Prominent market players in the world market for polyphenylene ether are Mitsubishi Engineering Plastics Corporation, Sumitomo Chemical Company, Saudi Basic Industries Corporation, and Asahi Kasei Chemicals Corporation, in accordance with a recently published market research report by Transparency Market Research.
An emerging and prominent trend that is being noticed in the international market for polyphenylene ether (PPE) alloy is the prevalence of joint ventures between pursuits for PPE capacity expansion and market participants. This is not only reinforcing the production capacity and technical expertise of various partnering companies, but also enhancing their capability to operate. An instance in focus is the company Asahi Kasei Chemicals Corporation. In the month of January, 2017 the said company secured a joint venture with another company, China National Bluestar (Group) Co. Ltd. In accordance with the said agreement, Asahi Kasei Chemicals Corporation is expected to initiate the sale and production of its mPPE brand Xyron in the country of China. It also includes the intermediate material i.e. polyphenylene ether (PPE) and 2, 6-xylenol.
In a recently published market research report by Transparency Market Research, it has been predicted that the world market for polyphenylene ether alloy is expected to rise at a steady CAGR of 4.9% in between the time period that extends from the year 2016 and 2025. The said market is anticipated to reach a market valuation of US$ 1,951.2 mn by the year 2025 from a market valuation of around US$1,264.7 mn in the year 2016.
North America to Continue with Regional Supremacy
North America has accounted for a leading market share in the international market for polyphenylene ether alloy in the year 2016. This regional segment is backed by the segment of automotive as it is the leading end user in North America. It is also supported by the growing need for light weight automotive components so as to serve the requirement for light weight vehicles which are fuel efficient.
Europe and the region of Asia Pacific together account for a sizeable share of the world market for polyphenylene ether alloy. Growing demand for sustainable and specialized products is encouraging the demand for polyphenylene ether alloy in the region of Europe. Growth promoting factors such as European Union’s end-of-life vehicle requirements and increased regulations on CO2 emissions have forced automakers to go for high performance material that assist in reducing manufacturing cost and reducing vehicular weight. In the forthcoming years, increasing investments in the industry of automotive in many of the European countries like France, the U.K., and Spain is anticipated to come up with promising opportunities for the market for polyphenylene ether alloy. Various automakers like Renault is making heavy investment for the manufacturing of electric vehicles that are anticipated to generate substantial opportunities for the manufacturers of polyphenylene ether alloy.
Stringent Government Measures to Impact Market Positively
There are several factors that drive the world market for polyphenylene ether alloy, of which growing need for the reduction in the weight of automotive components for the purpose of fuel efficiency is the leading one. Strict rules and regulations to bring down the emission of CO2 have forced many of the manufacturers to go for innovative ways and new materials that are working in favor of the said market.
Another crucial element that is fuelling the growth of the said market is stringent regulatory measures across the globe for the purpose of controlling corrosion of equipment. This also makes polyphenylene ether alloy eligible for many different applications, particularly in fluid transporting equipment as it comes with high hydrolytic stability owing to its quality of low absorption rate. Apart from that, polyphenylene ether alloys are considered recyclable, eco-friendly, and exhibit high dimensional stability. As such, the said market is anticipated to witness growth ovetr the years to come.