Acetone Market To Generate $9,590.9 Million Revenue by 2030
- Published: June 2023
The acetone market size is expected to advance at a CAGR of 7.4% during 2022–2030, to reach USD 9,590.9 million by 2030.
Acetone, an organic compound, is a transparent and inflammable liquid, miscible in water, that has various applications in several industries. The chemical is widely used in the automotive, electronics, metal cleaning, printing inks, polymers, agricultural chemicals, and paints and coatings industries.
The growing pace of automotive manufacturing, coupled with the rising use of printed circuit boards, is likely to raise the demand for this chemical during the forecast period. The ongoing industrialization, rising expenditure on construction, increasing demand for personal care products, and surging purchasing power are also expected to propel the acetone market over this decade. The augmenting number of applications of acetone as a solvent in plastic manufacturing and pharmaceutical products is also expected to increase its consumption.
Growing Application of Acetone in Producing Methyl Isobutyl Ketone (MIBK)
Besides heavily being used in the production of BPA and MMA, acetone has a key application as a raw material for MIBK, which is a component of acryl, vinyl, and epoxy resins and other chemicals. Epoxy resin has considerable adhesive qualities, making it a useful and versatile ingredient in numerous manufacturing industries. Due to its heat resistance, it is used in many finished products that require a strong resistance to pressure. Further, due to its durability and other beneficial properties, such as greater acid/base stability and low density, it can be used with wood, glass, fabrics, and metals. Such a wide application area drives its consumption in the electricals and electronics, paints and coatings, adhesives and sealants, and maintenance and repairs sectors.
Epoxy resins, which contain MIBK as a raw material, are widely used as an ingredient of engineering and structural adhesives owing to their strong heat, chemical, and corrosion resistance. Thus, the compound is extensively used in the construction of vehicles, aircraft, snowboards, and bicycles. Moreover, it is used in the manufacturing of motors, insulators, transformers, and generators. And, being an insulator and offering protection from dust, humidity, and short circuits, it remains one of the primary resins used in circuits, which supports acetone’s usage in the production of MIBK compounds. Thus, the MIBK category is expected to grow with a CAGR of 8% during the forecast period.
Growing Usage of Polycarbonates in Automotive Manufacturing
Being transparent and lightweight, polycarbonates are used to create exotic designs and boost vehicle efficiency, by reducing the weight, without affecting durability, and refining vehicle aerodynamics. Its high heat resistance permits its use in light housings, headlamp lenses, and bezels. Polycarbonate blends are best suited for cars’ interior and exterior body parts, to which they provide rigidity and excellent creep resistance.
Strategic Developments Are Expected To Foster Market Growth
The market expansion is expected to be driven by the rising count of mergers and acquisitions among market players. For instance, in April 2023, Mitsui Phenols Singapore Ltd. was acquired by INEOS AG, an acetone manufacturer, for approximately USD 330.0 million. The acquisition is expected to add more than one million tons of manufacturing capacity for acetone, cumene, BPA phenol, and alpha-methylstyrene to INEOS.
Further, in November 2019, Altivia acquired the acetone derivatives business of Dow, including its manufacturing plants at Institute Industrial Park, West Virginia. The acetone derivatives business of Dow manufactured carbinols and ketones, which are primarily used in the coatings, adhesives, and pharmaceutical industries.
The biggest acetone market players are INEOS AG, Honeywell International Inc., CEPSA QUÍMICA S.A., Mitsui Chemicals Inc., SABIC, Arkema, Solvay S.A., Formosa Chemicals and Fibre Corporation, Sasol Limited, Altivia, and Kumho P&B Chemicals Inc.