Polyoxymethylene Market Worth Over $9 Billion by 2024
Published Date: January 11, 2018 Authors: Kiran Pulidindi, Hemant Pandey
According to a new research report by Global Market Insights, Inc., the polyoxymethylene market is expected to reach $9 billion by 2024, growing at 8.8% CAGR. By application, the automotive segment would remain lucrative during the study period.
Polyoxymethylene market will be majorly driven by drifting preference from metal to plastic components usage in automobile industry. The product application in vehicle body manufacturing reduces the overall weight of the automobile as well as results in significant reduction in pollutant emissions. These positive product attributes will drive its demand in automobile industry in the coming years. Automobile market growth shall be a major revenue generator for the global market over the projected timespan.
Increasing product popularity in medical field will also be a major driver for the polyoxymethylene market share during the forecast timespan. It is currently being used to manufacture pacemakers, joint replacement devices, etc. For instance, BASF’s Ultraform is used in manufacturing components that are used in sterilization procedures such as plasma, superheated steam and ethylene oxide. A major challenge for the market from 2017 to 2024 will be the oscillating crude oil prices. It directly affects formaldehyde production which may create inequity in product supply & demand dynamics during the forecast period.
Copolymer polyoxymethylene is poised to witness maximum growth rate over the forecast duration. This product has high flexural strength coupled with excellent fatigue resistance and lubricity. Its good electrical properties along with high mechanical strength makes it suitable for electrical applications requiring long-term stability. Copolymers are used in manufacturing bushings, clips, lugs, valves, faucets, etc. It is also used in milk pumps, filter housings, coffee spigots and food conveyors.
Reinforced polyoxymethylene shall witness prominent gains from 2017 to 2024. There are various additives available in market that can be added to the product to make a reinforced grade, for example, fiberglass, crosslinked rubber, talc filler, etc. Reinforced grades have high dimensional stability, reduced thermal expansion & shrinkage and high rigidity.
Automotive segment, in 2016, held the largest share in polyoxymethylene market. This enormous market share can be attributed to the growing prominence of plastic materials in replacement to metals in vehicle bodies. Electrical industry is also a major application segment for the global POM market as the product is extensively used in making wires, cables and other electrical components and devices.
Asia Pacific held a major share in global polyoxymethylene market size in 2016 and shall grow at a significant CAGR during the forecast timeframe. This can be mainly attributed to China, which holds the maximum share in global polyoxymethylene production. China is poised to witness maximum gains owing to its growing automobile and consumer goods industry over the forecast duration.
The polyoxymethylene market is highly competitive with some of the big multinational giants operating in this space. Some major players are BASF SE, DuPont, SABIC, ChemChina, LG Chem, Asahi Kasei and A. Schulman.
The market has high entry barriers for new entrants due to the capital intensiveness of this industry and widespread distribution network of established players. Companies are investing heavily in R&D initiatives to explore further product application scope, which will ultimately fuel the market size in the coming years. Polyoxymethylene market has both forward and backward integrated companies, for instance, Ensinger, which manufactures polyoxymethylene and makes bearings, seals and rollers from it.