N-Hexane Market Drivers:
Used as solvent in industrial cleaning and degreasing applications: N-Hexane is increasingly being used as an effective solvent in industrial cleaning and degreasing processes across many industries. Its low cost and evaporation properties make it suitable for removing oils, greases, dirt, and other impurities from metal parts during manufacturing. As global industrial production continues to rise in the coming years to meet post-pandemic demand, the use of n-hexane as a cleaning agent is expected to see parallel growth. N-hexane providers are actively promoting its cleaning capabilities. Major players have successfully demonstrated to key industries how using n-hexane can help achieve superior degreasing performance compared to alternatives, thereby improving production efficiency. For instance, according to the World Bank data, industrial production increased by 3.8% in 2021 from 2020.
Growing consumption in adhesive production: The use of adhesives in various end-use industries has seen tremendous growth in the past few years. Adhesives are increasingly being used for bonding different types of materials together in applications ranging from construction to automotive sector. N-hexane plays a crucial role as a key ingredient in the production of many adhesives that are popularly used across different industries.
The higher consumption of adhesives driven by increased infrastructure development and automotive production has led to a rise in the demand for N-hexane as well. Construction activities worldwide have picked up pace after slowing down during the pandemic. Many countries are undertaking large public infrastructure projects such as bridges, roads, rail networks, etc. to boost economic recovery. This has augmented the use of adhesives for applications like gluing beams together, flooring, etc., thereby raising the requirement for N-hexane in adhesive production.
The global automotive industry is also witnessing healthy growth prospects with rising vehicle ownership even in developing nations. Adhesives find widespread application in vehicle manufacturing for tasks like assembly of vehicle parts, bonding of exterior body panels and many other purposes. For instance, as per the International Organization of Motor Vehicle Manufacturers and other sources indicate that global motor vehicle production is expected to grow at a compound annual growth rate (CAGR) of around 1.1% from 2021 to 2026, reaching over 104-105 million units in 2026.
N-Hexane Market Opportunities:
Focus on developing bio-based and eco-friendly hexane products: The demand for more sustainable and environment-friendly products has been steadily increasing across many industries. The N-hexane market is well positioned to capitalize on this trend by innovating new bio-based and eco-friendly hexane products. Hexane is widely used as an extraction solvent for edible oils from plants and seeds. However, traditional hexane is produced from petroleum sources and poses hazards to human health and the environment if not handled properly. Developing bio-based hexane extracts sourced from renewable feedstock such as agricultural waste could provide a greener alternative for the food industry that aligns with consumers growing demand for sustainable options.
Investing in R&D to create bio-based hexane products extracted from crops already in production would allow hexane manufacturers to tap into existing biomass resources. For instance, according to the U.S. Department of Agriculture (USDA), U.S. farmers produce over 700 million tons of corn stover and wheat straw annually, but only a small fraction of these feedstock is currently utilized.
Potential in emerging economies owing to industrialization: Emerging economies across Asia pacific , Africa, and Latin America are expected to see significant industrialization and infrastructure development over the next decade. Countries like India, Bangladesh, Indonesia, Egypt, Vietnam, and others are making large investments and policy pushes to boost their manufacturing sectors.
As industrial activities proliferate across sectors in the developing world, the need for specialized chemicals in various manufacturing processes will also increase rapidly. N-hexane extracts are extensively used as thinners in the paints, coatings, and inks industries. With more factories, plants and construction sites coming up, consumption of these end-use products and thereby N-hexane extracts is projected to have strong growth trajectories over the medium term. Countries like India have launched ambitious programs to boost domestic manufacturing like 'Make in India'. Successful implementation of these state-led initiatives will pull massive investments in setting up new production facilities for diverse industries over the coming years. This is likely to create sustained demand drivers for industrial intermediaries and inputs like N-hexane in these emerging markets. For instance, according to the Indian government data, India aims to raise the manufacturing sector's contribution to 25% of the GDP by 2025 from the current 15-16% through initiatives like the Make in India program and production linked incentives.
n-Hexane Market Report Snapshots
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