In the past decade, key competitive players of the global acrylate market and chemical research institutions have shifted their focus towards manufacturing acrylate products that are in accordance with environmental conservation. For a larger part of acrylic and acrylate production history, crude oil has been solicited as the primary raw material for manufacturing acrylate. Crude oil contains esters such as propylene that consist of carbon atoms which are double-bonded to each other, thus becoming the most important raw resource for churning out millions of tons of acrylate every year owing to its wide range of application. Since the 1980s, researchers have delved into producing acrylate through implementation of a chemical combination of ethylene with carbon dioxide with nickel and other metals acting as catalysts in the background. However, this process was consistently hindered by a precursor molecule formed by ethylene and carbon dioxide that was formed instead of acrylate with a ring made of nickel, oxygen, and carbon atoms. In a recent breakthrough however, researchers at Brown University and Yale University were able to work on a possibility of creating acrylate through the same process by adding Lewis acids which were able to break those rings quickly, resultantly inducing acrylate formation. This study which was funded by the National Science Foundation’s Centers for Chemical Innovation program has highly benefitted the acrylate market in making acrylate production more environment-friendly. Carbon dioxide is abundant in the atmosphere with rising toxic gas emissions throughout the world and can be extracted easily. Moreover, ethylene, the second primary component which formed the basis of this research can be easily manufactured from biomass. In 2018, the Acrylate Market earned a revenue of $6.2 billion and will grow with a CAGR of 6% during the forecast period of 2019-2025.
· Increasing Use Of Acrylic Polymer In Packaging Industry
Consumers around the world are transitioning from embracing traditional gender roles to expanding the working class to all genders, thus elevating the demand for purchasing products. One of the most promising industries to have emerged from this increase in purchasing power in most countries is packaging. With a consistent increase in disposable income, the demand for packaging has been rising prominently. Without a flexible packaging market, e-commerce businesses and shipping of industrial products will cease to exist. According to IndustryARC’s evaluations, the earned revenue of flexible packaging market in 2018 stood at $220 billion. This hefty revenue can be attributed to acrylic polymers are that are extremely lightweight and help in easy shipping of products. They are also highly resistant towards breakage, thus preventing any technical difficulties in the logistics sector. The automotive industry has also made use of acrylic polymer in glazing for several reasons. In the current scenario, the automotive sector is driven by a rising demand for vehicles that are environment-friendly. Acrylic polymer therefore, forms a near perfect component to meet this demand as it a replacement of glass that the automotive industry traditionally used.
· Rising Construction Industry In APAC Region Benefitting Acrylate Market
One of the prevalent applications of the acrylate market is in the paints and coatings as well as construction industries where acrylic paints are being increasingly used to prevent corrosion from external elements. During the forecast period of 2019-2025, the market segment of paints and coatings will grow with a CAGR of 6%. The Asia Pacific region has become increasingly attractive for key market players of the paints and coatings industry as the demand for construction rises. Some of the most populous countries with persistently high fertility rates such as India, China, Vietnam, and others continue to elevate construction demand in the region. According to the United Nations Population Fund (UNFPA), Asia and the Pacific collectively house 60% of the world’s population which is equivalent to approximately 4.3 billion people. This number continues to rise and with it, the demand for residential facilities. In Singapore for example, the Building and Construction Authority which works under the Singaporean Ministry of National Development has consistently assessed the burgeoning construction demand. In 2019, they released a press release which projected construction demand to range between SDG$27 billion to SDG$32 billion in value of awarded contracts of construction. Furthermore, external climatic factors such as excessive sunlight, tropical rain, Chinese winters, and others demands an anti-corrosion exterior surface that not only protects the buildings but also provides them with an appealing aesthetic appearance. Acrylic paints are often used on finished surfaces for their water-resistant properties. Their popularity has extended beyond construction industry owing to the visual appeal that they provide and they are now commercially sold for small scale projects such as leisurely painting, or street arts painted in commercial buildings including metro stations, airports, and others. This has made APAC region as the geographical leader of the global acrylate market with a noticeable share of 45% out of the total revenue earned by the market in 2018.
· Increasing Investment On Real Estate In Asia Pacific Region
The Asia Pacific market has attracted lucrative investment in the past five years from both foreign and regional investors. With the rise of non-banking financial companies in Asian countries, a transitioning economy of India from agricultural to services, and addition of manufacturing units in China, the demand for real estate will continue to rise in the region. Loose credit policies in India and China has tremendously helped local people in acquiring loans for real estate. This has instigated people to take the risk of buying more real estate properties and delve in constructing their individual houses. A country like India for example, is being cited as a burgeoning nation for investment and many regional players have also taken the lead. Japan has tremendously increased its investment in the Indian commercial property sector to constructed better rail networks, shopping centers, hospitals and other similar infrastructural developments. Even the slightest investment in real estate and construction industry has a direct positive impact on the acrylate market as its most common application is paints and coatings. Any building without being covered in paint would look placid and be prone to corrosion. A growing number of companies are gravitating towards paints procured from acrylate compounds in order to satisfy customers who are partial towards aesthetic appearances of surfaces which are enhanced by these paints. The growth of construction and subsequently paints and coatings industry is therefore, directly proportional to the increase in demand of acrylate market.
Key Market Players Of The Acrylate Market
Companies that are ahead of the curve in the acrylate market have helped the market in attaining a higher revenue by investing financial resources in accentuating production. The demand for acrylate and its derivative products is significantly rising owing to a wide range of end user industry that the market enjoys. Some of the key market players that have capitalized on this demand are Arkema S.A., BASF S.E, Nippon Shokubai Co., Ltd., Dowdupoint Inc., LG Chem Ltd., Taogosei Co. Ltd., Mitsubishi Chemical Corporation, Evonik Corporation, Sasol Ltd.,Momentive Specialty Chemicals, Lucite International, and Hexion Specialty Chemicals.
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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.