Global Cumene Market to Grow More Than USD 25 Billion By 2022: Acumen Research and Consulting
Acumen Research and Consulting, a global provider of market research studies, in a recently published report titled “Cumene Market
(Application: Phenol/Acetone, Others) – Global Industry Analysis, Market Size, Opportunities and Forecast, 2016 – 2022”
, forecasts that the global market for cumene is expected to grow at more than 6% CAGR, in terms of revenue, from 2016 to 2022 and reach the market value over 25 billion by 2022. The phenol/acetone segment accounted for the major market share, in terms of volume and revenue, in 2016. In response to the perennial alterations in paints & coatings industry, efficient thinners are experiencing increased demand, globally. Therefore, increase in necessity of cumene as a thinner and rise in the use of phenol-based composites and plastics fuels the market demand across the globe.
Growth in Chemical Manufacturing
The rise in demand for agrochemicals, pesticides, insecticides, and other chemicals attract several chemical manufacturers to set up new manufacturing facilities across several regions. Investment in chemical industry is rising on account ofan ongoing dynamic consolidation around more coherent business portfolios. Thus, increase in demand for phenols and acetones along with the rising investments in chemical manufacturing sector is anticipated to pose lucrative opportunities in the global cumene market over the forecast period.
Fluctuating Raw Material Prices
Escalating price of crude oil significantly impacts the price of cumene. Oil prices are expected to rise, owing to the huge import from the U.S. and rising percentage of car owners in China. The U.S. with only 5% of the world’s total population consumes around 25% of the oil production and imports two-third of the total. As the prices of crude oil rise to unaffordable levels, the demand for virgin plastics will also increase, which in turn, is expected to boost the prices of cumene. Prices of raw materials such as phenols and petroleum have increased by more than 20% over the last few years. Hence, fluctuating raw material prices is one of the major factors that hampers the growth of global cumene market.
Upsurge in the Use of Phenol Resins
Asia-Pacific dominated the phenol/acetone market in terms of volume in 2016, and is expected to continue its dominance throughout the forecast period. The use of phenolic resins with rubber or elastomer, normally includes phenolic resins based on alkylated phenolic monomers. Phenolic resins are increasingly used in a large number of end-use industries owing to high mechanical strength, heat resistance, low toxicity, ability to blend with polymers and low smoke. Moreover, rise in demand for phenolic resins from transport and construction industry coupled with increased usage of fire retardant materials in automotive and aircraft components are some major aspects driving the demand for cumene in the region.
Some of the major companies profiled in the report include The Dow Chemical Company, BP Plc, Royal Dutch Shell Plc., Exxon Mobil Corporation, Total S.A., BASF SE, SABIC, Axiall Corporation, JX Nippon Oil & Energy and Sumitomo Chemical Co., Ltd. among others.