  ms Excel  PDF

Segments Covered :
By Type N-pentane, Iso-pentane, Neo-pentane, and Others
By Application Laboratory Solvent, Chromatography, Blowing Agent, Binary Fluid, and Others
By End-use Industry Cosmetics, Pharmaceuticals, Petrochemicals, Paints and Coatings, Packaging, and Others
By Region North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Report Snapshots :
Base Year: 2022
CAGR: 4.4%
Forecast Year: 2023 - 2031
Revenue 2022: $131.63 Mn
Revenue 2023: $136.81 Mn
Revenue 2031: $193.77 Mn

Pentane Market Forecast 2023 - 2031

Market Overview :

Consegic Business Intelligence analyzes that the pentane market is growing with a CAGR of 4.4% during the forecast period (2023-2031), and the market is projected to be valued at USD 193.77 Million by 2031 and USD 136.81 Million in 2023 from USD 131.63 Million in 2022.

Market Definition :

Pentane is a type of organic compound with a chemical formula of C5H12. The formula consists of 5 carbons and 12 hydrogen atoms. This compound belongs to the alkane group, as it contains n+2 hydrogen atoms, where n denotes carbon atoms. The properties of this compound are very similar to popular alkanes such as butanes and hexanes. Further, pentane is a clear colorless liquid with a highly volatile nature. This compound is relatively soluble in water and is present as an important component of gasoline. Moreover, pentane is produced by fractional distillation of petroleum and is further purified by successive distillation.

In addition to being a valuable component of natural gas, pentane has various applications in different industries. Predominantly, pentane is used as a blowing agent in the preparation of foam known as polystyrene. Polystyrene is primarily used as insulation material in the manufacturing of home appliances such as refrigerators, freezers, and cold storage. Furthermore, the boiling point of pentane ranges from 9 to 36 °C and the low boiling point of this compound expands its application as binary fluid in geothermal power stations.

Pentane Market :

Pentane Market

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Market Dynamics :

Pentane Market Dynamics

Drivers :

  • Increasing demand for pentane in the cooking fuel industry across the globe is propelling market growth.

    Pentane is a type of hydrocarbon which is primarily found in fuels such as natural gas and petroleum. The cooking fuel industry is experiencing a surge in demand for pentane due to its increasing advantages over traditional cooking fuels. Pentane is a clean burning fuel and produces low pollutants compared to other hydrocarbons such as butane and propane. In addition to this, pentane also produces more heat per unit and is a relatively inexpensive cooking fuel, being a byproduct of natural gas and petroleum production.

    Furthermore, pentane is one of the most commonly used hydrocarbons in LPG, and the rapidly growing non-domestic consumption of LPG is influencing the surge in demand for pentane across the globe. For instance, according to the article published by the Observer Research Foundation (ORF) in August 2023, the non-domestic and bulk consumption of LPG in India increased from 2,630,000 tonnes in the annual year 2021-2022 to 3,015,000 tonnes in the annual year 2022-2023. Thus, the growing consumption of LPG in various sectors is fueling the demand for pentane and driving the growth of the market.

  • Rising preference for n-pentane and iso-pentane as insulation materials in the construction industry is accelerating the growth of the market across the globe.

    Pentane is heavily utilized in the construction industry, owing to the growing use of n-pentane and iso-pentane as blowing agents for polyurethane foam insulation. These types of hydrocarbons are more advantageous compared to traditional blowing agents such as hydrofluorocarbons (HFCs), which generally phase out due to their high boiling point. The phenomenal insulation properties of n-pentane and iso-pentane make them well-suited for use in polyurethane foam insulation. In addition to this, these isomers of pentane are easily available in the market and are relatively inexpensive.

    Furthermore, the rapidly evolving infrastructure industry across the world is significantly driving the demand for pentane isomers in the construction industry. The growing investment in infrastructure initiatives is propelling the market growth. For instance, according to the report published by the Office for National Statistics of the UK in May 2023, new work infrastructure construction in UK had a total value of USD 32.69 billion in 2021, increased by 32.8% of the total investment made in the year 2020. Thus, the substantial growth in infrastructure development is rigorously boosting the market growth of pentane.

Restraint :

  • Long-term environmental effects associated with exposure to pentane is impeding the market growth.

