MALEIC ANHYDRIDE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Maleic Anhydride Market Size and Forecast – 2024-2031

The global maleic anhydride market is estimated to be valued at USD 4.56 Bn in 2024. The market is expected to reach USD 6.68 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

Key Takeaways of the Maleic Anhydride Market:

• The n-butane segment is projected to represent 55.3% of the global maleic anhydride market share in 2024.
• The unsaturated polyester resins (UPR) segment is expected to account for 35.6% of the global maleic anhydride market share in 2024.
• Asia Pacific is expected to top the market with 53.8% share, followed by North America with 23.5% share in 2024.

Market Overview:

The market growth is primarily driven by the increasing applications of maleic anhydride in several end-use industries such as construction, automotive, and agriculture. This is attributed to the growing demand from end-use industries such as construction and automotive. Additionally, the demand for unsaturated polyester resins from emerging economies is also contributing to the market growth. Market players are investing in capacity expansion to cater to the rising product demand.

Segmental Insights

To learn more about this report, Request sample copy

Raw Material Insights - The n-butane segment leads driven by rising demand across various industries, including infrastructure development

In terms of raw material, the n-butane segment is expected to account for 55.3% of the global maleic anhydride market in 2024, dominating the raw material category. Its prominence stems from the highly efficient conversion process it offers. Maleic anhydride production using n-butane is often integrated into petrochemical complexes, where refineries transform n-butane into maleic anhydride alongside other valuable by-products. This integrated approach enables producers to optimize resource utilization and enhance profitability from n-butane feedstock.

Application Insights - Unsaturated polyester resins lead application

In terms of application, the unsaturated polyester resins (UPR) segment is expected to hold 35.6% share of the global maleic anhydride market in 2024. Maleic anhydride serves as a critical co-monomer and chemical building block in polyester resin production. These resins offer diverse properties, making them suitable for applications in construction, transportation, industrial machinery, and others. Rising infrastructure development in emerging markets, coupled with maintenance and repair activities in developed regions, continues to drive the demand for polyester resins.

Regional Insights

To learn more about this report, Request sample copy

Asia Pacific Maleic Anhydride Market Trends

In Asia Pacific, dominance in this market can be attributed to rapid industrialization, a growing chemical industry, and significant demand from applications such as unsaturated polyester resins and 1,4-butanediol. The region is expected to account for 53.8% of the market share in 2024, driven by increasing construction and automotive activities. Major players such as BASF SE in the region are capitalizing on this growth to maintain Asia Pacific's leading position in the market.

North America Maleic Anhydride Market Trends

North America region exhibits the fastest growth, contributing 23.5% of the market share in 2024. This growth is fueled by a robust chemical industry and increasing demand for maleic anhydride in applications such as unsaturated polyester resins and 1,4-butanediol. The presence of leading manufacturers such as Huntsman Corporation and advancements in production technologies further strengthen North America's position as the fastest-growing market.

Maleic Anhydride Market Outlook for Key Countries

U.S. Maleic Anhydride Market Trends

The U.S. maleic anhydride market benefits from sizable demand from domestic end-use industries and exports. Key industry participants in the country play an influential role. This dominance is driven by growth in the agricultural, automotive, and construction industries. For instance, according to data published by TST Europe in February 2024, U.S. construction spending reached US$ 1.98 trillion in 2023, a 7.4% increase from 2022. Non-residential construction grew significantly by 17.6%, while residential spending declined by 3% due to inflation and higher interest rates. Annually, the U.S. builds structures worth over US$ 1.8 trillion, bolstering product demand.

India Maleic Anhydride Market Trends

The expanding pharmaceutical industry in India is driving the demand for maleic anhydride. In 2023, according to the India Brand Equity Foundation (IBEF), India is the third-largest pharmaceutical producer globally and supplies over 50% of the world's vaccine demand. This robust production capacity, coupled with ongoing investments in pharmaceutical manufacturing and research, underscores the growing importance of maleic anhydride in pharmaceutical applications, including the synthesis of active pharmaceutical ingredients (APIs).

