Global Alpha-Methylstyrene Market - 2024-2031

Global Alpha-Methylstyrene Market - 2024-2031

Global Alpha-Methylstyrene Market reached US$ 431.2 Million in 2023 and is expected to reach US$ 550.4 Million by 2031, growing with a CAGR of 3.1% during the forecast period 2024-2031.

The increasing demand for Alpha-Methylstyrene (AMS) has emerged as a significant market driver. AMS resins are utilized in the manufacture of car exterior frames, electronic appliance housings and protective coating. The global automobile sector has grown significantly in recent years, driven by rising consumption in emerging markets such as India and Brazil.

For example, the Indian Brand Equity Foundation predicts that by 2022, the country would be one of the world's major automobile markets, producing 22.93 million vehicles per year. The rise of the electric vehicle market is likely to drive the global automotive market in the coming years. Increased demand for consumer goods from emerging economies contributes to market expansion.

In 2023, North America is expected to be the second-dominant region with over 20% of the global alpha-methylstyrene market. Leading AMS producers in North America are investing in capacity expansions, facility modernization and R&D projects to accommodate the growing demand for AMS-based products. Strategic investments boost production capacities, product quality and market competitiveness in the region.

Dynamics

Growing Demand from Adhesives & Stringent Regulations

The major areas' construction, automotive and manufacturing sectors rely on adhesives and sealants for bonding, sealing and assembly applications. Alpha-Methylstyrene is a monomer used to make specialist adhesives and sealants that are resistant to heat and chemicals. Rising demand for adhesives and sealants drives the region's AMS industry.

Stringent regulatory standards and environmental restrictions globally promote the use of sustainable and eco-friendly materials in a variety of businesses. Alpha-Methylstyrene-based products offer benefits such as reduced VOC emissions, recyclability and conformance with environmental requirements, making them widely used for manufacturers seeking regulatory compliance.

Rising Production of Electric Vehicles

The increased manufacturing of electric vehicles is expected to increase market demand for alpha-methylstyrene. For example, according to EV Volumes, 10.5 million new BEVs and PHEVs were supplied in 2022, up 55% from 2021. Germany is one of Europe's leading automotive manufacturers.

In accordance to the German Association of the Automotive Industry, Germany produced 263,400 cars in July 2022, up 7% from the same time in 2021. Furthermore, the demand for electric vehicles is rising in Germany. Several companies are boosting the number of electric vehicles produced in the country. In June 2023, Ford announced the opening of the Cologne Electric Vehicle Center, a high-tech manufacturing plant in Germany.

Environmental Concerns and Price Volatility

Environmental restrictions governing volatile organic compounds (VOCs) and air pollution can limit the manufacturing and usage of alpha-methylstyrene. Compliance with severe emissions rules may need expenditures in pollution control systems, raising manufacturing costs for AMS manufacturers.

The price of raw materials needed in the production of alpha-methylstyrene, such as cumene and styrene, might fluctuate due to factors such as crude oil price changes and supply-demand dynamics. The fluctuation of raw material prices can have an impact on AMS manufacturers' cost competitiveness and profitability. The availability of lower-cost alternatives with identical qualities may limit market growth for alpha-methylstyrene, especially in price-sensitive sectors.

Segment Analysis

The global alpha-methylstyrene market is segmented based on purity, application, end-user and region.

Rising Automotive Production Drives the Segment Growth

Automotive is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Alpha methyl styrene is an intermediary in the manufacturing of ABS resin. Furthermore, ABS plastic is employed as an alternative metal in the automotive industry. ABS thermoplastic is used in a variety of automobile parts that aim to reduce weight.

ABS is widely used in dashboard components, seat backs, seat belt components, handles, door locks, pillar trim and instrument panels. Based on data from the Organization Internationale des Constructeurs d'Automobiles, global automotive production reached 85.01 million in 2022, a 6% increase from 80.20 million vehicles manufactured in 2021, indicating a rise in demand for alpha methyl styrene from the automotive industry.

Geographical Penetration

Rising Demand for Tires in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global alpha-methylstyrene market covering over 30% of the market. According to data issued by the National Bureau of Statistics, China's tire sector is expanding rapidly, reflecting rising demand for tires both domestically and internationally. In accordance to the National Bureau of Statistics of China, as of May 2023, China manufactures approximately 6 million metric tons of plastic items per month.

According to IBEF, total plastics exports between April and September 2022 were US$ 6.38 billion. Compared to the same period previous year, exports of plastic raw materials, medical goods and pipes and fittings climbed by 32.3%, 24.8% and 17.9%, respectively. Thus, increased demand from various industries is likely to drive the market in the region throughout the forecast period.

Competitive Landscape

The major global players in the market include AdvanSix, Altivia, Cepsa, Domo Chemicals, INEOS Group, Kraton Corporation, KUMHO P&B CHEMICALS, Mitsubishi Chemical Corporation, Prasol Chemicals Limited and Solvay.

COVID-19 Impact Analysis

The pandemic caused changes in demand for AMS and AMS-derived goods due to interruptions in a variety of end-user industries. Industries such as automotive, construction and manufacturing faced slowdowns or shutdowns, resulting in lower demand for chemicals such as AMS utilized in their manufacturing processes. Lockdowns, travel restrictions and border closures affected global supply lines, hurting the production and distribution of AMS and raw materials used to manufacture it.

Transportation delays, significant ingredient shortages and logistics issues hampered AMS availability and had an impact on market dynamics. The pandemic has accelerated trends such as remote labor, e-commerce expansion and consumer behavior changes, resulting in adjustments in demand for AMS and AMS-derived products. For example, growing demand for online shopping and hygiene items drove up demand for styrene-based resins made from AMS.

Russia-Ukraine War Impact

Russia and Ukraine are key manufacturers of raw materials and chemicals, including those required in the production of alpha-methylstyrene. Any disruption in the supply chain caused by the conflict, including transportation bottlenecks or production shutdowns, resulted in key ingredient shortages and have an influence on the global availability of AMS. The instability in the region caused variations in the prices of raw materials and energy sources utilized in the manufacturing of AMS.

Uncertainty in supply chains and geopolitical conflicts led to price volatility in the AMS market, which affects both manufacturers and customers. Geopolitical tensions caused uncertainty in global markets, reducing investor confidence and resulting in cautious spending and investment decisions. Companies in the AMS sector postponed expansion plans or investments in new projects until there is more clarity and stability in the region.

By Purity
• >99.5%
• 95%-99%

By Application
• ABS manufacturing
• Plastic Additives and Intermediates
• Adhesives
• Coatings
• Others

By End-User
• Automotive
• Electronics
• Chemical Manufacturing
• Personal Care & Cosmetics
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In April 2023, INEOS Phenol announced the completion of its acquisition of Mitsui Phenols Singapore Ltd for a total of US$ 330 million. Through the acquisition, the firm has acquired more than 1 million tons of capacity each year, which includes alpha-methyl styrene, among other goods, which will further allow the company to support its clients more efficiently across the Asian region.
• In April 2022, Kraton Corporation declared plans to invest in the alpha-methyl styrene production facility in Niort, France. The investment is intended to increase production capacity by 15% by 2023.

Why Purchase the Report?
• To visualize the global alpha-methylstyrene market segmentation based on purity, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of alpha-methylstyrene market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global alpha-methylstyrene market report would provide approximately 62 tables, 55 figures and 184 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies