Global Phthalic Anhydride Market size is forecast to reach $7.33 billion by 2025, after growing at a CAGR of 4.6% during 2020-2025 owing to rise in utilization of polyvinyl chloride and polyester resins in end industries such as construction, electronics, equipment manufacturers, marine and automobile. The major factor driving the phthalic anhydride industry during the forecast period includes its increasing applications in wire & cable, swimming pool liners, roofing membrane, coated fabrics manufacturing. The wide usage of phthalic anhydride as a precursor to phthalate esters and as a plasticizer in polyvinyl chloride industries is driving the phthalic anhydride market during the forecast period.
- Asia Pacific dominates the global phthalic anhydride market, owing to the rising demand for lightweight materials such as PVC plasticizer in the automotive, aeronautics, construction and consumer good sectors in the region. According to OICA, in 2018 the production of light commercial vehicles has increased by 10.2 % in APAC.
- Owing to the extensive properties of alkyd resins such as corrosion and thermal resistant, there is an increasing demand of alkyd resins, which is likely drive the global phthalic anhydride market during the forecast period. Also, the increasing application of phthalic anhydride such as flame retardants, dyes and pigment is anticipated to drive the market.
- Phthalic anhydride derivatives such as unsaturated polyester resins, alkyd resins, detergents, insecticide and herbicide have varied applications due to which there is an increasing demand of phthalic anhydride from various end-users, which is further expected to drive the global phthalic anhydride market in the coming years.
- Stringent government regulations regarding environmental exposure such as Consumer Product Safety Improvement Act of 2008 (CPSIA), is anticipated to restrain the growth of phthalic anhydride market over the forecast period.
- Due to the COVID-19 Pandemic most of the countries has gone under lockdown, due to which operations of various industries such as automotive and construction has been negatively affected, which is hampering the global phthalic anhydride market growth.
By Process Type – Segment Analysis
Phthalic Anhydride is produced from two main sources i.e. o-xylene and naphthalene. It is anticipated that O-Xylene catalytic oxidation process is mostly preferred as naphthalene catalytic oxidation process has lower feed utilization and higher priced feedstock. 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.
By Application – Segment Analysis
The Plasticizer segment holds the largest share in the global phthalic anhydride market in 2019, 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.
By End Use Industry – Segment Analysis
The Building & Construction sector holds the largest share in the global phthalic anhydride market in 2019 and is growing at a CAGR of 4.9%, owing to increasing usage of phthalic anhydride for Polyvinyl Chloride (PVC) production. 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 US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. According to European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. The building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). Thus with the increasing building and construction sector the demand for polyvinyl chloride will also increase, which is anticipated to propel the global phthalic anhydride market during the forecast period.
By Geography – Segment Analysis
Asia Pacific region holds the largest share in the global phthalic anhydride market in 2019 up to 52%, owing to the increasing demand of Polyvinyl Chloride (PVC) based components from countries such as China and India, where the consumption of plastic is huge and is growing at a significant rate. According to International Trade Centre (ITC), in 2018 India held the largest share of 17.8% in world imports of phthalic anhydride i.e. worth USD 158,974 while only 3.1% of exports were made. Also, Korea, republic of held the largest share of 23.1% while Taipei, Taiwan held the second largest share of 12% in world export of phthalic anhydride. Thus the increasing consumption of phthalic anhydride in the region from various end use industries such as automotive and construction, is likely to drive the phthalic anhydride market during the forecast period.
Drivers – Global Phthalic Anhydride Market
- Growing Applications Of Phthalic Anhydride
Phthalic anhydride is often used as a monomer for synthetic resins such as alkyd resins, glyptal and the polyester resins, which are used for heat-resistant paints, marine coatings and insulation varnishes applications. Phthalic anhydride is also used as a precursor of anthraquinone, phthalein, rhodamine, phthalocyanine, fluorescein, and xanthene dyes, which are used for medical diagnosis research. Also, Phthalic anhydrides are used to yield antibiotic for bowel surgery and for infections of the colon such as phenolphthalein, benzoic acid, phthalylsulfathiazole and orthophthalic acid. Moreover, phthalic anhydride is an important chemical intermediate in the plastics industry from which numerous phthalate esters are derived that function as plasticizers in synthetic resins. These extensive properties and applications of phthalic anhydride act as a driver for the phthalic anhydride market.
- Extensive Properties of Phthalic Anhydride
The growing demand of phthalic anhydride from the automotive, aviation, construction, and furniture industries because of its properties such as lightweight, chemical rotting, high transparency, resistant to weather, corrosion, abrasion and impact resistance acts as a driver for phthalic anhydride market. The plasticizers are generally used in various end sue industries as they increase the polymers flexibility and elongation or ease of processing by reducing the cohesive intermolecular forces along the polymer chains. Also, PVC plasticizers are being widely used in the automotive and aviation sector as it can be cut, shaped, welded and joined easily in a variety of styles. These extensive properties of phthalic anhydrides act as a driver for phthalic anhydride market during the forecast period.
Challenges – Global Phthalic Anhydride Market
- Health Hazards Due To Exposure of Phthalic Anhydride
Exposure to phthalic anhydride may occur by inhalation of its aerosol and by ingestion. The substance is severely irritating to the eyes, skin and respiratory tract on short term exposure while the long term exposure may cause skin sensitization, conjunctivitis, rhinitis, rhino conjunctivitis, bronchitis, and irritation of the skin and mucous membranes of the respiratory tract. In addition, exposure to phthalic anhydride vapor causes congestion, irritation, and injury to lung cells. These health hazards of phthalic anhydride may restrain the global phthalic anhydride market growth during the forecast period.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the phthalic anhydride market. In 2019, the market of phthalic anhydride has been consolidated by the top five players accounting for xx% of the share. Major players in the phthalic anhydride market are Polynt S.P.A., Stepan Company, Thirumalai Chemicals Ltd., BASF SE, Hongxin Chemical Industry Co. Ltd., Nan Ya Plastics Corporation, Exxon Mobil Corporation, Aekyung Petrochemical Co. Ltd., I G Petrochemicals Limited, Koppers Inc., Mitsubishi Gas Chemical Co. Inc., UPC Technology Corporation, Asian Paints, Shandong Hongxin Chemical Co. Ltd. and Chevron Phillips Chemical Company.
- In January, 2018 Thirumalai Chemicals announced to establish its manufacturing plant of phthalic anhydride with capacity of about 60,000 tonnes per annum at Dahej in Gujarat, India.
- In May, 2018 I G Petrochemicals Limited announced about Brownfield expansion of PA 4 Plant by 2019. The company also announced to introduce specialty plasticizers to further strengthen the company’s positioning.