Bisphenol-A: Key market research findings
- Falling raw material prices drives market growth
- APAC dominates the market geographically
- Key vendors – Convestro, The Dow Chemical Company, LG Chem, and Mitsui Chemical
Technavio’s market research analysts predict the global bisphenol-A market to grow at a CAGR of around 6% in terms of revenue between 2016 and 2020. The growth of the market is driven primarily by the falling prices of raw materials. The primary intermediate for Bisphenol manufacturing involves phenol and benzene. The production of these is majorly dependant on ethane or naphtha. The decline in global crude prices is resulting in a drop in the price of these materials. During 2015, APAC dominated the global Bisphenol-A market by accounting for around 58% of the overall market space and is expected to showcase substantial growth during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the Bisphenol-A segments based on the application.
“Recently, there has been an increase in the product applications of Bisphenol-A in the market. In the automobile industry, glass is slowly being replaced by polycarbonates made from Bisphenol-A to reduce the overall weight of the car and improve safety of the vehicles. Wind turbine blades are being made from epoxy resins made from Bisphenol A which are stronger and lighter, and improve the turbine efficiency. Such applications are expected to augment the demand for Bisphenol-A in the market in the coming years,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
By 2020, the polycarbonate segment is expected to continue its market dominance by accounting for a market share of more than 64%. The market is expected to see a slight slowdown from 2016 to 2017 owing to the ongoing glut in the market. The production of excess volumes of Bisphenol-A during the first phase of the forecast period is expected to reduce the costs of production for the polycarbonates plastics, spurring volumes, and adding to the volume glut.
Convestro, The Dow Chemical Company, LG Chem, and Mitsui Chemical constitute the key vendors in the market. The recent entry of several small players in the market has changed the entire market dynamics, and the current global bisphenol-A market appears highly fragmented. Though large well-established players account for a considerable share of the market, vendor competition is fierce. Large vendors have extensive production facilities and upstream and downstream plastic production capabilities whereas small regional vendors have the geographical advantage of proximity to the markets. This market analysis also predicts that the market will witness a number of joint ventures and collaborations which will lead to market consolidation in the coming years.
A more detailed analysis is available in the Technavio report, Global Bisphenol-A Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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