Growing demand from electronics, packaging, automotive tires drives global polyethylene naphthalate market

09-Aug-19

Growing demand from the end user industries such as electronics, packaging industries coupled with rising sales of automotive tires are driving the global polyethylene naphthalate (PEN) market. The global polyethylene naphthalate (PEN) market is expected to grow from US$1.17 bln  in 2018 to US$1.93 bln by 2026, at a CAGR of 6.38% during the forecast period from 2019-2026, according to a report published by Fior Markets. Polyethylene naphthalate is a polyester resin derived from naphthalene-2, 6-dicarboxylic acid and ethylene glycol. It is chemically quite similar to polyethylene terephthalate, however, it exhibits superior temperature resistant property. Polyethylene naphthalate is available only as biaxially oriented and heat stabilized films. These films are semi-crystalline and colorless, either crystal clear or slightly hazy. These films display improved UV resistance and barrier properties. Thus, polyethylene naphthalate films have emerged as a key component of food packaging applications. These films are also utilized in the production of pressure sensitive tapes and thermal sheets. Consequently, rising demand for the packaged food & beverages owing to changing lifestyle and increase in disposable income is driving the global demand for the polyethylene naphthalate (PEN) over the forecast period. 

Even though the factors such as growing demand for packaged food and beverages as well as growing utilization of the polyethylene naphthalate (PEN) films in the electronics industry are driving the global polyethylene naphthalate (PEN) market,he high cost of raw materials coupled with high production cost are expected to restrain the growth of the market over the forecast period. However, potential applications in the solar industry as well as growing demand for high performance tires are anticipated to create new opportunities for the polyethylene naphthalate (PEN) market growth in upcoming years.

PEN films are being increasingly used in the capacitors due to their wider operating temperature range above 125 deg C. Thus, to effectively satisfy this demand, Teijin DuPont Films in 2017, announced the collaboration with the SBE Inc. Under this collaboration, SBE will exclusively use DTF’s PEN HV film for all high performance high temperature applications in this expanded temperature range. For instance, in 2017, The Thai polyester giant Indorama acquired DuPont Teijin Films for an undisclosed amount. The joint venture between DowDuPont and Japan’s Teijin makes biaxially oriented polyethylene terephthalate (BOPET) and polyethylene naphthalate (PEN) films. It has 277,000 metric tons of film capacity per year and annual sales of about US$600 mln. With the purchase, Indorama will get eight production sites in the U.S., Europe, and Asia and an innovation center in the U.K. It will also acquire the Melinex and Mylar brands. In 2016, Tekra, A Division of EIS, Inc. has added new flame retardant films from DuPont Teijin Films offering high performance, low cost alternatives to engineers in the electronics, construction, labels, and lighting industries. Halogen-free, white Teijin Tetoron UF Polyethylene Terephthalate (PET) films and the Teonex QF Polyethylene Naphthalate (PEN) films combine inert chemical resistance, excellent tensile strength and dielectric properties with the VTM-0 flame rating available from Underwriters Laboratories’ UL 94 flame classification testing.

The packaging segment had a market value of US$486.52 mln in 2018. The application segment is divided into beverage bottling, packaging, electronics, automotive tires and others. Owing to their higher shrinkage resistance, dimensional stability, superior barrier properties as well as high-temperature stability, the polyethylene naphthalate (PEN) films are widely utilized in the packaging industry.  PEN resins are being extensively used in the manufacturing of capacitors and magnetic storage devices and coating application in flexible electrical circuit boards. Moreover, the polyethylene naphthalate (PEN) is also being utilized for insulation applications due to their excellent dielectric insulation properties. Therefore, the electronics segment is projected to grow at the fastest CAGR of 8.45% over the forecast period.

The Asia Pacific region is anticipated to grow the highest CAGR of 8.54% over the forecast period. Burgeoning demand for the packaged food and beverages is leading to an increased demand for the PEN packaging materials within the Asia Pacific region. The Asia Pacific region is home to world’s largest electronics goods manufacturing capacities. As a consequence, the region is projected to grow at the highest pace over the forecast period. The North America region held a significant share of global polyethylene naphthalate (PEN) market in 2018. The factors such as growing demand for the PEN films from the packaging and electronics industry as well as increasing demand for the high performance tires were responsible for this increased market share.

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