Methyl Methacrylate Market Is Estimated to Witness High Growth Owing To Increasing Demand From The Construction Industry & Exploration Of New Application Areas
The methyl methacrylate market is estimated to be valued at USD 18.21 Bn in 2024, exhibiting a CAGR of 7.7% over the forecast period (2024-2031). The growth of the market can be attributed to the increasing usage of methacrylates in the construction industry for applications such as flooring, countertops, and windows, and ongoing exploration of new application areas. Further development of advanced MMA-based materials with improved properties like lightweight, durability, and heat resistance is also fueling the market growth.
The methyl methacrylate market is driven by the increasing demand from the construction industry and growing adoption in new application areas. One of the key drivers of the market has been increasing investment in infrastructure projects across both developed and developing countries. Methyl methacrylate finds widespread use as an intermediate for surface coatings, glazing and flooring in the construction industry. According to the Global Infrastructure Outlook, around US$4 trillion is expected to be invested globally in infrastructure by 2040. This rising construction spending is expected to drive the demand for MMA.
Additionally, continuous exploration of new application potential of methacrylates is also fueling the market growth.
Growing Demand from the Construction Industry is Driving Growth in the Methyl Methacrylate Market
One of the key drivers of the methyl methacrylate market is the steady growth of the global construction industry. Methyl methacrylate is an important raw material used in the production of polymethyl methacrylate (PMMA), which finds wide applications in construction such as facades, insulation, windows and doors among others. As the global construction output rises year-on-year supported by growing populations and rapid urbanization, the demand for PMMA and consequently methyl methacrylate is also rising consistently. Between 2020 and 2025, the global construction industry is expected to grow at a rate of 4% annually according to industry reports, ensuring the steady growth of the downstream PMMA and methyl methacrylate markets.
Increasing Demand from the Automotive Industry is Boosting the Methyl Methacrylate Market
Another major driver fueling demand in the methyl methacrylate market is the automotive industry. Methyl methacrylate is used to produce polymethyl methacrylate sheets which find widespread application as glazing materials for vehicle windows, sun-roofs, vehicle lights and exterior vehicle parts. With rising vehicle production worldwide supported by economic growth in developing countries, increasing consumer spending power and preference for luxury and SUV vehicles, the demand for PMMA from the automotive industry has consistently grown. Between 2020 and 2025, global vehicles sales are projected to rise at a rate of 2-3% annually according to various reports, providing a sustained boost to the PMMA and methyl methacrylate markets.
Slowdown in End-user Industries Acts as a Major Restraint
One of the key restraints faced by the methyl methacrylate market is the health of the end-user industries that consume MMA including construction, automotive and furniture. A significant slowdown in the growth of any of these downstream industries can negatively impact the demand for MMA. For instance, during the COVID-19 pandemic in 2020, construction and automotive production fell sharply owing to lockdowns and supply chain bottlenecks. This directly affected MMA consumption. Any long-term economic downturn that disproportionately impacts these end-use industries can potentially dent MMA demand trends in the coming years.
Fluctuating raw material volatile prices increase uncertainty in the market
Volatile raw material prices present an ongoing challenge for MMA producers. Key feedstock for MMA production such as acetone and ethylene are derived from petroleum sources and their prices tend to fluctuate frequently depending on oil price trends. As MMA has limited substitutes in most applications, producers attempt to pass on higher input costs to customers. However, this is not always possible due to competitive pressures. Unpredictable raw material costs make supply contracts challenging and introduce an element of uncertainty for producers regarding margins and cash flows over the long run. This acts as a restraint on the market attractiveness for producers.
Growing Demand for Polymethyl Methacrylate Offers Opportunities
The rising consumption of polymethyl methacrylate (PMMA) in various end-use industries worldwide presents a key growth opportunity for MMA producers. PMMA has emerged as an attractive alternative to glass owing to its lighter weight, greater strength, and ease of fabrication. It is increasingly being used across the construction, transportation, automotive, lighting, sanitary ware, signages, and point of sales displays among others. Industry reports suggest that the PMMA demand will grow at 4-5% annually going forward. As PMMA is wholly derived from MMA, its rapid uptake will sustainably boost MMA volumes and prices over the long run. This growing structural demand shifts market dynamics in favor of MMA manufacturers.
Innovation in MMA Applications Presents New Avenues for Growth
Methyl methacrylate manufacturers are continually exploring new application areas for the chemical beyond traditional areas like PMMA, improving the long-term prospects of the industry. Recent innovations include the usage of MMA in safety lens sheets, anti-reflective windows for photography, micro parts for medical equipment and electronics, microfluidic devices and dental materials. Successful commercialization of these newer applications opens up incremental revenue opportunities for MMA producers and help combat slowdowns in mature end-markets. Increased R&D across universities and companies will lead to more application innovations in the coming years, further strengthening MMA industry dynamics.
Link: https://www.coherentmarketinsights.com/market-insight/methyl-methacrylate-mma-market-569
Key Developments
- In January 2024, Evonik launched high-performance phosphate methacrylate VISIOMER HEMA-P 100
- In April 2022, Sumitomo Chemical announced the creation of a dedicated MMA (Methyl Methacrylate) Business Division to bolster its MMA-related operations. This division will oversee Sumitomo Chemical's MMA monomer and acrylic resin (PMMA) businesses globally.
- In February 2022, Mitsubishi Chemical (MCC; Tokyo) and its subsidiary Mitsubishi Chemical Methacrylates (MCM) developed a manufacturing technology for methyl methacrylate (MMA) monomers that uses plant-derived materials and have begun designing a pilot plant.
- Trinseo, a global materials company, acquired Arkema's PMMA (Polymethyl Methacrylate) business in December 2020
Key Players
BASF SE, Evonik Industries AG, Arkema Group, The Dow Chemical Company, Akzo Nobel N.V., Sumitomo Chemical Company Limited, Chi Mei Corporation, Huntsman Corporation, Kolon Industries, Karl Jungbecker GmbH & Co. KG, Dhalop Chemicals, Saudi Methacrylate Company, Vizag Chemicals, Ottokemi, and TrinSeo
