The global acetone market was valued at USD 5.75 billion in 2016 and is likely to witness growth over the forecast period. Acetone also known as propanone, is an organic compound used as a solvent. Acetone is mainly used in the production of Methyl Methacrylate and Bisphenol-A.
Global acetone market volume, by application, 2014 – 2024 (Kilo Tons)
Bisphenol-A is used to produce polycarbonate, which is widely used in automotive industry for lighting applications such as light housing, headlamp lenses and bezels that requires transparency, high temperature resistance. It also offers better functional integration and designing freedom to vendors. Polycarbonate has become the most preferred substitute for glass and metal in vehicle industry.
An increasing industrialization in developing countries has led to increase in use of acetone, which is augmented to boost the demand of acetone during the forecast period. However, development of green solvent and bio based solvent which are used as substitute for acetone is expected to hamper the market growth over the forecast period. Additionally, increasing use of water based solvents in paints & coating will hinder global acetone market. Moreover, contact with acetone is dangerous for health and can cause intoxication, dizziness, nausea, unconsciousness. Due to these reasons government around the world have formulated stringent usage norms which may hinder the growth of acetone.
Segmentation by application
In terms of application, solvent hold the larger market share in 2016. Solvent are widely used in paints & coating, nail polish printing inks and cement industry. In recent days, there is rise in demand for methyl methacrylate in electronics. Methyl methacrylate is used in LCD’s which is high in demand. Furthermore, increasing use of methyl methacrylate in medical (dental) industry to build bridges and crown is expected to boost the market for acetone during the forecast period.
Segmentation by region
In 2016, Asia Pacific was the largest revenue generating region. The larger share of the revenue is attributed to the development of automotive and electronics sector in developing economies, such as India, China, Indonesia and Malaysia. Furthermore, rising demand and growing capacity for Bisphenol A which is expected to propel the demand for acetone in the region. Additionally, factors such as easily availability of petrochemical feedstock and the availability of cheap labor are other factor driving the market growth in the region.
Major players in the global acetone market are INEOS Phenol Company, Mitsui chemicals, U.S. chemicals, DOW chemicals, shell, Minda, Formosa chemicals, and Sunoco. INEOS phenol is world’s largest acetone producer company. Their global manufacturing capacity is almost double to their competitors. They produce 1.2M tons of acetone annually.
Research Support Specialist, USA