Phthalic Anhydride Market Outlook - 2021-2030
The global phthalic anhydride market was valued at $3.7 billion in 2020, and is projected to reach $5.6 billion by 2030, growing at a CAGR of 4.2% from 2021 to 2030.
Phthalic anhydride is a white colored organic crystalline compound with the chemical formula C6H4(CO)2O that is formed due to catalytic oxidization of O-Xylene. It reacts exothermically when in contact with water and as such can accelerate corrosion. It is used to manufacture materials such as artificial resins. It is the commercially used form of phthalic acid. Phthalic anhydride is usually used as a chemical median for the production of plastics from vinyl chloride. It is known as an adaptable intermediate in chemical processes because it is bifunctional and readily available.
The global demand for phthalic anhydride market is primarily driven by surge in demand from building and construction, automotive, paints and coatings, electrical and electronics, marine, and agricultural industries. Phthalic anhydride is widely used in production of plasticizers. Around 90.0% of the plasticizers are used by PVC manufacturers to modify the property of their PVC products according to the requirement of the end user. Polyvinyl chloride (PVC) has physical properties such as dimensional stability and high strength, at a low lost. Rapid industrialization and urbanization across developing economies, such as China and India, led to surge in demand for new homes for accommodation of growing population in both urban and rural areas. As a result, the building & construction industry has been growing significantly in recent years, which led to surge in demand and production of PVC products across these countries. In addition, growing demand for PVC from automotive industry to be used in manufacturing of dashboards and automotive body parts such as automobile doors, sheathing electrical cables, and instrument panels, are expected to surge the demand for phthalic anhydride during the forecast period. In addition, phthalic anhydride-based alkyd resins are widely used in production of solvent-based coatings. Due to rapid industrialization across the developing economies such as China, India, and Brazil, the demand for paints and coatings has surged significantly to be used in architectural, machinery, furniture and fixture applications. Due to this, the demand for phthalic anhydride is anticipated to surge from paints and coatings manufacturers during the forecast period.
However, harmful effects of phthalates due to their toxicity and development of bio-based alternative of phthalic anhydride are expected to hamper the growth of the phthalic anhydride market during the forecast period. Furthermore, rise in demand for polyester polyols and surge in usage of glass fiber-reinforced polymers is expected to provide growth opportunities for the phthalic anhydride market during the forecast period.
The global phthalic anhydride market size is segmented on the basis of process, application, end-use industry, and region. By process, it is analyzed across o-xylene catalytic oxidation and naphthalene catalytic oxidation. By application, it is segmented into plasticizers, alkyd resins, unsaturated polyester resins, and others. By end-use industry, it is divided into paints & coatings, automotive, electrical & electronics, building & construction, agriculture, marine, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major key players operating in the global phthalic anhydride market include BASF SE, Nan Ya Plastics Corporation, Exxon Mobil Corporation, Asian Paints Ltd., C-Chem Co. Ltd., I.G. Petrochemicals Ltd., Koppers Inc., Mitsubishi Gas Chemicals Co. Ltd., Polynt Spa, Stepan Company, Thirumalai Chemicals Ltd. and UPC Technology Corporation. Other players operating in this market include Shandong Hongxin Chemicals Co. Ltd., Aekyung Petrochemical Co. Ltd. and LANXESS.
Global phthalic anhydride market, by region
Asia-Pacific accounted for a major market share in 2020, owing to surge in government spending on infrastructure development and rapid industrialization in countries such as China and India. This led to increase in demand for phthalic anhydride in the region. The Asia-Pacific phthalic anhydride market is driven by rise in need for phthalic anhydride in various end-user industries, including building & construction, automotive, paints & coatings, electrical & electronics, marine, and agriculture, as phthalic anhydride is used as raw material for the production of end product. In addition, the growing construction industry across the region are expected to create high demand for PVC products and which is anticipated to surge demand for phthalic anhydride from PVC products manufacturers which is likely to propel the growth of the phthalic anhydride market in Asia-Pacific region. Furthermore, Asia-Pacific is the leading region in the global market for automobile manufacturing. Governments of various countries across the region such as China and India, are encouraging people to use electrical vehicles in order to curb the carbon footprint and to reduce the dependency on the fossil fuels. Owing to this, the production of electric vehicles across these countries has increased considerably in the last ten years. Thus, the demand for PVC from automotive industry has been surged significantly for manufacturing of dashboards and automotive body parts.
