According to a new research report by Global Market Insights Inc., the Oxo Alcohols Market size is set to surpass USD 25,250 million by 2027.
The oxo process, also known as hydroformylation of olefins, along with the synthesis gas is a major way to produce C3-C15 aldehydes, which are later converted to acids, alcohols, or other derivatives. The increasing reach & development expenditure to develop novel production techniques with high efficiency and cost-effectiveness is anticipated to have a positive influence on the industry growth. Moreover, the rising usage of plasticizers in the automotive, construction, packaging, electrical transportation, and medical industry applications owing to their workability, softness, flexibility, and volatility will boost the oxo alcohols market growth.
The increasing consumer inclination and dependency on polymer-based products coupled with the growing importance of cost minimization are expected to accelerate the market growth during the forecast period. Phthalates are highly made from oxo alcohols owing to their end-use performance, processability, and low cost. Many manufacturers have shut down the production of phthalates owing to strict regulations in Europe and the U.S. as they may cause potential hazards to human & environmental health. This factor is expected to hamper the market growth in the foreseeable timeframe.
Increasing demand for n-butanol in the plasticizer industry is expected to drive the market growth
The global n-butanol product market surpassed USD 5,120 million in 2020. N-Butanol or normal butanol is a clear liquid with a characteristic odor. It is easily soluble in common solvents, such as alcohol, ethers, hydrocarbons, and glycols; however, it has limited miscibility in water. N-butanol is highly used as a chemical intermediate to produce plasticizers, glycol ethers, acrylates, and butyl acetate.
N-butanol provides reactivity as an intermediate at a high level owing to which it has a high demand in the market. Furthermore, rising applications in the plasticizer and paints & coating industries are anticipated to increase the oxo alcohols market demand. Increasing development in bio-based n-butanol owing to rising environmental awareness is expected to further boost the oxo alcohols market during the forecast period.
Browse key industry insights spread across 200 pages with 171 market data tables and 22 figures & charts from the report, “Global Oxo Alcohols Market By Product (N-Butanol, 2-Ethylhexanol, Isobutanol], By Application (Plasticizers, Acrylate, Acetate, Glycol Ether, Solvents, Adhesives, Lube Oil Additive), Regional Outlook, Industry Analysis Report, Price Trend, Competitive Market Share & Forecast, 2021– 2027” in detail along with the table of contents:
Increasing demand for acrylate in the packaging industry will stimulate the oxo alcohols market growth
Acrylate application segment is expected to exceed USD 3,955 million by 2027 owing to its increasing acceptance in the production of textiles, papers, paints, acrylic polymers, Polyethylene (PE), adhesives, and inks. Acrylate is used to produce acrylic polymers, increasing its demand for PVC products, in turn, is expected to propel the oxo alcohols market share.
Acrylates are also witnessing high demand in the packaging and construction industries due to their cost-effectiveness coupled with the growth in infrastructure & renovation projects. The major demand for acrylates from coatings, adhesives, textiles, and applications including polish, printing & dyeing. Changing lifestyles, increasing disposable incomes, and infrastructural developments have led to the growth of renovation & refurbishment activities coupled with construction projects.
The rising construction industry is expected to drive the market growth
The North America oxo alcohols market is expected to exceed USD 4,085 million by 2027 owing to the rising construction and automotive sectors in this region and increasing usage of oxo alcohols in chemical processing. Escalating demands from the plasticizer industry along with growing demand from the solvents industry are anticipated to be a key driver in the oxo alcohols market.
Growing utilization of coatings & paints in end-use applications, such as automotive, marine, industrial, and construction applications, will have a positive application on the paints industry growth. Innovative manufacturing techniques and process technologies along with the development of anti-corrosive and low VOC coats will propel the product demand. The rising construction industry coupled with increasing renovation projects is expected to further propel the oxo alcohols market growth.
The oxo alcohols industry is competitive and includes various players such as LG Chem, Grupa Azoty ZAK S.A., The Dow Chemical Company, OXEA GmbH, Evonik Industries, Perstorp Group, BASF, Sasol, Hanwha Chemical Corporation, Eastman Chemical, Elekeiroz, Andhra Petrochemicals, Bax Chemicals, and Exxon Mobil Corporation. Companies are focusing on expansion strategies by increasing their production capacities to increase their consumer base and market share. This factor is also helping them to meet the demand-supply gap and sustain in the market for a longer period.
Moreover, companies are also focusing on expanding their manufacturing plants in Asian countries owing to cost-effective labor and raw materials as this will lower their production costs and increase their profit margins. Furthermore, such expansion will also help these companies in avoiding strict environmental protection regulations of North America and Europe without compromising with their businesses.
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