Maleic Anhydride Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, the rising global demand for unsaturated polyester resin and the growth of end-user industries in emerging nations are major factors driving the growth of the market studied.
• However, increasing government regulations regarding the handling and application of maleic anhydride are a key factor anticipated to restrain the growth of the target industry over the forecast period.
• Still, the commercialization of bio-based maleic anhydride is likely to give the global market some good chances for growth in the near future.
• Asia-Pacific is estimated to witness healthy growth over the assessment period in the maleic anhydride market due to the wide usage of maleic anhydride in end-use application segments, such as automotive, construction, and other industries.

Maleic Anhydride Market Trends

The Unsaturated Polyester Resin Segment is Expected to Dominate the Market

• Maleic anhydride serves as the raw material used to produce unsaturated polyester resins. These resins are synthesized using maleic anhydride, along with phthalic anhydride, propylene glycol, and adipic acid.
• Unsaturated polyester resins (UPR) are used in the production of lighter, stronger fiberglass composites for boats, cars, construction, wind turbine blades, and a diverse range of consumer products. It is a key ingredient in making copolymers, which make it possible to use more sustainable raw materials, like wood fibers, to make plastic, stop corrosion, protect wires, and make sunscreens that don't absorb water.
• The expansion of the building and construction industry as a result of rising global population and lifestyle changes brought about by urbanization boosted the unsaturated polyester resin market significantly.Unsaturated polyester resin (UPR) is a major raw material for fiberglass composites, which are used for structural durability and decorative architectural features.
• The United States has one of the world’s largest construction industries, according to the US Census Bureau, the value of public residential construction spending reached USD 9.06 billion in 2021. The value of commercial construction reached USD 91.03 billion in 2021 and registered growth when compared to USD 86.82 billion in 2020.
• Germany has the largest construction industry in Europe. As per the Statistisches Bundesamt survey, the number of building permits for residential and non-residential buildings in Germany reached 158 thousand in 2021 and registered growth compared to 153 thousand permits in 2020.
• All of these things are likely to increase the demand for maleic anhydride over the next few years.

China is Expected to Dominate the Market in Asia-Pacific

• In the Asia-Pacific region, China was the market leader for maleic anhydride because construction was growing and the demand for cars, electronics, and personal care products was going up.
• China is globally recognized for its architectural boom. The demand for low-cost housing and commercial housing is the reason for its growth in recent years. According to the International Trade Administration, the value of China's construction industry reached USD 1,117.42 billion in 2021, registering impressive growth when compared to USD 1,049.19 billion in 2020.
• The country plans to invest USD 1.43 trillion in major construction projects over the next five years, until 2025. According to the National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion in the next three years, whereas Guangzhou has signed 16 new infrastructure projects with an investment of USD 8.09 billion.
• China is the world’s second-largest cosmetics market. The country's constant population growth fuels demand for cosmetics products.
• China is the largest manufacturer of automobiles globally. In 2021, the automotive production in the country reached 26.08 million vehicles, which increased by 3% compared to the 25.23 million vehicles produced in 2020.
• China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices, recorded the highest growth in the electronics segment. With the increase in the disposable income of the middle-class population and the rising demand for electronic products, countries are importing electronic products from China.
• Over the next few years, these things are likely to affect the demand for maleic anhydride in the country.

Maleic Anhydride Market Competitor Analysis

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• The market estimate (ME) sheet in Excel format
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