Diacetone Market - Forecast(2023 - 2028)

Diacetone Market Overview

The Diacetone Market size is estimated to reach more than US$1.9 billion by 2027, after growing at a CAGR of 5.8% during the forecast period 2022-2027. Diacetone or 4-hydroxy-4methyl-2-pentanone is an organic compound and is colorless and low-toxic, thereby having flourishing applicability across major industries. The rising applications of diacetone or 4-hydroxy-4methyl-2-pentanone for coil coatings, architectural coatings, paints, wood varnishes, textiles and others are boosting its demand. The bolstering demand for environment-friendly solvents and coatings in the construction sector acts as a driving factor in the diacetone industry. According to Oxford Economics, the global construction output in 2020 accounted for US$ 10.7 trillion and is projected to grow by 42% to reach USD 15.2 trillion between 2020 and 2030. In addition, flourished base for diacetone in automotive vehicles for hydraulic brake fluids, antifreeze and vehicle coatings is fueling growth prospects in the market. Further, disruption caused by the covid-19 outbreak impacted the growth of the diacetone market due to disturbance in manufacturing, supply chain disruption, falling demand from major end-use industries and other lockdown restrictions. However, significant recovery is boosting the demand for diacetone for a wide range of applicability and utilization in building & construction, automotive and other sectors. Thus, the diacetone industry is anticipated to grow rapidly and contribute to the diacetone market size during the forecast period.

Diacetone Market Report Coverage

The “Diacetone Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Diacetone Industry.

Key Takeaways

• Asia-Pacific dominates the Diacetone Market, owing to growth factors such as the flourished construction projects, rising automotive manufacturing and industrialization, thereby boosting growth in this region.
• The flourishing building & construction sector across the world is propelling the demand for diacetone for major utilization in architectural coatings, wood varnishes, paints and others, thereby contributing to the diacetone market size.
• The demand for diacetone in the automotive sector is significantly rising due to the preference for applications involving brake fluids, antifreeze and others, thereby driving the diacetone market.
• However, the hazardous impacts associated with diacetone act as challenging factors in the Diacetone industry.

Figure: Diacetone Market Revenue Share by Geography, 2021 (%)

For More Details on This Report - Request for Sample

Diacetone Market Segment Analysis – by Application

The paints & coatings segment held a significant Diacetone market share in 2021 and is projected to grow at a CAGR of 6.0% during the forecast period 2022-2027. Diacetone has major demand as a solvent for paint and coatings applications and protects the metallic substrate from corrosion. The water-based paint and coating application are widely growing in the construction sector for beautifying building structures, architectural coatings and others. The construction industry is rapidly accelerating due to the rise in residential projects, infrastructural development activities and green building trends. For instance, according to the Office for National Statistics, the monthly construction output increased by 1.5% in terms of volume in May 2022, marking a rise of 0.3% from April 2022. Thus, with the major utility of diacetone or DAA in major industries, majorly construction for paint & coatings applications, the paint & coatings segment is anticipated to grow rapidly in the diacetone market during the forecast period.

Diacetone Market Segment Analysis – by End-use Industry

The building & construction held a significant Diacetone Market share in 2021 and is projected to grow at a CAGR of 6.4% during the forecast period 2022-2027. Diacetone alcohol (DAA) or 4-hydroxy-4methyl-2-pentanone has flourishing applications and growth scope in the building and construction sector for water-based paint and coatings, wood varnishes, cement and others. The fast-paced growth of the building and construction sector is influenced by growth factors such as rising trends for residential projects, infrastructural development and urbanization. For instance, according to the census of the U.S., in November 2020, privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,639,000, marking a rise of 6.2% over the year 2019. According to the International Trade Administration (ITA), the forecasted construction value in Mexico saw growth from US$72.89 billion in 202 to US$82.56 billion in 2022. With the rapid growth scope for construction activities, the demand for diacetone for architectural coatings, paints and beautification of building structures is increasing, which, in turn, is anticipated to boost its growth scope in the building and construction industry during the forecast period.