Asia-Pacific would exhibit an CAGR of 4.5% during 2021-2030
Growing demand for PVC products across building and construction and automotive industry is expected to surge the demand of phthalic anhydride during the forecast period.
Global phthalic anhydride market, by process
The o-xylene catalytic oxidation segment accounted for a major share in the phthalic anhydride market in 2020 as naphthalene catalytic oxidation process has lower feed utilization and higher priced feedstock.
O-Xylene Catalytic Oxidation is projected as the most lucrative segment.
The high concentration of o-xylene in the feed gas also leads to removal of undesired by products and minimized burning of Phthalic Anhydride, which results in lower investment and operational costs. Moreover, the oxidation process of o-xylene permits a simpler feed system, because of its liquid state, than that of the oxidation process of naphthalene, which is the major factor driving the o-xylene process demand in phthalic anhydride market during the forecast period.
Global phthalic anhydride market, by application
The plasticizer segment accounted for a major share in the phthalic anhydride market in 2020 owing to its extensive properties such as flexible, bendable and durable, which ensures its high performance for a longer tenure. There is an increasing demand of phthalic anhydride from wire & cable, film & sheet, paint & coating, transportation and medical industries, for manufacturing PVC compounds such as packaging films, floor & wall covering, hoses, medical devices, cables & wire insulations, automotive units and synthetic leather. Thus, the ease of use of phthalate plasticizers at low-cost rates and wide usage in various industries are the major reasons driving the phthalic anhydride market during the forecast period.
Plasticizers is projected as the most lucrative segment.
Global phthalic anhydride market, by end-use industry
The building and construction industry accounted for a major phthalic anhydride market share in 2020. Phthalic anhydride is widely used in the production of Polyvinyl Chloride (PVC). Due to the extensive properties of Polyvinyl chloride such as low cost, high strength, and dimensional stability, the demand for PVC is increasing in the building and construction sectors for applications such as flooring, wiring and plumbing. The building and construction activities are expanding at a lucrative rate across the world. According to the U.S. Census Bureau, in February 2020, a total of 1,366,697 residential and non-residential buildings were constructed across the U.S. as compared to 1,288,951 buildings constructed in 2019, thereby registering a growth in building construction by 6.03%. In addition, according to the Federal Statistical Office (Germany), in 2020, 232,208 buildings were constructed as compared to 222,678 buildings constructed in 2019, thereby registering a growth in building construction by 4.10%. Furthermore, the booming construction industry across the region, owing to government-initiated housing projects, such as “Housing for All” for poor people living in urban and rural areas as well as the “Smart City Project” to provide smart homes with modern amenities, is expected to create high demand for PVC. Thus, with the increasing building and construction sector, the demand for polyvinyl chloride will also increase, which is anticipated to propel the growth of global phthalic anhydride market during the forecast period.
By End-use Industry
Building & Construction is projected as the most lucrative segment.
- According to the International Monetary Fund (IMF), owing to the outbreak of novel coronavirus (COVID-19), the global economy shrunk by 3.0% in 2020. Many countries are under strict lockdowns, which have forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of phthalic anhydride.
- According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across developing economies, such as India, has been worst affected due to the COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for phthalic anhydride from various end-use industries such as building & construction, automotive, and paints & coatings. In addition, in the second half of 2020, some countries started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the phthalic anhydride market growth in the coming years.
