Dimer Acid Market Size By Application (Nonreactive Polyamide Resins, Reactive Polyamide Resins, Oilfield Chemicals), Industry Analysis Report, Regional Outlook (U.S, Germany, UK, China, India), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2023
Published Date: Jun 2016 | Report ID: GMI509 | Authors: Kunal Ahuja, Shreya Deb Report Format: PDF
Dimer Acid Market size was over 455 kilo tons in 2015 with gains forecast over 4% CAGR by 2023.
Europe Dimer Acid Market size, by application, 2012-2023 (Kilo Tons)
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Increasing polyamide resin demand on account of increasing construction spending may positively impact global dimer acid market. Rapid urbanization and economic growth coupled with high infrastructure spending in China, India, Brazil, Russia, Mexico & South Africa will propel dimer acid market size growth. Additionally, growth in manufacturing industries such as automotive, chemicals, metal foundry and electronics have fuel demand for industrial infrastructure.
Construction spending in China, India and Brazil may drive product demand. China & India construction spending was over USD 1.7 trillion and USD 421 billion respectively in 2015 which is likely to positively impact product demand over the foreseeable timeframe. Increasing construction projects in India such as roads & highways, hydropower, commercial buildings, residential real estate and urban transportation further may further drive global dimer acid market size.
Natural calamities such as tsunamis and hurricanes have been frequently experienced in Japan. The effect of these calamities subsequently propels construction spending undertaken by the government for rehabilitation. Japanese construction spending was above USD 700 billion in 2015. Oilfield chemicals are widely used in well drilling, hydraulic fracturing, and refining. Major oilfield chemicals are used in feedstock includes corrosion & scale inhibitors, demulsifiers, lubricants, wetting agents and surfactants. Increasing number of drilling activities across the globe in order to meet rising energy demand is expected to fuel demand for oilfield chemicals which may further boost dimer acid market size.
Increasing crude oil production is likely to drive the product demand for specialty oilfield chemicals. Russia was major crude oil producer, with an estimated production over 10 million barrels per day in 2015. Alternative means to derive energy over conventional transportation fuels such as gasoline, diesel and liquefied petroleum gas (LPG) is a major factor driving natural gas extraction. U.S. is a major natural gas market with production over 25 trillion cubic feet in 2015. China is estimated to produce 311 billion cubic meters of shale gas by 2020 in order to meet the country’s ever increasing energy demand and reduce reliance on conventional sources such as coal. Increasing natural gas extraction activities is forecast to positively impact dimer acid market growth.
Dimer and isostearic acid can be only manufactured by fatty acid polymerization under heat, pressure and catalysis. This polymerization process produces 10-15% of isostearic acid monomer and 70-80% dimer acid by volume. These two markets are linked inextricably as they are produced together. However, their applications differ considerably. Isostearic acid market demand was over 50 kilo tons in 2015 and is forecast to witness gains above 4.5% CAGR up to 2023. Key raw materials used to production include tall oil, rapeseed oil, cotton oil, sunflower oil and soy oil. Tight supply may lead to tight supply which may hamper dimer acid market price trends.
Dimer Acid Market, By Application
Nonreactive polyamide resins application generated revenue over USD 560 million in 2015. Rising solvent demand from industries such as printing inks, adhesives and paper coatings may drive global dimer acid market size for nonreactive polyamide resins. Reactive polyamide resins application is forecast to witness gains over 6.5% CAGR in terms of revenue. Increasing surface coatings & adhesives demand in marine and construction may drive product demand.
Oilfield chemicals application is forecast to surpass USD 360 million by 2023, with estimated gains over 6.5% CAGR. These have application extensively across gas extraction. Increasing shale gas exploration and production particularly in the U.S. and China may drive dimer acid market demand.
Dimer Acid Market, By Region
North America dimer acid market size, led mainly by the U.S. construction industry growth, was valued over USD 300 million in 2015. Growing infrastructure industry led by government initiatives is likely to drive epoxy & masonry coating agents and adhesives demand, which further may boost regional demand.
Europe, led by Germany & UK, is forecast to witness gains above 6% CAGR in terms of revenue. Growing oil & gas industry in this region is anticipated to complement demand. The European Central Bank has adopted quantitative easing strategy to keep private sector funding afloat which is likely to aid major end use industries such as construction, energy, transportation, and foundry. Asia Pacific, led by India and China dimer acid market size is forecast to surpass USD 850 million by 2023 with gains over 6.5% CAGR. Increasing urbanization coupled with inclining industrialization rates in China and India may drive demand for polyamide resins.
Competitive Market Share
Global dimer acid market share is fairly consolidated with key industry participants comprising above 45% of global share in 2015. Major industry participants include Arizona Chemicals, Oleon and Croda. Other notable participants include BASF, Anqing Hongyu, Aturex Group, Harima, Jiangsu Yonglin oleochemical, Shangdong Huijin, Novepha, Florachem, Liancheng Baixin, and Nissan Chemical.
Dimer Acid Industry Background
Dimer acid is recognized to have no toxic effect on human and animal. Favorable regulations by REACH and EPA may support global market. One of the major issues faced by market participants is the low biodegrading rate of the product. Increasing construction spending in Brazil, China, India, Mexico, Russia and South Africa is forecast to drive demand for reactive polyamide resins in epoxy coating agents, flooring & masonry coatings and adhesives. Growing water transport fleet may further drive polyamide resin demand for marine coating applications. Increasing oil exploration along the Gulf of Mexico and shale oil in the U.S. may ensure consistent demand for oilfield chemicals. Furthermore, large scale oil production in Russia and discovery of shale gas reserves in China may positively impact on dimer acid market growth.
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