PUBLISHER: DataM Intelligence | PRODUCT CODE: 1396688
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1396688
Global Polyoxymethylene (POM) Market reached US$ 3.9 billion in 2022 and is expected to reach US$ 6.1 billion by 2030, growing with a CAGR of 6.1% during the forecast period 2023-2030.
POM is growing in popularity in the electrical and electronics sectors because of its superior qualities, which include high rigidity and minimal friction. POM is being utilized more and more in the manufacturing of different electronic components as the market for consumer electronics expands. The POM market is being impacted by the global push for sustainability, which is creating a greater demand for bio-based and sustainable products.
POM is being used in the industrial production industry because of its advantageous qualities, which include reduced friction, rigidity and durability. The market is expanding due to applications in sectors including consumer products, packaging and industrial machinery. POM has gained popularity in a variety of industrial applications as manufacturers look for materials that improve product performance and dependability, which has aided in the market's overall expansion.
Asia-Pacific is among the growing regions in the global polyoxymethylene (POM) market covering more than 1/3rd of the market. POM is extensively utilized in many automotive applications, including gear systems, door locks and fuel systems, therefore the rapidly expanding automotive sector in Asia-Pacific plays a significant role. In this industry, the region's developing middle class, which has more spending power and contributes to higher automobile ownership and production, together with its growing population and urbanization all drive demand for POM.
The building and construction industry uses polyoxymethylene, often known as acetal, for a variety of purposes, including structural glass, stairways, roofing materials and more. Glass fiber is fused to this thermoplastic to improve its strength, stiffness and longevity. Due to growth drivers including urbanization, increased residential housing plans and increasing infrastructure development, the construction industry is expanding rapidly.
The National Investment Promotion & Facilitation Agency, for illustration, projects that by 2025, India's construction sector could bring in US$ 1.4 trillion. The US Census Bureau reports that in May 2022, the total amount utilized for development in US climbed to US$ 1.77 million from an annual adjusted rate of US$ 1.62 million in May 2021.
The growing industry for polyoxymethylene has been driven the an increase in building and construction activities, which is driving up demand for the material due to its expanding use in some applications, including steps and roofing materials.
Polyoxymethylene (POM) is extensively employed in the automotive industry, contributing to gear systems, door locks and fuel systems due to its lightweight nature, fuel efficiency and low emissions. POM dimethyl ether, often reinforced with glass fiber, enhances durability and strength. The automotive sector's expansion is fueled by the demand for fuel-efficient vehicles, increased reliance on public transportation, a surge in vehicle production and ongoing urbanization trends.
The International Organization of Motor Vehicles Manufacturers (OICA), for example, reports that the number of passenger vehicles produced globally climbed from 55,834,456 units in 2020 to 57,054,295 units in 2021. The India Brand Equity Foundation (IBEF) projects that by 2026, the country's automobile sector would generate between US$ 251.4 and US$ 282.8 billion.
The European Automobile Manufacturer Association reports that in 2021, automotive production increased by 3.1% in US and 11% in South America. The demand for polyoxymethylene is rising due to its expanding use in fuel systems, ball and bearings and other automotive vehicle applications. The is also propelling the polyoxymethylene business.
The price volatility of the raw chemicals required in POM manufacture, especially formaldehyde and acetaldehyde, is another major barrier to the market. The basic materials come from petrochemical sources and variables including supply and demand dynamics, oil prices and geopolitical events affect their pricing. Price fluctuations for raw materials can have a direct effect on POM manufacturing costs, which can affect manufacturers' overall profitability.
POM products may see price rises as a result of unexpected increases in raw material costs, which would reduce their ability to compete in the market. For industry participants, controlling the effects of raw material price volatility becomes a critical task that calls for efficient risk management techniques and long-term planning.
There are possible risks to the environment and degradation problems associated with engineering thermoplastics like Polyoxymethylene and Acetal. Accumulated plastic garbage releases toxic gases, endangers the land, air and sea and causes pollution and environmental damage. The introduction of various environmental regulations and policies seeks to alleviate the harmful impacts of thermoplastics and promote the shift towards bio-based polymers.
As an example, the Government of India outlines specific criteria for plastic recycling, setting annual targets. Consequently, it is anticipated that the polyoxymethylene sector will face notable challenges in growth due to these regulations and restrictions on plastics, impacting production, demand and applications.
The global polyoxymethylene (POM) market is segmented based on type, forming method, grade, application, end-user and region.
The Electrical & Electronics segment is among the growing regions in the global Polyoxymethylene (POM) Market covering more than 1/3rd of the market. Due to its exceptional features, including its lightweight, simple modification, thermal conductivity and shatter resistance, polyoxymethylene is in high demand in the electrical and electronics sector for a broad range of applications in fans, circuits, computers, connections and others.