Diacetone Market Segment Analysis – by Geography

Asia-Pacific held the largest Diacetone Market share in 2021 up to 43.2%. The robust growth of diacetone in this region is influenced by the rising construction projects, growing automotive production and urbanization trends. The building & construction sector is significantly accelerating in APAC due to factors such as increasing investments in infrastructural projects, initiatives for smart and green building and urbanization. For instance, according to International Trade Administration (ITA), the construction sector in China is expected to grow at an annual average rate of 8.6% between 2022 and 2030. According to the National Investment Promotion & Facilitation Agency, the Indian construction industry is expected to reach US$ 1.4 trillion by the year 2025. With the robust growth scope for the construction sector in APAC, the demand for diacetone for utilization in coatings, paints and others is rising, which, in turn, is anticipated to boost its growth scope in the Asia-Pacific region over the forecast period.

Diacetone Market Drivers

Bolstering Growth of the Chemicals Industry:

Diacetone alcohol (DAA) or 4-hydroxy-4methyl-2-pentanone has growing demand in the chemical industry for applications as a chemical intermediate for the production of phorone, isophorone, hexane diol, methyl isobutyl alcohol (MIBC) and others. The chemical sector is significantly growing owing to factors such as rising demand for organic and inorganic chemicals, an established base for specialty chemicals and flourishing chemical manufacturing units. For instance, according to the India Brand Equity Foundation (IBEF), the chemical sector in India is projected to reach US$304 billion by 2025, registering a CAGR of 9% per annum by 2025. According to the American Chemistry Council (ACC), the chemical sector output in the U.S. is expected to grow by 4.1% in 2022 and expand to 2.4% growth by 2023. With the robust scope for the chemicals sector, the utilization of diacetone as a chemical intermediate for producing various compounds is increasing, which, in turn, is driving the diacetone industry.

Flourishing Growth of the Automotive Sector:

The diacetone or 4-hydroxy-4methyl-2-pentanone has a wide range of applications in the automotive sector for hydraulic brake fluids, antifreeze and others. The lucrative growth of the automotive industry is influenced by factors such as rising demand for fuel-efficient vehicles, vehicle electrification and urbanization. For instance, according to the Federal Chamber of Automotive Industries, the new vehicle registration in Australia represented an increase of 1.2%with 101,233 units in March 2022 compared to March 2021. According to the International Organization of Motor Vehicles Manufacturers (OICA), the global production of passenger cars increased from 55,834,456 units in 2020 to 57,054,295 units in 2021. With robust automotive production, the utilization of diacetone in hydraulic brake fluids, antifreeze and others is flourishing, thereby driving the diacetone industry.

Diacetone Market Challenge

Health Hazards Associated with Diacetone:

The pollution and health hazards associated with diacetone act as a major challenging factor in the diacetone market. The substance is irritating to the skin, eyes and respiratory tract. In addition, harmful contamination in the air during the manufacturing process also affects the environment. The health impacts of di acetone alcohol or DAA includes ecological pollutant to marine life air and other vertebrates. Thus, owing to such hazardous impacts on both environmental and human life, the applicability and demand for diacetone face a major threat, thereby the diacetone industry anticipates a growth challenge and slowdown.

Diacetone Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Diacetone Market. The 10 companies in the Diacetone Market are:

1. Solvay S.A
2. Arkema Group
3. Recochem Inc.
4. KH Neochem Co.
5. Solventis Ltd.
6. Monument Chemicals, Inc.
7. Mitsubishi Chemical Corporation
8. SI Group, Inc.
9. Prasol Chemical Pvt. Ltd.
10. TCI Chemicals Pvt. Ltd.

Relevant Reports

Diacetone Acrylamide Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: HCR 0247

Methyl Isobutyl Ketone Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: CMR 73405

Isopropyl Alcohol Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: CMR 0995

For more Chemicals and Materials Market reports, please click here