The oxo alcohol market is witnessing the extent of demands propelling from various end-user industries including oil & gas, automotive, pharmaceutical, textile, construction, and the chemical sector. Olefins are added to the hydroformylation reaction of carbon monoxide and hydrogen that results in the aldehyde. Further, the hydrogenation process is used on the aldehydes to form alcohols. The chemical processes involved are not limited to hydroformylation reaction only, but also extends to azeotropic distillation. The oxo alcohols are dehydrating agent that portray high demands owing to their application as solvents for preparing paints, plasticizers, coatings, lubricant additives, adhesives, and chemical manufacturing. The global demands in the oxo alcohols market generated revenues worth $8.2 billion in 2018. Foreseeing the heavy application of oxo alcohols in various end-user segments, the opportunities in the market are projected to grow at a CAGR of 3.5% during the forecast period 2019 to 2025.
North America: Most Lucrative Region in the Oxo Alcohols Market
The North American region was observed as the most productive region in the oxo alcohol market that acquired 33% of the total market share in 2018. These alcohols are an essential resource to manufacture polyvinyl chloride (PVC) products and the extensive demand for PVC plastics from the construction and the automotive industry is boosting the sales in the oxo alcohol market. Other than the plastic demands, the escalating demands for oxy alcohol byproducts from the paints and the coatings industry is one of the major reasons reflecting the heavy market share of North America. Considering the European region, the demands are sluggish due to global uncertainties such as the US-China trade war and Brexit that hindered the customer confidence in the market.
Additionally, the demands were also hampered due to stringent government policies in the region that portrayed the denial of plastic consumption in the region. However, APAC possesses a significant potential in the oxo alcohols market due to the growing indirect or direct demands from the flourishing construction and automotive industry.
Application Analysis in the Oxo Alcohols Market
Oxo alcohols have a range of applications such as plasticizers, acetate, solvents, lubricants, glycol ethers, and acrylates. Among these, the application of acrylates is poised to be the key application in the oxo alcohols market, also, the demand for this application is growing at a CAGR of 3.1% during the forecast period. Acrylates are mostly used for paintings, coatings, and adhesion applications. With growing paints and coatings demands in the constantly expanding construction, automotive, and the consumer electronics industry, the demands for acrylates are also incrementing that is further expected to benefit the global oxo alcohol market soon.
Oxo Alcohols Market Competitive Landscape
The companies influencing the oxo alcohols market are LG Chem, BAX Chemicals, Eastman Chemical Company, Dow Chemical Company, BASF Petronas, ExxonMobil Chemical Company, Qatar Petroleum, Andhra Petrochemicals, Arkema and Evonik Industries.