- According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of various manufacturing industries, such as automotive, building & construction, paints & coatings, and electrical & electronics, have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect production activities of these industries, thereby resulting in decline in demand for phthalic anhydride. This is expected to decline growth of the market during the forecast period.
- Attributed to the COVID-19 pandemic, the paints & coatings manufacturing units across various countries have been shut down amid lockdown imposed by governments of various countries across the globe. As a result, demand for phthalic anhydride-based alkyd resins that are widely used in production of solvent-based coatings has decreased significantly, which is expected to decline the growth of the market during the forecast period.
- Phthalic anhydride is widely used in production of plasticizers. Around 90.0% of the plasticizers are consumed by PVC manufacturers to modify the properties of their PVC products according to the requirement of the end user. Attributed to the outbreak of COVID-19 pandemic, the construction of various residential, commercial, and industrial projects has been halted amid lockdown. As a result, the demand for PVC products to be used in flooring, wiring and plumbing has declined. In addition, amid lockdown, various PVC product manufacturing plants have shut down their production activities, which resulted in decline in demand for plasticizers and have eventually affected the demand for phthalic anhydride.
- Phthalic anhydride is widely used in the automotive industry in the manufacturing of dashboard and various other automotive body parts such as doors, sheathing electrical cables, and instrument panels. The automotive industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak, resulting in shutdown of production activities due to the disruptive supply of automotive components. As a result, demand for PVC has declined significantly, which eventually has affected the demand of phthalic anhydride, and this trend is expected to continue till the imposed lockdown continues across various countries in the world.
Key benefits for stakeholders
- The global phthalic anhydride market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global phthalic anhydride market forecast for the period 2021–2030.
- The report outlines the current global phthalic anhydride market trends and future scenario of the global phthalic anhydride market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global phthalic anhydride market study.
Key market segments
- O-Xylene Catalytic Oxidation
- Naphthalene Catalytic Oxidation
- Alkyd Resins
- Unsaturated Polyester Resins
By End-Use Industry
- Paints & Coatings
- Electrical & Electronics
- Building & Construction
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Phthalic Anhydride Market Report Highlights
By End-Use Industry
Key Market Players
ASIAN PAINTS LTD., C-CHEM CO. LTD., STEPAN COMPANY, .KOPPERS INC., THIRUMALAI CHEMICALS LTD., POLYNT SPA, .I.G. PETROCHEMICALS LTD., BASF SE, MITSUBISHI GAS CHEMICALS CO. LTD., NAN YA PLASTICS CORPORATION, EXXON MOBIL CORPORATION, UPC TECHNOLOGY CORPORATION
According to the analyst, the global phthalic anhydride market is anticipated to witness growth over the forecast period, driven by rising demand for plasticizers from PVC manufacturers. The building and construction are growing globally at a very fast pace, and thus, is one of the drivers for the phthalic anhydride market. Growing demand for PVC products for applications such as flooring, wiring and plumbing in building and construction industry is expected to surge the demand for phthalic anhydride, as it is widely used in manufacturing of plasticizers used to produce PVC products. In addition, surge in automobile production, especially the electric vehicles have led to increase in demand for PVC from automotive industry for manufacturing of automotive body parts. This is projected to drive the growth of phthalic anhydride market during the forecast period. Furthermore, phthalic anhydride is majorly used for the manufacturing of alkyd resin-based paints and coatings. Growing consumption of alkyd resins in developing economies such China, India, and Brazil, due to the growing paints and coatings industry is anticipate to drive the demand of phthalic anhydride. These factors are expected to drive the growth of global phthalic anhydride market during the forecast period.
However, harmful effects of phthalates due to their toxicity and development of bio-based alternative of phthalic anhydride are expected to hamper the growth of the phthalic anhydride market during the forecast period. Furthermore, growing demand for polyester polyols and surge in usage of glass fiber-reinforced polymers is expected to provide growth opportunities for the phthalic anhydride market during the forecast period.