COVID-19 Review: Downturn in Automotive and Hydrocarbon Industries due to Lockdown Stymies Acrylonitrile Market Expansion until 2021, Growth to Accelerate in the Aftermath
Slumping production cycles and disruptions in the supply chain of key end-use industries have generated seemingly impregnable barriers for the acrylonitrile market, particularly in automobile manufacturing and petrochemicals.
ROCKVILLE, MD / ACCESSWIRE / June 18, 2020 / Rapid urbanization has generated a wave of change in people’s lives. As cities expand, the demand for transportation has kept pace. Various automobile manufacturers have established their industrial plants across various parts of the globe in order to address this burgeoning demand. As automobile manufacturing has bolstered, the demand for spare parts, accessories and raw materials associated with it have also increased. Acrylonitrile is a chemical compound which is used in producing automobile accessories such as bumpers, dashboards, seats, lighting equipment, center consoles and headliners. Additionally, it is also used to produce a wide range of chemical products such as resins, acrylic fibers, adiponitrile and acrylamide. Such extensive applications have significantly burgeoned the scope of the acrylonitrile market in recent years.
The COVID-19 pandemic has ushered in a downward spiral in the acrylonitrile market, attributed to severe sluggishness in the automotive and petrochemical sectors. The implementation of lockdowns across various countries have distorted manufacturing capabilities of these industries. Mandatory social distancing protocols imposed by governments have restricted travel and transport, compelling the demand for automobiles to nosedive. Additionally, closure of chemical industries has led to a decline in production of butadiene derivatives which are used to manufacture auto tires of which acrylonitrile is a part. This sluggishness is anticipated to last until 2021, after which growth trajectories are expected to revert to normalcy, restoring the gaps in demand and supply. Considering these trends, the acrylonitrile market is poised to expand at a moderate CAGR of 4% in the forecast period until 2030.
“Surging demand for acrylic fibers to manufacture plastics and composites will steer the growth of acrylonitrile market, besides the automotive sector. Market vendors are taking advantage of this trend and are forging strategic partnerships with other players, thus fulfilling their objective of capacity expansion,” concludes a prominent Fact.MR analyst.
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Acrylonitrile Market- Important Takeaways
- Acrylonitrile Butadiene Styrene (ABS) is set to emerge as the kingpin due its use as a structural plastic in automotive components, housing and construction, machine parts and computer housing.
- Nitrile rubber is anticipated to emerge as an ideal raw material for manufacturing automotive transmission belts and non-latex gloves.
- East Asia is set to generate lucrative growth opportunities, contributing 2/5th of the overall revenue in the acrylonitrile market. Emergence of manufacturing hubs in China & Japan is the leading growth driver.
- South Asia & Oceania will offer the most impressive growth prospects, attributed to the emergence of economic peaks in countries such as India.
Acrylonitrile Market- Key Driving Factors
- Rapid expanding textile and apparel industries in developing economies such as India, Indonesia and Bangladesh is driving the demand for acrylic fibers which extensively utilizes acrylonitrile as a raw material in its manufacturing process.
- Extensive usage across the construction industry for manufacturing pipes and fittings due to their excellent mechanical strength, light weight and corrosion resistance is slated to bode well for the acrylonitrile market.
Acrylonitrile Market- Leading Constraints
- Availability of low cost polyester fibers as effective substitutes shall hinder market expansion as the former are more affordable. Furthermore, a switch toward bio-polymers will also impede market growth due to environmental concerns.
- High level of toxicity due to volatile reactivity with copper, oxidizers and strong acids and bases has been discouraging the usage of acrylonitrile based compounds in the manufacturing process.
Anticipated Impact of the Coronavirus Outbreak
The acrylonitrile market has registered significant shortfalls, especially with regard to the chemical and automotive industries. Since the onset of the pandemic, governments have implemented strict lockdowns and social distancing measures, preventing industries from operating at their maximum capacity. Prominent chemical manufacturers have reduced their operational and capital expenditures while manufacturing operations have been scaled down by nearly three-fifths of the total operational capacity. The maximum decline in production has been witnessed in China, the epicenter of the COVID-19 pandemic. Demand for petrochemicals such as acrylonitrile butadiene styrene, butadiene and synthetic rubber have experienced a deep trough as restrictions on travel due to border closures have reduced the demand for automotives.
However, several countries are now easing the lockdown restrictions, attributed to a significant lowering of the rate of coronavirus infections. Such easing of restrictions have enabled manufacturing hubs to resume production at largely normal levels. For instance, the Chinese automotives market has witnessed an upsurge in the number of car sales as of May 2020 for the first time since the past few months, generating hopes of a speedy sales recovery. This is good news for the acrylonitrile market as its demand will accelerate significantly for the purpose of manufacturing spare parts associated with automobiles. Similarly, a resurgence has been witnessed in the petrochemical sector. Such positive trends are leading analysts to conclude that the acrylonitrile market will eventually regain its pace in the near-future.
Discover more about the acrylonitrile market consisting of 141 figures and 76 data tables, along with the table of contents. You can find the market segmentation on https://www.factmr.com/report/4671/acrylonitrile-market
Competitive Landscape
Prominent acrylonitrile manufacturers include China Petrochemical Technology Development Co. Ltd., Taekwang Industrial Co., Ltd., Ascend Performance Material, Chemelot, Asahi Kasei Corporation, INEOS, Mitsubishi Chemicals Corporation, Formosa Plastics and SECCO among others. Strong geographical presence, robust production plants, active collaborations with other market players and consolidation of existing supply chains are a part and parcel of the abovementioned vendors’ market expansion strategies. A recent trend observed amongst these players is the incorporation of industry 4.0 in order to leverage their production cycles. This development is especially significant due to the ongoing pandemic which has necessitated social distancing measures. As a result, companies have been compelled to invest in automation to streamline their production cycles.
More Valuable Insights on the Acrylonitrile Market
Fact.MR, in its new offering, provides an in-depth analysis of the global acrylonitrile market, displaying data on historical demand (2014-2018) and forecast data for the period, 2019-2029. The study provides readers with essential insights on the acrylonitrile market on the basis of application (acrylic fibre, adiponitrile, styrene acrylonitrile, acrylonitrile butadiene styrene, acrylamide, carbon fiber, nitrile fiber, others), across 6 key regions (North America, Latin America, Europe, East Asia, South Asia & Oceania, and Middle East & Africa).
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