Saudi Arabia Diethylene Glycol (DEG) Market Trends: Petrochemical Demand, Industrial Applications & Market Forecast to 2034

According to IMARC Group's latest research publication, Saudi Arabia diethylene glycol (DEG) market size reached 32.6 Thousand Tons in 2025. Looking forward, IMARC Group expects the market to reach 45.5 Thousand Tons by 2034, exhibiting a growth rate (CAGR) of 3.78% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Diethylene Glycol (DEG) Market

• AI-Driven Process Optimization: Machine learning algorithms optimize DEG production parameters—temperature, pressure, catalyst ratios—in real-time, increasing yields by 8-12% while reducing energy consumption and minimizing waste in ethylene oxide conversion processes throughout Saudi facilities.
• Predictive Maintenance Systems: AI monitors equipment health across DEG plants, predicting failures before occurrence and reducing unplanned downtime by up to 50%. SABIC and Aramco facilities leverage these systems, extending machinery lifespan and ensuring continuous production reliability.
• Digital Twin Technology: SABIC implemented digital twins simulating DEG production lines, enabling virtual testing of process adjustments, optimizing energy efficiency, and forecasting deviations. This reduces trial-and-error costs while maximizing output and minimizing emissions in complex operations.
• Quality Control and Purity Analysis: Computer vision systems paired with spectroscopy analyze DEG purity continuously, detecting impurities instantly and ensuring consistent product quality. Automated adjustments maintain specifications for antifreeze, textile, and polyester applications, reducing defect rates significantly.

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How Vision 2030 is Revolutionizing Saudi Arabia Diethylene Glycol (DEG) Industry

Saudi Arabia's Vision 2030 is transforming the DEG market by doubling petrochemical production capacity from 75 million tons annually to over 140 million tons within five years, creating massive downstream chemical demand. Aramco's USD 69.1 billion acquisition of 70% of SABIC strengthened vertical integration across the hydrocarbon value chain, positioning the Kingdom as a global petrochemical powerhouse. SABIC commissioned a new MEG plant in Jubail with 700,000 tons annual capacity alongside a DEG plant producing 97,000 tons yearly, directly expanding supply. Aramco targets converting 4 million barrels of crude oil daily into petrochemicals and chemicals, substantially increasing feedstock availability for DEG production. The National Industrial Development and Logistics Program (NIDLP) prioritizes petrochemicals as export-oriented growth sectors, attracting foreign investment and technology partnerships. Major projects like the Sadara Chemical Complex and planned crude-to-chemicals facilities create integrated ecosystems where DEG production thrives. Government support for R&D through SABIC's Home of Innovation and King Abdullah University of Science and Technology accelerates process improvements and sustainability initiatives, solidifying Saudi Arabia's DEG competitiveness globally.

Saudi Arabia Diethylene Glycol (DEG) Market Trends & Drivers:

The Saudi DEG market thrives on robust demand from the textile industry, where DEG serves as a critical component in polyester fiber manufacturing. The Kingdom's textile sector is expanding rapidly—IMARC Group projects it will reach USD 12.9 Billion, driven by modernization efforts and quality improvements. Manufacturers embrace advanced technologies incorporating DEG to enhance fiber durability, flexibility, and performance in synthetic fabrics. Saudi Arabia's strategic position in global textile supply chains amplifies consumption. The government's Vision 2030 diversification initiatives support textile manufacturing growth through infrastructure investments and export incentives. Domestic apparel production increases alongside rising consumer demand for high-quality synthetic garments. The construction boom also fuels DEG demand for specialized textile applications in industrial fabrics and geotextiles. As manufacturers pursue cost-effective, long-lasting materials, DEG consumption intensifies. The textile industry's trajectory directly correlates with sustained DEG demand across production facilities in Riyadh, Jeddah, and industrial cities like Jubail, positioning the Kingdom as both a major consumer and emerging exporter of DEG-dependent textile products.

Petrochemical sector innovations under Vision 2030 dramatically expand DEG production and applications. Saudi Arabia's petrochemical capacity is doubling to over 140 million tons annually within five years, creating integrated value chains where DEG thrives. SABIC's USD 700 million Jubail project includes a dedicated 97,000-ton DEG plant alongside MEG and TEG facilities, demonstrating commitment to glycol production. Aramco and SABIC invest heavily in crude-to-chemicals complexes, optimizing feedstock utilization and production efficiency. DEG applications extend beyond textiles—antifreeze formulations for the automotive sector, solvents in chemical processing, humectants in cosmetics and personal care, polyester resins for coatings, and emulsifiers for industrial applications. The oil and gas sector uses DEG in drilling fluids and gas dehydration. Saudi producers leverage cost advantages from abundant ethylene oxide feedstock derived from natural gas and crude oil. Technology partnerships with global leaders like BASF and Linde bring cutting-edge production methods. As the Kingdom positions itself as the global petrochemical reference point, DEG benefits from economies of scale, technological advancement, and strategic export opportunities.

Automotive and industrial manufacturing growth drives DEG consumption across multiple applications. Vehicle sales rise as the Kingdom's automotive sector modernizes, creating consistent demand for DEG-based antifreeze and coolant formulations essential for engine performance in extreme desert climates. Manufacturers require specialized cooling systems maintaining reliability in temperatures exceeding 50°C, where DEG's thermal properties prove invaluable. The paints and coatings industry expands alongside construction megaprojects—NEOM, The Line, Diriyah Gate—consuming DEG as a solvent and resin component. Personal care and cosmetics manufacturers incorporate DEG derivatives as humectants and emulsifiers. The plastics sector utilizes DEG in specialized polyester resins and plasticizers for flexible materials. Agricultural chemical producers employ DEG in agrochemical formulations. Vision 2030's emphasis on local manufacturing and import substitution encourages domestic DEG production serving these diverse end-use industries. The convergence of automotive growth, construction activity, and consumer goods manufacturing creates sustained multi-sector demand, positioning DEG as an essential industrial chemical supporting the Kingdom's economic transformation and manufacturing base expansion.

Saudi Arabia Diethylene Glycol (DEG) Market Industry Segmentation:

The report has segmented the market into the following categories:

Application Insights:

• Antifreeze and Coolant
• Solvents
• Humectants
• Polyester Resins and Plasticizers
• Emulsifiers and Lubricants
• Others

End Use Industry Insights:

• Agrochemical
• Automotive
• Cosmetic and Personal Care
• Paints and Coatings
• Oil and Gas
• Textiles
• Plastics
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Diethylene Glycol (DEG) Market

• January 2026: Steady DEG pricing in Saudi Arabia supported ample inventory levels and consistent output from major players, maintaining balanced supply amid steady demand from textiles and coatings sectors.
• November 2025: Regional DEG prices eased modestly due to softer export demand from Asia and stable local production, reflecting flexible logistics and feedstock influences in the Middle East market.
• October 2025: Saudi petrochemical giant SABIC rolled out AI-powered monitoring systems in its DEG plants, boosting production efficiency by 12% and slashing energy use, enhancing overall operational reliability in the industry.
• September 2025: A breakthrough environmentally friendly DEG purification technology cut chemical waste by 25%, seeing quick uptake among Saudi manufacturers as they prioritize greener processes and sustainability goals.
• August 2025: The government kicked off a funded initiative offering up to 35% capital subsidies for local DEG producers adopting advanced chemical processing tech, spurring innovation and capacity upgrades.

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