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Acid Copolymers Market Overview
Acid
Copolymers Market size is forecast to reach US$58 billion by 2026, after growing at a
CAGR of 3.8% during 2021-2026 due to increasing demand for cement admixtures,
oil & gas exploration, water treatment chemicals, drilling fluids, and
other applications. Acid copolymers are also used in cosmetic products due to
their thickness properties. Apart from this, increasing consumption of
surfactant water treatment chemicals in the oil & gas industry is estimated
to grow the market size of acid copolymers during the forecast period. According to
Energy Shale Gas Production, the total natural gas production is projected
to contribute 30% and more than 75% in Canada & Mexico, respectively by
2040. Hence, all such factors
are expected to grow the consumption of the chemicals such as acrylic acid,
maleic acid, ethylene vinyl acetate, and others, which is further expected to
increase the demand for acid copolymers market.
Impact of COVID-19
However, during the year 2020, major sectors saw a steady decline in growth owing to the decrease in transportation during the lockdown. The manufacturing activities were also closed from the first quarter of 2020 which reduced the consumption of acid copolymers. Also, the lack of crude oil production is limiting the production of acid copolymers. According to the US Energy Information Administration (EIA), crude oil production fell by 8% in 2020. Hence, such factors are limiting the production as well as consumption of acid copolymers.
Report Coverage
The
report “Acid Copolymers Market –
Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the
following segments of the Acid Copolymer Industry.
By
Type: Ethylene Acid Copolymer, Methacrylic Acid Copolymer, Acrylamide/Acrylic
Acid Copolymer, and Others.
By
Application: Packaging, Building
Panels, Water Treatment Chemicals, Cosmetics (Hair Care, Skin Care, Others), Adhesives
and Sealant, Coatings, Cement, and Others.
By Geography: North America (USA,
Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands,
Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South
Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of
Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of
South America), and RoW (Middle East and Africa) .
Key Takeaways
- North America dominates the market of acid copolymers due to the increasing demand for water treatment, packaging, cosmetic products, and others application in the United States, Mexico, and Canada.
- Increasing consumption of surfactants in oil & gas exploration and production is estimated to grow the demand for acid copolymers.
- The United States is the largest oil & gas consumer in the world. According to U.S. Energy Information Administration (EIA), crude oil production is expected to rise on average 11.1 million b/d in 2021 and 12.0 million b/d in 2022.
- Apart from this, volatility in crude oil prices is hampering the market scenario as copolymers are derived from petrochemical products.
Figure: North America Acid Copolymer Market, 2021-2026 (US$ Billion)
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Acid Copolymers Market Segment Analysis – By Type
Ethylene
acid copolymer type segment held the largest share in the global acid copolymer
market in 2020. Ethylene acid copolymer resin provides an outstanding bonding
to metal which makes this bond reliable. Ethylene acid copolymer is used in the
production of drilling fluids and cost-effective foil adhesive for a range of
applications. These factors are expected to drive the acid copolymer market growth.
Acid Copolymers Market Segment Analysis – By Application
Water
treatment chemicals has dominated the market for acid copolymers market in 2020
and is growing at a CAGR of 4% during 2021-2026 owing to the rise in consumption for
water treatment chemicals, including scale and corrosion inhibitors and
surfactants. Surfactants are widely used in exploration, production, and drilling
fluids. Thus, increasing oil & gas exploration is expected to increase the
consumption of surfactants which, in turn, increasing demand for acid
copolymers. According to the India Brand Equity Foundation (IBEF), the
oil and gas industry is expected to attract US$ 25 billion investments in
exploration and production by 2022. Therefore, the increasing investment in oil
& gas production will influence the growth of acid copolymers.
Acid Copolymers Market Segment Analysis – By Geography
North America dominated the acid copolymers market with more than 30% in 2020 due to the increasing demand for acid copolymers for water treatment chemicals and building panels in the region. Acid copolymers are used in metalized building panels, thus increasing building permits in North America is estimated to the growing demand for acid copolymers. According to the U.S. Census Bureau and the U.S. Department of Housing & Urban Development, new residential construction including building permits and housing completions is expected to reach 1.7 million and 1.4 million, respectively in 2021 and 2020. Apart from this, according to the Canadian Association of Petroleum Producers (CAPP), oil and gas companies will invest C$27.3 billion in 2021 which increases the consumption of surfactants for drilling fluids. Therefore, growing consumption and investment are supporting the demand for acid copolymer in the region.
Acid Copolymers Market Drivers
Growing Building and Construction Activities
Due to its binding properties, acid copolymers are used in building panels. According to the US Census Bureau, new housing unit construction was 11,471 thousand units in 2019 in the United States, which reached 3,642 units in 2020. Moreover, according to the Federal National Mortgage Association, housing starts were expected to jump with 1 million new homes in 2021. Additionally, according to the Indian Brand Equity Foundation (IBEF), the real estate market of India is expected to grow USD 1trillion by 2030. Hence, all such factors will influence the demand for metal bonding in the building which, in turn, is expected to grow the market size of acid copolymers.
Growing Consumption in Cosmetic Products
Acid copolymers are used in cosmetic products as binders, hair fixatives, suspending agents, viscosity-increasing agents, thickeners, and emulsion stabilizers. Hence, the increasing cosmetic sector is estimated to grow the consumption of acid copolymers chemical such as maleic acid in personal care products. According to the India Brand Equity Foundation (IBEF), the cosmetic market size is forecast to reach US$ 20 billion by 2025. On the other hand, when cosmetics are applied to the skin, acid copolymers do not irritate the skin due to their low absorption rate. Hence, these factors are increasing the usage of acid copolymers in cosmetics.
Acid Copolymers Market Challenges
Volatility in Raw Material Prices
Ethylene, acrylic acid, and other building block copolymer derived produced from renewable sources and as an alternative to its current production from petrochemicals. According to BP static, Oil prices declined US$64.21/bbl in 2019 as compared with US$71.31/bbl in 2018. Thus, due to fluctuation of oil prices may hamper the prices of ethylene and acrylic acid copolymers, which may hamper the acid copolymer market.
Acid Copolymers Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the acid copolymers market. Major players in the Acid Copolymers Market include:
- The Dow Chemical Company
- ExxonMobil
- Solvay
- BASF SE
- Michelman
- Newpark Resources Inc.
- Honeywell International Inc.
- Lyondellbasell
- Clariant
- Tytan Organics, and among others.
Relevant Reports
Organic Acids Market - Forecast(2021 - 2026)
Report Code:
CMR 0508
Inorganic Acid Market - Forecast(2021 - 2026)
Report Code:
CMR 0418
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