Phthalic Anhydride Market Size, Share, Growth, and Industry Analysis, By Type (O-xylene Catalytic Oxidation and Naphthalene Catalytic Oxidation), By Application (Plasticizers, UPR, Alkyd Resins and Others) and Regional Forecast to 2033

PHTHALIC ANHYDRIDE MARKET REPORT OVERVIEW

The Global Phthalic Anhydride Market size was USD 10941 billion in 2024 and the market is projected to touch USD 16964.14 billion by 2032, exhibiting a CAGR of 4.2% during the forecast period.

Phthalic anhydride presents itself in organic solid form due to its chemical makeup of C₈H₄O₃. Phthalic anhydride crystalizes to white solid material and has limited water solubility and releases a distinct powerful smell. The manufacturing industry selects phthalic anhydride to produce plasticizers DEP and DEHP for flexible PVC production.

GLOBAL CRISES IMPACTING PHTHALIC ANHYDRIDE MARKET - COVID-19 IMPACT

"Phthalic Anhydride Industry Had a negative Effect Due to Supply Chain Disruptions during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Numerous raw materials and chemicals experienced substantial supply chain disturbances because of worldwide lockdowns combined with restricted travel limitations at the beginning of the pandemic. Production levels of Phthalic Anhydride fluctuated because raw material feedstock availability decreased and its prices became unstable since it originates from the oxidation of petrochemical derivatives such as o-xylene and naphthalene.

LATEST TRENDS

"Rising Demand from the Plasticizers Industry to Propel Market Growth"

Manufacturing both dioctyl phthalate (DOP) and diisononyl phthalate (DINP) depends entirely on the critical raw material Phthalic anhydride because its production requires this raw component. Emerging economies experience a sustained growth of their flexible plastics market because of their combined packaging and construction and automotive sector expansion. The discovery enabled increased consumption of phthalic anhydride. The growth of phthalate plasticizer needs stems from constructively built pipes wires and cables using PVC because PA remains essential for these applications.

PHTHALIC ANHYDRIDE MARKET SEGMENTATION

By Type

Based on type the market can be categorized into O-xylene Catalytic Oxidation and Naphthalene Catalytic Oxidation.

• O-xylene Catalytic Oxidation- The vapor-phase catalytic oxidation of ortho-xylene proceeds through combination of V₂O₅ with TiO₂ catalysts together with air or oxygen as the oxidizing agents.

• Naphthalene Catalytic Oxidation- Before o-xylene-based production took precedence the procedure of catalytic naphthalene oxidation served as the primary method to produce phthalic anhydride.

By Application

Based on application the market can be categorized into Plasticizers, UPR, Alkyd Resins and Others.

• Plasticizers- Phthalic anhydride functions as the base chemical for the manufacturing of diethyl phthalate (DEP) and dioctyl phthalate (DOP) plasticizers which the chemical industry uses as their primary material.

• UPR- The manufacturing of unsaturated polyester resins (UPR) depends on phthalic anhydride which serves as their essential starting material.

• Alkyd Resins- The production of alkyd resins through phthalic anhydride manufacturing leads to essential developments in coatings as well as paints and varnishes.

Driving Factors

"Growing Demand for Plasticizers to Drive Market Advancement"

One of the key driving factors in the Phthalic Anhydride Market growth is Growing Demand for Plasticizers. The main market expansion driving force for phthalic anhydride exists in its production of plasticizers like dioctyl phthalate (DOP) especially phthalate esters. Plastics depend on plasticizers to develop better flexibility and highest durability while extending their lifespan particularly when used with polyvinyl chloride (PVC) products. The rising application of flexible PVC in the construction, automotive and consumer good sectors has generated heightened demand for phthalic anhydride as raw material.

"Expansion of the Construction Industry to Expand the Market"

Building materials based on PVC products consume the majority of constructed goods derived from phthalic anhydride throughout the construction sector. The growing construction sector in developing nations caused by rapid urbanization and smart city projects along with government infrastructure development drives demand for affordable durable performing materials.

Restraining Factors

"Environmental and Health Concerns Poses Potential Impediments to Market Growth"

The primary purpose of phthalic anhydride exists in plasticizer manufacturing to create flexible PVC materials. The production of phthalic anhydride together with its end-use creates multiple dangerous impacts both to the environment and human health. People exposed to phthalic anhydride develop respiratory problems together with skin irritation that potentially leads to asthma and sensitization as long-term health consequences.

Opportunity

"Increasing Use in Automotive Applications to Create Opportunity for the Product in the Market"

The automotive sector advances to lightweight plastics to create more efficient vehicles and lower environmental emissions during operation. Plasticizers serve an essential function in creating flexible material parts which include dashboard panels along with wiring and interior trims. The production of automobile plastics requires phthalic anhydride therefore its manufacturing demand will expand according to the advancements in automotive technologies.

Challenge

"Volatile Raw Material Prices Could Be a Potential Challenge for Consumers"

Two main inputs used to create phthalic anhydride are orthoxylene (o-xylene) along with naphthalene which source their origin from crude oil extraction. The sensitivity of the Phthalic Anhydride Market directly relates to price changes in the crude oil sector. Raw material availability and cost are directly affected by all market instability in oil prices resulting from geopolitically driven tensions and OPEC policies and/or periods of global economic decline.

PHTHALIC ANHYDRIDE MARKET REGIONAL INSIGHTS

• North America

North America contains a substantial Phthalic Anhydride Market that remains smaller than the markets found in APAC. The United States along with Canada represent the major market consumers in this area because these countries need Phthalic Anhydride for automotive sectors and construction as well as plastic manufacturing industries.

• Europe

The European Phthalic Anhydride Market is fully established while Germany together with France and Italy generate most of the market demand. The automotive and construction sectors act as primary drivers in Europe while the region deals with environment issues matching those of North America.

• Asia

Asia Pacific has emerged as the most dominant region in the Phthalic Anhydride Market share due to a convergence of factors that propel its leadership in this dynamic industry. Asia Pacific accounts for most of the World Phthalic Anhydride Market because this region boasts a strong industrial framework and rising needs from industries like plastics and automotive and textiles.

KEY INDUSTRY PLAYERS

"Key Players Transforming the Phthalic Anhydride Landscape through Innovation and Global Strategy"

Key enterprise players are shaping the Phthalic Anhydride Marketplace through strategic innovation and marketplace growth. The leading Phthalic Anhydride Market operators implement various growth practices to maintain market stability and boost their industrial performance. The leading market players concentrate on developing their phthalic anhydride production facilities and enhancing operational efficiency to fulfill escalating market requirements across plastic and automotive and construction sectors.

List of Market Players Profiled

• BASF (Germany)
• Thirumalai (India)
• ExxonMobil (U.S.)
• Stepan (U.S.)
• Aekyung (South Korea)

INDUSTRIAL DEVELOPMENT

Nov 2021: A project for brownfield expansion became a reality when I G Petrochemicals Ltd. (IGPL) obtained board approval to build 53,000 MTPA phthalic anhydride capacity. The entire project expenditure for brownfield development amounts to INR 345 crore.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.