Oxo Alcohols Market Trends
Growth Drivers
- Rising Construction Activities - Oxo alcohols are alcohols that are made by mixing hydrogen and carbon monoxide (CO), mostly for use as a solvent in the coatings industry to get paints, coatings, and adhesives ready.
- Growing Usage in the Automotive Industry - Oxo alcohols are widely used in the automotive industry for the production of lubricating systems for vehicles and machinery.
- Increasing Demand for Cosmetics - Oxo alcohols are essential in many different industries, including cosmetics, where it is used as a fragrance component, solvent, and emollient found in personal hygiene and cosmetic goods owing to their increased flexibility, durability, and versatility.
- Expanding Pharmaceutical Industry - Oxo alcohols are dehydrating agents that are highly sought after in the pharmaceutical sector for use as extractants in medication manufacturing.
challenges
- Varying prices of raw materials - Oxo alcohols are produced using raw materials such as crude oil and derivatives, and their pricing is influenced by a variety of factors such as supply and demand outlooks and the perceived risk of market disruptions. One of the main factors influencing petroleum products is economic growth, which tends to increase demand for crude oil and push down prices, also impacted by the real exchange rate's volatility, speculative trading, and most importantly, the political stability of the oil-exporting nations.
- Environmental concerns associated with the production process may impact the market growth
- Stringent regulations related to emissions may limit the production
- Presence of alternatives is expected to affect the demand for oxo alcohols
Oxo Alcohols Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.1% |
|
Base Year Market Size (2024) |
USD 15.68 billion |
|
Forecast Year Market Size (2037) |
USD 29.94 billion |
|
Regional Scope |
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