Disposal of chemical waste is a critical environmental concern that is encouraging industries across the globe to establish viable solutions for waste management. It is in this context that the global market for GMA (Glycidyl Methacrylate) comes into play. As industry giants are making major investments in R&D activities for eco-friendly monomers, analysts at Technavio bring you some of the major challenges that the present GMA monomer market is facing.
Difficulties related to storage
As GMA is highly flammable in nature, its storage has always been a major challenge for suppliers. It is essential that this chemical is stored in airtight containers and in facilities that are properly ventilated. Also, there are a number of regulations regarding the space between GMA monomer containers in storage facilities. Often times, strictly following these regulations results in the escalation of storage costs for suppliers. This is one major reason why most regional suppliers start production only after they receive confirmed orders.
Employee safety
The second major challenge that many GMA suppliers face is the implementation of proper safety measures. GMA is a highly toxic monomer and its vapors are known to cause severe burns and acute breathing issues. This is why it must be handled by personnel that are well trained and use the proper protective gear. Thus investment in proper training and employee safety is another challenge for suppliers.
Disparity in prices across regions
When compared to its substitutes, GMA monomers have higher resistance to light, heat, chemicals and weather conditions. The operational life of this monomer is also longer than propylene, ethylene and vinyl chloride. This is the reason for GMA monomers being higher priced than its substitutes. But it is not just the difference in price that is a challenge. Rather, it is that the price of GMA itself is highly sensitive and varies in several key market regions like APAC and LATAM.
Environmental regulations
Another challenge that is constraining the growth of the GMA monomers market at the global level is stringent regulations due to growing environmental concerns. For instance: the National Emissions Standards for Hazardous Air Pollutants (NESHAP) in the United States is a stringent regulation on wastewater treatment that calls for the GMA monomer suppliers to keep waste generation in check.
GMA monomers production by region in 2015 (17,632 tons)
Source: Technavio
How greatly will these challenges inhibit the growth of the GMA monomers market?
When seen from the global perspective, different regional markets face different kinds of challenges. To start with, after the 2008 recession and the 2013 Eurozone crisis, there has been a major decline in the demand for automobiles and consumer electronics across the EMEA region. This is surely going to impact the GMA monomers market in a negative manner. Latin America, on the other hand, is one region that is highly prone to climate change. As a result, governments in the region have put in place highly stringent environmental regulations that manufacturers need to adopt sustainability practices – something that has become a deterrent for potential investors.
In the case of APAC, most countries have major waste water and chemical waste disposal issues. This, once again, is restricting the expansion activities of GMA suppliers in the region.
The future of the GMA monomers market
In spite of a number of challenges, the GMA monomer industry has witnessed significant growth in the past decade, and, according to analysts at Technavio, the industry is poised to grow at a CAGR of around 8% by 2020. The fact that Dow Chemical Company recently increased its GMA capacity by 30% annually is evidence that the market is geared towards expansion. Also, increased investment in management infotainment systems and innovations in sustainability are pushing the expansion of the GMA market in APAC as well as EMEA.
GMA monomers provide high resistance to heat and water, which is why they are widely used in the automotive paints and coating sectors. And as construction activities have increased globally, the future of the GMA monomers market seems to be a bright one.
Looking for an in-depth analysis of the GMA monomers market?
Order the 2016 Procurement Market Intelligence Report on Global GMA Monomers
