Global Statistics Representing Acetone Market Scenario
Acetone, also referred to as propanone is an organic compound. It is a colourless, volatile, flammable liquid and is the simplest type of ketone. Acetone is miscible in water and is used as a solvent for cleaning in laboratories. Acetone finds applications in the production of methyl methacrylate and bisphenol. Acetone finds promising applications in several end-use industries including polymer, electronics, metal cleaning, paints and coating, printing inks, agricultural chemicals and automotive, among others.
Methyl methacrylate which is synthesized using acetone is commonly used in electronics and computer industry for technologies such as flat screen displays, DVDs, compact discs, and laser discs. Additionally, they are also used to enhance the resistance of printed circuit boards to attack by chemicals and prolong their life. Printed circuitry is being increasingly adopted in automotive sectors, with the increasing penetration of cutting-edge display technologies in different automotive applications. The increasing technological advancements in automotive industry coupled with an increase in the use of printed circuit boards in electronics sector is likely to raise the demand for acetone during forecasted period.
Rapid industrialization, growing demand of personal care products, rising expenditure in construction activities, and rising disposable income are expected to drive the acetone market during the assessment period. The increasing applications of acetone as a solvent in plastic manufacturing and increasing production and consumption of medicines and pharmaceutical products is expected to further increases the consumption of acetone in different end-use sectors.
However, increasing preference towards use of water-based solvents in paints and coatings coupled with increasing advancements in bio-based solvents including renewable acetone may restrain the growth of the market to some extent during the forecast period.
The global acetone market is segmented by application, end-use, and region.
Based on application, acetone market is segmented into methyl methacrylate, bisphenol-A and solvent. Bisphenol A application segment is expected to witness fastest growth during the forecast period. This is mainly attributed to its increasing applications in plastic industry. Acetone is used for manufacturing methyl methacrylate, which is used as an immediate in the production of PVC (Poly Vinyl Chloride). It also finds applications in the production of bisphenol A, which is used in production of polycarbonate and epoxy resins.
Based on end-use, the market is segmented into pharmaceuticals, personal care, paints & coatings, plastics, construction and electrical & electronics. Pharmaceutical segment is expected to hold a major share during the review period. Acetone is a common excipient used in the formulation of most of the common drugs. Furthermore, it is also used in denature alcohol. Plastics and personal care sectors are also expecting healthy growth over the next few years. Acetone is also used in the production of polycarbonate which behaves as a raw material in manufacturing of insulation for electrical applications. Additionally, it is also used at inadequate amount in household products, cosmetics, and personal care products such as nail polish, bath products, cleansing products, haircare products and skincare products, among others.
Geographically, the global acetone market is segmented into five major regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Asia Pacific is expected to dominate the market growth during the forecast period. Flourishing plastic industry in the region may raise the demand for acetone in the years to come. For instance, in China, the capacity of polycarbonate (PC) is increasing as a result of new 70,000 metric ton/year polycarbonate (PC) plant installed in Yantai, Shandong Province. The plant is expected to require up to 5,000 metric ton of BPA, thereby, increasing the demand for acetone. Furthermore, the increasing number of medium and large players in the region coupled with an increase in demand for acetone from construction sector is likely to further encourage the use of acetone throughout the assessment period.
Europe may witness significant growth during the forecast period. This is ascribed by the increasing expenditure in innovation in health care and cosmetic products coupled with the increasing purchasing power of consumers in few countries of Europe including Germany, U.K, Italy, Spain, Russia, and France. Increasing prevalence of chronic health disorders in the region is likely to raise the demand for acetone from the pharmaceutical sector in the years to come. This is justified by the statistical data released by the Office for National Statistics, according to which the total expenditure on healthcare in the UK accounted for nearly 9.8% of gross domestic product (GDP) in 2018.
North America is expecting considerable growth in the acetone market during the forecast period, 2018–2025 owing to its increasing applications in the automotive industry. Furthermore, the increasing efforts being undertaken by major acetone manufacturers such as The Dow Chemical Company and Altivia to further increase their penetration in the market is likely to further boost the growth of the acetone market in the near future.
Latin America is likely to witness healthy growth in the acetone market owing to the steady growth of plastic and automotive industries coupled with the gradually improving political situation in the region. This is justified by the fact that major automakers such as Volkswagen are shifting their focus towards Brazil for setting up production plants in the region.
Middle East and Africa is expecting steady growth in the acetone market owing to the increasing demand for acetone from construction sector. Additionally, the increasing tourism in few countries of the Midle East such as GCC and UAE, coupled with the organization of different sports events may encourage the growth of the construction sector, which may in turn raise the demand for acetone in the region in the next few years.
The global acetone market consists of some of the major players such as INEOS (Switzerland), The Royal Dutch Shell plc (the Netherlands), The Dow Chemical Company (the U.S.), Cepsa (Spain), Mitsui Chemicals, Inc. (China), Altivia (the U.S.), LCY GROUP (Taiwan) Formosa Chemicals & Fiber Corporation (China), Prasol Chemicals Pvt. Ltd. (India) and EMCO Limited (India), among others.
Acetone Market Segmentation