Feb 24,2021/IndustryNewsGlobal/ The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Maleic Anhydride Market.
It was estimated prior to this unanticipated outbreak that the Maleic Anhydride Market was expected to grow at a CAGR of 5.2% during the forecast period. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Maleic anhydride is a highly reactive chemical intermediate that is flammable, colorless, and has an acrid odor. It is manufactured from the oxidation of n-butane and benzene through fixed bed, fluidized bed, and moving bed or catalyst bed at high temperatures. It is majorly used in the production of unsaturated polyester resin as well as in the production of coatings, surfactants, pharmaceuticals, agricultural products such as pesticides and as an additive for plastics.
Increasing penetration of composite materials in the automotive, aerospace, and construction industries is the prime factor that has boosted the demand for unsaturated polyester resins, which are used to manufacture composite materials. Rising disposable income along with increasing use of spandex in compression stockings, sportswear and medical textiles has boosted the demand for 1,4-butanediol. The escalating growth in the construction industries in BRIC countries and other developing economies is expected to further drive the growth of the maleic anhydride market. In addition, lenient government regulations, easy availability of land and raw materials, low labor and transportation costs are the major factors encouraging the key players to shift their manufacturing activities to developing economies such as China, India, Indonesia, and Brazil.
This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market.
Based on the raw material type, the market is segmented as n-butane and benzene. The n-butane segment held the larger share of the market in 2019, and is expected to remain dominant during the forecast period. N-butane-based maleic anhydrides are majorly preferred over benzene-based maleic anhydrides owing to their lower production cost and lesser harmful nature.
Based on the application type, the maleic anhydride market is segmented as unsaturated polyester resins (UPR), 1,4-butanediol (1,4-bdo), lubricating oil additives, copolymers, and others. The growth of the segment is mainly due to an increased demand for UPR from emerging economies, such as China and India, and its low price compared to the other epoxy resins. Increasing penetration of UPR in the marine, aerospace, automotive, construction, and chemical industries is expected to further drive the growth of the segment.
In terms of regions, Asia-Pacific is estimated to be the largest market during the forecast period, with China, Japan, and India being the countries with lucrative growth opportunities. The growth of the market is mainly driven by the expanding automotive and rising construction sectors in the major economies of the region. Increasing adoption of maleic anhydride to manufacture bulk molding compounds and fiberglass reinforced plastics is expected to further drive the demand for maleic anhydride in the region. Increasing disposable income, rapid industrialization, urbanization, and increasing spending in the construction sector in the region are expected to further drive the region’s market.
Some of the major maleic anhydride manufacturers are-