Oxo Alcohol Industry register a booming CAGR of 6.8% by 2031

Introduction

The oxyalcohols are produced by the oxo process, which involves the hydroformylation of olefins (alkenes) followed by hydrogenation. These alcohols have various industrial uses and are commonly used as chemical intermediates in producing plasticizers, coatings, adhesives, solvents, and other products. They are essential in various industries, including plastics, chemicals, automotive, construction, and textiles. The market share of oxy alcohol is expected to grow at a CAGR of 6.8% because of the growing demand for plasticizers, paints, and coatings across various industries. One of the key factors driving global demand for oxo-alcohols is rapid industrialization and the expansion of manufacturing units. Furthermore, as the world's population grows, so does construction activity, increasing demand for oxo-alcohol-based plasticizers.

Market Dynamics

Rise in Construction Activities Fuels Market Growth

Architectural coatings, including paints, varnishes, and protective coatings, protect and beautify buildings, bridges, and infrastructure. These coatings use oxyalcohols to improve durability, adhesion, and performance. The oxo alcohol market is driven by residential, commercial, industrial, and infrastructure growth. Construction and infrastructure include buildings, roads, bridges, and public facilities. Bridge coatings use oxyalcohols to resist weathering, corrosion, and wear. Urbanization drives coating demand by building new infrastructure and renovating old ones. Oxo alcohols are necessary for coatings that protect, last, and look good.

Rising Demand in Emerging Markets Creates Tremendous Opportunities

Due to rapid urbanization and infrastructure development, building materials, coatings, and adhesives are in demand in Asia-Pacific. Since oxo alcohols are needed to make these products, rising markets offer a significant opportunity for the global industry. According to the UN, the Asia-Pacific region has the highest urbanization rate, with over half its population living in cities.

In addition, urbanization drives demand for housing, transit, commercial spaces, and public facilities, which requires construction materials and coatings. Infrastructure projects like roads, bridges, airports, and smart cities drive Asia-Pacific construction growth. Asia-Pacific cities are developing residential, commercial, and hotel real estate. These initiatives increase demand for construction and interior finishing products, paints, and adhesives. Global Construction Perspectives and Oxford Economics' Global Construction 2030 research predicts that Asia-Pacific will account for almost 60% of global construction activity by 2030.

Regional Insights

Asia-Pacific had the largest and fastest-growing oxo alcohol market. The Asia-Pacific oxo alcohol business is driven by growing automotive and construction sectors, according to market insights. The demand for oxo alcohol in paints, varnishes, coatings, and adhesives has increased. The region has fewer rules than North America and Europe, expanding the market. Large-scale manufacturing in China drives oxo alcohol demand. China has a significant demand for coatings, paints, adhesives, and varnishes and has increased regional building spending. Its growing automobile industry uses many lubricants. These factors, along with low manufacturing costs and lax government regulations, will likely boost the oxo alcohol market over the projected period.

Furthermore, the rising solvent and plasticizer demand will make developing countries like Japan and India key oxo alcohol markets in the next years, presenting great prospects. In September 2022, India exported USD 2,332.92 million of organic and inorganic chemicals, 7.15% of all exports, according to the National Investment Promotion and Facilitation Agency (NIPFA). In addition, rising demand for OXO alcohol in plasticizers, co-monomers, and co-polymers is boosting market revenue growth. In May 2021, Indian petrochemical company Bharat Petroleum Corporation Limited (BPLC) launched an OXO alcohol processing unit in Kochi, Kerala, to generate 2-Ethylhexanol and other derivatives. These factors are growing the Oxo alcohol market here. Thus, the region is expected to increase substantially during the research.

The European oxo alcohol market has many major chemical and petrochemical companies. They produce, distribute, and sell oxo alcohol to downstream industries. The growing use of OXO alcohol in sustainable chemical derivatives and goods and strict solvent restrictions are projected to boost global revenue. The geopolitical crisis between Russia and Ukraine has also affected petroleum delivery. In September 2022, Russia will shut down the vital gas pipeline to Germany, according to WEF.

Further, in September 2021, German chemical manufacturer BASF SE introduced extremely efficient and sustainable chemical catalysts. This portfolio improves hand sanitizer production by employing catalysts to make isopropyl alcohol (IPA). This is critical during the COVID-19 pandemic since hand sanitizer is in high demand. BASF's catalyst Ni 3354 E combination is known for producing OXO alcohols effectively. The company will help customers achieve market share with sustainable and effective solutions with this launch. These factors have increased OXO alcohol production and profitability in this region.

Key Highlights

• The global Oxo alcohol market size was valued at USD 13.4 billion in 2023 and is projected to reach USD 22.6 billion by 2031, registering a CAGR of 6.8% during the forecast period 2023-2031.
• N-butanol, 2-ethyl hexanol, and isobutanol are the three product segments. N-butanol controls the majority of the market.
• Acrylates, Glycol Ethers, Acetates, Lube Oil Additives, Resins, Solvents, and Plasticizers are sub-segments based on Application. The most prevalent Application is acrylates.
• Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Asia-Pacific dominates the market.

Competitive Players

Competitive Landscape

The key players in the global Oxo alcohol market are DowDuPont, BASF SE, ExxonMobil Corporation, Eastman Chemical Company, Sasol, Grupa Azoty ZAK SA, Ineos, Formosa Plastics Corporation, and China Petrochemical Corporation.

Recent Developments

Market News

• In August 2023, Spectrum Plastics Group was acquired by DuPont.
• In January 2023, Cloudfarms, a subsidiary of BASF SE, and JBS Live Pig, a subsidiary of JBS USA and one of North America's major pig producers, began working together to increase production data management at sow operations in the United States (US).
• In July 2023, Exxon Mobil Corporation (NYSE: XOM) said that it had reached a binding agreement to purchase Denbury Inc. (NYSE: DEN), a seasoned developer of carbon capture, use, and storage (CCS) systems and enhanced oil recovery.
• In June 2023, Eastman introduced AdvantisTM adhesion boosters to combat problematic materials.

Segmentation

Global Oxo Alcohol Market: Segmentation

By Product 

• N-butanol
• 2-ethyl hexanol
• Isobutanol

By Application

• Acrylates
• Glycol Ethers
• Acetates
• Lube Oil Additives
• Resins
• Solvents
• Plasticizers

By Region

• North America
• Asia-Pacific
• Europe
• The Middle East and Africa
• Latin America