    Pentane, being the first alkane with a liquid nature, has highly volatile and flammable properties. While pentane has several applications in various industries, excessive exposure of the compound to the environment is likely to trigger long term environmental consequences. Pentane is relatively hazardous to aquatic organisms, predominantly invertebrates and fish. In addition to this, when pentane is expelled into the water bodies, it accumulates in the tissues of organisms, affecting adversely the reproduction, growth, and survival of the aquatic organisms. As a result, the balance of the aquatic ecosystem is getting disrupted and leading to a potential decline in the aquatic population.

    Furthermore, the growing precautionary concerns associated with the environmental exposure of pentane is significantly slowing down the growth of the market across the globe. For instance, according to the report prepared by the experts on behalf of the International Labour Organization (ILO) and World Health Organization (WHO) in 2021, pentane is toxic to aquatic organisms, as it may cause long-term effects in the aquatic environment and is strongly advised not to let this compound enter into the environment. Therefore, the aforementioned factors are mainly restricting the worldwide growth of the pentane market.

Opportunities :

  • Rising applications of pentane in cosmetic industry is expected to create lucrative opportunities over the forecast period.

    Pentane is widely used in various applications in the cosmetic industry, predominantly due to its distinctive characteristics as a solvent and propellant. The low boiling point and ability to dissolve a wide range of organic compounds make pentane an ideal solvent for fragrances and active ingredients in cosmetic products. In addition to this, pentane helps these substances to disperse evenly throughout the product, further ensuring consistent and effective delivery. Moreover, the high vapor pressure of pentane makes it an efficient propellant for aerosol cosmetic products such as shaving foams, deodorants, and hairsprays to create fine mist that allows even application.

    Furthermore, the rapidly growing cosmetic sector is expected to create significant demand for pentane in the market. For instance, according to the data published by the International Trade Association in May 2022, the cosmetics market in Canada generated approximately USD 1.24 billion of revenue in 2021 and is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024. Thus, the growing demand for pentane in the cosmetic industry is expected to create lucrative growth opportunities over the forecast period.

 

Pentane Market Report Coverage :

Report Attributes Report Details
Study Timeline 2017-2031
Market Size in 2031 USD 193.77 Million
CAGR (2023-2031) 4.4%
By Type N-pentane, Iso-pentane, Neo-pentane, and Others
By Application Laboratory Solvent, Chromatography, Blowing Agent, Binary Fluid, and Others
By End-use Industry Cosmetics, Pharmaceuticals, Petrochemicals, Paints and Coatings, Packaging, and Others
By Region North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Key Players Junyuan Petroleum Group, HCS Group, Senzhihai Chem, Haldia Petrochemicals Limited, Air Liquide, RX Marine International, Vizag Chemical, KANTO KAGAKU, Junsei Chemical Co.,Ltd., Merck KGaA, SEMA Gases, Nacalai Tesque Inc, and Otto Chemie Pvt. Ltd.

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Market Segmentation :

By Type :

The type segment is categorized into n-pentane, iso-pentane, neo-pentane, and others. In 2022, the n-pentane segment accounted for the highest market share of 43.20% in the pentane market and is also expected to grow at the fastest CAGR over the forecast period. N-pentane is a normal pentane that has a straight chain of hydrocarbons with a general chemical formula of C5H12. The growth of this segment is mainly attributed to factors such as the increasing use of n-pentane in the form of solvents, blowing agents, fuel, and refrigerants in various applications. In addition to this, n-pentane is highly prevalent owing to its ability to be produced naturally as a byproduct of petroleum and natural gas production, and synthetically from other alkanes.

Furthermore, n-pentane is widely used as a solvent in paint and coating materials, and the rapid growth of this sector is particularly driving the segment growth. For instance, according to the data published in the annual report of Akzo Nobel India in 2023, the paints and coatings industry in India was valued at USD 7.57 billion in 2022 and is expected to reach USD 12.22 billion in the next five years. Thus, the evolving paints and coating sector is expected to drive considerable demand for solvents in the market, further influencing the segment growth.

Global Pentane Market, By Type, 2022

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By Application :

The Application segment is categorized into laboratory solvent, chromatography, blowing agent, binary fluid, and others. In 2022, the blowing agent accounted for the highest market share in the pentane market and is also expected to grow at the fastest CAGR during the forecast period. Pentane is predominantly utilized as a blowing agent in the production of polyurethane foams. Pentane is widely preferred as a blowing agent due to several characteristics such as low boiling point, ability to create lightweight foam, and high chemical compatibility. Additionally, the relatively inexpensive nature of pentane, being a byproduct of natural gas and petroleum production, enhances the scope for increased applications.

