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Methylal Market Forecast to Reach $445 Million by 2026

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Methylal Market Forecast to Reach $445 Million by 2026

April 22
22:00 2021
Methylal Market Forecast to Reach $445 Million by 2026

Methylal Market
The Increasing Automotive Industry Acts as a Driver for the Growth of Methylal Market.

Methylal Market is forecast to reach $445 million by 2026, after growing at a CAGR of 1.5% during the forecast period from 2021-2026. Methylal is also known as dimethoxymethane and is often produced by oxidizing methanol or through the reaction of formaldehyde and methanol. Globally, rising demand for methylal as blowing agents for PU foams, growing pharmaceuticals industries, flourishing cosmetic industry, and extensive properties of methylal such as good solubility, low boiling point, and anti-carcinogenic are the prime growth drivers of the methylal market. In addition, the emergence of methylal as an automotive fuel and diesel modification additive, increase in the adoption of methylal for application in newer industrial verticals will create new opportunities for the methylal market, which will then substantially drive the methylal market during the forecast period.

Methylal Market Segment Analysis – By Application

The pharmaceutical segment held the largest share in the methylal market in 2020 and is growing at a CAGR of 3.4% during the forecast period, owing to the increasing usage of methylal in the pharmaceutical industry. Methylal is a valuable extraction solvent and reaction solvent for pharmaceutical products. The substitute of ethyl ether and formaldehyde carrier is often used in medicine synthesis. These industries consume the bulk of methylal due to its low toxicity, high solvent power, and low viscosity. These extensive characteristics of methylal are anticipated to drive its demand in the pharmaceutical industry during the forecast period.

Methylal Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the methylal market in 2020 up to 36%. The methylal market growth is spurred by the rapid expansion of the medical & pharmaceutical industry mainly due to the growing population, urbanization, and increasing disposable income across the regions. Moreover, the growing investment in healthcare services is strengthening the medical and pharmaceutical industry such in 2018, the Australian Government announced to drive a new era of better health care in Australia it will invest $1.3 billion in the Health and Medical Industry Growth Plan. According to the Thailand Board of Investment Thailand is now becoming a key player in the $2.3 trillion global medical industry. According to the Indian Brand Equity Foundation (IBEF), India is the largest provider of generic drugs globally. Indian pharmaceutical industry supplies more than 50 % of global demand for various vaccines, 40% of US generic demand, and 25% of all medicines in the UK. And the Indian pharmaceutical sector is expected to grow to US$ 100 billion and the medical device market is expected to grow US$ 25 billion by 2025. In the pharmaceutical industry, methylal is used as a solvent. Thus, the market will be flourished by the cumulative healthcare investments by various countries to match safety needs demanded by a growing population, which acts as a driver for the methylal market during the forecast period.

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Methylal Market Drivers

Increasing Building & Construction Activities

Polyurethane foams play a major role in insulating and air-sealing homes and buildings – helping to reduce air leakage, which can result in lower utility bills, reduced greenhouse gas emissions, and improved indoor air quality, by helping to eliminate infiltration of dust and allergens. And methylal is used as a blowing agent in the manufacture of polyurethane foam. According to the US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. According to the European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. According to the International Trade Administration (ITA), the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. Also, the European Construction 2020 Action Plan aimed at stimulating favourable investment conditions. The building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). Thus, the rise in construction activities is expected to augment the demand for polyurethane foams, which acts as a driver for the methylal market during the forecast period.

Increasing Automotive Industry

Methylal is extensively used as a fuel additive in various end-use industries. And automobile fuel utilizes fuel additives for several benefits such as efficiency enhancement, vehicle durability, and pollution control, which in turn is driving the methylal market growth. In 2019, according to OICA, the automotive production in Malaysia and Vietnam has increased up to 571632, and 250000, i.e., 1.2%, and 5.5%, higher than the previous year due to rising per capita income of the individuals. According to the International Trade Administration (ITA), China is the world’s largest vehicle market and the Chinese government is expecting that automobile production will reach 35 million by 2025. According to OICA, the production of heavy buses has increased by 4.3 % in 2019 in the European region. With the increasing automotive industry, the demand for fuel additives will also increase. Thus, the increasing automotive industry acts as a driver for the methylal market during the forecast period

Methylal Market Challenges

Health Risks Related to Methylal

Although methylal is a compound that displays low toxicity, its use is governed by certain environmental regulations as it is a flammable liquid. Short term exposure to methylal can cause skin and eye irritation, along with nausea and dizzy headedness. Occupational exposure to methylal can lead to severe health damage and proper precautions such as protective clothing, face masks, and respirators must be undertaken to reduce the effects of methylal. End-use industries as well as manufacturers need to take precautions, to minimize the environmental leakage of methylal. Thus, all these health risks related to methylal is anticipated to hamper the methylal market growth during the forecast period.

Covid-19 Impact on the Methylal Market

Numerous building and construction activities in various regions have halted their operations, owing to the coronavirus pandemic, which is adversely affecting the methylal market growth during the outbreak. There has been a temporary suspension of building and construction activities in various regions. For instance, the construction output in Great Britain fell by a record 35.0% in Quarter 2 (Apr to June) 2020 compared with Quarter 1 (Jan to Mar) 2020. This value decline was due to the Corona Virus pandemic. In addition, the COVID-19 pandemic outbreak is having a huge impact on the automotive industry. The production of automobiles has been disruptively stopped, contributing to a major loss in the total automotive sectors. According to the European Automobile Manufacturers Association, In June 2020, demand for new commercial vehicles across the EU remained weak (-20.3%). With the decrease in automotive production, the demand for methylal has significantly fallen, which is having a major impact on the methylal market.

Methylal Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the methylal market. In 2020, the market of methylal has been consolidated by the top five players accounting for xx% of the share. Major players in the methylal market are INEOS, LCY Chemical, Chemofarbe, Shandong SNTON, and Fuhua Tongda

Key Takeaways

Asia Pacific dominates the methylal market, owing to the increasing demand and production of automobiles in the region. According to OICA, in 2019 the production of passenger cars has increased by 2.6 % in Malaysia.

Methylal has favourable physical and chemical properties such as good solubility in water and other solvents, and low boiling point, owing to which the compound is often used as a plasticizing agent for resins, and as fast evaporating solvents in various end-use industries.

The regulations regarding the use of volatile organic compounds in cosmetics have paved the way for methylal. Its non-toxicity and anti-carcinogenic nature are the desirable attributes that drive the adoption of methylal over traditional organic solvents in the cosmetic industry.

Due to the Covid-19 pandemic, most of the countries have gone under lockdown, due to which various industries operations are disruptively stopped, which is hampering the methylal market growth.

Related Reports :

A. Formaldehyde Market

https://www.industryarc.com/Research/Formaldehyde-Market-Research-510888

B. Methanol Market

https://www.industryarc.com/Report/18666/methanol-market.html

For more Chemicals and Materials related reports, please click here

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