Germany Maleic Anhydride Market Trends

Germany is a leading exporter of maleic anhydride, with exports totaling US$ 131 million in 2022, making it the second-largest exporter globally by The Observatory of Economic Complexity (OEC). This strong export position is driven by the country's robust automotive and construction sectors, which are significant consumers of maleic anhydride for producing unsaturated polyester resins used in various applications. For instance, according to International Trade Centre (ITC) Trade Map and German Automotive Industry Association (VDA), in 2022, Germany's automotive industry produced approximately 4.7 million vehicles, underscoring the substantial demand for maleic anhydride-derived products.

Saudi Arabia Maleic Anhydride Market Trends

Fluctuations in crude oil prices significantly impact the maleic anhydride market, as crude oil is a primary raw material for its production. For instance, according to the International Trade Centre, crude oil prices fell from over US$ 100 per barrel in 2011 to approximately US$ 50 per barrel in March 2020, creating uncertainties for maleic anhydride producers. In Saudi Arabia, the market is influenced by raw material costs, trade operations, and supply-demand dynamics, aligning with global market trends.

Japan’s Maleic Anhydride Market Trends

Japan's maleic anhydride market is driven by its advanced automotive sector, which emphasizes lightweight materials for fuel efficiency. The country is witnessing a shift towards sustainable practices, with increasing adoption of bio-based maleic anhydride. This trend is supported by technological advancements in production processes, enhancing the competitiveness of Japanese manufacturers in the global market.

Market Players, Key Devlopment, and Competitive Intelligence

Get actionable strategies to beat competition: Request sample copy

Key Developments:

• In November 2023, Clariant announced its acquisition of Jiangsu Shenghong Petrochemical Co., Ltd., a prominent Chinese petrochemical company known for its advanced production capabilities and strong presence in the chemical industry. As part of this agreement, Clariant's SynDane 3142 LA catalyst will be utilized in the development of a new maleic anhydride (MA) production facility located in Lianyungang, China further enhancing the company's foothold in the market.
• In October 2023, Huntsman resumed maleic anhydride production at its Moers facility in Germany, following an unexpected maintenance shutdown that had temporarily halted operations. The Moers plant is recognized for its notable annual production capacity of 105,000 tons of maleic anhydride.
• In June 2023, PETRONAS Chemicals Group Berhad (PCG), a leading integrated chemicals producer in Southeast Asia known for its diversified portfolio and strong market presence, announced the acquisition of a 113-kilotonne-per-annum (ktpa) maleic anhydride (MAn) plant located in Gebeng, Malaysia. The facility was acquired from BASF PETRONAS Chemicals Sdn. Bhd. (BPC), a joint venture between BASF, a global chemical company renowned for its innovation, and PETRONAS, Malaysia’s national oil and gas corporation. This acquisition strengthens PCG's position in the maleic anhydride market and expands its production capabilities.

Top Strategies Followed by Global Maleic Anhydride Market Players

• Established Players: Leading companies in this market focus extensively on research and development to innovate high-performance products. They invest heavily in R&D to develop novel production techniques and maleic anhydride grades with improved properties.
• • For instance, Huntsman Corporation, a prominent player, has extensively invested in expanding its R&D capabilities over the years. It operates various research centers globally focused on developing sustainable and high-quality solutions for customers.
• Mid-Level Players: Mid-sized companies in the market adopt strategies focused on delivering quality, cost-competitive products targeting price-sensitive consumer segments. They aim to produce standardized as well as customized product grades at competitive prices.
  • For example, Polynt-Reichhold Group produces a wide range of high-quality unsaturated polyester and vinyl ester resins along with other specialty chemicals and composites at economical costs.
• Small-Scale Players: Small players cater to specific niche application areas and customer demands by offering unique product features or technologies. They precisely target specialized sectors like coatings, adhesives, etc. with innovative and customized solutions. Companies like Bartek Ingredients Inc. offer niche services like R&D collaborations and toll manufacturing to create product synergy for customers with specialized needs.