Meanwhile, lightweight foam is a prevalent application of pentane observed in aerosol products. The consistent utilization of aerosol products is expected to drive the demand for pentane as a blowing agent and propel the segment growth. For instance, according to a study conducted by the University of York and the National Centre for Atmospheric Science in April 2021, the worldwide population uses more than 25 billion cans of aerosol products each year and is expected to grow continuously. Therefore, contributes to the surge in demand for pentane to further drive the segment growth over the forecast period.

By End-use Industry :

The end-use industry segment is categorized into cosmetics, pharmaceuticals, petrochemicals, paints and coatings, packaging, and others. In 2022, the petrochemicals segment accounted for the highest market share in the pentane market. The petrochemical segment is driven by factors such as the increased use of pentane for other petrochemicals such as isoprene, neopentane, and ethylene. In addition to this, the molecular structure and physical properties of pentane affirm it as an ideal component for natural gas production. The growing demand for ethylene across the world is significantly driving the incredible growth of the segment. For instance, according to the article published by Springer Nature Limited in November 2021, the demand for ethylene production is reaching approximately 200 million tons per year and is continuously growing. Thus, surging the demand for pentane and boosting the segment growth.

Moreover, the cosmetics segment is anticipated to grow at the fastest CAGR during the forecast period. The cosmetics segment has several applications of pentane ranging from solvent in various chemical processes to propellant in aerosol products. Thus, the growing use of pentane in the preparation of cosmetic and personal care products is expected to drive phenomenal segment growth over the forecast period.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

 
North America Pentane Market, 2022 (USD Million)

Regional Growth Insights

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In 2022, North America accounted for the highest market share of 33.92% valued at USD 44.65 Million in 2022 and USD 46.49 Million in 2023, and is expected to reach USD 66.06 Million in 2031. In the North American region, the U.S. accounted for the highest market share of 65.20% in 2022. The growth of the pentane market in this region is mainly attributed to the increasing use of pentanes in the petrochemical and cosmetic industries. The expanding applications of pentanes as solvent and propellant is another significant factor contributing to the phenomenal growth of the segment.

However, Asia Pacific is expected to grow at the fastest CAGR of 4.9% during the forecast period. The growth of this region is primarily attributed to factors such as the growing use of pentane in the infrastructure and electronics industry. For instance, according to the article published by China.org.cn in September 2022, China is the leading producer of consumer electronics, owing to improved innovation and brand building capacity. Thus, the increasing revenue of consumer electronics is drastically influencing the market growth in the Asia Pacific region.

North America Pentane Market, By Countries (2022)

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Pentane Market Competitive Landscape:

The pentane market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-

  • Junyuan Petroleum Group
  • HCS Group
  • Senzhihai Chem
  • Haldia Petrochemicals Limited
  • Air Liquide
  • RX Marine International
  • Vizag Chemical
  • KANTO KAGAKU
  • Junsei Chemical Co.,Ltd.
  • Merck KGaA
  • SEMA Gases
  • Nacalai Tesque Inc
  • Otto Chemie Pvt. Ltd.

Recent Developments :

  • In February 2023, Haltermann Carless, a company of HCS Group and a pioneer of sustainable hydrocarbon solutions, announced the introduction of a new low-carbon mass balance Pentane product range. The ISCC PLUS certified portfolio includes Cyclopentane, n- and iso-pentane as well as blends, which are used in specialty applications and industries such as in insulating materials for refrigerators or construction.
  • In July 2020, Haldia Petrochemicals Limited (HPL), a flagship company of The Chatterjee Group (TCG) which has its manufacturing facility in West Bengal, has acquired the U.S. firm Lummus Technology at an Enterprise Value (EV) of USD 2.725 billion from McDermott International on the 30th of June, 2020.
 

Frequently Asked Question

What was the market size of the pentane market in 2022?+

In 2022, the market size of pentane was USD 131.63 million

What will be the potential market valuation for the pentane market by 2031?+

In 2031, the market size of pentane is expected to reach USD 193.77 million.

What are the key factors restricting the growth of the pentane market?+

Long-term environmental effects associated with exposure to pentane is impeding the market growth.

What is the dominant segment in the pentane market by type?+

In 2022, the n-pentane segment accounted for the highest market share of 43.20% in the overall pentane market.

Based on current market trends and future predictions, which geographical region will have the fastest impact on the pentane market's growth in the coming years?+

Asia Pacific is expected to be the fastest-growing region in the market during the forecast period.