Maleic Anhydride Market

Market Overview

The global maleic anhydride market was valued at USD 2.45 billion in 2023. It is estimated to reach USD 3.50 billion by 2032, growing at a CAGR of 4.05% during the forecast period (2024–2032). The global maleic anhydride market is primarily driven by the surging demand from its end-user industries, especially the automotive industry, wherein it is used as a vital raw material for the production of UPR, which is an important component in automotive manufacturing. Furthermore, the key players in the global market are involved in strategic initiatives to strengthen their foothold in the market, thereby creating opportunities for market expansion.

An organic compound with the formula C₄H₂O₃ maleic anhydride is the acid anhydride of maleic acid. The colorless or white solid has a pungent smell. Industry uses this compound to make coatings, polymers, resins, and chemical derivatives. Maleic anhydride is produced by vapor-phase oxidizing n-butane, converting the methyl groups to carboxylate groups and dehydrogenating the backbone. For economic and efficiency reasons, modern methods use n-butane instead of benzene or other aromatic compounds to produce maleic anhydride.

Maleic anhydride has a rich chemistry due to its bifunctional reactivity and versatility in chemical reactions. Diels-Alder reactions, such as the one with 1,3-butadiene, were discovered with it and earned Otto Paul Hermann Diels and Kurt Alder the 1950 Nobel Prize in Chemistry. Pesticides, pharmaceuticals, polyimides, and liquid crystal display alignment films are made from this compound. Maleic anhydride dimerizes photochemically to form cyclobutane tetracarboxylic dianhydride, which is used to make polyimides.

Highlights

• N-butane dominates the raw material segment.
• Unsaturated polyester resins dominate the application segment.
• Automotive dominates the end-user segment.
• Asia Pacific is the highest shareholder in the global market.

Market Dynamics

Market Drivers

Growing Demand in the Automotive Industry

The global maleic anhydride market is significantly driven by its rising demand in the automotive industry. Maleic anhydride is a crucial raw material utilized in the production of unsaturated polyester resins (UPR), which are extensively utilized in manufacturing lightweight and high-performance automotive components. The automotive industry's increasing focus on reducing vehicle weight to enhance fuel efficiency and comply with stringent emission regulations has bolstered the demand for UPR, thereby driving the maleic anhydride market.

According to the International Energy Agency (IEA), the global automotive sector is projected to grow at a steady rate, with electric vehicles (EVs) expected to constitute 30% of total vehicle sales by 2030. This transition towards EVs necessitates the use of lightweight materials, further propelling the demand for maleic anhydride-based UPR. Additionally, the recovery of the automotive sector post-COVID-19 pandemic and the increasing adoption of advanced materials in vehicle manufacturing are expected to sustain the demand for maleic anhydride in the foreseeable future.

Market Restraint

Volatile Raw Material Prices

One of the primary restraints affecting the global maleic anhydride market is the volatility in raw material prices. Maleic anhydride is predominantly produced from benzene or n-butane, both of which are derived from crude oil. The fluctuating prices of crude oil, influenced by geopolitical tensions, supply-demand imbalances, and regulatory policies, directly impact the cost of maleic anhydride production. For instance, the International Energy Agency reported that crude oil prices have exhibited significant volatility, with prices ranging from $40 to $80 per barrel in recent years.

Such fluctuations create uncertainty in the supply chain, making it challenging for manufacturers to maintain stable production costs and pricing strategies. Additionally, environmental regulations and sustainability concerns are pushing for the adoption of bio-based alternatives, which, while beneficial in the long term, require substantial initial investments and may face challenges in terms of scalability and cost-competitiveness. These factors collectively act as restraints, hindering the steady growth of the maleic anhydride market.

Market Opportunities

Strategic Initiatives by the Key Players

The key players in the global maleic anhydride market are involved in several strategic initiatives like joint ventures, mergers and acquisitions, expansions, etc., to enhance their market share. For instance, in November 2023, Clariant, a sustainability-focused specialty chemical company, entered into a partnership with Conser, a division of MAIRE Group, to provide maleic anhydride catalysts. The collaborators will create advanced catalysts using Clariant's highly effective SynDane series, with the objective of providing enhanced productivity, cost-effectiveness, and sustainability.

Furthermore, in June 2022, PETRONAS Chemicals Group Berhad (PCG) has recently entered into an agreement with its joint venture (JV) firm, BASF PETRONAS Chemicals Sdn Bhd (BPC), to purchase the Maleic Anhydride (MAn) plant in Gebeng, Kuantan. The MAn factory was previously closed by BPC due to a product portfolio realignment effort, resulting in the permanent shutdown of its Butanediol (BDO) and derivatives unit. Through the acquisition, PCG will renovate and enhance the plant to manufacture superior-grade MAn that is more suitable for the food and pharmaceutical sectors. Thus, these initiatives are estimated to create opportunities for global market growth.

