The market for phthalic anhydride derivatives is expected to grow at a CAGR of more than 4.4% globally during the forecast period. A principal commercial form of phthalic acid is phthalic anhydride. Phthalic anhydride derivatives include unsaturated polyester resins, alkyd resins, and plasticizers. The growing consumption of batteries and increasing use of the phthalic anhydride derivatives as industrial catalysts and solvents have been driving the market growth.
- However, the toxicity related to phthalic anhydride derivatives and the outbreak of coronavirus across the globe is likely to hinder the growth of the studied market.
- The renewable production of phthalic anhydride from biomass-derived furan and maleic anhydride are likely to provide opportunities for the phthalic anhydride derivatives market over the next five years.
- The construction industry is the most dominating end-user industry of the market studied.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and India.
Key Market Trends
Construction Sector to Dominate the Market
- Construction stands to be the dominating segment due to rising government investment in infrastructural expansion and growth of the residential sector all over the globe.
- Phthalic anhydride is utilized in the production of dioctyl phthalate which further used as a plasticizer for PVC. The increasing demand for molding of PVC products for many applications, such as pipes, windows, flooring, and roofing in the construction industry is likely to drive the market growth.
- Phthalic anhydride has been considered a major reference resin, used in the manufacture of paints and coatings based on alkyd resin and high-performance materials, such as solvent-based architectural coatings.
- Beneficial properties such as water and other contaminants corrosion resistance, temperature, aging resistant, low cost, and low shrinkage, demonstrated by unsaturated polyester resins, this is the preferred substance in the building and construction industry.
- It is commonly used in the construction industry for laminating resins, gel coats, pastes, putties, tooling resins, adhesives, and other formulations.
- All the aforementioned factors are expected to drive the phthalic anhydride derivatives market during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia Pacific region stands to be the largest and fastest-growing market for phthalic anhydride derivatives. Factors, such as booming paints and coatings industry, growing consumption of plastics in the region, and increasing manufacturing company preference owing to low labor cost which in turn have been driving the phthalic anhydride derivatives requirements in Asia-Pacific.
- The growth rate of paints and coatings market in the Asia-Pacific region is anticipated to stand at 5% over the forecast period and specifically high growth from countries like China, Japan, and India.
- China is the Asia-Pacific region's largest manufacturer of paints and coatings, with an annual output of over 20 million metric tons/year. In recent years, the country's building sector has experienced huge investments.
- Furthermore, in Japan, in 2019, a sudden rise in residential construction and projects related to the Tokyo Olympics 2020 prompted the growth of the construction industry during 2019. However, with the outbreak of corona virus, the Tokyo Olympics is further postponed to 2021.
- In addition, China is the world's biggest consumer of plastics. With the growing packaging and industrial industries in the country, demand for plastics is projected to increase. Because of these factors, demand for plasticizers is expected to increase in China, which, in turn, is expected to increase demand for phthalic anhydride used in plasticizers.
- Hence, all such market trends are expected to drive the demand for phthalic anhydride derivatives market in the region during the forecast period.
The global phthalic anhydride derivatives market is fragmented in nature. Some of the major companies are BASF SE, The Chemical Company, Koppers Inc., I G Petrochemicals Ltd, and LANXESSamongst others.
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