The global market for Methyl Methacrylate (MMA) is projected to reach 5.7 Million Metric Tons by 2024, driven by growing demand from end-use sectors including automotive and construction markets, and rising demand in new application markets.
A reactive methyl ester of methacrylic acid (MAA), methyl methacrylate (MMA) is a clear and colorless liquid organic compound with fruity and pungent smell, and soluble in almost all organic solvents. MMA is a building block of acrylic polymers with a wide range of applications. The liquid chemical is primarily used in production of PMMA acrylic plastics, co-polymer methyl methacrylate-butadiene-styrene, transparent resins, waterborne coatings, case sheets, plates for spreading light evenly across LCD/LED screens of TVs and computers and in preparation of corrosion casts of anatomical organs. Automotive and construction sectors form major end-use markets for MMA. Demand for MMA hence is largely determined by growth in end-use markets. Growing demand for automobiles and boost in construction activity worldwide the backdrop of improving economic growth is driving demand for MMA.
Increasing applications of MMA and its derivatives in several other industries is also a major factor driving consumption. Emerging use of MMA in signs and displays used in advertising industry and use in optical applications such as LCD and LED screens coupled with all flat panel displays in electronics industry is stimulating growth of MMA market. Further, increasing growth of cast sheet and other grades of MMA used for various applications is driving demand for MMA. Increasing penetration of Polymethylmethacrylate (PMMA), which is derived from MMA, in medical devices, where they are replacing medical polymers such as PVC and polypropylene, is expected to offer immense growth opportunities for MMA market in the upcoming years. Produced largely for captive consumption in production of PMMA, the MMA industry is fairly concentrated. The industry in recent years was characterized by tightened supplies owing to unplanned production outages that eroded inventories and shot up prices. With demand continuing to remain steady, new production capacity is expected to come on-stream in the near term improving product availability.
Asia-Pacific represents the largest market worldwide. The region also represents the fastest growing market worldwide, with a CAGR of 5.6% through the analysis period. Increasing shift towards Asia in downstream sectors due to low cost labor and growing demand for products in these markets makes the region a major consumer of MMA worldwide. Rapid growth in residential and commercial construction, automotive production, and original equipment manufacturing is fueling demand for the organic compound in the region. With economic growth in some of the regional markets slated to outrun leading countries in the West, demand for MMA is expected to be progress steadily in Asia-Pacific. Acrylic plastics & resins, the largest and the fastest growing application of MMA, are used across a broad spectrum of applications ranging from paints and coatings to automotive and construction.
Major players in the market include Akzo Nobel NV, Arkema Group, Asahi Kasei Chemicals Corp., BASF SE, Evonik Industries AG, Formosa Plastics Corp., Heilongjiang Zhongmeng Longxin Chemical Co., Ltd., Kaohsiung Monomer Company Ltd., Kuraray Co., Ltd., LG MMA Corp., Lotte Chemical Corporation, Mitsubishi Chemical Corporation, Lucite International Ltd., Mitsubishi Gas Chemical Co., Inc., Mitsui Chemicals, Inc, Shandong Hongxu Chemical Co., Ltd., Sumitomo Chemical Co. Ltd., Thai MMA Co., Ltd., The Dow Chemical Company, Unigel and Zhejiang Dongue Chemical Co., Ltd. among other.