Acrylonitrile Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Acrylonitrile Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The acrylonitrile market was valued at over 6 million ton in 2020, and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19. Owing to the pandemic scenario, several countries around the world went into lockdown, which completely disrupted the supply chain. Also, work stoppages, labor shortages, and preventive quarantines to curb the spread of the virus had a negative impact on the market. However, the condition is expected to recover in 2021, thereby driving the market during the forecast period.

Key Highlights

• Over the medium term, the increasing demand for acrylonitrile butadiene styrene (ABS) in the construction industry and increasing applications in electronics and consumer appliances are driving the market's growth.
• Competition from low-priced polyester fibers in the textile industry and the negative impact of the COVID-19 pandemic are expected to significantly hinder the growth of the market studied.
• Asia-Pacific is expected to dominate the global market and accounts for the largest share during the forecast period.

Acrylonitrile Market TrendsRising Demand from Acrylonitrile Butadiene Styrene (ABS) Application

• Acrylonitrile butadiene styrene (ABS) is a thermoplastic that provides a diverse combination of properties, like resistance to chemicals, heat, and impact.
• The consumption rate of ABS resins is increasing in the consumer appliances segment, the largest end-user segment, which accounts for about 40% of the global ABS resin consumption.
• The second-largest end-user is the electrical and electronics industry, which accounts for approximately 25% of the overall consumption.
• The automotive industry accounts for about 12% of the global ABS resin consumption.
• Due to its superior properties, such as strength and durability at low temperatures, it is widely used in the automotive and electronics industries.
• Moreover, as ABS is lightweight in nature, its demand runs parallel to the demand for lightweight automobiles.
• Additionally, growing developments in 3D printing around the world are also projected to increase the scope of application for ABS in the near future.
• Global automobile production has started declining globally. According to OICA, automobile production has declined by around 23% in the first nine months of 2020 compared to the same period in 2019. This is expected to affect the demand for ABS resin in the coming years.
• All the aforementioned factors are expected to show an impact on the demand for acrylonitrile during the forecast period.

China to Dominate the Demand in the Asia-Pacific Region

• In recent years, China has become a global industrial and manufacturing hub. The increase in the manufacturing of electrical and electronics appliances in China over the years has resulted in increased demand for acrylonitrile in the country.
• The Chinese market is expected to witness faster growth in comparison to other countries, owing to the significant increase in the per-capita income of the middle-class population and the resultant increase in the sales of consumer goods in the region.
• The appliance market in China is likely to continue to grow as the middle-class population grows since this group purchases more consumer durable electronic goods that use ABS resins. According to statistics from the China Household Electric Appliances Research Institute, the revenue of China's home appliance sector reached CNY 803.2 billion (USD 115.5 billion) in 2019, a decline of 2.2 percent year-on-year. However, the sales have surged during the pandemic.
• China is the global leader in the electric car market. The Chinese government is providing strong financial and non-financial incentives to boost electric car sales.
• Tesla sold around 21,000 vehicles in China in November 2020, a record highest for the straight five months. The leading electric car manufacturers in China include Tesla, BYD Co., and Nio Inc. The growing demand for electric vehicles in the country is driving the market.
• Furthermore, the Chinese government is planning to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. The government promoting the use of electric, hybrid, and fuel cell electric vehicles is expected to drive the market studied during the forecast period.
• Furthermore, countries, such as India and Japan, have also been contributing to the growth of the market studied. This is expected to further drive the demand in the acrylonitrile market over the forecast period.

Acrylonitrile Market Competitive Analysis

The acrylonitrile market is a consolidated market, with the top three players accounting for more than 45% of the global market. Some of the major players of the market studied include INEOS, China Petroleum & Chemical Corporation, Asahi Kasei Corporation, Ascend Performance Materials, and Chemelot, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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