The development of cities, a rising industrial base and the strong demand for consumer electronics are some of the major factors driving the exponential expansion of the electrical and electronics sector. For example, OBERLO projects that in 2023, US consumer electronics sales would rise by 7.5% overall.
The annual report from LG Electronics states that throughout 2020, sales of electronic appliances climbed by 28.7% to reach US$ 65.32 billion in 2021. The utilization of this engineering thermoplastic in electronic devices is expected to increase due to the swift rise in electronic device consumption. The, in turn, is expected to increase the growth potential of the electrical and electronics industry in the Polyoxymethylene Market over the forecast period.
Asia-Pacific has been a dominant force in the global polyoxymethylene (POM) market. The developed foundation for significant end-use sectors, such as automotive and electrical & electronics, as well as urbanization, have an impact on the profitable growth of polyoxymethylene in this region. The growth observed in the electrical and electronics industry in Asia can be linked to the increasing demand for consumer electronics driven by rising income levels.
The Japan Electronics and Information Technology Industries Association reports that the country's output of consumer electronics increased from US$ 215 million to US$ 230 million from January 2022 to March 2022. The India Brand Equity Foundation, for example, projects that by 2025, consumer electronics and appliances will grow from US$ 9.84 billion in 2021 to US$ 21.19 billion.
India's domestic electronics manufacturing sector anticipated significant growth in addition, rising from US$ 29 billion in 2014-2015 to US$ 67 billion in the period 2020-21. The Asia-Pacific is expected to witness a surge in demand for polyoxymethylene due to its growing application in electric circuits, sockets, cooling systems and different household appliances. The is a result of the growing demand for smart electrical devices and the increasing production of electronics.
For Instance, in 2022, Mitsubishi Gas Chemical (MGC) expanded its China POM resin production by acquired a 30% stake in P Holdings via its subsidiary. The aligns with Polyplastics Co., Ltd.'s plan to establish a new POM facility in China, producing 150,000 tons annually. Polyplastics has also initiated a separate POM manufacturing company in Nantong, with a 90,000-ton annual capacity, scheduled for completion in 2024.
The COVID-19 pandemic had a major effect on the globally polyoxymethylene (POM) business, as it did on many other industries. Due to the pandemic's disruption of production processes, supply networks and demand dynamics, the POM market as a whole was affected. Production of POM manufacturing plants was slowed down and in certain cases temporarily stopped during the early stages of the pandemic due to lockdowns, restrictions and labor shortages.
The led to supply chain disruptions and changes in raw material costs, along with logistical difficulties and a decline in international commerce. The pandemic-induced economic slump had a significant impact on critical end-use industries, including automotive, consumer products and industrial manufacturing, posing problems for the POM industry from a demand perspective.
The market for POM declined as a result of lower consumer expenditure, project delays and manufacturing activity interruptions. However, the need for healthcare during the pandemic led to a surge in demand for POM in some markets, including packaging materials and medical equipment.
The POM market is anticipated to grow as the world economy slowly recovers from the pandemic, albeit the rate of recovery may range among various end-use sectors and regions. Businesses in the POM industry have been adjusting to the new normal by emphasizing innovation, digital transformation and robust supply chains to help them deal with the uncertainties and difficulties that the COVID-19 pandemic has brought forth.
The current situation between Russia and Ukraine may have several effects on the POM market. First, geographical factors such as the location of industrial sites, transit routes or raw material access may cause supply chain interruptions. Global POM availability may be impacted by delays or shortages if important POM suppliers or manufacturers are based in the conflict area or depend on supply networks that go via that region.
Political disputes have the potential to impact market sentiment and exacerbate economic instability. Price swings for commodities, particularly polymer compounds like POM, are frequently caused by uncertain economic situations. Geopolitical threats may force companies and investors to modify their business plans, which might have an impact on POM market price and demand.
Furthermore, international trade flows may be hampered by trade relations and economic sanctions enacted in reaction to geopolitical events. The issue may further complicate the dynamics of the global POM market, impacting producers as well as consumers, if it leads to trade restrictions or tariff adjustments.
The major global players in the market include: BASF SE, Asahi Kasei Corporation, SABIC, Kolon Plastics, Inc., Westlake Plastics Company, Polyplastics Co. Ltd., Mitsubishi Chemical Corporation, DuPont de Nemours, Inc., Korea Engineering Plastics Co., Ltd. and LyondellBasell Industries Holdings B.V.
The global polyoxymethylene (POM) market report would provide approximately 77 tables, 93 figures and 210 Pages.
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