Dicumyl Peroxide Market - Forecast(2023 - 2028)

Dicumyl Peroxide Market Overview

The global dicumyl peroxide market size is estimated to reach US$270 million by 2027 after growing at a CAGR of around 3.9% from 2022 to 2027. The dicumyl peroxide is as a cross-linking agent that is used for elastomers and synthesis of polylactic acid composite fibers. It is also used as a vulcanizing agent for plastics and rubber applications. The dicumyl peroxide has growing application in polymers manufacturing, polyolefin, rubber, wire and cables, acrylic resins, and others. Moreover, the growing demand of dicumyl peroxide for polymer manufacturing and rubber applications is creating a drive in the global dicumyl peroxide market. The rise in applications for major end-use industries such as plastics, automotive, paints and coating, and others will offer major growth opportunities in the market during the forecast period.

COVID-19 Impact

The global dicumyl peroxide market faced major disruptions and growth slowdown in the covid-19 outbreak. The dicumyl peroxide has rising demand in automotive, paints and coating, plastics, and other sectors. The automotive production and growth faced major disruptions in the pandemic. The factors such as transportation restrictions, production halts, workforce shortages, and others led to fall in the demand for automotive. Furthermore, the automotive vehicle production and distribution activities faced major delay, thereby creating major demand and supply chain disturbance. According to the International Organization of Motor Vehicle Manufacturers (OICA), the automotive production showed decline of 2% in China, 21% in Mexico, 19% in U.S.A, and 17% fall in Russia in the year 2020. The fall in growth for automotive sector in the pandemic led to decline in the application of dicumyl peroxide in rubber, plastics, and others. Thus, owing to major halt and decline in demand across various end-use industries, the global dicumyl peroxide industry experienced major slowdown in the outbreak.

Report Coverage

The report: “Dicumyl Peroxide Market Report– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the global dicumyl peroxide industry.

Key Takeaways

Figure: Asia Pacific Dicumyl Peroxide Market Revenue, 2021-2027 (US$ Million)

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Dicumyl Peroxide Market Segment Analysis – By Application

By application, the polymer manufacturing segment accounted for the largest share in the global dicumyl peroxide market and is expected to grow with a CAGR of around 3.1% during the forecast period. The dicumyl peroxide has growing demand in the production of elastomers and polymers such as PVC, PU, PP, and others. It is used as an initiator in the plastic rubber sector and has growing application in rubber seals, plastics, tires, hoses, and others. Furthermore, rise in plastics production for usage in various end-use industries is propelling the demand for dicumyl peroxide. According to the Plastics Europe, Association of Plastic Manufacturers, the global plastics production reached 370 million tonnes in 2019. The rising functioning and application of dicumyl peroxide as flame retardant, curing agent, vulcanizer, and others is offering major growth opportunities in the polymer manufacturing. Thus, with major demand of dicumyl peroxide in plastics and polymers applications, the global dicumyl peroxide industry will experience major growth during the forecast period. 

Dicumyl Peroxide Market Segment Analysis – By End-Use Industry

By end-use industry, the automotive segment held the largest global dicumyl peroxide market share and is expected to grow with a CAGR of over 4.5% during the forecast period. The growing demand of dicumyl peroxide in the automotive sector is influenced by application such as automotive plastics, rubber tires, and others. The dicumyl peroxide plays a vital function as cross linking agent for polylactic acid synthesis and curing agent in polymers and rubber. Furthermore, the growth in automotive production is influencing the demand of dicumyl peroxide. According to the Society of Indian Automotive Manufacturers (SIAM), total 22,652,108 units of vehicles were produced in the year 2020-21 in India. The increasing application of DCP thermoplastics and polymers in the automotive components such as rubber, door panel, dashboard, and exterior is offering major growth opportunities in the dicumyl peroxide industry. Thus, with high demand in the automotive sector, the global dicumyl peroxide market will grow during the forecast period. 

Dicumyl Peroxide Market Segment Analysis – By Geography

By geography, the Asia Pacific is the fastest-growing region in the global dicumyl peroxide market and is expected to grow with a CAGR of around 4.7% during the forecast period. The high demand for dicumyl peroxide in this region is influenced by the rising application in various end-use industries and growth in manufacturing projects. Furthermore, the increasing plastics manufacturing activities is propelling the growth in the market, as dicumyl peroxide acts as a cross-linking agent for polymers and elastomers. According to the India Brand Equity Foundation (IBEF), the plastic industry in India made an export of plastic raw material worth USD 1.57 billion during April 2021 to August 2021. The growth in plastic production activities is offering high demand for the dicumyl peroxide. The increasing plastics manufacturing activities is propelling the growth in the market, as dicumyl peroxide acts as a cross-linking agent for polymers and elastomers. Moreover, the rise in demand of rubber tires is boosting the automotive sector in APAC, thereby leading to growing application in automotive industry. Thus, with growing demand of dicumyl peroxide across major end-use Industries and flourishing manufacturing activities in APAC, the global trimethyl dicumyl market will grow rapidly during the forecast period.

Dicumyl Peroxide Market Drivers

Rising application in plastic manufacturing

The dicumyl peroxide has rising demand in the manufacturing polymers and cross linking of thermoplastics. It is used as a cross linking and vulcanizing agent in polymers and elastomers. The dicumyl peroxide offers enhanced durability in the polymers, thereby boosting the demand across various industries. The growing application of dicumyl peroxide for various plastics such as PE Foam, EPS resins, and others offers major growth in the market. For instance, the SABIC launched certified circular polymers from the recycled and recovered ocean-bound plastics in 2021. Thus, with major application of dicumyl peroxide as cross linking agent, vulcanizing, and polymerization in plastics, the global dicumyl peroxide industry experiences major demand and growth opportunities. 

Increasing demand in the automotive sector

The dicumyl peroxide has growing application in the automotive sector such as in rubber tires and plastics for automotive components. The dicumyl peroxide acts as a high temperature cross linker in plastics and rubber. Moreover, the growing vehicle production across the globe is driving the market for dicumyl peroxide. According to the National Automobile Dealers Association (NADA), the sales of new-light vehicles accounted for 14.93 million units in 2021, showing a 3.1% increase compared to 2020 in U.S. Thus, the growing application of dicumyl peroxide for rubber tires in automotive is boosting the demand and growth opportunities in the global dicumyl industry.

Dicumyl Peroxide Market Challenges

Health hazards and environmental threats

The dicumyl peroxide has several environmental and health hazards. It is highly combustible and flammable. The dicumyl peroxide is a toxic chemical and lead to various health hazards such as skin irritation, eye irritation, respiratory problems, and others. Furthermore, the storage and handling of dicumyl peroxide requires additional care owing to its flammability and instability. The toxic and flammable nature of the dicumyl peroxide for both human health and environment is creating a major challenge in the global dicumyl peroxide industry, thereby hampering the growth and creating slowdown in the market.

Dicumyl Peroxide Industry Outlook

The global dicumyl peroxide top 10 companies include:

1. Arkema Group
2. PERGAN GmbH
3. Taicang Plastics Additives Factory Co Ltd
4. Nouryon
5. Sinopec Shanghai Gaoqiao
6. Shandong Rui Huang Chemical Co Ltd
7. Green Chemicals Spa
8. Dongsung Corporation
9. Sundow Polymers Co., Ltd
10. China Petrochemical Corporation

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