The global cumene market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Cumene is an aromatic hydrocarbon derived from benzene. It is a major feedstock for producing many downstream derivatives. The two important derivatives of cumene include phenol and acetone. Cumene is produced by alkylation of benzene with propene. Cumene and its derivatives are mainly used as a feedstock in the manufacturing of numerous downstream chemicals.
Rising demand of phenol and acetone from various industries such as automobiles, electronics, and adhesive industry is likely to drive the cumene market. As cumene is a major feedstock for phenol an acetone production, demand for these derivatives is expected to fuel the growth of cumene market. Demand for automobiles, electronics, and adhesive industry are actually increasing because of growing population and extra income in developing countries. Additionally, demand for acetone solvent from various industries such as pharmaceuticals, chemical intermediates, and other industries is likely to increase at a greater rate because of an upsurge in demand from end-use markets. These derivatives demand is growing at a higher rate, which in turn will boost consumption of cumene.
Drivers and Restraints of Cumene Market
Growing investments in downstream industries in regions like the Far East and North America are likely to offer tremendous possibilities for cumene and its derivatives market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost.
Cumene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Cumene being a derivative of benzene faces high probability to crude oil price volatility. Cumene has an adverse effect on human body if exposed to it for a longer duration. Its remnants are normally found in soil and air which often makes environmental regulatory institutions to implement strict regulations on usage of cumene. Existing and future regulations concerning the use of cumene and its derivatives in end products are likely to challenge the market growth.
Cumene Market by Region
Asia was the largest consumer of cumene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China. China, Japan and South Korea were the largest consumers of cumene in this region, whereas India is likely to grow at a higher pace. Growing demand for automobile, construction, electricals/electronics and other industries will drive cumene and its derivatives market in Asia. Consumption of cumene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from electronics and automobile industry. Demand from Europe was low relatively and is likely to stay same in the next few years due to strict environmental regulations.
Top players in this market include Royal Dutch Shell plc, CHANG CHUN PLASTICS CO. LTD, Formosa Plastics Group, Taiwan Cement Corporation, China Petrochemical Development Corporation, Georgia Gulf Corporation, Koch Industries, Inc. Ineos Group Limited and Petroleos de Venezuela S.A. among others.
The report covers exhaustive analysis on:
- Global Market Size
- Global Market Segments
- Market Regional Analysis
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth