Emerging Applications of Methyl Methacrylate in Various Industries: Market Implications

Emerging Applications of Methyl Methacrylate in Various Industries: Market Implications

Methyl methacrylate (MMA) is an important organic compound that is widely used for producing polymethyl methacrylate (PMMA), also known as acrylic glass. PMMA is a clear plastic with high strength and transparency properties. It is used across various end-use industries such as automotive, construction, electronics, medical devices and signs & displays. The rising demand for lightweight materials along with higher strength and design freedom associated with PMMA has led to increased adoption in the automotive industry worldwide.

The global Methyl Methacrylate Market is estimated to be valued at US$ 7,510.7 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing construction industry across emerging economies is anticipated to present lucrative growth opportunities for methyl methacrylate market over the forecast period. Rapid urbanization and rising disposable income are encouraging infrastructure development activities in countries such as India, China and Indonesia. PMMA finds wide usage in construction applications owing to its transparency, durability and resistance to weathering. Increasing construction of commercial buildings, shopping malls and multi-dwelling units will augment the demand for PMMA sheets and panels, thereby driving the consumption of MMA monomer over the coming years.

Porter’s Analysis

Threat of new entrants: New entrants face high capital requirement to build manufacturing facility for methyl methacrylate. Established players have economies of scale and brand loyalty advantage.

Bargaining power of buyers: Buyers have moderate bargaining power as methyl methacrylate has applications in various end-use industries. Buyers can switch to substitute products if price is not competitive.

Bargaining power of suppliers: Key raw materials for methyl methacrylate include acetone, methacrylic acid and propylene. Suppliers have low to moderate bargaining power due to availability of substitute raw materials.

Threat of new substitutes: Substitutes include other methacrylate esters and plastics like polycarbonate. New substitute threat is moderate as methyl methacrylate is widely used due to its versatile properties.

Competitive rivalry: The market is fragmented with top players accounting for around 40% share. Players compete based on pricing, product differentiation and expansion to new applications.

SWOT Analysis

Strength: Wide applications in paints & coatings, automotive and construction industries. Cost-effective synthetic routes for production.

Weakness: Vulnerable to fluctuations in raw material prices. Strict environmental regulations for emissions.

Opportunity: Rising infrastructure and automotive sectors in Asia Pacific and Middle East countries boost demand. New applications development in surface coatings and dentistry.

Threats: Growth of bio-based and recycled plastics reduces dependency on petrochemical-based MMA. Economic slowdowns affect end-use industries.

Key Takeaways

The global methyl methacrylate market is expected to witness high growth over the forecast period driven by expanding end-use industries in Asia Pacific. Methyl methacrylate demand is projected to grow at a CAGR of 4.9% during 2023-2030 to reach a market size of US$ 7,510.7 Mn by 2024.

Asia Pacific accounts for the largest and fastest growing methyl methacrylate market owing to strong growth in the construction and automotive sectors in China, India and other Southeast Asian countries. China dominates MMA consumption in the region supported by low-cost manufacturing and availability of raw material.

Key players operating in the methyl methacrylate market are 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. Major players focus on capacity additions, strategic partnerships and new product development catering to niche application segments.