For the last few years, there has been a growth in demand for methyl methacrylate mainly driven by the rise in demand in the construction industry.Methyl methacrylate or MMA is widely used in the production of polymethyl methacrylate (PMMA), which finds extensive application in construction activities from windows and doors to decorative architectural surfaces.
Ongoing infrastructure development projects throughout the world, especially in developing countries, have increased the MMA consumption manifold. International bodies, such as the World Bank and IMF, are also estimating sound growth in worldwide construction spending within the next ten years.
MMA producers are expanding their production capacity to meet the increasing polymer demands of the construction industry. Recently, in June 2023, a global leader in the production of methyl methacrylate, Arkema, has commissioned a new MMA plant with an annual capacity of 120 kilotons in Singapore to strengthen its market position in rapidly growing Asian MMA markets.
Advances in PMMA Manufacturing Technology Sustain Ethyl Methacrylate Demand
Ethyl methacrylate is one of the key monomers used in the production process of PMMA. Technological upgradations undertaken to enhance PMMA quality and manufacturing efficiency have been favoring MMA demand from polymer producers so far.
Recently, in July 2023, Mitsubishi Chemical Corporation has chosen to expand the already available PMMA plant in Japan using the latest dehydration polymerization. However, it was also aimed to enhance the utilization percentage while MMA is utilized and to reduce waste products in the overall synthesis route of polymethyl methacrylate.
Recently, LG Chem also collaborated with Germany's Covestro to develop advanced MMA-based polymers using meta-chain branching technology. The polymers will be of improved viscosity stability and thermal resistance. They will start commercial production from 2024.
Higher MMA conversion-based product and process innovations would fuel the demand for ethyl methacrylate in the next few years.The ethyl methacrylate demand trend would gain impetus by continued investments into R&Ds to fuel innovation in the entire MMA value chain.
Availability of Alternatives Restrains Market Growth
Availability of substitute chemicals that can replace methyl methacrylate in certain end-use applications is one of the major factors constraining the market growth. MMA faces competition from alternative unsaturated monomers like vinyl acetate and butyl acrylate in some adhesive and sealant formulations.
Similarly, alternative polymers are available that possess properties comparable to PMMA. For instance, polycarbonate and cellulose acetate butyrate can replace PMMA in certain light fittings and exterior displays.
Stringent Regulations regarding MMA Emissions Hamper Production
Methyl methacrylate is highly volatile in nature and has an irritating odor. Exposure to its vapors can cause adverse health effects like headaches, dizziness, nausea, and skin/eye irritation in humans. Consequently, many regions have implemented stringent regulations limiting MMA manufacturing facility emissions.
For example, in the European Union, production plants must adhere to threshold limits specified for MMA workplace exposure and ambient air quality. Similar emission norms have been enforced in North America and some Asian countries as well. Complying with these regulatory standards increases producers' operating costs.
Asia Pacific Emerges as Lucrative Market for MMA
The Asia Pacific region has emerged as the high growth territory for methyl methacrylate in recent years. This trend is anticipated to continue in the upcoming period, driven by robust construction activities and flourishing end-use industries in various nations.
China currently dominates the global MMA demand, given the country's dominance in PMMA production. It accounts for over 35% of worldwide MMA consumption. Other Asian countries witnessing considerable consumption growth include India, Indonesia, Malaysia, and Vietnam due to their booming manufacturing sectors.
To cater to this extensive regional demand, many leading MMA manufacturers have commissioned large-scale plants or expanded existing capacities in the Asia Pacific. For instance, in 2023, Evonik increased its Singapore MMA plant output to 410 kilotons annually.
Methyl Methacrylate Market Players Adopting Strategic Expansions
Leading multinational producers are actively pursuing acquisitions and expansion strategies to augment their global MMA supply capabilities and gain a competitive edge. Some significant industry developments include:
- In February 2024, Arkema completed the acquisition of Spain-based Alquisola to expand its polymer synthesis capabilities in Europe.
- Dow DuPont announced plans to retrofit its polymethyl methacrylates manufacturing plants in India and Poland with advanced distillation columns to increase MMA yields.
- In March 2023, Mitsubishi Gas Chemical formed a joint venture with Taita Chemical to set up a 80 kilotons per year MMA plant in Thailand.
- Evonik commissioned a new production unit at its Mobile, US site in June 2023 to further augment North America's MMA access.
Such strategic expansion moves by prominent players are expected to ensure stable MMA supply to end-use industries and drive global market revenues upwards in the coming years.