Regional Analysis

Asia Pacific Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia Pacific is the most significant global market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region is poised for significant growth in the bio-based chemicals market, driven by rapid industrialization, urbanization, and favorable government policies. Countries like China, India, Japan, and South Korea are at the forefront of this expansion, with robust economic growth and increasing investments in sustainable technologies. According to the United Nations, Asia is expected to account for 60% of the global urban population by 2030, driving the demand for construction materials, automotive components, and consumer goods.

Furthermore, favorable government policies and investments in infrastructure development in these regions are boosting the construction industry, thereby increasing the need for maleic anhydride in paints, coatings, and adhesives. For instance, India's Union Budget 2021-2022 allocated $14.85 billion for infrastructure development, emphasizing the construction of roads, highways, and urban infrastructure. Additionally, the rising middle-class population and increasing disposable incomes in emerging markets are augmenting the demand for consumer goods and automotive products, further creating opportunities for maleic anhydride manufacturers.

Europe is the fastest-growing region during the forecast period. In Europe, the maleic anhydride market is shaped by stringent environmental regulations and a strong emphasis on sustainable practices across industries. Countries like Germany, France, and the Netherlands are at the forefront of adopting eco-friendly technologies in manufacturing processes, including the use of maleic anhydride in green coatings and resins. The region's robust automotive sector, known for its high standards in vehicle manufacturing, also drives significant demand for maleic anhydride-based materials, particularly in lightweight vehicle components and coatings that comply with stringent emissions standards.

Additionally, ongoing investments in infrastructure development, such as smart city projects and sustainable building initiatives, further fuel the demand for construction materials treated with maleic anhydride-based coatings. Thus, Europe's commitment to sustainability and innovation positions it as a pivotal market for the growth and adoption of maleic anhydride across various industrial applications.

Segmental Analysis

The global market is bifurcated into raw material, application, and end-user.

Based on raw materials, the market is segmented into N-butane and benzene.

N-butane dominates the raw material segment. N-butane production is energy-efficient and cost-effective, which explains its dominance. N-butane became a popular feedstock for maleic anhydride production in the 1980s when Monsanto built a large-scale facility using it due to its efficiency and cost. From 1 ton of n-butane, one metric ton of maleic anhydride can be produced, making it cheaper than benzene, which costs 1.5 times more. Due to its cost advantage, n-butane is the preferred raw material for maleic anhydride manufacturing worldwide. In addition, strict benzene regulations in maleic anhydride production have helped n-butane dominate the market. Cost efficiency, energy efficiency, and regulatory compliance make n-butane the dominant maleic anhydride raw material. N-butane has optimized production processes and contributed to the growth and sustainability of the maleic anhydride market, making it the preferred raw material for manufacturers seeking efficient and economical production.

Based on application, the market is segmented into unsaturated polyester resins, 1,4-butanediol, additives, co-polymers, and others.

Unsaturated polyester resins dominate the application segment. Unsaturated polyester resins are widely used in many industries due to their versatility and benefits. Applications in automotive, construction, marine, and consumer goods make UPR the maleic anhydride market leader. Composite materials need UPRs for strength, durability, and corrosion resistance. Automotive manufacturers use these resins to make lightweight components that improve fuel efficiency and performance. UPRs are also used in construction to make sinks, countertops, tubs, and other structural elements due to their excellent molding and durability. Cost-effectiveness, ease of processing, and high-performance end products help UPRs dominate the maleic anhydride market. UPRs' versatility makes them popular in many industries. Thus, the UPR segment leads the maleic anhydride market, demonstrating its importance and widespread adoption in key sectors, driving market growth and revenue.

Based on end-user, the market is bifurcated into construction, automotive, textile, food & beverage, pharmaceutical, and others.

Automotive dominates the end-use segment. Maleic Anhydride's widespread use in automotive applications has established the automotive segment's market dominance. The automotive industry relies on unsaturated polyester resins (UPRs), which are made from maleic anhydride. The automotive industry values UPRs for their lightweight, durable, and corrosion-resistant properties. UPRs are ideal for body panels, bumpers, and interior parts due to their properties. The growing demand for lightweight and fuel-efficient vehicles has driven UPR use and maleic anhydride demand. Lubricating oil additives, which improve engine performance and lifespan, are also made from maleic anhydride. Moreover, maleic anhydride-containing additives disperse contaminants, reduce wear, and boost engine efficiency.

Recent Developments

• April 2024- A major player in the market for maleic anhydride, Huntsman Corporation, recently made an announcement regarding a strategic partnership with a leading chemical company. The purpose of this partnership is to improve the company's production capabilities and to expand its market presence. As a result of this new development, Huntsman Corporation intends to strengthen its position in the global market and meet the growing demand for maleic anhydride.
• May 2024- A new environmentally friendly production method for maleic anhydride was introduced by LANXESS AG, another significant player in the market for maleic anhydride. The process's primary goals are to lessen the negative impact on the environment and to encourage sustainable practices. LANXESS AG is now in a position to be a leader in environmentally conscious manufacturing processes as a result of this innovation, which is in line with the growing trend in the chemical industry toward environmentally friendly technologies and sustainable practices.