Acetylene Market Trends

Growth Drivers

• Growth in Automotive Industry – Transportation activities have been growing as a result of dynamic growth in the automotive industry.  The demand and production of commercial and passenger vehicles have been growing which is also boosting the growth of this sector at a larger scale. The growth of the automotive sector is directly anticipated to encourage the growth in the demand for acetylene, as acetylene is used for making the body and other metallic parts of vehicles. Therefore, worldwide growth in the automotive industry is estimated to boost the growth of the acetylene market in the projected time frame. For instance, from April 2021 to March 2022, the Indian automobile industry manufactured an aggregate of 23,945,350 vehicles, comprising passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles, compared to 22,552,607 units in April 2020 to March 2021.

• Worldwide Rising Production of Synthetic Rubber – Acetylene is widely employed in the manufacturing process of synthetic rubber. Natural rubber is derived from natural sources, whereas synthetic rubber is derived from petroleum products. It is utilized in tires, hoses, and other items that require flexibility and durability. Acetylene is utilized in the vulcanization process, which imparts strength and flexibility to rubber. It is the procedure of heating and chemically treating rubber to make it more durable and resilient. Hence, the radically increasing production of rubber is also anticipated to fuel the growth of the acetylene market in the coming years. For instance, the previous decade has witnessed a significant rise in the worldwide manufacturing of synthetic rubber. In the year 2000, around 11 million metric tons of synthetic rubber were manufactured. Whereas by 2020, this figure had increased to more than 14 million metric tons.

• An Upsurge in Construction Activities - For instance, in 2021, construction projects in the United States were estimated to be worth USD 1.8 trillion.

• Worldwide Growth in Pharmaceutical Sector - Many medicinal products are made using acetylene. It is a crucial material in the production of several types of painkillers including acetaminophen, aspirin, and other painkillers. Several antibiotics, such as penicillin and ampicillin, are also manufactured by using it. Hence, the worldwide growth in the pharmaceutical sector is also projected to spur the growth of the global acetylene market over the projected time frame. As per a report, in 2021, global pharmaceutical revenue exceeded around USD 1.50 trillion.

• Rising Demand for Polymers and Resins – Polymers and resins are widely used in various industries. They are frequently employed as raw materials in the molding and fabrication of plastics. Acetylene is frequently used in the production of polymers and resins that are very robust and durable and are utilized in various applications including construction materials, automotive components, medical devices, and so on. Hence, the rising application of these polymers is potentially increasing the demand for polymers and resins. Therefore, such an increasing demand for polymers and resins is anticipated to boost the growth of the market over the forecast period. For instance, approximately 11 million metric tons of polymers were manufactured in India during the year 2021.

Challenges

• Hazardous Effects of Acetylene - Acetylene inhalation can trigger anxiety, difficulty speaking, fatigue, nausea, vomiting, and headache. Excessive levels can cause difficulties breathing, seizures, high blood pressure, and irregular cardiac rhythms. The presence of toxic impurities causes such harmful effects in acetylene. Therefore, this factor is anticipated to inhibit market growth in the coming years.
• Highly Unstable Nature of Acetylene
• Rigorous Environmental Regulations Imposed by the Government of Nations