Cresylic Acid Market size is poised to expand at a notable pace from 2023 to 2032 due to the surging consumer demand for superior quality consumer electronics and the development of cutting-edge technologies.
The rapid penetration of smartphones, home appliances, and laptops driven by the rising disposable income and urbanization is driving the cresylic acid market outlook. Cresylic acid is widely used to manufacture electronic circuit boards for enhanced battery life. Rigid, multilayer, single-sided, flexible, and double-sided printed circuit boards are some of the common applications of cresylic acid for reducing power wastage. With increasing technological advancements and the growing need for next-generation smart electronics among Genzs, the demand for automated and miniaturized circuits for lightweight components is expected to boom.
According to the Indian Brand Equity Foundation, India, one of the largest manufacturers of mobile handsets in the world produced 290 million units in 2020-21. The Ministry of Electronics & Information Technology (MeitY) introduced the Phased Manufacturing Programme (PMP) in 2022 to ramp up the domestic value addition of cellular handsets and sub-assemblies.
While the demand for electronic gadgets remained solid during the COVID-19 pandemic, supply chain disruptions had a massive impact on cresylic acid production. The high reliance of manufacturers worldwide on China for electronic components hampered global business significantly. The pandemic also introduced several challenges associated with prices and procurement of raw materials. Furthermore, the Russia-Ukraine war aggravated commodity costs and inflation. Being the third-largest oil producer, Russia supplies petroleum to several countries worldwide. The war disrupted the global distribution of petroleum, hampering cresylic acid production.
Based on isomer, the demand for para cresylic acid is anticipated to increase notably over 2023-2032 on account of increasing automotive and construction applications. Para cresylic acid is extensively used to manufacture a wide variety of single and double-walled carbon nanotubes. They offer an array of benefits such as high affinity with water, high viscoelasticity, flexibility, strength, and high boiling point.
Cresylic acid market share from oil field chemicals is projected to register sizeable growth over 2023-2032. Oilfield chemicals containing cresylic acid are extensively used in the production of oil and gas to prevent scale deposition, corrosion, and hydrate formation. With the surging number of exploration and drilling activities by oil and gas firms worldwide, the demand for oilfield chemicals is expected to rise significantly, thus driving cresylic acid production.
Europe cresylic acid market is poised to expand at a substantial rate through 2032 driven by Germany, France, the UK, and Italy. Europe is expected to emerge as a hub for cresylic acid industry owing to the booing demand for electric and hydrogen-powered cars prompted by favorable government initiatives. In the recent past, several EU bodies have introduced supported vehicle and road maintenance tax exemptions, boosting the demand for para cresol. The advent of electric mobility is likely to spur cresylic acid industry expansion across Europe.
The cresylic acid market key players include Asahi Kasei, SABIC, RÜTGERS, Sasol, Nippon Crenol, SI group, and Lanxess AG.