Jul 15, 2021 SOURCE: BusinessWire

Worldwide Acetone Industry to 2026 - China to Dominate the Asia-Pacific Region - ResearchAndMarkets.com

The "Acetone Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The Global Acetone Market is projected to register a CAGR of over 3% during the forecast period (2021-2026).

Companies Mentioned

Altivia
BASF SE
Borealis AG
Cepsa
Formosa Chemicals and Fibre Corporation
Honeywell International Inc.
INEOS
KUMHO P&B CHEMICALS, INC.
LCY GROUP
Mitsui Chemicals, Inc.
Prasol Chemicals Pvt. Ltd.
PTT Phenol Company Limited
Reliance Industries Limited
Royal Dutch Shell plc

Key Market Trends

Methyl Methacrylate (MMA) Application to Witness Higher Potential Growth

Methyl methacrylate (MMA) is a colorless liquid, soluble in most of the organic solvents except in water and is the second-largest market for acetone. MMA is widely used for various medical, dental, and joint replacement procedures and for other industrial applications.
Moreover, MMA is majorly used to make polymethyl methacrylate (PMMA) resin, which is further used to produce PMMA plastics. PMMA plastic is considered an economical substitute for polycarbonate.
MMA may also witness further usage in various other applications, in the form of beads or pellets. The polymer form of MMA can be molded into a wide range of end-use products, such as rear-lights, lenses for glasses, and instrument consoles for vehicles and appliances.
In the automotive industry, MMA is used in auto-glazing and for exterior car coating, as it is weather resistant and protects from scratches. It is used in adhesives, coatings, and nail products.
MMA also stands to be an important chemical to the production of paints, coatings, and adhesives. These find application in the production of some of the floor coatings, traffic markings, and pedestrian walking markings.
With increasing expenditure in the infrastructure construction sector, especially on the development and renovation projects related to highways, the derived demand for MMA is expected to be created in the market.
Moreover, with the increasing commercial construction in countries, like China, South Korea, India, Qatar, Malaysia, and other countries, the demand for MMA-based floor coatings is also expected to increase.
According to the National Bureau of Statistics of China, in 2020, the market value of the construction industry is increased and estimated to around USD 1049.19 billion compared to 2019 which is valued at USD 968.06 billion.

China to Dominate the Asia-Pacific Region

In Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to 1.90% and is expected to witness recovery at a rate of 8.20% in 2021.
Although China is the first country effected by the COVID-19 and its related lockdown, it is the first country that has come out of the lockdowns and is starting its long journey toward normalcy. However, as a major chunk of the Chinese economy is linked to foreign exports where demand is still low, it may negatively effect the Chinese industry in the near future.
China stands to be the largest manufacturer as well as consumer of paints, coatings, and adhesives in the world. Therefore, the growing commercial construction activities and the increasing spending on infrastructure activities in the country are expected to increase the demand for MMA-based coatings in the country.
The Chinese construction industry is still strong, but growth is slowing, as is economic growth. While growth may not be occurring as quickly as in previous years, the country is still very strong economically. The construction industry in China is expected to grow at more than 4% during the forecast period, thus driving the demand for paints and coatings and consequently boosting the acetone market.
The non-residential infrastructure is expected to grow considerably in the country over the years to come. The aging population in the country is creating demand for the construction of healthcare facilities and new hospitals. The structural changes have also been noticed in the Chinese economy over the past few years as the service sector is taking larger and larger share in the total GDP has given rise to construction of huge commercial and office spaces. Besides, China is likely to witness construction of 7,000 more shopping-centers, which were estimated to be opened by 2025.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Drivers

4.1.1 Growing Usage in Production of Personal Care and Household Products

4.1.2 Growing Electronics Industry in Asia-Pacific

4.1.3 Increasing Demand for Polycarbonate Products

4.2 Restraints

4.2.1 Increasing Regulations by European Commission on BPA

4.2.2 Increasing Production of Methyl Methacrylate from Non-acetone Raw Materials