Tetrahydrofuran (THF) Market Expected to Reach $8.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Tetrahydrofuran (THF) Market," The tetrahydrofuran (THF) market was valued at $3.9 billion in 2021, and is estimated to reach $8.2 billion by 2031, growing at a CAGR of 7.6% from 2022 to 2031.

Tetrahydrofuran (THF), also known as oxolane is a heterocyclic organic compound that is miscible in water. It possesses various significant properties such as excellent miscibility, chemical stability, and low boiling point that make it suitable for use as a solvent and intermediate in various end-use sector including plastic & polymers, pharmaceuticals, textiles, paints & coatings, and others.

Rise in urbanization has increased government spending on architecture sector where tetrahydrofuran (THF) is widely used as a solvent in manufacturing various paint formulations. For instance, according to a report published by National Investment Promotion and Facilitation Agency, the infrastructure activities accounted for 13% share of the total foreign direct investment (FDI) inflows in 2021. This is expected to foster the demand for tetrahydrofuran (THF) market during the forecast period.

Furthermore, surge in population coupled with rise in fashion consciousness has surged the growth of the textile sector in both developed and developing economies such as the U.S., China, India, and others where tetrahydrofuran (THF) is used as a raw material for producing various textile fibers such as spandex, and others. This is expected to boost the demand for tetrahydrofuran (THF) market in the growing textile sector. However, health hazards associated with the use of tetrahydrofuran (THF) may hamper the market growth during the forecast period.

On the contrary, factors such as rise in population coupled with emergence of advanced polymers have made customers more linear toward using polymer-based products where tetrahydrofuran is used as a solvent in producing polymeric formulations. Furthermore, polymer offers various significant advantages such as low cost, lightweight, high strength, and increased lifecycle that makes several end-use sectors use polymers as a building block in product manufacturing. This is anticipated to surge the popularity of tetrahydrofuran (THF) in the growing polymer sector; thus, creating lucrative opportunities for the market.

The tetrahydrofuran (THF) market is segmented on the basis of application, end use, and region. By application, the market is segregated into polytetramethylene ether glycol (PTMEG), solvents, and others. The polytetramethylene ether glycol (PTMEG) segment dominated the global market in terms of revenue in 2021, with 48.2% of the total share. This is attributed to fact that tetrahydrofuran-based PTMEG is used to produce a wide range of elastomeric products. Furthermore, it is a key ingredient that is used in the production of spandex fibers, thermoplastic polyurethane (TPU), and thermoplastic elastomer (TPEE).

By end use, the market is divided into polymer, textile, pharmaceuticals, paints & coatings, and others. The textile segment dominated the global market in terms of revenue in 2021, with 35.04% of the total share. This is attributed to the rise in building & construction activities in both developed and developing economies which in turn have led the building & construction sector to witness a significant growth where terahydrofuran-based protective coatings are widely used for weather resistance and corrosion resistance purposes.

Region-wise, the tetrahydrofuran (THF) market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific tetrahydrofuran (THF) market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major tetrahydrofuran (THF) market share in 2021, owing to the rising paints & coatings, polymer, textile, and other sectors have enhanced the performance of the methacrylate monomer in the Asia-Pacific region.

In addition, China's paints & coatings manufacturing sector is increasing rapidly which has forced the tetrahydrofuran manufacturers to produce more efficient tetrahydrofuran used as surface coatings and anti-corrosion coatings. Furthermore, the textile sector in India is witnessing a significant growth owing to increasing fashion consciousness among people where tetrahydrofuran is used as a raw material for producing various fibers such as spandex, and others. For instance, according to a report published by Indian Brands Equity Foundation in May 2022, India's home textile exports grew at a healthy rate of 9% in 2021.

Key players operating in the global tetrahydrofuran (THF) market include, Alfa Aesar, Ashland Global Holdings Inc., BASF SE, Eastman Chemical Company, EMCO Dyestuff, HONEYWELL INTERNATIONAL Inc, LyondellBasell Industries Holdings B.V., Merck KGaA, MITSUBISHI CHEMICAL HOLDINGS, Oakwood Products, Inc., Otto Chemie Pvt. Ltd., Solventis, TCI America, Toray Industries, Inc., and Univar Solutions Inc.

COVID-19 analysis

The pharmaceutical sectors have shown an impressive growth during the COVID-19 period where tetrahydrofuran (THF) is used in producing various drug formulations. For instance, according to a report published by India Brand Equity Foundation, the Indian pharmaceutical sector is expected to reach $372 billion by 2022, driven by rising health awareness and increasing income.

Furthermore, the building & construction activities are projected to get back on track and start functioning with full capacity post COVID-19 period which in turn may enhance the demand for tetrahydrofuran (THF) used for producing topcoats, corrosion protection coatings, and other coatings. For instance, according to an interim report for the 2021 Australian infrastructure plan, the Australian Construction Industry Forum (ACIF) expects the construction industry to return to pre-COVID-19 levels by 2022-23, driven by strong public investments. This factor may augment the growth of the tetrahydrofuran (THF) market during the forecast period.

Key findings of the study

• By application, the polytetramethylene ether glycol (PTMEG) segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.9% from 2022 to 2031.
• By end use, the polymer segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.8% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 53.6% in 2021, in terms of revenue, growing at a CAGR of 8.0%.