Methyl Ethyl Ketone Market size is forecast to reach $2,437.5million by 2025, after growing at a CAGR of 5.3% during 2020-2025. The demand for methyl ethyl ketone (MEK) is increased due to its excellent properties such as good solubility, stable performance, versatility, good drying speed, and more is widely used in the automobile and construction industry as a coating material.Also, increasing demand for methyl ethyl ketonein pharmaceutical and personal care industries wherein the manufacturing of antiseptics, anesthetics, lotions, and drugs will drive the growth of the methyl ethyl ketone industry over the forecast period.
Methyl ethyl ketone (MEK) acts as an excellent solvent, specifically in the paints and coatings sector. In addition, methyl ethyl ketone possesses higher boiling point and a slower evaporation rate owing to which it is widely used in the construction sector.
With people getting more health conscious, the demand for pharmaceuticals is increasing across the globe, in turn, leading to high consumption of solvents, such as methyl ethyl ketone, which are prominently used in the pharmaceutical and healthcare industry.
Swift growth of the electronics industry and rising use of automobile electronics will boost the methyl ethyl ketone market during forecast period.
Moreover, the COVID-19 pandemic and nationwide lockdown has deteriorated the industry due to pause in construction activities that have affected the Methyl Ethyl Ketone market.
Application- Segment Analysis
Paints & Coatings held the largest share in the methyl ethyl ketone market in 2019. It is a high-quality solvent with key properties that make it well-suited for paints, coatings and other applications. Methyl ethyl ketone chemicals have been used in the U.S. for decades. In the chemical family of solvents, MEK stands out as a one of the stronger options. Its slow evaporation rate also makes it an excellent option in terms of safe air quality. Most commonly used in the paints and coatings industry, it is also used in a wide range of other sectors. Methyl ethyl ketone is widely used as solvent in paints & coating applications owing to properties such as low viscosity, strong solvency and high evaporation rate. It is mainly used with polyurethane, epoxy, acrylic and polyester coatings due to miscibility with hydrocarbons without any effect on its characteristics. Due to lockdown in many countries, the demand for paints & coatings industry has been adversely hit.
End Use- Segment Analysis
Construction Sector held the largest share in the methyl ethyl ketone market in 2019 and is estimated to rise at a CAGR of 4.3% in terms of revenue during the forecast period from 2020-2025. The rising utilization of coating in the protection of buildings & infrastructures from corrosion will bolster the healthy growth of the market. Furthermore, the rise in construction activities will uplift the market potential during the forecast period. The increasing government investments in infrastructure development will spur the demand of the market. The enormous investment in residential and commercial building spaces will have a tremendous impact on the methyl ethyl ketone market. Government rules and regulations are expected to encourage the utilization of methyl ethyl ketone coatings in construction industry. In emerging economies such as India, increased foreign direct investments are anticipated to enhance methyl ethyl ketone market growth. Therefore, with the rising construction sector, the growth for methyl ethyl ketone market is anticipated to rise in the forecast period.
Geography- Segment Analysis
APAC dominated the methyl ethyl ketone market in terms of revenue with a share of 66.9% in 2019 and is projected to dominate the market during the forecast period (2020-2025). China is the largest producer of methyl ethyl ketone and acquired the share of 27.5% in the world export. With the gradual improvement in the Covid-19 situation in China, eight cities and provinces announced their investment budgets, which in total amounts to 33.83 trillion Yuan (US$4.8 trillion). These investments will led to massive construction projects and with the increase in construction projects the paints demand will also increase and hence methyl ethyl ketone market will grow.According to Trade map (ITC), Japan is the 2nd largest producer of methyl ethyl ketone and shares 23.3 % in the world export in the year 2019.Also, increasing use of paints in rising automotive, construction and manufacturing industries in India will drive the market growth for methyl ethyl ketone market. Thus, growing development in various end use industries in this region will further drive the market for methyl ethyl ketone in the forecast period.
Drivers –Methyl Ethyl Ketone Market
Rapid growth across various end use industries
More than 50 per cent of the market for methyl ethyl ketone products comes from the paint and coating industry as a low viscosity solution can be obtained without affecting the product’s film properties. These lacquers are used in the automotive, electrical, and furniture market. As a surface-coating solvent it is so efficient that it has become almost critical for the production of high solid coatings that minimize external emissions. Methyl ethyl ketone is also used in the manufacture of plastics and textiles, in the manufacture of inks, adhesives, chemicals and also in industrial cements made from rubber. It is also used in the chemical industry as it is a precursor to methyl ethyl ketone peroxide which is itself used as a catalyst to facilitate polymerization of polyester resins used in reinforced fiberglass goods. In addition, the rigid demand for electronic cleaning industry is increasing, and the dosage of Methyl Ethyl Ketone solvent is expected to increase further. The growing usage of solvents for electronic PCB assembly effectively to dissolve a broad range of contaminants including solder paste and flux residues and is an attractive option due to its high evaporation rate, low toxicity, and non-corrosive properties, tends to increase the growth of methyl ethyl ketone. Thus, owing to an increasing demand from various end use industries the market for methyl ethyl ketone is anticipated to rise in the forecast period.
An increase in the construction activities
Construction is likely to be one of the most dynamic industrial sectors in the next fifteen years and is utterly crucial to the evolution of prosperous societies around the world. The growing construction activities across U.S, China, and India, lead the demand of Methyl Ethyl Ketone. According to recent research by World Bank, if construction productivity were to catch up with the total economy, the industry’s value added could rise by $1.6 trillion a year. That would meet about half of the world’s annual infrastructure needs or boost global GDP by 2 percent, specifically on those three regions which are U.S, China, and India. Also, the implementation of innovative paints and coatings, which includes advanced materials to manufacture them, also tends to increase the growth of methyl ethyl ketone. The growing demand of paints and coatings, as the construction is growing, tends to increase the demand of methyl ethyl ketone. The composition or formulation of methyl ethyl ketone in paints and coatings is more than 50 percent, which, as a result, leads the growth in upcoming years.
Challenges – Methyl Ethyl Ketone Market
Crude Oil price fluctuation
Currently, the fluctuation of crude oil prices tends to increase the methyl ethyl ketone prices around the globe. The COVID-19 pandemic has become the major factor that has created growth constraint of methyl ethyl ketone. In February and March of 2020, crude prices accelerated their decline in reaction to the corona virus pandemic and an expected sharp drop in demand for oil. Besides, major oil producers failed to come to an agreement on production cuts, exacerbating the problem. By mid-March 2020, the price of U.S. crude oil was fluctuating just around $30 per barrel. Also, the world’s top oil producers pulled off a historic deal to cut global petroleum output by nearly a 10th, putting an end to the devastating price war between Saudi Arabia and Russia. The sudden fall and rise of crude oil prices, as per its production tends to affect the price of methyl ethyl ketone, as crude oil is the main source. Owning to this, the growing price of methyl ethyl ketone tends to create hurdles in the growth of the market.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the methyl ethyl ketone. In 2019, the market of methyl ethyl ketone has been consolidated by the top five players accounting for 43% of the share. Major players in the methyl ethyl ketone market are Petrochina Company Limited, Tasco Chemical Corporation, Exxon Mobil Corporation, Maruzen Petrochemical Co., Ltd, Shell Chemicals, Sasol Limited, ENEOS Corporation, Idemitsu Kosan Co., Ltd, Taizhou Petrochemical Co. Ltd. (Sinopec)and Zibo Qixiangtengda chemical Co., Ltd among others.