The market for naphthalene derivative is expected to grow at a CAGR more than 3% globally during the forecast period. Naphthalene is an organic compound which can be found in a white crystalline solid like form commonly. As an aromatic hydrocarbon, naphthalene's structure consists of a fused pair of benzene rings. It is best known as the main ingredient of traditional mothballs. Naphthalene derivatives require naphthalene compounds as a basic precursor and are synthesized in two stages; ring closure by cyclization reaction followed by aromatization process. The growing application in textile and construction industry and have been driving the market growth.
However, the high level of toxicity of naphthalene derivatives is a major factor restraining growth of the global naphthalene derivatives market. Moreover, unfavorable conditions arising due to the COVID-19 outbreak is also expected to hinder the manufacturing, thereby, hamper the market growth.
The growing application of naphthalene derivative as antimicrobials with high therapeutic value are likely to provide opportunities for the naphthalene derivative market over the next five years.
Asia-Pacific region dominates the naphthalene derivative market, owing to growing application of naphthalene derivative in construction sectors in the region.
Key Market Trends
Construction Industry to Dominate the Market
- Construction industry stands to be the dominating segment for the utilization of naphthalene derivatives owing to their odorless nature and low volatility.
- Momentous utilization of naphthalene in the construction industry to expand the smoothness of solid blends in concrete to fortify the structure framework is in turn expected to fuel the growth of the global naphthalene derivatives market over the forecast period.
- Among the derivatives, sulfonated naphthalene formaldehyde (SNF) accounted for the highest market owing to its use as a superplasticizer within concrete mixtures in the construction sector and is expected to dominate the market studied over the forecast period.
- Countries like China, India, United States of America, Canada, and Vietnam have been recording a rise in residential construction projects, which is likely to enhance the consumption of naphthalene derivatives in the region.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to be the most lucrative market for naphthalene derivatives market, owing to the rising economy, strong growth of construction and textile sectors to support the increasing population.
- Naphthalene derivative is used in material dyeing and bleaching and growing textile industry catalyzes the growth of naphthalene derivative market. Asia is the largest textile manufacturer across the globe with Countries like China, India, Indonesia, Vietnam and Bangladesh.
- In China, the textile industry has been witnessing a slow growth due to China-US trade sanctions. However, in 2018, the industry steadily stabilized, and witnessed almost 5% growth. The growth of the textile industry in the country is fueled by sharp increases in the production of garments, home textiles, and chemical fiber.
- According to IBEF, India's textile industry is one of the oldest industries in the Indian economy, which contributed almost 7% of the industry's output. The Indian textiles industry was estimated to reach USD 250 billion in 2019. These factors are expected to contribute to the demand for naphthalene derivatives during the forecast period.
- Naphthalene derivative consumption witnesses a rapid growth on account of increasing utilization in production facilities across various industries such as chemicals, pharmaceuticals, paints and coatings, and others.
- Moreover, countries like China, India, and Vietnam, etc. are witnessing infrastructural expansion and remodeling activities which in turn augment the growth of naphthalene derivative market.
- Hence, all such market trends are expected to drive the demand for naphthalene derivative market in the region during the forecast period.
The global naphthalene derivative market is consolidated in nature. While some of the prominent players in the market are Cromogenia Units, JFE Chemical Corporation, Rain Carbon Inc., GIOVANNI BOZZETTO S.p.A. and King Industries, Inc amongst others.
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