Emerging Startups - Global Maleic Anhydride Industry Ecosystem

• Innovative Technologies: Startups are contributing advanced technologies like smart sensors and AI-based process optimization solutions. For instance, Anthropic develops self-supervised AI safety techniques to enhance industrial processes efficiently and sustainably. Such innovations could enable real-time production monitoring and quality control, influencing market operations positively.
• Sustainable Solutions: Various startups offer eco-friendly alternatives. BioAmber produces bio-based maleic anhydride from renewable feedstocks like canola oil, reducing dependency on petroleum. Another startup, Cixi Bonsen Technology Co, develops greener production methods using environment-friendly catalyst systems. Their debut will boost sustainability and lower the industry's carbon footprint over time.
• Market Contribution: Emerging entities precisely address specific application segments. For example, Nemaura Medical focuses on the medical polymers market, developing biodegradable mal-polymers for implantable drug delivery systems. It fills an unmet need through collaborations with material science leaders.

Market Report Scope

Market Dynamics

Maleic Anhydride Market Growth Factors

Increasing demand for unsaturated polyester resins in construction and automotive industries

Maleic anhydride plays a key role in the production of unsaturated polyester resins that are extensively used in the construction and automotive industries for making fiberglass parts, sheet molding compounds, and gel coats due to their outstanding corrosion resistance, high strength, and durability. The increasing demand for vehicles all over the world has significantly driven the expansion of the global automotive industry in recent years. Unsaturated polyester resins impart rigidity, durability, and excellent surface finishes to fiberglass vehicles, making them ideal for automotive applications. As a result, their consumption has sharply increased in the manufacturing of car bodies, bumpers, and other auto components.

Maleic Anhydride Market Opportunity - Expansion of the automotive and construction industries in emerging markets

The growing automotive and construction sectors in emerging markets like India, Indonesia, Brazil, and Mexico present significant opportunities for this market. Rising incomes, urbanization, and supportive government policies drive infrastructure and automobile investments, boosting demand for maleic anhydride-based resins and coatings. Producers can capitalize on this growth by establishing local production facilities or increasing exports to these regions.

Maleic Anhydride Market Challenge - Fluctuating raw material prices impacting production costs

This market has been facing significant challenges due to volatile crude oil and natural gas prices, which are the key raw materials used in the production of maleic anhydride. As these raw materials are commodities, their prices are constantly fluctuating depending on global supply-demand forces. When input costs increase, maleic anhydride producers find it difficult to pass on the entire cost hike to customers in the short run. This squeezes profits and compels producers to either operate at a loss or shut down plants temporarily. Moreover, disruptions at any point in the raw material supply chain further exacerbate price and supply instability issues. The ongoing Russia-Ukraine conflict has already led to a sharp rise in energy prices worldwide. If this volatility persists, it will adversely impact the bottom lines of maleic anhydride producers and render some production capacity unviable.

Analyst Opinion (Expert Opinion)

• This market is expected to witness steady growth over the forecast period driven by increasing demand from construction and automotive industries. The growing infrastructure development activities across major economies will boost consumption of unsaturated polyester resins where maleic anhydride is used. Additionally, recovery in the automotive production post pandemic will further propel the product demand.
• Asia Pacific currently dominates the market and is likely to continue its dominance fueled by thriving end-use industries in China and India. Presence of emerging economies with expanding construction spending is expected to drive the regional market growth. However, fluctuations in crude oil prices can adversely impact the market growth. Meanwhile, stringent environmental regulations regarding emissions may restraint the market to some extent.
• The companies operating in the market are focusing on capacity expansions as well as strategic partnerships to cater to growing product demand. Developing bio-based routes for maleic anhydride production can provide new market opportunities. Moreover, growing penetration of lightweight materials in automotive where maleic anhydride-based polymers are used is anticipated to boost the market growth.

Market Segmentation

•  Raw Material Insights (Revenue, USD Bn, 2019 - 2031)
• • n-butane
  • Benzene
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Unsaturated polyester resins (UPR)
  • 1,4-butanediol (BDO)
  • Additives (Lubricants and Oil)
  • Copolymers
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Huntsman Corporation
  • Ashland Global Holdings Inc.
  • BASF SE
  • Mitsubishi Chemical Corporation
  • LyondellBasell Industries N.V.
  • DIC Corporation
  • Kraton Corporation
  • LANXESS AG
  • Polynt S.p.A.
  • Koninklijke DSM N.V.
  • Wacker Chemie AG
  • Eni S.p.A.
  • Godavari Biorefineries Ltd.
  • Nizhnekamskneftekhim
  • GAIL (India) Limited