Global Chemicals and Materials Industry Outlook
Recycle and reuse practices are impacting the sales of virgin materials, resulting into lesser dependency on volume-driven growth. New materials are showcasing potential for driving value-based growth, but chemical companies are still some time away from achieving voluminous production, while maintaining high quality at the same time. Barring few exceptions, a majority of players are still prioritizing short-term volume growth over long-term value growth. Pressure on improving bottom-line is influencing manufacturers to improve efficiency and reduce operational costs. The impact of value-driven growth may not be visible in the short-term, but long-term outlook remains in favor of a balanced approach between value and volume.
Manufacturers are under increasing pressure to incorporate digital solutions in their offerings. Forward-thinking manufacturers are investing in technology to reduce human interference and streamline key operational aspects such as ordering and shipping. Resonating its influence over every industry, Internet of Things (IoT) has the potential to transform and disrupt the chemical sector. Connectivity through IoT devices is gaining traction, whereas product-level sensors on dispensing equipment and barrels are helping manufacturers track their consignments digitally. Through assessment of long-term benefits, chemical companies are capitalizing on digitization by adopting digital platforms & processes that eliminate human error in profit-associated operations.
Manufacturers continue seeking low-priced feedstock in a bid to marginally reduce pre-production costs. Industry leaders are joining forces to replace fossil fuel-derived feedstock with bio-based alternatives. However, concerns related to producing affordable and sustainable feedstock at mass scale remains a challenge. Access to quality and affordable feedstock will continue to remain a focus area for manufacturers. Chemical manufacturing processes are running on limited energy, while volume of feedstock is getting stranded at ports as disapproval from import authorities keeps disrupting supply chains in sectors, such as oleochemicals and petrochemicals industries.
Chemical manufacturers have promised support and adherence to governments & regional authorities that are committing towards green, sustainable initiatives. Development of bio-alternatives is gaining momentum. Research & academic institutes are teaming up with manufacturers to formulate sustainable substitutes for commonly-used chemical substrates. Many companies are keeping a close eye on advancements in “green chemistry.” Shift towards eco-friendly chemicals will gain momentum in the future on the back of government regulations and end-user preference. Rising costs of fossil fuels will also instrument the upsurge for sustainable chemicals manufacturing.
List of factors tracked in the Chemicals and Materials Market Report
- Chemical Industry Value Add
- Chemical Sales
- Per Capita Consumption
- Standard Capacity Factors
- Plastics Consumption Outlook
- Glass Consumption Outlook
- Policies and Regulations
- Historical growth of top players
- Growth in associated markets
- Net trade scenario
- Apparent production capacity
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
- Executive Summary
- Market Definition
- Macro-economic analysis
- Parent Market Analysis
- Market Overview
- Forecast Factors
- Segmental Analysis and Forecast
- Regional Analysis
- Competition Analysis
- Production Companies
- Channel Partners
- Marketing Authorities
- Subject Matter Experts
- Research Institutions
- Financial Institutions
- Market Consultants
- Government Authorities
- Oil Based
- Hydrocarbon Solvent Based
- Water Based
- Powder Based
- Magnetic Separation
- Loudspeaker Audio
- Industrial Equipment Design
- Biomedical & Domain Detection
- Solenoids, Sensors and Switches
- Aerospace and Defense
- Analytical Equipment
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
The unique properties of magnetic fluids make them a feasible technology for some sensors and switch applications. Use of Ferro fluids can enhance motion sensitivity in some sensing applications. Products being evaluated for Ferro fluid application include inclinometers, accelerometers and flow meters, tilt, vibration, pressure and level sensors, and various switches. As this application has already achieved a certain degree of commercial success, the demand is poised to grow in the coming years. Ferro Fluids are a special type of material which can act like a liquid as well as a magnetic solid. Ferro Fluids contains iron particles and react with magnets in a very attractive manner. Taking advantage of this property, designers and stakeholders in the creative field are looking to create special display pieces which use Ferro fluids in creative ways. As result, the use of Ferro fluids is increasing in several sectors across several regions.
Asia Pacific leading with largest number of applications
Ferro fluids can be produced in any standard laboratory. However, the three main components have to be blended well as magnetic micro granules, surfactants, or base solutions (depending upon the environment they will be used in) require high blending expertise. For instance, the Ferro fluids developed by Japan-based firms being used for manufacturing Vaccum Feedthrough are regarded as high quality products. Adding to this, innovative players in the market such as MF Tech Ltd. are also located in Japan and thus the country has enjoyed a proven track record of developing new types of ferro fluids over the past three decades. Moreover, the rising popularity of smart audio devices, growing use in the medical sector, and the increasing applicability of magnetically operated sensors are also expected to benefit the APAC Ferro fluids market.
Europe to catch up to APAC while entering mature expansion phase
In industrial equipment manufacturing, the number of new orders received is expected to grow slightly over the forecast period. In the medical sector, the volume of ferro fluids consumption is expected to grow at a relatively rapid pace than usual. As a result, growth is forecast to continue, but is expected to remain moderate, especially in EU-5 countries. The Europe market is anticipated to enter the mature phase of its expansion mid forecast period and it seems most likely that the industry will continue to expand with a CAGR of 5.8% over the years ahead.
Latin America to present lucrative growth prospects with high imports from the U.S.
The U.S. has comparatively high quality standards pertaining to Ferro fluids and thus, the Ferro fluids produced in the U.S. are more expensive than the Ferro fluids produced locally. Owing to this particular factor, consumers who use Ferro fluids for high-end applications prefer importing them from the U.S. Manufacturers based in the United States are Latin America’s leading Ferro fluid suppliers and this trend is expected to continue in the coming years as well. As the market size is relatively smaller in the region, most of the suppliers export their products from offshore sites rather than setting up manufacturing units in the region. Apart from the already established automotive sector, various industry verticals that consume Ferro fluids are likely to grow in the coming years, which will further widen the gap between demand and supply, especially for high quality hydrocarbon solvent-based Ferro fluids. As result, the market for Ferro fluids is expected to flourish considerably in Latin America.