The methyl isobutyl ketone (MIBK) market is expected to register a CAGR of more than 6% during the forecast period. Some of the prominent trends that the market is increasing demand for MIBK in the synthesis of anti-ozonant additive for rubber.
- Increasing demand for solvents for rubber processing chemicals in Asia and growing demand for surface coatings are likely to hinder the market's growth.
- Increasing awareness about the toxic effects of MIBK on the environment is expected to act as an opportunity for the market.
Key Market Trends
Increasing Demand from Paints and Coatings Industry
- Methyl Isobutyl Ketone (MIBK) is a medium evaporating solvent. It is an active solvent for various synthetic resins, including cellulosic, vinyl copolymers, acrylics, alkyds, polyesters, and epoxies.
- It is very useful in developing high solids coatings used for automotive applications because of its possessing combined characteristics of the high solvent activity and low density.
- In the automotive sector, methyl isobutyl ketone (MIBK) is used for manufacturing automotive chemicals, such as protective paints and coatings, that are further used in exterior parts of the vehicle, to add a pleasant appeal to vehicles. They are also used in metallic parts and plastic vehicle components of both interior and exterior types.
- Automotive coatings are used as protection against sunlight, material corrosiveness, and environmental effects, such as acid rain, hot-cold shocks, stone chips, UV radiation, car washing, and blowing sand, among others.
- Over a period, various companies have produced different and new variants in coatings, such as heat and anti-reflective coating, electro-chromatic and smart coatings for windows, self-cleaning topcoats, UV curable, powder coating system, iridescent and color-changing base coat, and abrasion-resistant coatings for headlamps, among others.
- All the aforementioned factors, in turn, are expected to drive the Methyl Isobutyl Ketone (MIBK), over the forecast period.
Saudi Arabia to Dominate the Middle-East Region
- Saudi Arabia is a crude oil-dependent economy. It is one of the largest oil-producing countries, globally. The country witnessed growth at a rate of -0.7% in 2017, in terms of GDP, which increased to 2.2% in 2018, due to higher crude oil prices and favorable geopolitical factors.
- On a country-by-country basis, Saudi Arabia is by far the largest national market, accounting for nearly half of the total demand for paints and coatings in the Middle Eastern region.
- The country has generated large-scale projects worth USD 800 billion to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy and utility construction in the country.
- The country's primary growth in construction has been largely powered by the massive investments done by the government and increased inflow of FDI. Few major construction projects are as follows: Jubail II, Makkah Grand Mosque Redevelopment amongst others.
- The other major end-user industry is automotive. The country is focusing on establishing itself as the new automotive hub in the Middle East. Though the country is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs) to open their production plants in the country to develop the domestic auto industry.
- Furthermore, the country is experiencing a steady growth in new car sales, with the market expecting to reach one million units by 2020, growing at a rate of 6.7%.
The methyl isobutyl ketone (MIBK) market is partially consolidated, with few players holding the major share in the market. Key players in the methyl isobutyl ketone (MIBK) market include Royal Dutch Shell, Sasol, Dow, Celanese Corp., Mitsui Chemical, and Kumho P&B, among others.
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